Why tokenized gold beats other paper alternatives — GOLD DAO
Tokenized gold offers advantages over paper gold and ETFs, including 1:1 redeemability for physical gold, use as collateral in decentralized finance (DeFi), and improved transactional efficiency. The price of gold surged to an all-time high of $3,500 per ounce in April 2025 due to macroeconomic uncertainty, high US government debt, and geopolitical tensions. This volatility led traders to favor gold and other safe-haven assets. Gold-backed cryptocurrencies like Paxos Gold (PAXG) and Tether Gold (XAUT) also experienced price increases. Max Keiser argued that gold-backed tokens could outperform fiat stablecoins due to their inflation resistance and reduced geopolitical risk. The current gold rally may influence Bitcoin's perception as a store of value rather than a risk asset during economic turbulence.
