CoinSpot Cryptocurrency Exchange
- Buy 250+ cryptos
- Range of payment methods
- 0.1% market order fee
- 1% instant buy fee
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Cryptocurrencies are purely digital blockchain-based tokens, but they can also be backed by tangible assets.
Gold is a popular choice for this. Gold-backed cryptocurrencies refer to digital coins that are worth a set amount of gold each.
There are dozens of different gold-backed cryptocurrencies in existence, but the vast majority are either outright scams or cannot be verified as actually being gold backed.
The following is a list of gold-backed cryptocurrencies, along with what secures their value.
|Perth Mint Gold Token (PMGT)||Australian-based Perth Mint is owned by the Western Australian state government, which guarantees the weight and purity of the gold in the Perth Mint vaults.|
The mint issues digital gold certificates through its GoldPass app and these certificates in turn back PMGT.
While Perth Mint does not guarantee the PMGT itself, it does guarantee the indirect gold backing and it is associated with the PMGT project.
|Where to buy PMGT|
|AnthemGold (AGLD)||US-based AnthemGold livestreams what it says is the inside of the vault containing the AGLD gold backing.|
It says it undergoes regular audits by a reputable third party and that its gold is insured by Lloyd's of London, with details of the coverage available on request.
Anthem has been active in the gold and vault industry long before it started issuing AGLD.
|Where to buy AGLD|
|DigixGlobal (DGX)||Singapore-based DigixGlobal provides the name of the custodian for all the gold backing its tokens.|
It also provides pictures of the gold, purchase receipts and audit information for all the gold it holds.
Each DGX token represents 1 gram of gold. When you hold a DGX token, the available audit information lets you verify the existence and custody of the gold backing your token and confirm that circulating DGX matches gold held by custodians.
|Where to buy DGX|
|Tether Gold (XAUT)||Tether is the worlds largest issuer of stablecoins and now offers a gold backed cryptocurrency as well.|
Each XAUT token corresponds to a single troy fine ounce of gold on a London Good Delivery (LGD) bar – which is roughly 400 ounces per bar. LGD bars are issued by the London Bullion Market Association, while the token itself is offered by TG Commodities Limited. XAUT is an ERC-20 token and can be held in any Ethereum wallet.
|Where to buy XAUT|
|Meld Gold (MCAU)||Meld Gold is issued by Australian company Meld and hosted on the Algorand blockchain.|
Meld Gold (MCAU) tokens are backed by one gram of physical gold held in a range of Australian vaults and refineries, including Imperial Vaults, the Australian Bullion Company and Melbourne Mint.
|Where to buy MCAU|
|PAX Gold (PAXG)||US-based Paxos, which issues PAXG, is a New York State Trust Company, subject to regulatory oversight by the New York State Department of Financial Services.|
All fiat and crypto customer assets deposited with Paxos, such as those backing PAXG, are backed with mandatory capital reserves.
|Where to buy PAXG|
|GoldSilverCoin (AUS and AGS)||Offers gold and silver-backed cryptocurrency.|
Detailed quarterly audit reports, verifying the quality and quantity of the physical gold and silver backing, are available on the website.
You can verify that the number of AUS and AGS tokens in circulation matches the respective gold and silver holdings of GoldSilverCoin.
|Where to buy AUS and AGS|
The best gold-backed cryptocurrency is one that you are certain is genuinely backed by gold and that you can redeem for physical gold when needed.
The exact procedures for validating a coin will vary between projects. For example, sometimes you might take it as a matter of trust that a coin is genuinely backed based on the reputation of its issuer, while other times you might want to do a thorough check via independent auditors.
But generally, to validate the backing of a gold-backed cryptocurrency, you can:
The procedures for redeeming a gold-backed cryptocurrency for physical gold will vary but there are two main options you might encounter.
Gold-backed cryptocurrencies are often regarded as a type of stablecoin, prized for the way they tend to mirror the market price of gold.
However, their ability to mirror gold prices is only as strong as the extent to which they can be redeemed for gold. If it's difficult or expensive to redeem, a gold-backed cryptocurrency might deviate from gold prices.
Plus, gold and gold-backed cryptocurrencies are both still subject to their own separate market forces.
Compared to gold itself, gold-backed cryptocurrencies may be traded on lower liquidity markets, so even if they broadly mirror gold prices, they can still be much more volatile.
For example, the chart below shows the DigixGlobal (DGX) gold-backed cryptocurrency prices in the blue line, compared to gold market prices in the orange line, over an approximately six-month period.
Image sourced on 24 October from DGXUSD chart by TradingView
As you can see, DGX prices broadly mirror gold, but are much more volatile on the whole.
All of the exchanges in the table below offer gold-backed cryptocurrencies, or similar gold-backed products.
Read our comprehensive look at NFTs, including what they are, how to invest and the risks attached with buying them.
SPONSORED: Save yourself the heartache of lost funds by learning how to safely send cryptocurrency from one wallet to another with this simple guide.
If you’re looking for ways to gain exposure to Bitcoin and other digital currencies, cryptocurrency ETFs could be worth exploring. Find out what crypto ETFs are and how they work in this introductory guide.
Put those cryptocurrency assets to work in the DeFi sector and earn interest with yield farming.
Read our step-by-step guide on the MakerDAO platform. Find out how it works and how to grant loans using cryptocurrency holdings.
SPONSORED: Take a look at the major events and predictions set to shape the cryptocurrency market in July, and which tokens will benefit.
In this guide we take a look at some of the greenest cryptocurrencies and alternatives to Bitcoin, and explain how they work and where you can buy them.
Learn how to stake DOT and start earning income immediately with this straightforward guide.
The how and why of the Synthetix exchange platform and an introduction to synthetic assets.
Learn how to get started investing in cryptocurrency, the methods available to you, and what to keep in mind before making your first purchase.
finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of banks, insurers and product issuers. We value our editorial independence and follow editorial guidelines.
finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product or service.
Please note that the information published on our site should not be construed as personal advice and does not consider your personal needs and circumstances. While our site will provide you with factual information and general advice to help you make better decisions, it isn't a substitute for professional advice. You should consider whether the products or services featured on our site are appropriate for your needs. If you're unsure about anything, seek professional advice before you apply for any product or commit to any plan.
Products marked as 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money here.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan, we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.