Demand for Gold-Backed Tokens Brings Premiums as Precious Metal’s Value Jumps Higher – Markets and Prices Bitcoin News


While stocks and crypto markets have fluctuated over the past week, the price of precious metal gold has risen in value by 3.85% over the past seven days. An ounce of fine gold jumped from $ 1,826.92 on February 10 to $ 1,897.36 an ounce on February 19. Additionally, the top gold-backed cryptocurrencies today saw a significant increase in demand along with premiums above the spot market price of gold.

Gold Shines During Economic Uncertainty

The world economy is worried and many blame the riots between Russia and Ukraine, and the possibility of war. This caused stock markets to fall this past week and with the closing bell on Friday, all three major indexes remained in the red. The Nasdaq closed at -168, the Dow Jones closed at -232, and the NYSE fell -99 at the end of the day on Friday as well. In addition, the cryptocurrency markets followed suit, as billions of dollars left the crypto economy as it fell below $ 2 trillion last week to $ 1.880 billion.

Demand for Gold-backed Tokens Brings Premiums When Precious Metal Value Jumps Higher
Point price of one troy ounce of .999 fine gold on February 19, 2022.

Today, the crypto economy lost 3.1% in USD value over the last 24 hours and bitcoin (BTC) fell below the $ 40K price tag. Unlike equities and cryptocurrencies, the precious metal gold has done well this week, collecting 3.85% in USD value over the last seven days. At the time of writing one Troy ounce of .999 fine gold is changing hands immediately below the $ 1,900 range at $ 1,897.36 per ounce. An ounce of .999 fine silver has also risen in value since January 28. On that day, an ounce of silver traded for $ 22.47 per ounce, and today it is changing hands for $ 23.94.

Token Gold Market Heads Swell, Specific Gold Tokens See Awards Super Spot

While precious metals have seen markets move north in value, demand for tokenized gold cryptocurrencies increased. Inter catenor (XAUT), gold pack (PAXG), Perth Mint Gold Token (PMGT)and digix-oro (DGX), all four tokenized gold coins market limits have increased in value between 2.4% and 8% over the last week. XAUT and PAXG are the two largest gold-backed cryptocurrencies by market valuation. XAUT has an overall market cap of $ 430 million and PAXG’s valuation is $ 424 million.

Meanwhile, all of them varied between the market value of gold and also a decent premium. For example, at the time of writing, pax gold (PAXG) is changing hands for $ 1,917.09 per coin, which is 1,039% above spot market prices. Perth mint-gold token (PMGT) also trades for higher prices than the market value of an ounce of physical gold. Currently, the PMGT premium is 0.915% above the current $ 1,897.36 per ounce recorded on February 19th.

Demand for Gold-backed Tokens Brings Premiums When Precious Metal Value Jumps Higher
The top four tokenized gold tokens along the market limit on February 19, 2022.

25 days ago News reported the huge growth of tether gold (XAUT) and pax gold (PAXG) and since then the ratings have increased. On January 25, XAUT’s market cap was $ 410 million and more than $ 20 million in value was added. PAXG’s market cap was $ 332.7 million and $ 92 million in USD value was added over the last 25 days. XAUT’s market valuation has swelled close to 20,000% in two years while PAXG has seen a 16,000% increase over that time frame.

Similar to stable coins, participants of crypto economy have found value in gold-backed digital currencies and the trend seems to be mainstream in the industry. Like their physical counterparts, digital gold tokens can help someone protect against market declines. With the current premiums, arbitrary opportunities can also occur, just as they do within fiat-linked stable markets.

Tags in this story

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What do you think about the growth of gold support tokens like XAUT, PAXG, PMGT and DGX? What do you think of these tokens when seeing market premiums? Let us know what you think about this topic in the comments section below.


Jamie Redman

Jamie Redman is the News Leader at News and a financial technical journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for News on the disruptive protocols appearing today.

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