PAX Gold Guide

PAX Gold Guide

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What is PAX Gold?

PAX Gold (PAXG) Pis a digital asset. Each token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults in London. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company. Therefore, the PAX Gold tokens represent real-time value of Gold.

The PAXG is and ERC-20 token running on the public Ethereum blockchain. This makes the token compatible with all wallets that accept ERC-20 tokens. All transactions are done via smart contracts eliminating human errors.

Unlike other forms of investments into gold like buying Certificates, ETFs or physical gold PAX Gold on Virtuse Exchange is available 24/7 and can be purchased via USD, PAX or BTC. 

What are the key benefits of PAX Gold?

1. Allocated

PAX Gold is a token that operates on the Ethereum blockchain and is backed by physical gold. The token can be allocated down to the serial number of each individual bar. PAX Gold can be transferred instantly, and the allocated ownership moves with the token transfer. This makes the purchase and trading of gold faster and easier than even. Hedging of the gold transactions is conducted by a legendary commodity trader Peter Brandt. 

2. Redeemable

Unlike any other gold products available today PAX Gold is redeemable in several forms. PAX Gold owners can convert the tokens into unallocated gold entitlements, physical allocated gold or fiat. PAX Gold tokens purchased on Virtuse Exchange can be transferred to the official Paxos website and be converted to the full-sized London Good Delivery bar or through a network of gold retailers all over the world also to smaller amounts of physical gold.

3. Programmable

Programmable gold creates new possibilities for the owner of PAX Gold. It is easy to use for trading, payment or conversion into other assets.

4. Regulated

PAX Gold is issued by a financial institution regulated by the NYDFS called Paxos Trust Company. Next to the regulated company the NYDFS also regulated the individual product PAX Gold as well, ensuring a greater customer protection and higher standard of operation. Which means that PAX Gold as a product is specifically approved by the NYDFS as well. 

5. Available to Anyone, Anywhere

PAX Gold has no minimum investment on Virtuse Exchange which makes fractional bar ownership now available for everyone regardless of how much money they have, or what color of passport they own. 

6. Low Fees

Unlike other forms of gold investments such as ETFs, there is zero custody fee in the Virtuse platform. The transaction fee is the same as for any other digital asset traded on Virtuse Exchange, currently 0.15%. If you stake 10,000 VIRTU in your wallet, you get zero fees. There are no other fees charged such as storage, management, performance or overnight fees which is standard in other financial products. Withdraw fees are based on the Ethereum gas fees plus 0,02% which are charged by Paxos. 

7. Bankruptcy Protected

99.9% of the clients’ funds on Virtuse Exchange are kept in a cold multi-signature wallet. Custody of digital assets is provided by Virtuse Exchange in partnership with Gemini Custody. PAX Gold is issued by a state-chartered trust company and keeps the gold bars also separate from the Paxos companies’ assets. Therefore, the issuer Paxos as well as the custodian Virtuse Exchange (in case of holding the tokens in the exchange custody) guarantee that the customer funds are kept separated from the customer funds. In case of a company insolvency of any of two companies, the clients’ funds are completely segregated from the company accounts. 

8. Decentralized

No single entity or group has a controlling stake of tokens and can control the entire market. PAX Gold can therefore not vary from the Gold price.

9. Easy to Trade

PAX Gold can be traded easily on Virtuse Exchange against PAX Standard and Bitcoin.

The following table shows the advantages of PAX Gold if purchased on Virtuse Exchange.

How can I buy PAX Gold?

Step 1: Create an account on Virtuse Exchange and deposit USD, PAX or BTC.

Step 2: Onboard through our simple KYC process.

Step 3: After the completion of the verification just click on the VEX Pro or VEX Simple tab, then search for the PAXG/PAX pair.

Step 4: You now have the PAXG tokens in your wallet and can actively trade them or withdraw them to another ERC-20 wallet.

 

How can I track my gold and do a physical redemption?

The PAX Gold underlying gold is based on physical London Gold Delivery gold bars. Each bar is identifiable by a serial number and can be allocated to the corresponding tokens. Therefore, the PAX Gold token represents a fractional ownership of the LBMA accredited physical gold bar that is stored in professional gold vaults in London. If you hold the PAXG in your private ERC-20 wallet you can track the location, the fine weight, the serial number, as well as the brand of the gold.

If you have 430 PAXG you can request a physical delivery of the London Gold Delivery Gold Bar by registering on www.paxos.com. The gold can also be converted into unallocated gold entitlements and be redeemed in smaller amounts of physical gold by the worldwide Paxos partner network of gold retailers available on www.paxos.com.

For more information about PAXG please refer to https://www.paxos.com/wp-content/uploads/2019/09/PAX-Gold-Whitepaper.pdf

Disclaimer: The risk of loss in trading tokenized commodities can be substantial. You should therefore carefully consider whether such investment is suitable for your risk profile and overall asset allocation. This is not financial advice.

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