5 ways to invest in tokenized gold: which is the best hedge against inflation in 2023/2024?

If you want exposure to gold without carrying heavy bars or dealing with storage issues, gold-backed cryptocurrencies solve this problem. They combine the security of physical assets with the convenience of blockchain. Let’s look at the main options available.

Why do gold-backed cryptocurrencies make sense now?

Traditional gold has a major obstacle: transporting, storing, and selling it is complicated. Additionally, it can suffer from liquidity shortages. Tokenized versions eliminate these inconveniences. You can move physical gold with just one transaction, without leaving home and without paying high custody fees.

The main options on the market

Starting with the most established model: Paxos Gold (PAXG)

Each PAXG token represents one fine troy ounce of real gold. The key difference is that everything is stored in LBMA security vaults in London, one of the world’s top references in precious metals custody. Total transparency and constant auditing.

Tether Gold (XAUT) offers an alternative

Similar to PAXG, but with an interesting detail: Tether guarantees the delivery of physical gold bars to any address in Switzerland. For those who prefer the option of tangible redemption, this is a differentiator.

Perth Mint offers a digital certificate (PMGT)

Each PMGT functions as a tokenized version of a GoldPass certificate. Behind it is 100% physical gold stored in the vaults of The Perth Mint’s central bank. The institution is old and reputable, adding layers of trust.

GLC (Gold Coin) points to total transparency

All gold holdings here are regularly audited. The highlight: you can check the status online at any time. No mystery, no unpleasant surprises.

BITXGOLD follows a similar model with location in Dubai

Each BITXGOLD token is 100% backed by physical gold in secure vaults. The operator is registered in the United Arab Emirates (“Ace Stock Commercial Brokers CO.LLC”) with full financial and brokerage licenses. They guarantee the asset’s liquidity.

The important detail: which one to choose?

All these gold-backed cryptocurrencies solve the same problem in slightly different ways. The choice depends on whether you prefer European custody, access to physical redemption, real-time auditing, or specific liquidity conditions. The essential thing is that all offer real protection against inflation without the problems of traditional gold.