Physical Gold

The physical gold bullion for GOLD is held in the vault(s) of JPMorgan Chase Bank, N.A. in London. The vault is audited twice a year by the auditor Inspectorate. All audit reports are made available in the resources section below. Each gold bar in the vault is itemised in a bar-list which is also available in the resources section below.

Each unit in GOLD comes with an entitlement to an amount of physical bullion. This amount was 0.093512543 fine troy ounces as at 1 January 2021. The entitlement is reduced daily by a management fee of 0.40% per annum.

To redeem for physical gold, an investor needs to:

1. Complete and send a redemption form
2. Open an unallocated bullion account with an authorised bullion dealer and
3. Pay a redemption fee of $1,000 for each redemption.

Depending on the quantity of the order, investors may find that selling units in the secondary market is a more cost-efficient option, especially for small quantities.

Gold has a low to negative level of correlation with other asset classes, such as equities and fixed income, and can therefore be used to enhance a portfolio’s overall risk/return characteristics through the benefits of diversification.

Gold has historically performed well during periods of high equity market volatility due to its safe-haven status and can therefore be used as an event risk hedge.

For centuries gold has been used as a store of value and is independent of the value of any fiat currency. As such, gold is commonly cited as a hedge against inflation.

Gold can be used as a strategic investment based on its own fundamentals, which relate to its unique supply and demand characteristics. Supply relates to both mine production and available above-ground stock. Demand primarily comes from:

1. Consumers; in the form of jewellery, bars and coins
2. Industrial users; such as electronics component manufacturers
3. Investors; including direct holders and ETF investors, and
4. Central banks; who maintain large gold reserves