It isn’t easy to forecast which tokens or currencies will be the most popular in the ever-changing crypto world. As the cryptocurrency market expanded, developers devised digital tokens whose values are linked to specific items such as gold.
As we all know, gold is a precious, valuable metal in many ways. Still, it is also a well-known financial commodity and a hedge against economic turmoil and inflation. So, investing in gold-backed cryptos is worth taking note of.
This guide will talk about some of the best cryptos backed by gold.
What is a crypto-backed by gold?
Gold-backed cryptos can help to manage the price volatility. They are stable digital coins backed by real gold. These cryptos are linked to gold and have lower volatility than Bitcoin and other altcoins. They are derivatives that let users trade and get exposure to gold without physical storage.
Each gold-backed crypto specifies each of its tokens is worth a given number of grams or troy ounces of gold. Below you can see a Tether gold chart. We’ll talk about the coin in detail in a moment.
Top five cryptos backed by gold to trade & invest
Now that you know what gold-backed cryptos are, it’s time to find out the top five you can invest in.
Tether Gold (XAUT)
The world’s largest USD-backed stablecoin, Tether, now offers gold-backed crypto called XAUT. Each XAUT is worth one troy ounce of gold. Tether Gold is a stablecoin, and one ERC-20 token XAUT on the Ethereum blockchain is equal to one troy ounce of gold. Thus, holders may determine which bar of gold is theirs by providing the wallet address where their AUXt is stored.
Tether Gold’s price has dropped 2.85% in the last seven days. The current price per XAUT is $1,866.30. Tether Gold is now 8.82% lower than its all-time high of $2,076.11.
XAUT price prediction 2022
According to the 1Ychart, the price of XAUT is expected to rise between $2342.74 and $2717.83 by the end of the year.
Paxos gold (PAXG)
Paxos Gold is built on the ETH blockchain, and its activities adhere to the network’s smart contract regulations. It is a crypto-backed by tangible gold assets owned by Paxos, a New York-based firm. Each token is redeemable for one troy fine ounce of gold held in Paxos vaults. Its monthly audits confirm that its supply of PAXG tokens meets the quantity of gold it has to preserve its reserves indefinitely. Members can also redeem PAXG for gold bullion bars if they so want.
Its price has dropped 2.93% in the last seven days. The current selling price is $1,861.57. PAX Gold is now trading 8.71% below its all-time high of $2065.47.
PAXG price prediction 2022
Looking at the 1Ychart, the price of PAXG can trade between $2246.57 and $2625.82 by the year’s end.
Perth Mint Gold Token (PMGT)
PMGT, one of the oldest gold-backed crypto projects, has been around since 2018. The Perth Mint has the actual gold that eventually backs each PMGT. Each coin is secured 1:1 by a Perth Mint GoldPass digital gold certificate. PMGT’s gold is verified by the Australian government, which attests to the quantity and purity of the gold that token holders own.
Perth Mint Gold Token is 98.98% less than its all-time high of $187,082.15. In the last seven days, the price of crypto has declined by 2.62%. The current selling price is $1,900.03.
PMGT price prediction 2022
Looking at the 1Ychart, the price can trade between $2506.82 and $3023.86 by the year’s end.
Digix Gold token (DGX)
Digix gold tokens are issued by DigixGlobal, a Singapore-based firm, and have a gold valuation of one gram. By simply buying and selling blockchain-enabled digital representations of gold bars, DGX tokens essentially make gold bars divisible, redeemable, and transferable. DGX coins are generated via a system known as Proof of Asset. The PoA is intended to ensure that enough gold has been obtained. It is held against each DGX, and the certification is recorded on the Ethereum blockchain.
Digix Gold Token is now trading at 88.58% of its all-time high of $194.27. In the last seven days, the price has increased by 118.08%. The current cost is $22.19.
DGX price prediction 2022
Looking at the 1Ychart, the price of the crypto can trade between $41.59 and $43.17 by the year’s end.
Meld Gold, an Australian firm, has collaborated with blockchain technology Algorand to develop a decentralized gold currency. Algorand was created so that investors may trade in both actual gold and digital gold tokens. Meld Gold will connect to the current gold supply chain to provide better gold trade and settlement through tokenization.
Algorand’s price has dropped 10.14% in the last seven days. The current exchange rate is $0.6772. Algorand is down 79.35% from its all-time high of $3.28.
Algo price prediction 2022
Looking at the 1Ychart, the price of the crypto can trade between $0.50 and $1.18 by the year’s end.
Now you know what some of the best cryptocurrencies backed by gold are. Gold is a safe haven in market turmoil, so cryptos backed by gold can provide a good investment option.