PAXG vs Physical Gold ETFs: Which One Deserves a Spot in Your Wealth Pie?

Gold. 

The shiny metal that’s dazzled empires, powered economies, and now, thanks to a dash of tech magic, sits in our portfolios in ways the pharaohs could never have dreamed of.

But not all gold is created equal. 

And in this modern wealth world, we’ve got very different ways to own it:

• Gold jewellery stashed away under the mattress;
• A bullion bar buried in your garden;
• Gold coins hidden behind a painting;

Or simpler ways in these digital times…

•  the old faithful physical gold ETF (this is how I invest in gold); and 
• the next-gen contender PAX Gold (PAXG), a digital token backed by real bullion.

So how do you decide which one to use when adding a delicious sliver of gold to your investment portfolio?

👉 Watch this video where I explain it all and help you make the right choice for you…

Let’s break it down.

First, Why Even Hold Gold?

Gold isn’t about glamour, it’s about protection. 

It’s the insurance policy in your well-diversified portfolio. When stock markets zag, gold often zigs. 

It doesn’t generate income, but it does offer stability in the face of volatility.

 Just remember: it should only ever be a small slice of your overall portfolio, up to a maximum of 10% of your investable net worth.

What is PAX Gold (PAXG)?

This is where things get juicy. PAXG is a digital token (ERC-20) on the Ethereum blockchain. 

Each token equals 1 fine troy ounce of physical gold that meets the London Bullion Market Association standard, and yes, it's stored in serious vaults in London. 

We’re talking James Bond-level security here.

You get direct legal ownership of specific allocated gold bars, all trackable by serial number. Plus:

• It’s issued by a regulated U.S. financial institution (Paxos Trust)
• It’s audited monthly
• It’s tradable 24/7 on global crypto exchanges
• You can even redeem it for actual gold (if you’re that committed)

What is a Physical Gold ETF?

A Physical Gold ETF is a fund that holds real gold and trades on the stock market like a regular stock. 

An ETF is an Exchange Traded Fund - you can read about the difference between an ETF and a Mutual / Unit trust type fund here << 

Think of this like an index tracker ETF - but instead of shares the ETF owns actual gold.

One of the big Physical Gold ETF’s SPDR Gold Shares (GLD). You own shares in the fund, not specific bars of gold, and when you want to cash out, you sell those shares like any stock.

It’s:

• Regulated under securities laws
• Integrated into your regular brokerage or retirement account
• Easy to buy/sell during market hours
• And the physical gold is held in vaults in banks like HSBC

PAXG vs. Gold ETF: Which Is Better?

Here’s how they stack up — Wealth Chef style:

Which Should You Choose?

Ask yourself:

• Are you already comfy in the crypto space, managing wallets and dancing with DeFi? → PAXG might be your golden ticket.
  
• Do you want your gold exposure to sit nicely in your traditional investment account, alongside your index trackers and REITs? → Go with the physical gold ETF.
  
  

Both offer low fees, real gold backing, and good liquidity. The choice isn’t about better or worse. It ultimately comes down to your comfort with digital assets, portfolio structure, and how you want to access your gold exposure.

Here’s the decision flowchart showing how an investor might choose between PAX Gold and a Physical Gold ETF based on preferences for regulation, digital assets, trading hours, and redemption flexibility. 

Final Word from the Wealth Kitchen

Whether you go digital or traditional, the golden rule stays the same: diversify wisely, invest with clarity, and don’t overcook the gold portion of your pie.

Go here to read about the fundamentals of successful portfolio design <<

Your wealthy life is waiting, with or without the glitter.

With love, logic, and a sprinkle of gold dust,
Ann x