What is PAX Gold?
The PAXG token (PAX Gold) is a digital asset that represents one fine troy ounce of a London Good Delivery gold bar. The gold bar is stored in professional vaults in London. Unlike other gold-backed tokens by owning PAXG you own the underlying gold which is held under the custody of Paxos Trust Company. Therefore, the PAX Gold tokens represents real-time value of Gold.
The PAXG is and ERC-20 token running on the public Ethereum blockchain. This makes the token compatible with all wallets that accept ERC-20 tokens. All transactions are done via smart contracts eliminating human errors.Unlike other forms of investments into gold like buying Certificates, ETFs or physical gold PAX Gold on SMART VALOR is available 24/7 and can be purchased via CHF, USD, EUR or GBP. On the exchange the trade is enabled in 6 trading pairs including USDT, BTC, CHF, EUR, GBP and USD.
What are the key benefits of PAX Gold?
Allocated – PAX Gold is a token that operates on the Ethereum blockchain and is backed by physical gold. The token can be allocated down to the serial number of each individual bar. PAX Gold can be transferred instantly, and the allocated ownership moves with the token transfer. This makes the purchase and trading of gold faster and easier than even.
Redeemable – Unlike any other gold products available today PAX Gold is redeemable in several forms. PAX Gold owners can convert the tokens into unallocated gold entitlements, physical allocated gold or fiat. PAX Gold tokens purchased on SMART VALOR can be transferred to the official Paxos website and be converted to the full-sized London Good Delivery bar or through a network of gold retailers all over the world also to smaller amounts of physical gold.
Programmable – Programmable gold creates new possibilities for the owner of PAX Gold. It is easy to use for trading, payment or conversion into other assets.
Regulated – PAX Gold is issued by a financial institution regulated by the NYDFS called Paxos Trust Company. Next to the regulated company the NYDFS also regulated the individual product PAX Gold as well, ensuring a greater customer protection and higher standard of operation. Which means that PAX Gold as a product is specifically approved by the NYDFS as well.
Available to Anyone – PAX Gold has no minimum investment on SMART VALOR which makes fractional bar ownership now available for every retail customer, accredited investor and institutional investor. Something which was not possible before.
Low Fees – Unlike other forms of gold investments such as ETFs, there is zero custody fee on the SMART VALOR platform. The transaction fee is the same as for any other digital asset traded on SMART VAOR exchange, currently 0,29%1. There are no other fees charged such as storage, management, performance or overnight fees which is standard in other financial products. Withdraw fees are based on the Ethereum gas fees plus 0,02% which are charged by Paxos. If you buy the token on SMART VALOR there is also no creation fee.
Bankruptcy Remote – Customer funds on SMART VALOR are kept on a separate wallet. Custody of digital assets is provided by SMART VALOR in partnership with BitGo. PAX Gold is issued by a state-chartered trust company and keeps the gold bars also separate from the Paxos companies’ assets. Therefore, the issuer Paxos as well as the custodian SMART VALOR (if the tokens are held on the exchange) guarantee that the customer funds are kept separated from the customer funds. In case of a company insolvency of any of two companies, the funds are completely segregated and not touched.
Decentralized – No single entity or group has a controlling stake of tokens and can control the entire market. PAX Gold can therefore not vary from the Gold price.
Easy to Trade – PAX Gold can be traded easily on SMART VALOR against Bitcoin and USDT and four fiat currencies.
Tokenized Gold has several advantages compared to other types of Gold investment such as:
* No custody fees
* Instant settlement
* Very low minimal amount
* Instantly redeemable in physical form
The following table shows the advantages of PAX Gold if purchased on SMART VALOR (other exchanges might have minimum purchases or custody fees).
How can I buy PAX Gold?
Step 1: Create an account on www.smartvalor.com
Step 2: Do the online verification by taking a picture of your passport/ID and submitting a selfie.
Step 3: After the completion of the verification just click on Buy/Sell, then on PAXG
Step 4: Choose the payment method (credit card, bank wire, BTC or USDT)
Step 5: You now have the PAXG tokens in your wallet and can actively trade them or withdraw them to another ERC-20 wallet.
How can I track my gold and do a physical redemption?
The PAX Gold underlying gold is based on physical London Gold Delivery gold bars. Each bar is identifiable by a serial number and can be allocated to the corresponding tokens. Therefore, the PAX Gold token represents a fractional ownership of the LBMA accredited physical gold bar that is stored in professional gold vaults in London. If you hold the PAXG in your private ERC-20 wallet you can track the location, the fine weight, the serial number, as well as brand of the gold.
If you have 430 PAXG you can request a physical delivery of the London Gold Delivery Gold Bar by registering on www.paxos.com. The gold can also be converted into unallocated gold entitlements and be redeemed in smaller amounts of physical gold by the worldwide Paxos partner network of gold retailers available on www.paxos.com.
For more information about PAXG please refer to https://www.paxos.com/wp-content/uploads/2019/09/PAX-Gold-Whitepaper.pdf
Disclaimer: The risk of loss in trading tokenized commodities can be substantial. You should therefore carefully consider whether such investment is suitable for your risk profile and overall asset allocation. This is not a financial advise.