Crypto or tokenized precious metals? Which do you prefer?

[yslyv]

Both precious metals like and cryptocurrencies have certain cycles.
If you want a longterm investment, it makes sense to hold some amount of both gold and silver as well as major crypto assets like ETH and BTC. But if you’re thinking shortterm you need to follow the cycles of them very carefully.

[o48o]

I actually liked these pegged coin more than phyiscal ones, it's convenient and liquid. But everybody can have their own preference.

These pegged tokens aren't shady as long as there's proper audit, just like PAXG that got regularly audited. After all I don't plan on holding onto gold for eternity but just trading to the value exposure.

Each to their own. I prefer commodities to pegged coins any day. It's way more complex for me to do taxes for them and explain your blockchain history as well, then just with traditional commodities, or with physical gold.
But i agree that physical items have their downsides.

They however are way more about real ownership then pegged tokens, as you don't need to trust a third party, unless you are storing it in somewhere. But you might want to trust someone, and store privatekeys as well, if you have enough value in them.

[bitgolden]

Investing in tokenized precious metals can be a good option for crypto investors who also want to diversify their investments into asset like gold. But are these tokenized assets really backed by gold? I would hardly trust these tokenized assets and instead would prefer investing in real gold and holding it in my locker to diversify my investments. I would always prefer cryptos instead of these tokenized assets but it would not be a bad idea to give it a try for mid or short term.

For long term, I am never trusting these tokenized metals. I personally diversify my investments into cryptos, stocks and assets like gold. I plan on investing in real estate as well but will not look towards tokenized assets.

[M47AK16]

Both precious metals like and cryptocurrencies have certain cycles.
If you want a longterm investment, it makes sense to hold some amount of both gold and silver as well as major crypto assets like ETH and BTC. But if you’re thinking shortterm you need to follow the cycles of them very carefully.

Cryptos does have cycles but I am not really sure about metals like gold and silver having any cycles. Their value depends on the availability which is scarce in nature. Even though we mine more and more gold, the price still keeps on inflating as the demand rises even if there is a stable supply.

There will be a time when gold will no longer be mineable as there will be none available and after that period, the value for gold will keep on rising rapidly. This is almost the same with bitcoins as well. Once all 21M bitcoins are mined, the value will keep on rising as the demand goes higher. That's the reason why bitcoins and gold are my favourite when it comes to investments and I will just multiply my investments in future.

[Abiky]

Investing in tokenized precious metals can be a good option for crypto investors who also want to diversify their investments into asset like gold. But are these tokenized assets really backed by gold? I would hardly trust these tokenized assets and instead would prefer investing in real gold and holding it in my locker to diversify my investments. I would always prefer cryptos instead of these tokenized assets but it would not be a bad idea to give it a try for mid or short term.

For long term, I am never trusting these tokenized metals. I personally diversify my investments into cryptos, stocks and assets like gold. I plan on investing in real estate as well but will not look towards tokenized assets.

I'd be asking the same question if I held a Gold IoU or spot ETF. There's no way to tell if they are actually backed by Gold. Companies can simply lie about their holdings/reserves, just to attract investors into their products. The only thing is that ETFs and IoUs are heavily-regulated, whereas "tokenized assets" are not. It's still the "wild west" in this regard.

Knowing that Tether has a shady past, I wouldn't trust its tokenized version of Gold (called XAUT) anytime soon. Paxos is more trustworthy, but that doesn't mean we should blindly invest into its "tokenized Gold" offering. Everything must be done in a cautious manner. Owning physical Gold is better because you have complete control over your holdings. The only downside is that you'd be at risk of losing it all if someone breaks into your home or storage place. It's why some prefer digital Gold-backed tokens. With a strict regulatory environment for these assets, investors can feel confident their money is safe from harms way. Only time will tell us whenever tokenized precious metals will become a huge success or a failed experiment.

[beveryu778]

If you had to choose between crypto and tokenized precious metals (such as Tether Gold or Paxos Gold), which one would you choose? I, for one, would choose both for complete peace of mind. Precious metals are often less-riskier than crypto, but gains are slower than usual. Crypto is more of a "high-risk, high reward" kind of investment where you can either win big or lose it all in an instant. Some Bitcoin holders add Gold to their portfolio as some sort of diversification strategy. Personally, I buy and hold BTC, Gold, and Silver to build generational wealth.

What's your choice and why? Your input would be greatly appreciated. Thank you.

Both types of cryptos, as well as tokenized precious metals, have their advantages, but speaking of the choice, I would still give a favor to Bitcoin. Gold or silver that are tokenized is more stable and less risky, yet their price has a reduced range, and thus growth potential is slow. The latter, however, comes with an increased volatility and guarantees a far greater long-term potential to any person who may afford to ride through the fluctuations. Nevertheless, the wisest solution is diversification. Maintaining a fair share of Bitcoin to grow and a small amount of gold to be stable provides a balanced portfolio, which will be protective and long-term at the same time.

[Emitdama]

Tether Gold and PAXG are cryptocurrencies, technically, but they are backed by real world assets. Gold doesn’t have extreme volatility and correlation to the overall crypto market.

They are good for diversification but they may also experience their own bear market sometimes, but since we are diversifying, we still can earn on the other. That is the good thing about investing on different types of assets.

I consider the two major tokenized versions more sound investments than memecoins and tokens with no real use case.

Of course. They are overkill compare to the meme coins and tokens with no real use case. That is not a fair comparison there, though meme coins and tokens with no real use case can still pump quickly sometimes, so they can still be good for the short-term if we know how to play them very well.

Both precious metals like and cryptocurrencies have certain cycles.
If you want a longterm investment, it makes sense to hold some amount of both gold and silver as well as major crypto assets like ETH and BTC. But if you’re thinking shortterm you need to follow the cycles of them very carefully.

When knowing cycles, there should be an incoming bear once the market is pumping, but if it's dumping, there should be an incoming pump too. But if for short-term, crypto should win against the precious metals because crypto is more volatile starting from BTC, down to the meme coins. In crypto, it is only easy for one to create a random project but in precious metals, I never heard that there is a junk or bad quality at them. What they have must only be more stable or slowly increasing.

[silpersurfer]

If you had to choose between crypto and tokenized precious metals (such as Tether Gold or Paxos Gold), which one would you choose? I, for one, would choose both for complete peace of mind. Precious metals are often less-riskier than crypto, but gains are slower than usual. Crypto is more of a "high-risk, high reward" kind of investment where you can either win big or lose it all in an instant. Some Bitcoin holders add Gold to their portfolio as some sort of diversification strategy. Personally, I buy and hold BTC, Gold, and Silver to build generational wealth.

What's your choice and why? Your input would be greatly appreciated. Thank you.

Choosing both means diversifying, which is good for building a portfolio, so we don't just rely on bitcoin as an investment vehicle even though its price movement is slow, but precious metals are much more stable.

However, what needs to be carefully considered is that when you buy PaxosGold or XAUT Tether Gold, we need to pay attention to the company. This should be an important note because if the company does not conduct its business according to the rules or commits fraud, it will cause our investment to fail, because the token will also lose liquidity and could become worthless, just like other tokens, even though the price of gold does not fall.

[Mandoy]

I actually liked these pegged coin more than phyiscal ones, it's convenient and liquid. But everybody can have their own preference.

These pegged tokens aren't shady as long as there's proper audit, just like PAXG that got regularly audited. After all I don't plan on holding onto gold for eternity but just trading to the value exposure.

Each to their own. I prefer commodities to pegged coins any day. It's way more complex for me to do taxes for them and explain your blockchain history as well, then just with traditional commodities, or with physical gold.
But i agree that physical items have their downsides.

They however are way more about real ownership then pegged tokens, as you don't need to trust a third party, unless you are storing it in somewhere. But you might want to trust someone, and store privatekeys as well, if you have enough value in them.

You make good points. Physical metals give you the benefit of owning them so that you cannot trust anybody. Metals which are tokenized will necessarily require someone to hold the actual metal. Cryptocurrencies are complex due to taxes and on-chain monitoring compared to regular commodities. But crypto is extremely movable and readily transportable without concerns about storage. Finally, it is what counts, that is, have something real or convenience and flexibility as digital. They both come in handy with the individual.

[Findingnemo]

I buy gold and silver too but in the physical form not in any other version and here you asked about tokenized gold which is highly risky and to say it is 100% risky if the token issuer decided to say we are bankrupt or whatever reason and you may have to wait for years even if the possibility of getting a refund so for absolute peace of mind just by the physical form. And crypto those are decentralized should comes as the priorty for long term investing.