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Now at CoinFlip: Buy Physical Gold with Cryptocurrency

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Have you been waiting for a digital way to buy physical gold? Transacting on PAX Gold (PAXG) tokens is now available at all CoinFlip ATMs and CoinFlip Preferred.

Recent crises in the traditional finance sector have sent investors in two distinct directions: the old (precious metals and other tangible commodities) and the new (cryptocurrency). Spot gold prices are sitting near an all-time high of nearly $2,000 per ounce, and bitcoin is approaching 9-month highs. The PAX Gold token (PAXG) sits at the intersection of these investment alternatives, providing a digital conduit to own physical gold.

All that glitters … the ups and downs of owning gold

Investing in gold has long been seen as a safe-haven investment and a hedge against inflation. Historically, the yellow metal has held its value even during market downturns, making it a reliable way to diversify one’s portfolio. Plus, like bitcoin (also known as “digital gold”), there is a finite supply of gold in the world. Limited supply can mean heightened demand for the resource across the globe.

But owning gold isn’t exactly a straightforward process. While investors can gain exposure to gold via mutual funds or ETFs, nothing is as secure and as resilient as the metal itself. And the act of buying gold bars comes with logistical and shipping challenges, aggressive spread fees, storage concerns, and security risks.

Slade Kellogg, CoinFlip’s Head of Digital Asset Advisory Services, is excited for the opportunity that PAX Gold provides. “PAXG seeks to offer customers the advantages of absolute physical ownership of gold while providing the accessibility, security, and mobility of a digital asset.”

Use code GOLD25 for 25% off transaction fees when you buy PAX Gold at one of our ATMs or CoinFlip Preferred!*

PAX offers a new way to buy gold

Investing in gold via the PAX Gold token addresses nearly all these long-held concerns:

Fees: Physical gold comes with a hefty spread for both buyers and sellers. Hypothetically, with spot gold at $2,000/ounce, you could pay $2,200 to buy one ounce of gold and only be able to sell it for $1,800. The transaction fees for PAXG are not nearly as steep (0.02%, plus a nominal fee paid to miners), and there are no storage fees. Plus, there are no annual custody fees with PAXG.

Security: Storing gold bars in one’s home or moving them into a safe deposit box can be nerve-wracking and risky. Each full token of PAXG is backed by 1 fine troy ounce of physical gold, stored in LBMA vaults in London.

Redeemability: PAX Gold holdings can be redeemed as physical gold, fiat currency, or unallocated gold entitlements. And because transactions operate on the Ethereum blockchain, transactions can happen nearly instantly, even across the globe.

Fractional Holdings: Typically, the smallest amount of physical gold an investor can hold is one-quarter of an ounce, which is close to $500. PAXG enables investors to diversify in gold with as little as $20. “This token allows customers to have fractional licenses of physical bars,” notes Kellogg.

Effective immediately, PAX Gold is available to all customers at CoinFlip’s network of 4,000+ ATMs and through CoinFlip Preferred. “CoinFlip is thrilled to be one of the first networks of crypto kiosks in the world to provide access to this token,” Kellogg says. “The recent ramp-up in gold has re-ignited discussions around the best way to own it, and our ATMs and CoinFlip Preferred offer an easy and accessible on-ramp for those of our customers who wish to do so.”

Read the Paxos Gold whitepaper

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*Limited to 1x user per customer. Code valid 3/23/2023 - 4/15/2023. Discounts capped at $1,000 in fees for transactions completed at CoinFlip Preferred.