Here are some frequently asked questions about StreetTracks Gold Shares.
Click on the links to jump to the answers in the page.
1. Can you take physical possession of the gold?
2. Is the gold insured?
3. Where is the gold held? Is it safe?
4. What happens to the gold if there is a terrorist attack and it is
stolen or damaged?
5. Where do you get the spot price for gold?
6. How do I find the intra-day NAV of GLD?
7. How often is the trust audited, & do the auditors
have access to the vault to physically count the gold?
1. Can you take physical possession of the gold?
The Trustee, Bank
of New York, does not deal directly with the public. The trust handles
creation and redemption orders for the shares with
Authorized
Participants, who deal in blocks of 100,000 shares. An individual
investor wishing to exchange shares for physical gold would have to come
to the
appropriate arrangements with his or her broker.
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2. Is the gold insured?
The Custodian, HSBC Bank USA, will maintain such insurance for its
business, including its bullion and custody business, as it deems appropriate.
The Trustee and the Sponsor, WGTS, may review this insurance coverage
periodically and upon notice, subject to confidentiality restrictions.
The Custodian is responsible for the safekeeping of the gold held on
behalf of the Trust in accordance with the terms of the Allocated Bullion
Account Agreement and is required to exercise reasonable care in the
performance of its obligations. The Custodian is responsible for loss
or damage suffered by the Trust as a direct result of any negligence,
fraud, or willful default in the performance of its duties. The Custodian’s
liability is only for the market value of the gold held in the Trust
Allocated Account or Trust Unallocated Account, respectively, at the
time such negligence, fraud or willful default is discovered by the
Custodian, provided that the Custodian notifies the Trustee promptly
of its discovery.
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3. Where is the gold held? Is it safe?
The gold that underlies Gold Shares is held in the form of allocated
400 oz. London Good Delivery Bars in the London vaults of HSBC Bank
USA. The safekeeping methods are essentially no different
from those that have operated without a problem in the London market
for centuries. Those safeguards have
stood the test of time for both individuals and institutions (including
many governments) that store their gold in London vaults. We have tremendous
confidence in the Custodian's efforts to ensure the safety of the
Trust's gold bullion.
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4. What happens to the gold if there is a terrorist attack and it
is stolen or damaged?
Though damage or loss as a result of such events
is unlikely, should the gold be destroyed or damaged in a
terrorist attack, the Custodian is not liable for any delay in performance
or non-performance of any of its obligations under the Custody Agreements.
See "Force Majeure" section of the prospectus. Should the gold
in the Trust Allocated Account or Trust Unallocated Account be stolen or damaged, the Custodian would only
be liable for the market value of the gold held in the Trust Allocated Account or Trust Unallocated Account if
it were determined that such loss or damage were the result of negligence, fraud or willful default. These are
the legal considerations governing the operations of the Custodian. Actual experience in the aftermath of the
terrorist attack that destroyed the World Trade Center in New York was that there was effectively no disruption
to the operations of a custodian whose vault was unavailable for months, until it was eventually recovered
undamaged. The Custodian was able to carry on more or less normal operations by using gold deposited at
other locations, or by borrowing gold in the market, and did not have to default on a single transaction.
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5. Where do you get
the spot price for gold?
How does it relate to
the London AM/PM Fix? What is the difference between the London Fix
and COMEX?
The spot price for gold is determined by market forces in the 24-hour
global over-the-counter (OTC) market for gold. The OTC market accounts
for most global gold trading, and prices quoted reflect the information
available to the market at any given time. The spot price can be found
on: www.thebulliondesk.com.
The London Bullion Market Association has about 60 full members, as
well as a lot of associates. The London Fix is set by five of those
member firms and is based upon actual buy and sell orders for gold
in the global
OTC market. A good analogy for the London Fix versus OTC trading would
be to consider the London Fixes similar to opening/closing prices for
stocks and to consider the spot price for gold as the continuous market
price throughout the trading day.
The COMEX division of the New York Merantile Exchange is a derivatives
exchange that acts as a marketplace to trade futures and options contracts
on metals, including gold. Typically, gold futures contracts trade
at a
premium to the spot price.
Further discussion can be found in the prospectus.
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6. How do I find the
intra-day NAV of GLD?
The indicative intra-day NAV of GLD can be found at www.streettracksgoldshares.com.
The indicative intra-day value is calculated on the mid point of the
bid/offer gold spot price.
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7. How often is the
trust audited, and do the auditors have access
to the vault to physically count the gold?
Agreements among the Trustee, Bank of New York and the Custodian, HSBC
USA, NA allow for the Trustees to visit and inspect the Trust’s
holdings of gold held by the custodian twice a year. In addition, The
Trust’s independent auditors may audit the Gold holdings in the
vault as part of their audit of the Financial Statements of the Trust.
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For more information contact: State Street Global
Advisors Singapore Limited, 168 Robinson
Road
#33-01,
Capital Tower,
Singapore
068912, tel 1 800 2255 749 in Singapore or
+65 6826 7500, www.streettracksgoldshares.com
Due to the risk that the Internet may be subject to interruption,
transmission blackout, delayed transmission due to internet traffic,
or incorrect
data transmission due to public nature of the internet, the information
contained in this website may be incomplete, altered or tampered with,
and may not present the complete and accurate information. None of
the World Gold Trust Services LLC (the "Sponsor"), State
Street Global Advisors Singapore Limited (“SSgA”) or any
of their affiliates shall be liable for losses of any kind suffered
or incurred as a result of the reliance on the information contained
in this website.
This website is for information purposes only and does not have any
regard to any investor's specific investment objectives, financial
situation or particular needs. Nothing contained in this website constitutes
or should be construed as an invitation or offer to acquire, purchase
or subscribe for, or to sell, any gold securities or other financial
instruments or to provide any investment advice, recommendations or
other financial services of any kind.
The Singapore Exchange Securities Trading Limited ("SGX-ST")
and the Monetary Authority of Singapore take no responsibility for
the contents of this website, make no representation as to its accuracy
or completeness and expressly disclaim any liability whatsoever for
any loss howsoever arising from or in reliance upon the whole or any
part of the contents of this website.
The prospectus in respect of the Singapore offer of the shares (the "Shares")
in the streetTRACKS Gold Trust (the "Trust") is available
and may be obtained upon request (subject to availability) from State
Street Global Advisors Singapore Limited (“SSgA”) (Co.
Reg. No: 200002719D). Investors should read the prospectus of the Trust
before deciding whether to purchase Shares. The value of Shares and
the income from them, if any, may fall as well as rise. Shares in the
Trust are not obligations of, deposits in, or guaranteed by, the Sponsor,
SSgA or any of their affiliates. An investment in Shares is subject
to investment risks, including the possible loss of the principal amount
invested. Past performance figures of the Trust or of the gold market
are not necessarily indicative of the future performance of the Trust.
The Shares are expected to reflect the price of gold, therefore the
price of the Shares will be as unpredictable as the price of gold has
historically been. You may wish to seek advice from a financial adviser
before making a commitment to purchase Shares. In the event that you
choose not to seek advice from a financial adviser, you should consider
whether the Trust is suitable for you.
Investors have no right to request the Sponsor to redeem their Shares
while the Shares are listed. It is intended that holders of Shares
may only deal in their Shares through trading on the SGX-ST. Listing
of the Shares on the SGX-ST does not guarantee a liquid market for
the Shares.
The information in this website is directed at, and is intended for
distribution to, and use by, persons in Singapore only. It is not
intended for distribution to, or use by, any person in any other
jurisdiction.
Access to the information contained in this website may be restricted
by laws or regulations applicable to you. None of the services
or investments referred to in this website are available, and prospectuses
in respect
of them will not be distributed to persons resident in any state
or territory where such distribution would be contrary to local
law
or
regulation. It is your responsibility as the user to be informed
of and to observe all applicable laws and regulations of any relevant
jurisdiction.
*Marketed by State Street Global Markets, LLC, an affiliate of State
Street Global Advisors
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