Legitimate Gold-backed tokens?

[Skinny48]

I doubt if there is really any gold backed tokens with genuine proof of having gold that backed their tokens, I'm more interested in gold physically than investing in tokens that are claimed to be backed by real gold with zero proof

[Abiky]

There were many attempts to create gold backed tokens, but as you know the biggest problem is to bring trust into this industry. Only company that achieved this goal is Paxos and its token Pax gold.

Thanks for your recommendation. Never heard about Paxos' Gold offering until now. Been used to Digix Gold for a long time, but was eager for other legitimate alternatives in the crypto/Blockchain space. I think Gold-backed tokens will work as intended if they're properly regulated in the mainstream world. Governments could fine or imprison company members if they don't deliver as promised to investors. The more legitimate Gold-backed tokens there are on the Blockchain, the better exposure and mainstream adoption the industry will get.

I've been reading about Paxos lately, and it does seem to be legitimate. Still, I'm not sure if Pax Gold can be traded for physical Gold. But at least, you get the advantage of "hodling" Gold with the security/reliability of Blockchain technology. We can use Gold-backed tokens as a hedge against Fiat or traditionally-volatile cryptocurrencies like Bitcoin or Ethereum.

The only gold-backed tokens I trust, is the physical gold coins I keep at my home.

The rest are either full or semi scams.

These so called "gold-backed" shit are no different. Probably even worse than what your bank offers.

Believe me, sometimes it's better to hold Gold at your home than just trusting a third-party with your hard-earned money. The industry is still full of scams, leaving us with very little options to choose from. The only issue of holding Gold at home, is that it brings many security risks with it. You can expose yourself to theft, without being able to recover your losses because of lack of insurance. If you decide to hold Gold at home, you need to keep in mind that the responsibility of securing/protecting valuable assets lies on yourself. Still, if there are no other options available, there's always a "Plan B".

[Zotak337]

I just don't get it why there is the new trend of Gold slash any valuable elements backed cryptocurrency? Goes and buy the real thing instead from a dubious group claim to have that in storage and give you back some token. Like really?

Do you know how easier this trick can be used to scam people? Just imagine if the Scammers can provide real video showing their gold and claiming that their token is backed by real gold? Every one will believe right? Well this still doesn't mean the gold belong to them, this type of use case will only look proper in my eye if it's coming from a well knows gold company rather than from random people

[ScamViruS]

It’s up to me to doubt whether they will actually do anything original. Gold backed coins they would say right but the reality is something else.

Since you don't have physical gold, you can't expect anything good here. You can take as an example by tracking usd backed stablcoins. Then you will understand how fake backed scams are running.

[Zionatin]

You don't need tokens or coins or any currency for that matter to be "backed" by gold. Fiat is "backed" by gold but have any of you ever traded in gold or had your fiat returned for a gold brick? You know its there but its only for "piece of mind" having currency backed by rare things like gold is a very old way of thinking. Currency actually runs on debt. "I promise to pay the bearer a sum of" that means you owe the owner of the note. Debt is a word with a negative meaning so people assume its bad but currency working on debt is bad thing it is the way it is run. That note in your hand will continue to be owed to its bearer many times over.

All currency is, is something that is hard to copy and will not perish easily which can be sent to someone else. People need to agree to use it. This is why I say you do not need gold. The note you gave me for my work means that you owe me the amount = to that written on the note and I can then exchange and pass it on to another person. It is backed by the fact that you can trade it. You can use it in place of having to trade items directly.

[Abiky]

It’s up to me to doubt whether they will actually do anything original. Gold backed coins they would say right but the reality is something else.

Since you don't have physical gold, you can't expect anything good here. You can take as an example by tracking usd backed stablcoins. Then you will understand how fake backed scams are running.

Good point. There have been so many scams out there, that it's hard to separate the "good" tokens vs the "bad" ones. Your better off "hodling" physical Gold yourself as long as you don't disclose its location to anyone. A well-hidden safe deposit box may be all you need to keep your Gold investment safe for a very long time. Most of these boxes are waterproof and fireproof, making them a great way to store your bullion. I wouldn't trust a Blockchain-based token that claims to be "backed by Gold", unless the issuer provides some sort of legally-binding proof. Most of the Gold-backed tokens I've stumbled with, don't allow you to trade them for real Gold. You're just "hodling" a virtual asset that's speculatively linked to the price of real Gold.

Based on my findings, Paxos Gold and Digix Gold are the only legitimate Gold-backed tokens in the crypto/Blockchain industry. The rest are simply a complete fraud. Some say that Tether's Gold and stablecoin offerings are shady because of the company's lack of transparency. That's why we need heavy-handed regulation in the crypto industry, in order to legitimize it as much as possible. Only then, money will start pouring in from institutional investors, paving the way for truly legitimate tokens that are backed by real world assets/commodities. Just my thoughts