PAX Gold User Guide
After signing in to your Paxos account, locate the button for “PAX Gold” at the top of the navigation bar on your Paxos wallet dashboard. From this function, you will be able to convert funds into PAX Gold (PAXG).
From your Paxos wallet dashboard, click the button for “Deposit” in the top right corner of the screen. This page will display information on how to deposit U.S. Dollars (USD), Paxos Standard Dollars (PAX) and PAX Gold (PAXG). For PAX and PAXG, we’ll provide you with a deposit address where you can send funds. For USD, follow the instructions to initiate a wire transfer through your bank.
Yes. PAX Gold can be traded against dollars on itBit.
Yes. Your Paxos account functions as a wallet. You can see balances for your USD (including both USD and PAX in one combined balance) and PAXG here. You can also create individual profiles if you wish to create separate balances based on individualized trading strategies.
If Paxos receives your order by 5PM ET on a business day, the purchase will typically settle the following business day. If Paxos receives your order after 5PM ET on a business day, the purchase will typically settle within two business days. Paxos only allows for purchases and sales of PAX Gold (PAXG) during the operational hours of the London gold market (open Sunday 6pm ET through Friday 5pm ET; closed daily from 5-6pm ET).
If you have a Loco London unallocated gold account, you can transfer your entitlements to Paxos. Paxos will have the gold converted into allocated physical gold and tokenized into PAXG, which will be credited to your Paxos account. (Paxos does not hold unallocated gold funds on the platform.)
Unallocated gold funds sent to Paxos from a Loco London account are converted into physical gold represented by PAX Gold (PAXG) and held within your Paxos account as PAXG. Paxos users receive an email notifying that Paxos has received the funds, then the conversion typically settles the following day. Once the conversion from unallocated gold to PAXG is complete, you will see this amount reflected in your account balance.
Paxos supports deposits and withdrawals of USD, Paxos Standard (PAX), unallocated gold and PAX Gold (PAXG).
Paxos does not support ACH depositing capabilities at this time. We expect to enable this functionality in the future.
When you withdraw PAXG from your account, you are sending PAXG on the Ethereum blockchain. After signing in, locate the button for “Transfer” in the top right corner of your wallet dashboard. From this screen, you will be able to withdraw PAXG and USD funds. If you wish to withdraw PAXG, you will need to provide an Ethereum wallet address that supports PAXG.
Customers can send PAX Gold to any external platforms that support ERC-20 tokens. Before initiating any transaction, make sure your Ethereum address will support PAX Gold.
To redeem PAXG as physical gold bars, you need to have a minimum balance of at least 430 PAXG plus fees in your account. Then, simply initiate a redemption from the PAXG wallet page. Once you initiate this request, our customer service team will reach out to confirm further details and arrange logistics.
London Good Delivery gold bars are typically close to 400 t oz, but they vary in weight from 350 to 430 t oz. Your account must be able to cover the full cost of whichever bar of gold becomes available to you. Additionally, there are small fees associated with this processes so a customer must hold enough PAXG to cover these costs.
You can withdraw USD from your account by either initiating a USD wire transfer to your bank account or by sending USD as PAX USD on the Ethereum network.
As a Paxos user, you have one account where you can hold PAXG and USD (your USD balance reflects combined balances of both USD and PAX since they are equal in value and interchangeable on the Paxos platform)). This account has one Ethereum address associated with it since both PAX and PAXG are Ethereum tokens.
If you are a Paxos customer and are holding PAX Gold through our systems, visit the PAXG Allocation Report page. Here, you can get your gold bar’s serial number, brand code, gross weight, fineness and fine weight.
If you hold PAX Gold on-chain outside of Paxos, you can review details on your gold bars here. You just need an Ethereum address to look up your tokens.
Paxos logs the transaction activity of each Paxos account holder. To view your account activity, select the “Activity” tab on the main dashboard.
To view your account activity, select the “Settings” feature and the “General” sub-tab. Details regarding your account are stored here.
If you need assistance adjusting your account info, reach out to email@example.com.
Both PAX USD and PAX Gold operate on the Ethereum blockchain. Every Paxos account has one Ethereum address. Within the Paxos Wallet, you can see the distribution of assets held by your account.
Paxos asks that all account holders update the details of their accounts so that we can provide accurate tax information, maintain our AML/KYC standards and stay compliant with the rules and regulations that NYDFS outlines for holders of a Trust Charter.
No – the only type of order you can place is a market order on the Paxos platform. However, these order types may be available on crypto exchanges where PAX Gold (PAXG) is listed.
The supply of PAX Gold (PAXG) is bankruptcy remote from Paxos. Since PAXG is issued by a regulated Trust company, client assets are segregated from operating assets of Paxos at all times. All customer assets are safeguarded and can be converted at any time, meaning that customers funds are always safe.
PAX Gold represents London Good Delivery Gold. Paxos provides details of the physical gold representing each PAX Gold token. To underscore this relationship, we provide the physical details of this gold (including serial number and weight) within the PAXG Allocation report.
When you hold a PAX Gold token, you are the owner of the gold allocated to your tokens. Paxos holds title to the London Good Delivery gold bars in the name of Paxos Trust Company LLC “for benefit of” PAX Gold token holders. This means that legally, the owners of the gold bars are the token holders as identified in Paxos’ records. Paxos’ records, in turn, reflect at all times the public Ethereum blockchain addresses holding all PAX Gold tokens. Paxos’ systems automatically allocate gold bars to all PAX Gold tokens. You can review details on your gold bar through our website.
Paxos allocates gold automatically so that all PAX Gold (PAXG) tokens are allocated to specific gold bars at all times. Paxos will make an effort to allocate PAXG tokens to the fewest number of gold bars possible per unique Ethereum address. When customers are not allocated ownership of a full gold bar, customers will own pro rata shares of bars as determined by PAXG token holdings. Paxos may also reallocate PAX Gold tokens to different bars from time to time in order to take into account transfers of tokens, new exchanges of tokens, conversions and other PAXG transactional activity.
Every weekday, the London gold market closes for one hour so that it can settle all of the trades that occurred within the prior 23-hour period. Additionally, the London gold market does not operate between 5PM ET on Fridays through 6 PM ET on Sundays. During these periods of time, Paxos does not support the purchase or sale of PAX Gold on its platform.
Users can convert their PAXG tokens to gold bars, unallocated gold entitlements, Paxos Standard (PAX) or USD. Customers can do this by initiating a sell request through the Paxos wallet dashboard on the PAX Gold page. If you are interested in getting smaller denominations of physical gold, you can also use your PAXG to purchase products through retail partners like Bullion Exchanges.
Paxos allows for the redemption of physical gold in increments that align with the standards for London Good Delivery, which is generally 400 t oz but can vary between 350-430 t oz. If you hold 430 or more PAXG tokens, you can initiate a process for physical gold bar redemption. Once this process is initiated, Paxos works closely with you to confirm details and arrange delivery logistics. This timeframe is likely to be variable.
Paxos maintains strict rules for the redemption of physical gold. Only individuals registered with Paxos as account holders can redeem gold. Other individuals may not redeem gold on behalf of the account holder.
The gold market is global and rapidly changing; therefore the price of gold is always fluctuating. To capture the most accurate gold price at all times, the price of PAXG is based on streaming prices directly from INTL FCStone to represent the real-time London gold market.
Paxos only supports purchases and sales of PAX Gold (PAXG) during London gold market hours on paxos.com (open from Sunday 6pm ET through Friday 5pm ET; closed weekdays from 5-6pm ET). When markets are closed, orders cannot be placed on the Paxos platform.
The price of PAX Gold is based upon the spot price of gold reflected in the London market.
Whenever you buy or sell PAXG from your Paxos account (on either the wallet or PAX Gold pages), Paxos charges small fees to process both the creation and destruction of PAXG tokens (see fee schedule below). This includes all sales or conversions of PAX Gold to or from USD, PAX, gold bars or unallocated gold.
These fees do not apply on the itBit exchange or anywhere else outside the Paxos wallet.
Whenever PAXG tokens are sent via Ethereum, Paxos charges a small (0.02%) transaction fee, and the Ethereum network charges nominal gas fees (in Ethereum).
Amount of PAX Gold Tokens
Estimated USD* (based on August 2019 market value of roughly $1,500/oz)
Creation & Destruction Fee
applied whenever PAXG is converted or redeemed for USD, PAX USD, unallocated gold or gold bars
0.01** – 2
$15 – $3K
0.02 PAXG minimum fee
2 – 25
$3K – $37.5K
25 – 50
$37.5K – $75k
50 – 75
$75K – $112.5K
75 – 200
$112.5K – $300K
200 – 800
$300k – $1.2M
800 – 8,000
$1.2M – $12M
8,000 – 20,000
$12M – $30M
*Fee percentage is calculated based on PAXG tokens; USD is included in this chart as an estimate for reference only
**The minimum purchase amount is 0.01 PAXG
Sending a PAX Gold (PAXG) token from one ERC-20 address to another, such as when moving funds from a wallet to an exchange, is an on-chain transaction; possession of the token is transferred and recorded on the Ethereum blockchain.
There are two kinds of fees that occur when you send PAXG on the blockchain:
- Standard ‘gas’ fee: Sending digital assets on Ethereum, requires computing power, or ‘gas.’ Just like any other Ethereum token, PAXG requires standard gas fees paid in ETH to compute the transaction.
- PAXG on-chain transaction fee: PAXG charges an additional fee. That fee is set to 0.02% of the amount of PAXG sent on the blockchain.
There is a 0.02% fee associated with sending PAXG on the Ethereum blockchain. The fee is taken as a percentage of the amount of PAXG transferred. For example, if you want to send 10 PAXG from one Ethereum address to another, and you want to ensure that the receiver gets at least 10 PAX after fees, you should send at least 10.0020004001 PAXG total to cover the cost of the on-chain transaction fee. If you initiated a transfer of 10 PAXG, the receiver would get 9.998 PAXG after fees.
All PAX Gold (PAXG) fees are charged in PAXG, not in USD or in PAX. This means a small amount of your PAXG balance is taken as a fee, and you don’t have to wire additional funds in fiat to pay for the fees. It works as per the following:
- When you create PAXG, you will receive the amount of PAXG you requested, less the conversion fee.
- When you destroy PAXG, we take the conversion fee from the PAXG before processing the destruction and sending you the USD, unallocated gold or amount of gold bar you are entitled to.
- When you send PAXG on the blockchain, we take the transaction fee from the amount of PAXG before sending it to the recipient address.
Paxos does not currently charge gold storage fees to its customers at this time.
There is no minimum amount of holdings for PAX Gold (PAXG); PAXG is divisible out to 18 decimal places, so it is possible to own extremely small amounts.
When purchasing PAXG on Paxos.com, the minimum purchase is .01 PAXG, plus the conversion fee of .02 PAXG (the total cost is 0.03 PAXG). Any interested investor who becomes a verified customer on Paxos can buy PAXG.
Yes. Our vault provider is fully insured. This protects the gold while in the vault facilities and while in transit.
When purchasing PAX Gold (PAXG), Paxos provides the spot price of gold as quoted by the London market. If we receive your order by 5PM ET on a business day, you will typically receive the PAXG on the following business day. Your purchase is settled as quickly as possible, generally no later than the following business day after purchase. If you purchase PAXG after 5pm ET, you will typically receive your PAXG within 2 business days. The price honored at settlement is always the price at transaction time; settlement timing does not change the price at which you purchased PAXG.
If you acquire PAXG through an external platform, then your purchase or trade will settle according to the terms and conditions of that platform.
In order to create PAX Gold (PAXG), Paxos must buy London Good Delivery gold in the active marketplace. This means Paxos is subject to natural price movement in the gold market. When a customer confirms the 5-second quote, Paxos guarantees your gold will be purchased at that price. (In some very unlikely cases, the price of gold may suddenly jump much higher or lower, cancelling the quote early. In that case, Paxos will prompt you with another price quote.) Paxos guarantees that customers will only ever have orders filled at a price they confirmed.
PAXG is built on the Ethereum network with the standard ERC-20 protocol. The PAXG smart contract extends to the 18th decimal place, meaning ownership can be divided into significant granularity. If you are acquiring PAXG outside of Paxos.com, you can get fractional amounts to the 18th decimal place.
However, when creating or destroying PAXG tokens on Paxos.com, customers are subject to the standards of the Loco London gold market. This means fractional ownership is limited to the following:
- 2 decimal places to convert between PAXG and USD;
- 3 decimal places to convert between PAXG and unallocated gold; and
- 3 decimal places to redeem PAXG for physical gold bars.
No. PAX Gold holders do not need a Paxos account in order to view their bar allocation. At any time, PAX Gold holders can go to the Paxos website to retrieve the serial number and physical characteristics of the vaulted gold they own. The only input required is an Ethereum address holding PAX Gold tokens.
Yes. In the Paxos wallet, for the first 7000 PAXG tokens created and sold, buyers will get a 2% rebate deposited as USD into their Paxos account. This only applies for Paxos users who purchase under 33 PAXG. Users who purchase PAXG through this promotion will not be able to return the tokens on the Paxos platform for conversion (to cash or unallocated gold) or redemption (to physical gold bars) until December 31, 2019. Additionally, creation fees are waived on these tokens.
Also, trading fees are waived on the itBit exchange for the first 30 days after launch (through October 5, 2019).