The ETF's sponsor is World Gold Trust Services and the marketing agent is State Street Global Markets. The trustee is BNY Mellon Asset Servicing and the custodian of physical gold is HSBC Bank. SPDR is probably the most visible company in the ETF space, and they also work with many Gold IRA brokers. In the case of this ETF, the custodian is HSBC. The firm is responsible for the custody of the bars.
GOLD is backed by physical gold. Each physical bar is segregated, identified and assigned individually. In a single trade, GOLD offers low-cost access to physical gold through the stock exchange and avoids the need for investors to personally store ingots. Global X Physical Gold (GOLD) offers a safe and economical way to access physical gold through the stock exchange and prevents investors from having to personally store their own ingots.
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You are now leaving the Australian Global X ETF website. The custodian also facilitates the transfer of gold into and out of the Trust through the gold accounts it maintains for Authorized Participants and the Trust. Should the custodian declare insolvent, the custodian's assets may not be sufficient to satisfy a claim by the Trust or Authorized Participant for the amount of gold deposited in their respective unallocated gold accounts. Under the Trust's custody agreements with the custodian, the trustee and World Gold Trust Services, LLC, the trust sponsor, World Gold Trust Services, LLC (the “Sponsor”) and their representatives visit and inspect the Trust's gold that is in the custodian's vault.
Although the Trust would retain legal ownership of the assigned gold ingots, it could incur expenses related to obtaining control of the assigned gold ingots, and the filing of a claim by such liquidator for the unpaid fees due to the Custodian could delay the creation and exchange of the baskets. During these periods, the Trust and the Authorized Participant, as the case may be, shall have no ownership rights to any specific gold ingot held by the Custodian and each will be the Custodian's unsecured creditor with respect to the amount of gold held in such unallocated accounts. The trustee, with the approval of the Sponsor, may employ one or more custodians selected by the Trustee for the custody of gold and for services related to the deposit and delivery of gold. If any sub-custodian who temporarily holds gold does not act with due care in keeping the Trust's gold ingots, the ability of the trustee or custodian to recover damages against such sub-custodian can only be limited to resources, if any, under applicable English law or, if the sub-custodian is not in England, under other applicable law.
In addition, if the custodian does not allocate gold from the Trust in a timely manner, in appropriate amounts or otherwise in accordance with the terms of the Unallocated Bullion Account Agreement, or if a sub-custodian does not thereby segregate the gold held in its possession on behalf of the Trust, the unallocated gold will not be separated from the custodian's assets and the Trust will be a creditor unsecured by the custodian with respect to the amount thus concluded in the event of the custodian's insolvency. Under the gold bullion allocation agreement, the custodian agreed to store all of the Trust's gold bars in his own London vault, except when the gold ingots had been allocated to a vault other than the custodian's headquarters and, in such cases, the custodian agreed that he will make every reasonable and commercial effort to transport the gold ingots to the vault of the custody, at the expense and risk of the custodian. Before gold ingots can be placed in the hands of an additional custodian or successor, the trustee shall determine that custody agreements and any related custody agreements that apply to the additional custodian or successor substantially comply with the specific requirements set out in the Trust Agreement. All gold that represents a credit to the unallocated account of any authorized participant and to the unallocated Trust account and all gold ingots deposited in the Trust's assigned account with the custodian must have a fineness (or purity) of at least 995 parts per 1000 (99.5%) and otherwise comply with the rules, regulations, practices and customs of the LBMA, including the specifications of a London goods delivery bar.
Under the gold bullion allocation agreement, the custodian agreed to keep all of the Trust's gold bars in their own vaults, except when the gold ingots have been assigned to a vault other than the headquarters of the custodian's vault and, in such cases, the custodian agreed that he will make every effort from a commercial and reasonable point of view to transporting the gold ingots to the custodian vault, at the custodian's risk. .