PAX Gold (PAXG) way to own investment-grade physical gold, true?

[JohnLocke]

Through another thread, I became acquainted with the PAX GOLD (PAXG) cryptocurrency, which is backed by physical gold as they at least advertise on their website.

Is there anyone who knows more about this company or if there is anything to consider before starting to invest in this cryptocurrency?

 

[JackAlabama]

Cache Gold is gone...

Occurred around the time the Chinese were laundering into Singapore, so the AML division in Singapore started pushing through new laws into the all assets and that seeped into metals and Cache didn't make enough money to cover the increased overheads so ceased ops.

I quoted cache golds statement in fullright in my post. Would have been good if you quoted that in full as well.

I wouldn’t be buying gold in say the EU, UK, US.

Friend recently (6 months back) converted his entire life savings into gold in Europe.

Didn’t seem to understand it’s trapped in the system and he should have moved his funds to Asia where he lives and has lived for 25 yrs - and convert to physical.

If there is a gold seizure in Europe it will be seized and with the debts and collapse of the EU pretty much set - I can’t see how he will have anything but a worthless claim at the relevant time.

Others say the caymans - that’s on Americas doorstep - in a chaotic world those will be seized.

Others say Dubai - perhaps - I think it’s generally against Islam to steal - so that will be tested.


Because either their record search system isn’t in sync, or they are not backed.


One other thing on paxos

Not sure where I read it but my understanding is it’s related to some questionable banks in the Caribbean known to be related to the guy that did banking for SBF there.

More on the Dubai one also - geopolitically they are protected for which ever power is vying for coercive control in the region.

In a chaotic world that’s gonna be up for grabs and perhaps from that perspective the risk is very high.

Also one thing of note - it appears what ever happens in the future we will have a CBDC of sorts.

Even with a collapse and rebirth that appears set in because any new governments that come out of the ashes even in the worst case scenarios will want absolute control.

Even holding billion physically in the West will be problematic converting into that system IMO.

Then there’s the elephant in the room - deflation

In Japan there’s places you can pick up a home and acres of land for about 10k

That’s what a world of deflation looks like as demographics collapse and assets de-freeze and supply outstrips demand.

well that zeihan dude is a joke at best, wouldnt really count on what he says. He was very wrong about bitcoin in 2022 for example and seems a cia propaganda hack. Uttering such nonsense in one area allows me to assume his research and due dilligence process is overall quite sloppy (since he covers what the letter soup feeds him).

 

[wellington]

I quoted cache golds statement in fullright in my post. Would have been good if you quoted that in full as well.

I went on my extensive dealings with their organisation, your comment is above, not sure what benefit that would have being posted twice.

well that zeihan dude is a joke at best, wouldnt really count on what he says. He was very wrong about bitcoin in 2022 for example and seems a cia propaganda hack. Uttering such nonsense in one area allows me to assume his research and due dilligence process is overall quite sloppy (since he covers what the letter soup feeds him).

When you are in the macro space you take all opinions as a pinch of salt into a bowl and cook up a balanced direction on where you are heading.

His views on Bitcoin aside he has solid geopolitical insight, biased or not, and should not be discounted.

FYI deflation in action:
Japan (Demographic Collapse) Cheap Houses Japan
Italy (Demographic Collapse) My Cheap Italian Home

This will occur across Europe in general, asset prices collapse, areas in Asia (Thailand, China etc), etc

 

[JackAlabama]

I went on my extensive dealings with their organisation, your comment is above, not sure what benefit that would have being posted twice.

complete quotation.

When you are in the macro space you take all opinions as a pinch of salt into a bowl and cook up a balanced direction on where you are heading.

His views on Bitcoin aside he has solid geopolitical insight, biased or not, and should not be discounted.

FYI deflation in action:
Japan (Demographic Collapse) Cheap Houses Japan
Italy (Demographic Collapse) My Cheap Italian Home

This will occur across Europe in general, asset prices collapse, areas in Asia (Thailand, China etc), etc

some places go down some up, nothing new nor groundbreaking.
There are way better analysts out there then loud mouth zeihan, which seems on the level of the green chicken.

 

[JohnLocke]

So basically, what we're saying is, some folks are all in on USDT Gold and some are big on Pax Gold, right? But either way, both of these cryptocurrencies are kinda iffy when it comes to government stuff and what the politicians are thinking. Is that the gist of it?

And there's also this worry that the companies behind USDT Gold and Pax Gold might just pack up and leave, and then what? We'd be out of options for getting our money back.

But on the flip side, if you're using legit money to buy into gold, you probably won't run into trouble with the government taking away your crypto, right?

 

[wellington]

But on the flip side, if you're using legit money to buy into gold, you probably won't run into trouble with the government taking away your crypto, right?

Forced seizure due to outlawing Gold.. is the most pressing issue.

 

[pastet89]

All fugazi. If you want to buy gold go and get physical gold. Don’t give your money to someone who claims to be holding gold for you.

If you wanna buy 10Kg of gold would you hold it at home or you would leave it to someone else to hold it for you?

 

[JohnLocke]

And we are turning off topic again. Open a new thread if you want to discuss this! if you continue your posts get deleted.

 

[clemens]

I would as with any type of investments only put maybe 10% in Pax Gold if you want crypto gold as an asset. So you avoid a big loss should something went wrong with this Trust company.

 

[hkrlh1]

Paxos also issues stablecoins for PayPal (PYUSD) and used to issue for Binance (BUSD). That might give it some credibility.

Tether and Paxos are the biggest issuers of stablecoins, if any of them were to go down, the whole market would come down with them.

But why not try to buy some PAXG and redeem it to see what happens?

 

[jafo]

Is there anyone who knows more about this company

I've done my due diligence to the best of my abilities, but NOT because I wanted to use them. I am forced to use them and their services because some of my clients demand them.
Clients call the shots regarding what currency/coin/token, etc., they will pay with. I just ensure I can "cash out" or swap to Bitcoin (or XMR). So far, so good.

if there is anything to consider before starting to invest in this cryptocurrency?

As I mentioned before, some clients pay with it, while some suppliers want or prefer it—not many, though. Personally, I only keep 2% of my client-derived profits "invested" in the coin they paid with. I also apply this 2% "investment" standard to my suppliers' chosen payment coins.

Example: If the profit I gain from my client is CHF10K and my client insists on paying me with PAXG, then I would keep CHF200 in PAXG coins. The rest, CHF9800, I would swap for Bitcoin if I didn't need it to purchase products for other clients. If I need to pay a supplier with, e.g., CNH₮, then I would just swap from PAXG to CNH₮ and execute the payment.

I hope this helps shed some light on how I "invest" in it. Remember... It's NOT by choice. I just “Go along to get along.”

 

[369]

you must redeem 430 PAXG (~$936K) tokens

Ouch,explains that most people never will be able to redeem

 

[belarus]

10.4.2. In order to redeem your PAXG into Allocated Gold, you must redeem 430 PAXG (~$936K) tokens plus the fee set forth in the Paxos User Guid

That's a lot of coins you need to own to redeem the gold!

 

[hkrlh1]

That's a lot of coins you need to own to redeem the gold!

Right. For that amount it might be better to buy real gold and secure it in a vault. At least you know it's real and yours.

 

[SoNewToAllShit]

I'm thinking if you've got some small amounts lying around that you can't really or want to invest in stocks, then investing in PAX Gold could be another way to go about it.

Good idea - I see it's possible buy PAX GOLD on Kraken exchange, time to buy a little for a test.

 

[JohnLocke]

Yes, kraken works well for PAX GOLD and small investment if that is what you want to use.

 

[wellington]

Yes, kraken works well for PAX GOLD and small investment if that is what you want to use.

What I see here is layering of risks

One you have the risk with Paxos in general
You have the risk of the token being frozen
You have the risk of the underlying being seized
You have the risk of a war severing coms lines or coms lines Being restricted for military only use in an event of war

Just layers and layers of risk

 

[JohnLocke]

You have the risk of a war severing coms lines or coms lines Being restricted for military only use in an event of war

So, in the event of war, Bitcoin and Ethereum are more secure according to what you're writing? I would like to have that explained a bit more.

 

[wellington]

So, in the event of war, Bitcoin and Ethereum are more secure according to what you're writing? I would like to have that explained a bit more.

Bitcoin runs on a satellite network as a backup, with various incorporated mesh networks.

For example, in my home office, i have a tv satellite dish Blockstream Satellite: Bitcoin blockchain broadcasts with some additional standard hardware and some software which is used to connect provide a redundancy for the bitcoin network, it's not completely 100% redundancy protection but suspect in the event say the cables from the East and the West being severed that there is a slim likely hood that the chain would split due to not being connected world wide.

Where ETH is concerned I am unsure of any exercises for this as it stands...

What is needed (small 60k-100k satellites for repeaters being sent up with SpaceX).

---

Where PAXG is concerned just checked our corporate treasury, we had 100k as understood, now 125k.

During the period from 2020.

Currency debasement (except 2022-2023) has been on average 13-15% pa (most people don't see this as it's basically locking up bonds on balances sheets which means they don't enter the real economy directly but they do seep into the markets, and appreciate asset prices (hence wealthy get wealthier, poor get poorer).

And inflation is 27% aggregated through that period.

so 100,000$ (off the cuff/napkin) - 27% - 39% (2020-2021-2022,2023-2024) = 66% decline in true spending power + 25% nominal value = 91% so on average = 3% so the tightening (strengthening of the $) during the rate hike and then liquidity flow period has recovered 1% per annum in spending power loss, whereas from 2013-2020 Gold historically has lost 4% PA against combined debasement & inflation.




Gold proceeds to rise roughly 13-15% against liq increases per 10%, bitcoin roughly 90%, down the risk curve more growth achievable in ETH/SOL.

But holding gold is like holding a melting ice-cube standing inside a fridge, its still melting, it's a s**t debasement hedge, but perhaps its hedge as in it's physical and not reliant on coms lines.

Holding cash is like holding a melting ice cube standing in Cairo at lunch time.

 

[alain]

Holding Gold since 5 years all it does is going up and it adjusts to inflation and the markets, for me, it has been a really good investment, especially when I wanted diversity in my portfolio.

 

[JohnLocke]

I really appreciate your comment, but not in this thread. Perhaps you should start a new thread to discuss wars, politics, and religion there. This thread is exclusively about war. That way, we also avoid warning points, which I'd rather not hand out.