{"id":425,"date":"2021-09-06T08:00:03","date_gmt":"2021-09-06T08:00:03","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=425"},"modified":"2023-03-29T04:30:09","modified_gmt":"2023-03-29T04:30:09","slug":"top-3-gold-backed-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/top-3-gold-backed-cryptocurrencies","title":{"rendered":"Top 3 Gold-Backed Cryptocurrencies"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #223c50;color:#223c50\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #223c50;color:#223c50\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/digitalcoinprice.com\/blog\/top-3-gold-backed-cryptocurrencies\/#What_is_a_Gold-Backed_Cryptocurrency\" title=\"What is a Gold-Backed Cryptocurrency?\">What is a Gold-Backed Cryptocurrency?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/digitalcoinprice.com\/blog\/top-3-gold-backed-cryptocurrencies\/#Things_to_Look_Out_For_in_a_Stablecoin\" title=\"Things to Look Out For in a Stablecoin\">Things to Look Out For in a Stablecoin<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/digitalcoinprice.com\/blog\/top-3-gold-backed-cryptocurrencies\/#Gold_Coin\" title=\"Gold Coin\">Gold Coin<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/digitalcoinprice.com\/blog\/top-3-gold-backed-cryptocurrencies\/#PAX_Gold\" title=\"PAX Gold\">PAX Gold<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/digitalcoinprice.com\/blog\/top-3-gold-backed-cryptocurrencies\/#Perth_Mint_Gold_Token\" title=\"Perth Mint Gold Token\">Perth Mint Gold Token<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/digitalcoinprice.com\/blog\/top-3-gold-backed-cryptocurrencies\/#Which_stablecoin_should_I_invest_in\" title=\"Which stablecoin should I invest in?\">Which stablecoin should I invest in?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_Gold-Backed_Cryptocurrency\"><\/span><strong>What is a Gold-Backed Cryptocurrency?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">A gold-backed cryptocurrency is a type of stable coin that is pegged to the price of gold.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Stablecoins can be backed by fiat currencies, commodities like precious metals, or even other cryptocurrencies. For example, Tether (USDT), one of the most widely used stablecoins, is backed 1:1 by the U.S. Dollar. There are similar stable coins for other fiat currencies worldwide, although the U.S. Dollar is the most popular reserve.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unlike a USD-backed stablecoin, a gold-backed stablecoin is one whose price moves up or down with the price of gold. When a gold-backed stablecoin is first produced, a reserve of physical gold is purchased and kept in a vault by the entity which launches it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This reserve maintains a minimum value for the stablecoin by allowing owners to exchange their coins for the underlying asset, guaranteeing the stablecoin is worth at least as much as the asset it can be exchanged for.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Things_to_Look_Out_For_in_a_Stablecoin\"><\/span><strong>Things to Look Out For in a Stablecoin<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There are a few things to consider when choosing which gold-backed stablecoin to invest in.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Look for as much authentication as possible that the stablecoin is backed up by physical gold of good quality and good security.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Make sure the stablecoin maker guarantees the ability to exchange the coin for gold, even if you don\u2019t even plan to use the exchange.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tokens that represent a fraction of a gram of gold can be helpful for smaller investors as these allow investors to buy as many or as few as they like.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Look for fast confirmation and transaction speeds so that the cryptocurrency can be used as a means of exchange.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">With these in mind, here are 3 of the best gold-backed cryptocurrencies available today.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Gold_Coin\"><\/span><strong>Gold Coin<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/goldcoin.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Gold Coin<\/span><\/a><span style=\"font-weight: 400;\"> offers an easy entry point to investing in gold and cryptocurrency. Its biggest benefit is that each coin represents only a small fraction of an ounce of gold, meaning you can purchase as little or as much gold as you like.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some tokens trade 1:1 with full bars or grams of gold, making the barrier to entry much higher to purchase those cryptocurrencies. You\u2019ll still have to collect enough Gold coins (1000) to exchange for a full ounce of gold if you\u2019d like to trade them in.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Gold Coin is built on the Ethereum blockchain, with the physical gold backing each token stored in its own secured vaults. All gold holdings can be viewed online at any time and are fully audited by third-party auditors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, Gold Coin requires no identification to purchase, meaning investments in the asset can be completely private. You simply provide an Ethereum wallet address when purchasing, and the tokens are deposited directly.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"PAX_Gold\"><\/span><strong>PAX Gold<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Launched by PAX Standard in September 2019, PAX Gold (PAXG) is a gold-backed stablecoin that runs on the PAX stablecoin network. Each PAXG token is backed by one fine troy ounce of gold bar, stored in Brink\u2019s vaults. These are approved storage facilities of the London Bullion Market Association and are considered top-of-the-line.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The PAXG is an ERC-20 token, which is compatible with most other assets on the Ethereum network and is considered relatively safe. The Ethereum network ensures low trading fees and high-speed settlements.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The intended purpose of PAX Gold is to offer a reputable digital version of gold. The owner of each PAXG token receives full ownership of the backed portion of gold and can trade the token worldwide through exchanges accepting the ERC-20 token that represents the gold.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PAX Gold offers a fairly low, although substantial, investment minimum to purchase each PAXG token. In addition, they have each token connected to physical bullion, which means you can redeem each PAXG individually for its associated gold.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PAX Gold is regulated by the New York State Department of Financial Services, giving it a strong reputation and backing. PAX Standard has a third-party auditor check the storage vaults each month to ensure everything is running smoothly.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Perth_Mint_Gold_Token\"><\/span><strong>Perth Mint Gold Token<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/www.australia.gov.au\/\" rel=\"no-follow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">The Australian government<\/span><\/a><span style=\"font-weight: 400;\"> officially validates the gold behind each Perth Mint Gold Token in both weight and purity. This gives it one of the strongest guarantees of the truth to its backing compared to other stablecoins.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A government-backed project such as this one tends to draw more conservative yet savvy investors. PMGT began in 2018 as a cost-effective way to invest in gold.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Each PMGT comes with a digital gold certificate as proof of its backing through the GoldPass app. These tokens are created directly by Western Australia\u2019s Perth Mint and are backed by physical gold bars in their vaults. The use of the gold certificate further verifies that each cryptocurrency token has the legal and government backing of the gold it is supposed to represent.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of all the options on this list, the Perth Mint Gold Token has the highest grade of guarantee that each token is truly linked to its respective gold.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Perth Mint incurs all storage and insurance fees for the gold bars, with competitive and cost-effective prices compared with other gold-backed cryptocurrencies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although PMGT is one of the most popular gold-backed stablecoins today, it is not as widely available on exchanges as others. This makes it harder to get involved in a convenient way.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Which_stablecoin_should_I_invest_in\"><\/span><strong>Which stablecoin should I invest in?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">As we have seen, each token has its own advantages and drawbacks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">PMGT perhaps has the best guarantee but is harder to find on crypto exchanges. PAXG is a solid choice with significant backing, but the minimum buy-in is a little more expensive than other options. Finally, GLC is the most accessible with the simplest buy-in from its fractional shares but doesn\u2019t have quite the strength of guarantees some of the others have.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It might also matter to you how decentralized each stablecoin is, so be sure to look that up for each stablecoin you analyze before investing.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a Gold-Backed Cryptocurrency? A gold-backed cryptocurrency is a type of stable coin that is pegged to the price of gold.\u00a0 Stablecoins can be backed by fiat currencies, commodities like precious metals, or even other cryptocurrencies. For example, Tether (USDT), one of the most widely used stablecoins, is backed 1:1 by the U.S. Dollar. [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":428,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-425","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guide"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/425","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=425"}],"version-history":[{"count":3,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/425\/revisions"}],"predecessor-version":[{"id":2316,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/425\/revisions\/2316"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/428"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=425"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}