Want To Be A Millionaire? Buy Inflation‑Hedging PAX Gold

PAX Gold (PAXG 2.60%), a cryptocurrency pegged to physical gold, was launched on the Ethereum (ETH 1.59%) blockchain as an ERC-20 token in 2019. Each PAXG token is equivalent to one troy ounce of gold stored by the Paxos Trust Company in its London vaults.Unlike gold exchange-traded funds (ETFs) like SPDR Gold Shares (GLD 2.83%) — which give you shares of a fund that owns gold on your behalf — each PAXG token is a digital receipt that gives you direct ownership of Paxos\’ gold bars. Paxos only mints new tokens whenever more gold is added to its vaults, then burns the tokens when it sells those bars.

Image source: Getty Images.

Over the past five years, the price of PAX Gold, the SPDR Gold Shares ETF, and physical gold have all risen about 160%. That makes them all reliable hedges against inflation, monetary expansion, and the devaluation of fiat currencies. But if you\’re looking for the simplest ways to profit from that trend and potentially become a millionaire, PAX Gold might just be your best bet.
Today\’s Change(-2.60%) $-124.78Current Price$4673.57Key Data PointsMarket Cap$2.3BDay\’s Range$4675.67 – $4816.1752wk Range$3148.07 – $5619.09Volume164M
Why is PAX Gold better than gold bars and ETFs?
Gold bars are expensive because they\’re purchased in set ounces and require secure storage. Retailers also usually sell gold bars with a markup of a few hundred dollars, and many people insure their bars against theft, loss, and damage. Therefore, buying and holding physical gold bars is much more expensive than investing in PAXG tokens or gold ETFs.
PAXG and gold ETFs are more liquid and can be instantly traded on public exchanges, and they closely track gold\’s spot price without those additional costs. But unlike gold ETFs, which are only traded when the market is open, PAXG can be traded 24/7 like any other cryptocurrency. Investors can also instantly send their PAXG tokens to others via Ethereum\’s blockchain, whereas gold bars and gold ETFs can\’t be used for comparable peer-to-peer payments.
PAXG is also cheaper than most gold ETFs. It charges an annual custody fee of 0.18% plus blockchain transaction fees (which vary based on usage), while the SPDR Gold Shares ETF charges an annual gross expense ratio of 0.40%.
Lastly, PAXG can be directly redeemed for physical gold when certain conditions and minimums are met. Gold ETFs usually only allow institutional investors to redeem their shares for gold.
Could PAX Gold generate millionaire-making gains?
PAX Gold has clear advantages against physical gold and gold ETFs, and it might turn a $100,000 investment into $1,000,000 over the next few decades. Over the past 30 years, gold\’s price rose 1,140%, turning $100,000 into $1.24 million. That could certainly happen again as expansionary monetary policies devalue the top fiat currencies and drive more investors toward gold and other safe-haven assets, so it\’s still a great time to invest in PAX Gold.