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?

 

[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?

 

[pastet89]

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?

Can you redeem it? From PAXG website I don't see this option.

I do see it for Tether though.

 

[hkrlh1]

Can you redeem it? From PAXG website I don't see this option.

I do see it for Tether though.

That's the whole point of PAXG, is that you can redeem it.

Redeemable
PAXG is the only gold token you can redeem for LBMA-accredited Good Delivery gold bullion bars. Institutional customers can also redeem for unallocated Loco London Gold. Redeem for USD at current gold market prices at any time.

From their TOS:

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 Guide

13.4 If we determine after investigation that any of your PAXG have been used, or are being used, for illegal (or sanctioned) activity, we may not permit you to redeem your PAXG from Paxos, and, if presented for redemption, such PAXG and the Allocated Gold backing such PAXG may be forfeited.

PAX Gold Terms and Conditions - Paxos

Last Modified: September 25, 2023 The PAX Gold Terms and Conditions (hereinafter “PAXG Agreement” or “PAXG Terms and Conditions”) constitute an addendum to the General Terms and Conditions for the provisions of and use of the gold denominated and backed token managed by Paxos known as PAX Gold...

paxos.com

 

[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.

 

[JohnLocke]

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.

 

[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.

 

[AtlasShrugged]

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


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).

I couldn't have said it any better. He called Russia incompetent because they didn't stop the recent terrorist attack but said nothing about Israel not stopping the Hamas attack despite being warned by Egypt and despite having the best intelligence in the world. He's been saying for years that China will collapse. He should perhaps delete some of his older videos. And he has a punchable face + voice on top of it. He belongs to the same clown category as Harry Dent.

 

[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.

 

[diatessaron]

Storing gold costs money, so how does Paxos deal with that? They have no storage fees. They charge a "Creation & Destruction" fee. What happens when traders stop trading? I've also never seen the gold.