Thoughts on XAU (derivatives)

I’ve heard of PAXG and XAUT, but I just came across XAU on a perpetual derivatives market yesterday. Did some digging and found out it’s called gold (derivatives), with a supply of 0, so it’s not a coin or a token in the usual sense. It’s being traded on spot markets at a couple of lesser-known exchanges according to Coinmarketcap, but its derivatives are available on a bunch of prominent exchanges. If this token starts getting more traction on well-known exchanges, would it be a good idea to pick some up to mix in with your gold tokens? Or do you think it’s just too risky? I struggled to find solid info about this token since there are so many gold derivatives out there that aren’t related. I understand coin derivatives pretty well, but I'm not sure how this XAU (derivatives) token works in the spot market. Here’s the link to the gold derivatives info https://coinmarketcap.com/currencies/gold-derivatives/ I’m assuming the token price is based on physical gold prices and issued as a token, but honestly, there’s not much info to go on.

XAU is an umbrella ticker for digitalised gold derivatives with no tokenised issuance. Similarly how XBT on BitMex used to represent a derivative of BTC just for trading. They are supposed to be just futures without any spot markets so must be either a mistake or some kind of fraud.

The XAU is only be traded on derivative and forex, not on spot in any popular exchange that I know, on bybit, what I saw on spot trade is XAUT, I even think it's risky to invest in such a coin or token, just best to speculate on the price and trade the futures, instead of saying I want to buy such a token, I would rather buy physically gold and the diversification. XAU derivative is better.

I wouldn't buy such token because I want to diversify into gold. I would prefer to buy physical gold because I don't even understand much about XAU. It's better to put your money on what you have a good knowledge on and not on random tokens irrespective of their derivatives. I am more familiar with XAUT.