Concerns Over ‘Paper Gold’ Amid Rising Prices
- Gold prices have surged over 80% in the last year, making it a top-performing asset.
- Björn Schmidtke, CEO of Aurelion, claims that about 98% of gold exposure is through unallocated IOUs from ETFs.
- In a crisis, the lack of proof for ownership could lead to logistical issues in delivering physical gold to investors.
- Aurelion holds $153 million worth of XAUT tokens, which are linked to specific allocated bars of gold.
- XAUT aims to provide faster transactions and reliable ownership verification compared to traditional paper gold.
The current reliance on ‘paper gold’ could pose significant risks if investors demand physical delivery during market stress. The transition to tokenized gold like XAUT may help mitigate these risks by ensuring traceable ownership.
With Aurelion’s treasury holding over $153 million in XAUT tokens, the company emphasizes that how one owns gold is as crucial as whether they own it at all.
