Back to Hub/Gold Investment

Tokenized Gold vs Physical Gold: Which is Better?

You can now own gold through crypto tokens like PAX Gold (PAXG) and Tether Gold (XAUT). But is digital gold really the same as holding a bar in your hand?

Paystreak Team2026-01-15Updated 2026-01-168 min read

What Even Is Tokenized Gold?

Tokenized gold is exactly what it sounds like: real, physical gold bars sitting in a vault somewhere, with ownership represented by a digital token on a blockchain. One token = one troy ounce of gold.

The two big players are PAX Gold (PAXG) by Paxos and Tether Gold (XAUT) by Tether. Both claim 1:1 backing with allocated gold bars stored in London vaults. You can even look up the serial number of "your" bar.

The Case for Tokenized Gold

Advantages

  • Instant liquidity. Buy or sell 24/7 on any crypto exchange. No waiting for dealers to open.
  • Fractional ownership. Buy $50 worth of gold, not just whole bars ($4k+).
  • No storage hassle. No safe, no insurance, no worrying about theft.
  • Portability. Move millions across borders in your phone wallet.

The Case for Physical Gold

Advantages

  • Zero counterparty risk. You hold it, you own it. No company can freeze your account.
  • Works without internet. In a grid-down scenario, your crypto is useless.
  • 5,000+ year track record. Every empire has fallen. Gold is still here.
  • Privacy. Cash transactions under $10k require no reporting in NZ.

The Honest Truth

Here's the thing most "gold vs crypto" articles won't tell you: they serve different purposes.

Tokenized gold is great for trading and speculation. If you're actively managing a portfolio and want gold exposure without the hassle, PAXG is perfect.

Physical gold is for wealth preservation and insurance. It's what you hold for the scenario where everything else fails. The "break glass in case of emergency" asset.

Our Take

Own both. Physical for the foundation (10-20% of portfolio). Tokenized for the flexibility. And hey, if you're in NZ, you can literally find gold in the rivers for free.

How to Buy in New Zealand

Physical Gold

NZ dealers with competitive rates

View NZ Gold Dealers →

Tokenized Gold (PAXG)

Buy with NZD via Swyftx

Go to Swyftx