Technical analysis of PAXoS PAX GOLD (PAXG)

Paxos Gold is provided by the Paxos company.

Paxos Gold or PAXG is a physically-backed gold token. The issuer of Paxos Gold tokens is Paxos, based in New York. Each token represents one ounce of gold in accordance with London Good Delivery gold bar standards. These reserves are held in official, approved vaults. In other words, anyone who owns PAXG tokens owns the equivalent of that ounce of gold in the approved vault, which is supervised by Paxos Trust Company. Since the value of the tokens is directly pegged to the value of gold, the price of this token fluctuates in parallel with the global spot price of gold.

With an increasing number of ERC-20 tokens available for purchase, Pax Gold stands out because it is backed by an already established commodity. One of Pax Gold's main goals is to make gold investment more accessible.

The official whitepaper states that "over $3.5 trillion of the total gold available today is used solely for investment purposes." However, a large portion of it is not accessible to small investors. This is where Pax Gold comes into play. Each PAXG token is backed by a fraction of London Good Delivery gold bars stored in Brink's gold vaults, which is a storage company approved by the London Bullion Market Association.

Pax Gold brings a new investment opportunity for traders by combining the security and liquidity offered by blockchain-based cryptocurrency with the established name of gold as a physical commodity. PAXG has inspired other cryptocurrency developers to also create gold-backed tokens.