PGX: How to invest in gold on the blockchain

PGX allows you to purchase gold at a discount, before it’s even out of the ground.

From March 31, 2020, AAX will be listing PhiGold (PGX). It is the first commodity finance token to be made available on the exchange.

What’s interesting about PGX?

PGX allows you to invest in gold, the way only banks and investment managers were able to do, until today. This ERC20 token offers crypto traders the opportunity to purchase gold below the market price, before it’s even out of the ground.

How is PGX different from other gold-pegged stablecoins like XAUt or PAX Gold?

PGX represents a completely different way to engage gold. While stablecoins operate on the basis of a fixed peg, PGX is a commodity finance token which is expected to print a strong yield curve in the long term. 

What’s interesting about PGX as an investment product?

Each PGX token represents 1/100th of an ounce of gold and can be redeemed for actual gold, crypto or fiat currency after 3-4 years.

PGX is initially on offer for $10 per token, but after 3-4 years, each token can be redeemed against the spot price of gold which currently stands at $15 (and has not fallen below $10 in over a decade). That’s effectively purchasing gold at a 33% discount.

How does it work? 

With the money raised from the token, PhiGold funds its mining operations at the PhiGold Barobo gold mine in The Philippines.

The gold extracted from the mine is converted to cash to purchase gold bullion held in an independent Trust in London.Once the amount of gold held in the Trust fully backs each PGX token, holders of PGX can redeem their tokens directly at the Trust. 

In the meantime, occasional buybacks and coin burns can be executed to stimulate the market, so as to gradually push the value of PGX up to the price of gold.

How can I trade PGX? 

From the 31st of March, 2020, AAXers who have verified their identity (KYC level 1), and who are not resident in the UK, can trade PGX on AAX. Primarily, this will be against USDT, but in future, depending on the demand, we may open the market up against Bitcoin

  • Download the AAX app
  • Register an account
  • Verify your identity 
  • Purchase USDT on AAX’s OTC platform
  • Trade with AAX 

Where can I learn more?

For a more in-depth assessment of the PhiGold Project:

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