Gold is no longer just bullion, coins or ETFs: today there is a new digital version that every investor should know about. namely “Special Gold” Which is basically itwhich are crypto assets backed by real physical gold held in vaults, where each token represents ownership of a specific portion of that metal. Thanks to blockchain technology, This holding is recorded in a way that is traceable, transferable and partial, without having to go through the traditional channels of the mineral market..
This method adds to what gold has always offered (protection of value) what it previously lacked: Greater access, consistent liquidity, and real-time global reach. For many investors, it is a more efficient way to enter assets: it avoids the logistics of physical gold as well as the time and custody constraints of ETFs.
In ArgentinaThis makes more sense. before Need to diversify away from the pesofeatured gold appears as a tangible tool. It allows you to work 24 hours a day, maintain exposure to gold without relying on classic brokers, and move positions with portfolio flexibility. For those looking to integrate real assets into a modern portfolio, this option maintains the essence of the metal, but adapts to the financial/technological system that has the most expectations these days. Let’s dive into this new investment alternative below.
To understand tokenized gold, the first thing is to clarify that it is not a “synthetic asset”, but rather a “synthetic asset”. Digital representation of real physical gold. In the case of PAX Gold (PAXG), each token is equivalent to one troy ounce of London delivery bullion, the highest level on the global market. These bullion bars are kept in vaults, audited, and the token acts as a digital certificate proving your ownership of that specific ounce.
PAXG He is Issued by Paxos Trust Companya financial institution headquartered in New York, Regulated by the New York State Department of Financial Services. This regulation requires that you operate as Trust: Custody of real estate assets, maintaining segregated reserves and complying with official audits. This sets it apart from other similar codes, which sometimes operate under less clear structures or jurisdictions with less control. Support is live. Paxos states that each token is linked to physical gold that meets London Bullion Market Association (LBMA) standards. They publish monthly reports that verify that the total gold in the vaults matches the number of tokens in circulation. They even offer a tool to check, code by code, which bullion you support. This level of traceability is rare in other ways to invest in gold.
Operationally, PAXG is a token ERC-20 on the Ethereum network. This gives them many advantages: they can be bought or sold at any time, transfer between wallets without intermediaries, receive fractions (less than an ounce) and benefit from the liquidity of the cryptocurrency ecosystem. Unlike physical gold, it does not have to be stored or transported. Unlike ETFs, there are no market hours that limit trading.
According to Paxos, no storage fees are charged to those who hold tokens. Costs are integrated into the overall source model. Regarding the price, PAXG maintains a very high correlation with the global price of gold, as it is backed by physical gold. However, slight differences may appear (eg Tracking error of ETFs) depending on factors such as market liquidity, commissions, or spreads between platforms.
PAXG was launched in September 2019 and has since established itself as one of the main references in the tokenized gold sector. He has The market capitalization is more than 1.3 billion US dollars and Works daily Size greater than 100 million US dollars.
What are the advantages of tokenized gold over gold ETFs or physical gold itself? We will try to answer this below.
Compare Physical gold, ETFs and Distinctive gold It is a comparison of three ways to expose a person to the same assets, but with completely different operational dynamics. Physical gold gives the highest level of control: The metal is in your hands, without intermediaries or the need for financial or digital infrastructure. but That autonomy comes at a cost: You pay a premium over the spot price, have to rent a warehouse or insurance, take care of logistics and be exposed to counterfeit products. Selling physical gold is not instantaneous: it requires finding a buyer, verifying its purity, and accepting wide spreads.
ETFs like GLD They have solved many of these problems. It provides access to the gold price from a traditional investment account, with high liquidity and lower spreads. They operate under clear regulatory frameworks, with formal sponsorship, and are traded like any stock. Access is simple and the cost of entry is low. but Gold cannot be withdrawn, It depends on market hours It pays the fund’s commissions in addition to what is possible Tracking error. It is an effective exposure, but always within the traditional financial system.
he Distinctive goldlike PAXGis placed in the middle and It adds its own advantages. First of all, the crypto market Works 24/7Allowing you to buy, sell or move positions at any time. Second: Fractions: It is not necessary to buy a full ounce. You can purchase the exact amount you want. Thirdly, Transparency-The link between the token and the bullion is audited, verifiable on the blockchain and can be consulted in real time. Additionally, physical custody is included (the user does not pay to back the gold) and the digital infrastructure provides a level of traceability that neither physical gold nor ETFs achieve.
However, each format has its own risks. For physical gold, security depends only on the investor: if it is lost or stolen, there is no way to recover it. An ETF provides institutional security, but limits flexibility: outside market hours, it cannot be traded. Moreover, you should always outsource the custody. In tokenized gold, it is necessary to understand the digital environment well: Private keys and wallets. The care and security of assets depends directly on how that infrastructure is managed.
with regard to Bail Here the differences become clear, with their advantages and disadvantages. Physical gold forces you to solve the storage and security problem yourself. The ETF delegates this responsibility to the fund, with all that this entails depending on the financial system. In tokenized gold, the user can choose: Leave your tokens on the exchange (simpler, but with counterparty risk) or move them to your own wallet, even a cold wallet, with full control of the asset. this Possibility of self-guarding He is One of the most important nuances of symbolic gold: Combines physical backup and digital sovereignty. In some cases, such as PAXG, there is also the option to redeem physical gold if a certain minimum is met.
he Gold symbol or 3.0 And it’s not just about imitating metal: Changes the way it is accessed. Your real contribution is there Adapt traditional assets to current requirements for speed, transparency and flexibility. It does not replace physical gold or ETFs, but adds an alternative that expands the options and allows for more dynamic strategies. For those who prioritize liquidity, trackability and control in their portfolios, Tokenized gold turns legacy assets into an operational tool in the digital economy. We’ll follow up next week with more personal finance and investing articles.