Concept: August 1, 2022. What are the Benefits and Risks of Owning Gold Tokens?

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Recently, stablecoins backed with gold and reflecting the gold value have started to appear. They seem to be an alternative to owning physical gold, since people find it difficult to store it safely and sometimes buying it includes very high premiums.

The downside of the gold stablecoins is that in order to be redeemed with physical gold, large amounts are needed. Also, the redeeming is usually in person and has to be done at a particular place in the world. Finally, there is an element of trust that is needed in the company issuing the stablecoin (we do not know if they actual have the physical gold).

For further information, read this article

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.
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