PAX Gold (PAXG), a gold-backed cryptocurrency, has experienced huge leaps in investor interest following the outbreak. This increase occurs as investors turn toward safe-haven assets during an increasingly volatile U.S.-China trade relationship. PAXG tracks the price of gold and gives investors direct exposure to this precious metal. It brings with it all of the advantages of digital assets.
PAXG differs from other similar Asset-Backed Cryptos by being backed by physical gold in reserves. Each PAXG token is backed by one fine troy ounce of physical gold held in reputable, London Good Delivery standard vaults. This support forms a deep connection to a predictable revenue source. Second, it attracts the kind of long-term investors looking to mitigate risk in an increasingly uncertain economic environment.
PAXG has tracked gold’s remarkable run, which is up more than 23% YTD. It recently plateaued at a new all-time high above $3,300, but has in the last few days pulled back slightly to right around $3,265. This high performance further emphasizes its strong track record of closely tracking the spot price of gold. Its overall market capitalization is currently around $1.4 billion.
The first three months of the year were marked by vigorous activity in PAXG — net token minting topped $42.7 million. An impressive 58% of this demand came from North America, indicating an overwhelming positive investor sentiment towards this region. PAXG is currently listed on the CoinDesk 20 (CD20) index.
As one of a handful of gold-backed crypto coins, PAXG offers investors price exposure to gold, combined with digital flexibility and storage efficiency. As a digital, blockchain-based representation of the real-world asset, PAXG is accessible to investors looking to purchase and store gold through digital means.
