What is it?

PAX GOLD (PAXG) is a stable-coin which share commonalities with other commodity-backed Cryptocurrencies I wrote in earlier IN FOCUS – entries (these being EKON GOLD (EKG); DIGIX GOLD TOKEN (DGX); and DAI.

Like EKON GOLD (EKG) and DIGIX GOLD TOKEN (DGX) the commodity backing PAX GOLD is gold.

According to the official website:

“A digital token, backed by physical gold

PAX Gold (PAXG) is a digital asset. Each token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company.”

Which makes it relatable as an alternative to EKON GOLD.

Like EKON GOLD (EKG), it is an ERC20-token from the Ethereum blockchain.

“The difference between PAX GOLD (PAXG) and EKON GOLD (EKG) ) is the value of the coin itself.

Whereas and EKON GOLD (EKG) uses 1 gram of gold as an indicator of value to its coin, PAX GOLD (PAXG) uses one troy ounce of gold.

From the website:
“ PAX Gold (PAXG) is an asset-backed token where one token represents one fine troy ounce of a London Good Delivery gold bar, stored in professional vault facilities. Anyone who owns PAXG has ownership rights to that gold under the custody of Paxos Trust Company. Since PAXG represents physical gold, its value is tied directly to the real-time market value of that physical gold.”

Also, like EKON GOLD (EKG) there is the possibility to exchange the coins for actual gold.

Upside? The entry level is MUCH lower when compared to EKON GOLD (EKG).

With PAX GOLD (PAXG) you can “invest” in gold for the low amount of 15$ whereas EKON GOLD (EKG) has a minimum investing amount of easily a thousand-fold.

Opinion and analysis:

I will express and repeat the same sentiment I had when focusing on EKON GOLD (EKG):

“ I highly praise this coin due to its backing by gold (which historically has always been seen as a safe haven to protect wealth).”

Added benefit of this coin is the fact of its LOW entry-price when compared to EKON GOLD (EKG) making it more akin to DIGIX GOLD TOKEN (DGX).

Opinion?
Go and get this coin in order to secure wealth.

It is THE perfect foster-child if EKON GOLD (EKG) and DIGIX GOLD TOKEN (DGX) had a baby.

My opinion on this coin is also the sum of all positive aspects of two said coins combined to one.

“Invest in this coin and hold onto it.
I highly praise this coin due to its backing by gold (which historically has always been seen as a safe haven to protect wealth).
I highly advise to invest in any stable coin backed by a fixed amount of precious metal.
To do so means investing in a “classic” asset without actually having to invest in a surplus of accessories to keep the asset safe.”

“From an investors perspective I would still advise to invest in this token.
It is a stable coin worth having when you are a factual Crypto-millionaire and want to safeguard your acquired wealth.
Due to the given option to redeem EKG for real physical gold bars, it has a small edge over other coins backed by gold or other precious metals.”

In conclusion I would say this is an interesting token (and definitely a GREAT asset) to have.

For more information check out the following websites:

Official website: https://litecoin.org/
Official whitepaper.: https://www.paxos.com/wp-content/uploads/2019/09/PAX-Gold-Whitepaper.pdf
FAQ: https://www.paxos.com/category/common-questions/
Marketcap: https://coinmarketcap.com/currencies/pax-gold/

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