Gold Shop Gold Purchase Loss 8%! Real Test "On-Chain Gold" Token PAXG Total Fees Crush Taiwan Bank Passbook

There are three ways for Taiwanese people to buy gold: Taiwan Bank Gold Passbook, cash purchases at jewelry stores, and on-chain gold tokens PAXG. Practical tests show that what most people think is the most complicated on-chain method can actually have the lowest deposit and withdrawal fees among the three.
(Background note: What is the gold token PAXG? One coin equals one ounce of gold.)
(Previous summary: In-depth analysis of gold tokens: What’s the difference between PAXG and XAUT?)

Table of Contents

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• Taiwan Bank Passbook vs Jewelry Store
• Fees for PAXG On-Chain Gold Token
• 100,000 TWD Practical Comparison Table

Gold prices hit a record high, causing a rush for gold in Taiwan with long lines at jewelry stores. But have you ever calculated how much money is actually lost from the “buy” to “sell” cycle?

The answer might surprise you. Buying and selling gold at jewelry stores can have price spreads of over 8%, Taiwan Bank Gold Passbook about 2.3%, while the on-chain gold token PAXG, which many consider “expensive and complicated,” can actually have fees starting from just 1.2%.

This isn’t an advertisement for cryptocurrencies; the numbers speak for themselves. Let’s break it down and compare.

Taiwan Bank Passbook vs Jewelry Store

First, look at the most used method in Taiwan: Taiwan Bank Gold Passbook. As of today (3/17), Taiwan Bank’s selling price is NT$5,160 per gram, buying price NT$5,101 per gram, with a spread of NT$59, which is about 1.15%. Buying once costs 1.15%, selling again 1.15%, totaling 2.3% for a round trip. Investing NT$100,000, the price difference alone erodes NT$2,300.

There’s also a lesser-known pitfall: if you want to withdraw physical gold bars from the Taiwan Bank Gold Passbook, you’ll need to pay an additional fee (around NT$200–NT$500), and once withdrawn, Taiwan Bank won’t buy it back. Yes, you read that right—once you withdraw, you can’t return it.

Jewelry stores are even worse. The buy-sell spread for investment-grade pure gold bars is about 4–6%, and for gold jewelry, it can soar to 8–10%. Today’s actual quote from a jewelry store shows a selling price of NT$20,260 per tael and a buyback price of NT$18,560 per tael, an 8.4% spread.

Investing NT$100,000 and then selling will directly lose over NT$8,000.

Additionally, jewelry stores have limited business hours, and you need to be physically present to sell.

PAXG On-Chain Gold Token Fees

PAXG, issued by Paxos, is an on-chain gold token where 1 PAXG equals 1 ounce of physical gold stored in London vaults.

For those used to traditional gold buying channels, it might seem unreliable, but the fee structure is actually quite simple.

For example, depositing funds involves: buying TWD on an exchange and converting to USDT (single transaction premium of about 0.5–1.5%) → buying PAXG with USDT (transaction fee 0.1%) → holding period storage fee 0 → selling PAXG for USDT (0.1%) → converting USDT back to TWD for withdrawal (0.5–1.5%).

Total round-trip costs add up to about 1.2% to 3.2%.

If you take the middle value, roughly 2%, it’s comparable to Taiwan Bank Gold Passbook, and PAXG can be traded 24/7 without waiting for bank hours.

Additionally, the creation fee for PAXG (direct purchase on Paxos platform) is waived until 2026/3/31. Taiwanese exchanges like BitoPro and HOYA also list PAXG, allowing direct purchase with TWD.

100,000 TWD Practical Comparison Table

The numbers are here. PAXG indeed has cost advantages, but that doesn’t mean it’s suitable for everyone.

The risks of on-chain gold are entirely different: exchange insolvency risks (remember FTX?), smart contract vulnerabilities, lack of clear regulation in Taiwan, potential scams in P2P deposits, and the fluctuation of TWD/USD exchange rates which can add to gold price volatility.

Moreover, redeeming physical gold with PAXG requires a minimum of 430 PAXG (about NT$55 million), which is not practical for most people.

• For those seeking safety and compliance without touching crypto, Taiwan Bank Gold Passbook is the most stable choice, with 2.3% as a reasonable cost.
• For those wanting to hold physical gold or for collection purposes, jewelry store gold bars are fine—avoid buying gold jewelry (manufacturing costs are an invisible killer).
• For those familiar with crypto operations and seeking the lowest fees, PAXG has the lowest deposit and withdrawal costs, plus 24/7 liquidity.

Many people misunderstand one thing: they think “traditional = cheap, crypto = expensive.” But what really eats into your returns are those opaque buy-sell spreads. Jewelry store gold jewelry with an 8% spread means gold prices need to rise by 8% before you start making money. Next time you consider buying physical gold, do the math.

• This article is for reference only and does not constitute investment advice. The gold market has been highly volatile recently. Please carefully assess risks before investing.