This article explores the rising relevance of gold and tokenized gold assets in light of recent economic events occurring in 2025.
Importance of Gold as a Safe Haven
Precious metals have historically been considered a reliable asset, especially in times of economic uncertainty. They retain their value due to limited supply. Over the past 5 years, gold prices have doubled. In times of economic crises, investors tend to find reliable assets, which has led to rising gold prices. In April 2025, gold prices reached a historic high of $3,500 per ounce.
Role of Real World Assets
The tokenization of real-world assets has become a vital topic following the latest crypto winter. Investors began to re-evaluate traditional finance to avoid the risks associated with volatile assets. Tokenization helps to address issues related to high transaction costs and geographical barriers while providing greater flexibility in accessing assets. This can lead to improved liquidity, although the degree of impact may vary depending on the asset and platform.
Overview of Gold-Backed Crypto Assets
Several types of digital assets are tied to gold prices. These include tokens backed by physical gold, such as PAX Gold and Tether Gold, as well as synthetic tokens tracking gold prices without physical backing. PAX Gold was issued by Paxos and corresponds to a certain amount of gold stored in vaults, while Tether Gold offers similar benefits associated with gold bars in Swiss vaults. The PAXG token is listed on many major crypto exchanges.
The economic implications of trade wars continue to influence the markets. Investors are likely to turn their attention to protective assets like gold and tokenized assets, which may lead to further growth.
