Below are answers to frequently asked questions about the custody of gold transferred to the Trust. 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. If gold rises 1% that day, the DZZ should fall 2% because it is moving twice in the opposite direction. 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.
The Custodian of the Trust is HSBC Bank plc (the “Custodian”) and is responsible for the custody of the Trust's gold ingots transferred to it in connection with the creation of baskets by authorized participants. The account holder has the right to order the bullion dealer to deliver an amount of physical gold equal to the amount of gold outstanding in the account holder's credit. Gold exchange-traded funds (ETFs) expose traders to movements in the price of gold without having to buy the underlying physical asset. If the Trust's gold ingots are lost, damaged, stolen, or destroyed under circumstances that make a party liable to the Trust, the responsible party will be liable.
The custodian is instructed to assign all gold ingots deposited in the Trust to the account allocated to the fund before the close of trading each day that the New York Stock Exchange Arca or another major national stock exchange in the United States where the shares are listed is open to the public. London Good Delivery bars, often referred to as 400-ounce bars, should contain between 350 and 430 fine troy ounces of gold, look good and be easy to handle and stack. You own a fractional and undivided real interest in a trust whose only assets are gold ingots and, from time to time, cash. It is also used for the sale of gold ingots to pay Trust expenses and when gold ingots are transferred in and out of the Trust.
The shareholder (through their ownership of shares) is considered to have held for more than one year and will generally be taxed at a maximum rate of 28%. In connection with these sales, the custodian loads gold ingots from the account assigned to the Trust sufficient to cover monthly expenses and credits this amount to the Trust's unallocated account. If the trustee determines that keeping the gold with the custodian is not in the best interest of the Trust's shareholders, the trustee will let the Sponsor know. The Trust has all ownership rights to the specific gold bars allocated to the account assigned to the Trust.