PAXG: Tokenized Gold
Without a doubt, gold is probably the best store of wealth as every human being recognizes it. Throughout history, countless conflicts and wars were fought because of gold, proving our obsession with that precious metal. In the old days, people used gold as a form of money to trade, but it's no longer the case today as the gold price has appreciated too much to use as everyday money. Nonetheless, gold-backed currency or credit is still probably the best form of money now if they still exist.
The idea that a currency is backed by commodities such as gold or silver is reassuring to the holder of that currency. BRICS know that very well, and they're trying to weaken the dollar with the metal-backed reserve currency. If the dollar keeps expanding its M2, surely people will migrate their wealth to a better medium backed by metals.
If you want to invest in gold, physical gold is probably the best way to go. Still, there are risks involved with the self-custody of your gold. Robbery is one of the risks with self-custody; if they could break into your house, they could break into your safe. I know the chances of getting robbed is not that high (depending on the safety of your neighborhood), but the risk is still there.
An alternative to physical gold is a gold ETF. Or, if you're a crypto degen, you could buy tokenized gold. The best-tokenized gold I came across is PAX Gold (PAXG). Pax Gold (PAXG) is a cryptocurrency. Each token represents 1 oz and is backed by a 400 oz fine troy ounce London Good Delivery gold bar stored in Brink's vaults. If you own PAXG, you own the physical gold that is held in custody by Paxos company.
The good thing about PAXG is it's an ERC-20 token built on the Ethereum blockchain, which means it can be moved easily across wallets and exchanges by paying an ETH gas fee. PAXG can be traded 24/7 and have high liquidity on centralized exchanges (CEX) and decentralized exchanges (DEX). Besides that, you could buy a fraction of an ounce; that's the beauty of tokenization.
Paxos is a New York State Department of Financial Services-regulated trust company and custodian. PAXG is also approved and regulated by the DFS and fully backed by physical gold held in the world's most reliable and safe vaults. Every month, a nationally recognized auditor will attest to the matching supply of PAXG tokens and underlying gold. PAXG holder could redeem their tokens for LBMA-accredited Good Delivery physical gold or redeem them as USD at the current market rate. Paxos charge a low fee of (0.03-1%) for token creation and redemption.
Just like every cryptocurrency, the best thing about tokenized gold is that it can be staked to earn a reward. You could stake PAXG on Binance to earn 1% APY (protected). If you have a higher risk appetite, you could try liquidity mining with PAXG by putting it in PAXG/USDT liquidity pool on Binance that yields 5% APY.
