CoinSpot Cryptocurrency Exchange
Cryptocurrencies like Bitcoin may have made a name for themselves as purely digital currencies, but they can also be backed by tangible assets like gold.
While Bitcoin and the majority of other cryptocurrencies have a value based on market dynamics like supply and demand, gold-backed cryptocurrencies have a price that is tied to a fixed amount of gold.
If the price of gold goes up or down, so does the value of the crypto.
Here's a list of gold-backed cryptocurrencies:
Tether is the worlds largest issuer of stablecoins and now offers a gold backed cryptocurrency as well.
Each XAUT token corresponds to a single troy fine ounce of gold on a London Good Delivery (LGD) bar – which is roughly 400 ounces per bar. LGD bars are issued by the London Bullion Market Association, while the token itself is offered by TG Commodities Limited. XAUT is an ERC-20 token and can be held in any Ethereum wallet.
US-based Paxos, which issues PAXG, is a New York State Trust Company, subject to regulatory oversight by the New York State Department of Financial Services.
All fiat and crypto customer assets deposited with Paxos, such as those backing PAXG, are backed with mandatory capital reserves.
Meld Gold is issued by Australian company Meld and hosted on the Algorand blockchain.
Meld Gold (MCAU) tokens are backed by one gram of physical gold held in a range of Australian vaults and refineries, including Imperial Vaults, the Australian Bullion Company and Melbourne Mint.
The Gold and Silver Standard are gold and silver-backed tokens, with the underlying metals held in custody by the Australian-based Gold Silver Standard Custodian (GSSC Pty Ltd).
Detailed quarterly audit reports, verifying the quality and quantity of the physical gold and silver backing, are available on the website.
You can verify that the number of AUS and AGS tokens in circulation matches the respective gold and silver holdings of GoldSilverCoin.
The best gold-backed cryptocurrency is one that you are certain is genuinely backed by gold and that you can redeem for physical gold when needed.
The exact procedures for validating a coin will vary between projects. For example, sometimes you might take it as a matter of trust that a coin is genuinely backed based on the reputation of its issuer, while other times you might want to do a thorough check via independent auditors.
But generally, to validate the backing of a gold-backed cryptocurrency, you can:
The procedures for redeeming a gold-backed cryptocurrency for physical gold will vary but there are two main options you might encounter.
Gold-backed cryptocurrencies are often regarded as a type of stablecoin, prized for the way they tend to mirror the market price of gold.
However, their ability to mirror gold prices is only as strong as the extent to which they can be redeemed for gold. If it's difficult or expensive to redeem, a gold-backed cryptocurrency might deviate from gold prices.
Plus, gold and gold-backed cryptocurrencies are both still subject to their own separate market forces.
Compared to gold itself, gold-backed cryptocurrencies may be traded on lower liquidity markets, so even if they broadly mirror gold prices, they can still be much more volatile.
All of the exchanges in the table below offer gold-backed cryptocurrencies, or similar gold-backed products.
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Trying to buy Gldgov , not easy for folks just entering crypto. Any suggestions
Hi Tony,
According to CoinGecko, you can trade Gold DAO (GLDGOV) on the LBank exchange, or via decentralised exchanges including Sonic, ICPSwap and ICDex.
If you don’t have experience with using crypto wallets, it might be more straightforward to sign up for an account with LBank and buy GLDGOV there.
You can learn more about decentralised exchanges here.
Regards,
Tom