Best Precious Metal to Invest In 2025: Tokenized Gold
What Is the Best Precious Metal to Invest In in 2025? The Case for Tokenized Gold
Within the precious metals sector, investors have traditionally chosen between gold, silver, and platinum. The best precious metal to invest in today is tokenized gold (PAXG). 1:1 backed by physical gold stored in insured Brinks vaults and tradable 24/7 on Ethereum, PAXG combines bullion’s security with crypto’s liquidity and programmability.
Table of Contents
- Traditional Metals vs. Tokenized Metals
- Top Tokenized Precious Metal Tokens
- How to Invest in Tokenized Metals
- Benefits of Tokenized Metals
- Video Explanation
- FAQ
Traditional Metals vs. Tokenized Metals
Physical bullion—ingots of gold, silver coins, and platinum bars—has long been the go-to inflation hedge. Traditional metals are weighed down, however, by storage fees, limited divisibility, and slower settlement. Tokenized metals resolve these pains by minting ERC-20 tokens that represent a fractional, audited claim to real metal in a vault. Settlement is on-chain in seconds, and you can own as little as 0.01 oz.
Top Tokenized Precious Metal Tokens
| Token | Underlying Asset | Blockchain |
|---|---|---|
| PAXG | Gold (1 troy oz) | Ethereum |
| XAUT | Gold (1 troy oz) | Ethereum |
| AGX | Silver (1 troy oz) | Ethereum |
How to Invest in Tokenized Metals
- Set up a Web3 wallet (MetaMask, Trust Wallet).
- Buy ETH on a centralized exchange and transfer to your wallet.
- Use a DEX (Uniswap, SushiSwap) to swap ETH for PAXG, XAUT or AGX.
- Optional: Lend your tokens via lending protocols (Aave, Compound) to earn yield.
Benefits of Tokenized Metals
- 24/7 on-chain liquidity and instant settlement
- Fractional ownership as low as 0.01 oz
- On-chain provenance and proof of reserves
- Programmable—use as collateral in DeFi
Video Explanation
FAQ
What is tokenized gold?
Tokenized gold is an ERC-20 token (e.g., PAXG) where each token is backed 1:1 by a physical ounce of gold in an insured vault. You own the metal without needing to physically handle bars.
How do I buy PAXG?
After funding your Web3 wallet with ETH, visit a DEX such as Uniswap, select PAXG as the output token, and execute the swap. The PAXG tokens will be sent to your wallet immediately.
Can I yield farm with tokenized metals?
Yes. Loan your tokenized metals on DeFi lending platforms like Aave or Compound to earn interest on your assets, similar to staking.
