Historically, purchasing physical gold required a minimum weight of 1 gram—or often much more in the form of bars or other products—creating a high entry barrier for retail investors or anyone seeking small‑scale exposure. Today, tokenization has changed the game. Blockchain platforms have launched tokenized gold products with far lower thresholds, allowing users of all ages and professions to own gold. For example, XAUm from Matrixdock—a blockchain gold token backed 1:1 by LBMA- standard 99.99% purity physical gold—can be divided down to 18 decimal places and anchors each token to one troy ounce. Moreover, buying and holding physical gold typically involves not only storage, transportation, and insurance, but also significant purchase spreads. In 2025, insurance alone may cost 1–2% of the gold's value annually (for example, $27–$54 per year on a $2,700 ounce), while using a professional storage facility often lowers combined insurance and storage costs to around 0.5% per year—which, when added to purchase premiums and spreads, can push effective costs above 3%[1]. For XAUm, it entails no storage or insurance costs, offers instant on‑chain trading, and spreads of lower than 2%.

By turning each tiny fraction into a digital token, these services democratize gold ownership—allowing anyone to hold, send as little as a single gram or less. This “light‑asset” model not only broadens participation across emerging markets and small‑scale investors, but also enhances liquidity: fractional tokens can be instantly swapped on decentralized and centralized exchanges—truly unlocking gold for the digital age.

Disclaimer: This content is for informational purposes only and does not constitute investment advice, an offer to sell, or a solicitation to purchase any digital assets. References to gold market trends are provided for general informational purposes only and do not represent, or imply, the performance, risk profile, or suitability of any specific product or token. Availability of any referenced product may be subject to eligibility criteria and jurisdictional restrictions.

[1]  Leicht, A. (2025, January 10). How much does it cost to insure 1‑ounce gold bars in 2025? CBS News – MoneyWatch. Retrieved from CBS News website.

https://www.cbsnews.com/news/how-much-does-it-cost-to-insure-1-ounce-gold-bars-in-2025/?utm