Why is traditional gold arbitrage so troublesome?



Domestic gold LOF arbitrage used to be all the rage, but problems kept emerging—opportunities are fleeting, missing out means missing out; liquidity is tight, making it hard to close positions; premium fluctuations are unpredictable, and risks catch investors off guard. This approach has long fallen out of favor.

But a new perspective can bring a fresh outlook. The cryptocurrency gold token PAXG is changing the game, redefining the liquidity and tradability of gold assets through blockchain technology. 24-hour liquid markets, transparent on-chain transactions, and instant convertibility—these conveniences unavailable through traditional channels are attracting more and more investors to reconsider gold asset allocation.

From arbitrage dilemmas to on-chain opportunities, a new approach to diversified asset allocation might be right here.
PAXG-0,38%
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fren_with_benefitsvip
· 7h ago
Traditional gold is really a trap, with such poor liquidity and still getting chopped up. Traditional gold arbitrage has long been outdated; on-chain PAXG is the future way to play. Honestly, the LOF model is already outdated; who doesn't crave 24-hour liquidity? The trend of gold tokenization is unstoppable; the crypto world is much more flexible than traditional finance. Really, traditional arbitrage mechanisms are too outdated; solutions like PAXG are truly satisfying.
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PumpDetectorvip
· 7h ago
lol traditional gold arb was always just liquidity theater... but ngl PAXG's 24/7 on-chain flow is hitting different. finally someone figured it out after all these years watching the premium decay into nothing 🧠
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LiquidityWizardvip
· 7h ago
PAXG is hot, but there aren't many who truly dare to go all in.
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