How Real is the Connection Between Pax Gold and Gold?

Pax Gold (PAXG) is a stablecoin traded on the Ethereum blockchain, with each token backed by 31.10 grams of gold stored in London Safe Vaults. In this way, investors have the opportunity to own gold in an easier and more accessible way compared to traditional methods of gold investment.

PAXG's connection to gold is very solid and can be summarized as follows:

1. Backing: Each PAXG token is backed 1:1 by physically existing and audited gold reserves. This means that the value of the token is always tied to the value of gold.

2. Transparency: Paxos Trust Company works with an independent auditing firm that regularly audits and reports on PAXG's gold reserves. This way, investors can be sure that PAXG is always backed by sufficient gold.

3. Dependency on Gold Price: PAXG's price is closely correlated with the spot market price of gold. In this way, investors can benefit from the price movements of gold by investing in PAXG.

4. Convenience: Pax Gold makes investing in gold easy. Investors can buy and sell PAXG at lower costs and with less complex transactions than traditional gold bars or gold futures accounts.

5. Accessibility: PAXG offers investment opportunities without a minimum investment amount. In this way, small investors can also have the opportunity to own gold.

However, it is worth noting that there are some important differences between PAXG and gold:

1. Custody: PAXG is a digital asset and is stored by investors in digital wallets. Gold bars are physically stored in the investor's possession or in an authorized safe.

2. Liquidity: PAXG is a highly liquid asset traded on many cryptocurrency exchanges. Gold bars may take longer to be converted into cash compared to PAXG and commissions may occur.