Gold has been a strong performer throughout 2024. Spot prices recently crossed the US$3,500 per ounce mark. Analysts point to market uncertainty, geopolitical tensions, and central-bank demand as drivers of this growth. Investors continue to shun risks while inflation remains sticky.
The gold price rally had been bolstered by consistent purchases from the emerging markets. China and India have been quietly amassing reserves. Demand has also increased on the retail side. Gold-backed ETFs are witnessing consistent inflows.
Such a surge reflects the growing distrust in traditional financial systems. Investors have been tending toward assets protected against currency discounting. With global markets destabilised, gold continues to stand out as a reliable store of value.
Gold surges past US$3,500/oz as investors seek safety amid inflation and geopolitical tensions
Spot Gold Passes US$3,500 Per Ounce
Crossing the US$3,500 mark was a historic moment for the gold markets. Investor confidence across this price level has shifted towards tangible assets. Rising demand has illuminated interest in physical gold as well as its digital counterpart.
Digital gold, in the form of blockchain-backed gold tokens, has seen gradual development. While such tokenised gold is still somewhat small, the resource does offer investors a more open route. These assets marry the reliability of physical gold with the transaction efficiency afforded by blockchain.
Having actual gold embedded into tokens enables issuers to put forth faster and lower-cost transactions and storage. Such a structure brings liquidity benefits to investors and easy transfer worldwide. This development is aligned with an otherwise thematic acceptance of tokenised real-world assets (RWAs).
Could Digital Gold Reshape The Gold Market?
Meaning it is one digital gold for the time being. Tokenised gold imparts fractional ownership in gold, making the class of mail more accessible. Investors who found gold an inaccessible asset many years ago can now participate with minimal investments.
Gold ETFs are still superior as an instrument; however, in application, gold tokens keep them almost at par. Owing to their evolution, younger and more tech-savvy investors are increasingly entering the fold. This generation demands transparency, low costs, and digital-first access.
At less than 1% of the market cap for gold ETFs, gold tokens still have a lot of potential. However, something about their movement demands one’s attention. Increases in actual blockchain adoption will increase the holding of digital gold.
Analysts See A Rise To US$3,900 Per Ounce
Several analysts are predicting a rise in the price levels of gold to US$3,900 per ounce. This forecast rests on economic pressures worldwide and the contraction of supply. Central bank authorities are expected to keep on eating up gold vigorously in the coming time.
If the ongoing rally gathers momentum, digital gold would catch more investor attention. With physical prices still on an upward climb, the tokenised establishment will continue to flourish. The ease of accessibility of gold tokens is increasing traction for this trend.
Investors could be using a mix of strategies to protect themselves from inflation. Analysts point to gold as a new horizon in diversification as tokenised gold is gaining more credence. Higher physical prices on one hand and digital transformation on the other, therefore, provide an impetus for the adoption process.
Market Cap Of Gold Tokens Remains Under 1% Of ETFs
Even though enthusiasm for digital gold is growing, numbers remain modest. The market capitalisation of gold tokens is currently anywhere below 1 per cent of gold ETFs. This would mean that there is room for growth, but this also very much connotes their early-stage status.
The major issuers of gold tokens are regulated entities and exchanges. Their products are backed by bullion stored in vaults, thus offering assurance to investors. Liquidity is, however, limited compared to ETFs.
Even so, transaction volumes for gold tokens grow steadily. The adoption might speed up with the maturation of blockchain infrastructure. An expanding DeFi ecosystem presents further use cases for tokenised gold.
Digital gold tokens remain under 1% of the ETF market cap, signalling early-stage growth potential
Which Are The Top 5 Gold Tokens Today?
The Top 5 gold tokens dominate most of the trades and investor distrust. These are:
- Tether Gold (XAUT) – Backed by London Good Delivery bars, it has a really large trading and liquidity.
- Pax Gold (PAXG) – Fully regulated, redeemable for physical bullion at any time.
- Meld Gold (MCAU) – An Australian innovation that connects blockchain and the gold supply chains.
- Digix Gold Token (DGX) – One of the longest-running projects wherein each token is backed by one gram of physical gold.
- Perth Mint Gold Token (PMGT) – Government-backed, supported by one of the world’s oldest mints.
These tokens have gained credibility from transparency and reputable custodians. This allowed investors to combine gold’s stability with the speed of blockchain.
With rising adoption, issuers stand to compete more with each other. Innovation in custody, transferability, and DeFi integration will mark and mould the next stage. For now, these five remain the leaders in the tokenised gold market.
Also Read: Gold Miners on the Move: Companies Newly Added to ASX 300 in 2025
Frequently asked questions
- What comes to mind when you think of global price increases for gold?
Rising gold prices come with inflationary problems, central-bank purchases, or investors willing to take the last safe assets.
- Is digital gold not physical gold?
Digital gold is tokenised bullion, which is kept in secure storage and represented on a blockchain platform for easy transfer of ownership.
- Would you say that gold tokens are safer than ETFs?
Gold tokens provide a modicum of transparency; ETFs are considered more liquid. Safety depends on the regulation of the issuer and storage.
- Do you think the top 5 gold tokens will grow in 2025?
Absolutely. Analysts expect a surge in demand for tokenised gold along with the increase in adoption of blockchain and its rising price.
