Pax Gold is up 74% for the year, keeping pace with the skyrocketing price of physical gold. Pax Gold offers investors an easier and more cost-effective way to get exposure to the price of gold than a traditional gold ETF. As long as gold is soaring in value, Pax Gold could be a superior form of “digital gold” over Bitcoin. That’s where gold-backed stablecoins enter the picture.
Right now, there are two gold-backed stablecoins that rank among the top 50 cryptocurrencies in the world by market cap: Tether Gold and Pax Gold. Both now have market caps in excess of $1.6 billion. My personal preference is Pax Gold, simply because Tether Gold is not available on every U.S.-based cryptocurrency trading platform. The easiest way to think about Pax Gold is that it is physical gold, held and managed on a blockchain.
That’s because Pax Gold is actually a crypto token on the Ethereum blockchain. Each Pax Gold token is backed by 1 fine troy ounce of gold, stored in a London gold vault. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company, which is a New York-regulated financial institution. That means that you should be able to exchange Pax Gold for physical gold at any point in time, no questions asked.
Yes, gold is having a banner year in 2025, but there are no guarantees that this same kind of performance will repeat in 2026. Simply put, Pax Gold may not be a world-beater for much longer. If you look at a long-term chart for Pax Gold, this becomes apparent immediately. Almost out of nowhere, Pax Gold has been skyrocketing in price since 2024.
Just as gold is soaring to new all-time highs, so is Pax Gold. Almost every major cryptocurrency — including both Bitcoin and Ethereum — is down for the year. Should you buy stock in Pax Gold right now? Before you buy stock in PAX Gold, consider this.
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