With respect to frequently asked questions regarding SPDR Gold Shares, please also refer to the product summary brochure posted on the Tokyo Stock Exchange website.
Here are some frequently asked questions about SPDR Gold Shares. Click on the links below to reveal the answers.
What are the benefits of investing in gold?
Positive gold market demand and supply dynamics have resulted in an overall gold price appreciation over the past decade. While some investors bought gold for tactical reasons, many investors continue to see it as a strategic asset. Particularly relevant is the role that gold can play in portfolio diversification and risk management. Because the price of gold does not typically correlate with the price of other financial assets – including stocks or bonds – it can be an effective tool for diversifying an investor’s portfolio. Historically, gold has been an effective hedge against inflation and currency depreciation. It has also provided a store of wealth in times of geopolitical or financial duress. Many investors buy gold for strategic reasons and use it as a safe haven.
Where do you get the spot price for gold? How does it relate to the LBMA Gold Price AM/PM? What is the difference between the LBMA Gold Price and the COMEX gold price?
The spot price for gold is determined by market forces in the 24-hour global over-the-counter (OTC) market for gold including spot, forwards, and options and other derivatives, together with exchange-traded futures and options. 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 OTC market trades on a continuous basis and accounts for most global gold trading. Market makers and participants in the OTC market trade with each other and their clients on a principal-to-principal basis.
Although the market for physical gold is global, most OTC market trades are cleared through London. The London Bullion Market Association (LBMA) coordinates market activities and acts as the principal point of contact between the market and its regulators. The LBMA has approximately 76 full members and 69 associate members1.
The LBMA Gold Price is determined twice each business day (10:30 a.m. and 3:00 p.m. London time) by the participants in a physically settled, electronic and tradable auction administered by ICE Benchmark Administration Limited (“IBA”) using a bidding process that determines the price of gold by matching buy and sell orders submitted by the participants for the applicable auction time.
The COMEX division of the New York Mercantile Exchange (NYMEX) is a futures and options exchange that acts as a marketplace to trade futures and options contracts on metals, including gold. Gold futures contracts typically trade at a premium to the spot price. Further discussion can be found in the prospectus.
The LBMA Gold Price PM replaced the London Gold Fix and IBA became the third-party administrator on March 20, 2015.
1LBMA members as of February 18, 2015
How volatile is the gold price?
The gold price has been slightly less volatile than major stock market indices, such as the S&P 500® Index. Over the past ten years, the S&P 500® has had an annual volatility of 20.3% compared to 20.1% for gold.1
Gold is also much less volatile than other commodities. For example, at the end of 2014, the 10-year annualized volatilities of silver, copper, lead, and Brent crude oil were 38.1%, 29.8%, 56.1% and 32.6% respectively. The corresponding volatility of the gold price was only 20.1%.2 There are good reasons why gold has tended to be less volatile than other commodities. First, gold has multiple uses: close to 60% of gold’s annual demand is used in jewellery and electronics,3 but gold is also bought by investors to manage risk and preserve capital, and by central banks to diversify their foreign reserves. In contrast, the demand for most other commodities is linked to the business cycle, often increasing in times of expansion and contracting in times of recession.
Second, the gold market is deep and liquid,4 and is supported by the availability of large above-ground stocks. Because gold is virtually indestructible, nearly all of the gold that has ever been mined still exists. Unlike base metals or even other precious metals such as silver, much of it is in near-market form.5 As a result, in the event of a sudden supply-side shock or rapid increase in demand, recycled gold can, and frequently does, come back onto the market, potentially dampening a possible price spike.
The third reason rests in the geographical diversity of mine production and gold reserves. These are much more diverse globally than other commodities, such as oil where production is highly concentrated in the Middle East. This leaves gold better positioned to avoid the impact of a regional or country-specific economic or political shock. Contrast this with oil, for example, where the price will often move aggressively, driven by economic or political events in the Middle East.
1Based on daily returns from January 2005 to December 2014. Data source: Bloomberg.
2 Volatility computed as the annualized standard deviation of daily returns from January 2005 to December 2014. Data source: Bloomberg.
3World Gold Council.
4Although shares of SPDR® Gold Trust , or the Trust, have historically been readily tradable on securities exchanges, there can be no assurance that an active trading market will be maintained.
5World Gold Council.
How much gold should I hold in my portfolio to enhance risk-adjusted returns?
A joint study by the World Gold Council and New Frontier Advisors6 found that gold may have a comparable portfolio weight to asset classes such as small cap and emerging markets due to its value as a diversifying asset. The study also found that the appropriate allocation to gold is dependent on the portfolio risk level. The study recommended a 1-2% allocation for low risk portfolios and 2-4% in a balanced risk portfolio.
6 Richard Michaud, Robert Michaud, Katharine Pulvermacher, "Gold as a Strategic Asset" (September 2006).
What is the difference between, gold bullion, gold bars and gold coins?
Gold in bulk form is known as bullion and is traded on commodity markets. Gold bullion can be cast into bars, or minted into coins. Bullion is valued by its mass and purity rather than by a monetary face value.
A gold bar is a quantity of refined metallic gold of any shape that is made by a bar producer meeting standard conditions of manufacture, labelling and record keeping. Gold bars are classified as either cast or minted depending on their method of manufacture. Cast bars are produced directly from gold that has been melted and minted bars are normally cut from a cast bar that has been rolled to a uniform thickness.
A gold coin is a coin made mostly or entirely of gold. Gold coins are sold as bullion coins as a method of investing in gold or to collectors as numismatics at an additional premium. Whether issued with or without a monetary face value, their market value is directly related to the value of their fine gold content. For more information go to www.goldbarsworldwide.com*
Is gold correlated to other metals like silver and copper?
Gold has a positive correlation to some other metals, particularly silver. For a 10 year period ending December 2014, the correlation coefficient between gold and silver was 0.48. However, this correlation has fluctuated. It was stronger during good economic times but weakened during recessionary periods. Unlike gold demand, approximately 80% of silver demand is linked to industrial applications.7 Gold’s correlation to other commodities is weaker, as the correlation coefficient between a diversified spectrum of commodities (as represented by the S&P GSCI Index) and gold was 0.25. In addition, gold does not correlate significantly with mainstream financial assets, like stocks and bonds, underpinning its role as a portfolio diversifier.
7 GFMS, Thomson Reuters.
Can an investor take physical possession of the gold backing his/her GLD shares ?
The Trustee, The Bank of New York Mellon, does not deal directly with the public. The Trustee handles creation and redemption orders for the Trust's shares with Authorized Participants, who deal in blocks of 100,000 SPDR® Gold Shares. An individual investor wishing to exchange shares for physical gold would have to come to the appropriate arrangements with his or her broker and an Authorized Participant.
Where is the gold held? Is it safe?
The gold that underlies the Trust's shares is held in the form of allocated London Good Delivery Bars, typically referred to as 400-oz bars, in the London vaults of HSBC Bank plc, the Custodian. 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 confidence in the Custodian's efforts to keep the Trust's gold bullion secure. Additionally, the Custodian maintains insurance with regard to its business on such terms and conditions it considers appropriate.
What happens to the gold if there is a terrorist attack and it is stolen or damaged?
If the Trust’s gold bars are lost, damaged, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party will be responsible. However, the responsible party may not have the financial resources sufficient to satisfy the Trust’s claim. For example, as to a particular event of loss, the only source of recovery for the Trust might be limited to the Custodian, as currently it is the sole custodian holding all of the Trust’s gold; or one or more subcustodians, if appointed; or, to the extent identifiable, other responsible third parties (e.g., a thief or terrorist), any or all of which may not have the financial resources (including liability insurance coverage) to satisfy a valid claim of the Trust.
How is the gold price determined?
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".
What is the relationship between the GLD Net Asset Value, the GLD share price and the gold spot price?
The investment objective of the Trust is for the value of the shares to reflect the price of gold bullion, less the expenses of the Trust's operations.
The Net Asset Value (NAV) of the Trust is determined by the Trustee each day that the NYSE Arca is open for regular trading. The NAV of the Trust is calculated based on the total ounces of gold owned by the Trust valued at the gold LBMA Gold Price PM of that day plus any cash held by the Trust less accrued expenses. The NAV of each GLD share is the NAV of the Trust divided by the total number of shares outstanding.
The gold spot price is determined by market forces in the 24-hour global over-the-counter market for gold and reflects the information available to the market at any given time. The Indicative Intraday Value per GLD share published on the www.spdrgoldshares.com website is based on the mid-point of the bid/offer gold spot price adjusted for the Trust's daily accrued expenses.
The NYSE Arca is an electronic exchange which displays orders simultaneously to both buyer and seller. Once orders are submitted, all trades are executed in the manner designated by the party entering the national best bid or offer. The buy and sell offers are posted on NYSE Arca in price order from best to worst and if the prices match up, they are executed based on the time the buy order or sell order was posted (earliest to latest). These prices reflect the supply and demand for shares which is influenced by factors including the gold spot price and its impact on the NAV.
How do I find the intra-day NAV of 1326?
The indicative intra-day NAV of 1326 can be found at www.spdrgoldshares.com*. The indicative intra-day value is calculated on the mid point of the bid/offer gold spot price.
How often is the trust audited, and do the auditors have access to the vault to physically count the gold?
Under the Trust's custody agreements with the Custodian, the Trustee and World Gold Trust Services, LLC, the Sponsor of the Trust and its representatives visit and inspect the Trust's gold held in the Custodian’s vault facility twice a year. In addition, the Trust's independent auditors audit the gold holdings in the vault as part of their audit of the financial statements of the Trust.
Gold custody FAQs
Following are responses to frequently asked questions concerning the custody of the gold transferred to the SPDR® Gold Trust, or the Trust. For further information about the custody of the Trust’s gold, including information about the duties and obligations of the custodian of the Trust’s gold and certain risks associated with the custody of the Trust’s gold, please refer to the Trust’s most recent Annual Report on Form 10-K and most recent Prospectus filed with the Securities and Exchange Commission. For your convenience, the Trust’s website (http://www.spdrgoldshares.com) provides links to the Trust’s most recent Annual Report and Prospectus. For Japanese investors, please refer to the Trust’s regulatory filings in Japan.
Who is the custodian of the Trust's gold?
HSBC Bank plc, or the Custodian, serves as the custodian of the Trust's gold. The Custodian is authorised by the Prudential Regulation Authority and regulated by the Prudential Regulation Authority and the Financial Conduct Authority. The Custodian's London office is located at 8 Canada Square, London, E14 5HQ, United Kingdom. The Custodian is also a market-maker, clearer and approved weigher under the rules of the London Bullion Market Association, or the LBMA.
The global parent company of the Custodian is HSBC Holdings plc, a public limited company incorporated in England.
Where is the Trust's gold physically held?
Custody of the gold bullion deposited with and held by the Trust is provided by the Custodian at its London, England vaults. The Custodian holds all of the Trust’s gold in its own vault premises except when the gold has been allocated in the vault of a sub-custodian. In such cases the Custodian has agreed to use commercially reasonable efforts promptly to transport the gold from the subcustodian’s vault to the Custodian’s vault, at the Custodian’s cost and risk. The Custodian is a market maker, clearer and approved weigher under the rules of the LBMA. More information about the subcustodians used by the Custodian is provided below in FAQ 24.
How is gold transferred to or withdrawn from the Trust?
The Bank of New York Mellon, as trustee of the Trust, or the Trustee, and the Custodian have entered into agreements which establish the Trust's unallocated account and the Trust's allocated account, which are described in more detail in FAQs 18 and 19. The Trust's unallocated account is principally used to facilitate the transfer of gold between Authorized Participants and the Trust in connection with the creation and redemption of Baskets (a "Basket" equals a block of 100,000 SPDR® Gold Shares). The Trust's unallocated account is also used to facilitate the transfer of gold from the Trust for the payment of the Trust's monthly expenses. The Trust's Authorized Participants are the only persons that may place orders to create and redeem Baskets and, in connection with the creation of Baskets, are solely responsible for the purchase and delivery of London Good Delivery Gold Bars (described in FAQ 22) to the Trust. All gold transferred in and out of, and held by, the Trust must comply with the rules, regulations, practices and customs of the LBMA. Except when gold is transferred in and out of the Trust, gold is held in the Trust's allocated account in bar form. When Baskets are created, the Custodian transfers gold into the unallocated account of the Trust maintained by the Custodian from the unallocated accounts it maintains for each Authorized Participant and then transfers gold from the Trust's unallocated account to the Trust's allocated gold account it maintains for the Trust. More specifically, after gold has been first credited to an Authorized Participant's unallocated account in connection with the creation of a Basket, the Custodian transfers the credited amount from the Authorized Participant's unallocated account to the Trust's unallocated account. The Custodian then allocates specific bars of gold from unallocated bars which the Custodian holds, or instructs a subcustodian to allocate specific bars of gold from unallocated bars held by or for the subcustodian, so that the total of the allocated gold bars represents the amount of gold credited to the Trust's unallocated account. The amount of gold represented by the allocated gold bars is debited from the Trust's unallocated account and the allocated gold bars are credited to and held in the Trust's allocated account. The process of withdrawing gold from the Trust for a redemption of a Basket follows the same general procedure as for transferring gold to the Trust for a creation of a Basket, only in reverse.
The Custodian makes available to the Trust's unallocated account up to 430 fine ounces of gold in order to permit the Custodian, by the end of each business day, to fully allocate to the Trust's allocated account all gold that has been credited during that day to the Trust's unallocated account. As a result, at the end of each business day, all of the Trust's gold is held in the Trust's allocated account.
The Custodian updates its records at the end of each business day (London time) to identify the specific bars of gold held in the Trust’s allocated account and provides the Trustee with regular reports detailing the gold transfers in and out of the Trust’s unallocated account and the Trust’s allocated account. The Trust’s website includes a list of the gold bars held in the Trust’s allocated account. The list identifies each bar by bar number, refiner, gross weight, assay or fineness and fine weight and is updated daily..
Who are the Trust's Authorized Participants and what is their function?
An Authorized Participant is a person who (1) is a registered broker-dealer or other securities market participant such as a bank or other financial institution which is not required to register as a broker-dealer to engage in securities transactions, (2) is a participant in the Depository Trust Company system, (3) has entered into an agreement with the Sponsor and the Trustee which provides the procedures for the creation and redemption of Baskets and for the delivery of the gold and any cash required for such creations and redemptions and (4) has established an unallocated gold account with the Custodian. Authorized Participants may sell to other investors all or part of the Shares included in the Baskets they purchase from the Trust.
What is an unallocated account?
An unallocated account is an account with a bullion dealer to which a fine weight amount of gold is credited. The bullion dealer may also be a bank. Transfers to an unallocated account are made by crediting the number of ounces of gold being deposited to the account and transfers from an unallocated account are made by debiting the number of ounces being withdrawn from the account. Gold held in an unallocated account is not segregated from the bullion dealer's assets. Thus, credits to an unallocated account represent only the bullion dealer's obligation to deliver gold and do not constitute ownership of any specific bars of gold.
The account holder is entitled to direct the bullion dealer to deliver an amount of physical gold equal to the amount of gold credited to the unallocated account. When delivering gold, the bullion dealer allocates physical gold from its general stock to the account holder and debits the unallocated account with the corresponding amount.
The Trust's unallocated account is only used for the transfer of gold to and from the Trust's allocated account.
What is an allocated account?
An allocated account is an account with a bullion dealer to which individually identified gold bars owned by the account holder are credited. The bullion dealer may also be a bank. The gold bars in an allocated account are specific to that account and are identified by a list which shows, for each gold bar, the refiner, assay or fineness, serial number and gross and fine weight. The account holder has full ownership of the gold bars.
The Trust's allocated account is only used for holding the allocated gold bars of the Trust.
When is gold not held in the Trust's allocated account?
All of the gold owned by the Trust is held in the Trust's allocated account in bar form, with two exceptions:
Gold involved in creation or redemption activity on any given day will pass through the Trust's unallocated account before being credited to the Trust's allocated account or transferred to an Authorized Participant's unallocated account, as the case may be. The quantity of gold involved in creation or redemption activity on any given day has, over the life of the Trust, generally been small in comparison with the total gold holdings of the Trust. Additionally, creation and redemption activity has not taken place every trading day.
The Trustee sells a small quantity of gold every month in order to pay the Trust's expenses. In connection with these sales, the Custodian debits gold bars from the Trust's allocated account sufficient to meet the monthly expenses and credits this amount to the Trust's unallocated account. The appropriate quantity of gold is then sold from the Trust's unallocated account. Over the life of the Trust, the amounts of gold involved in these monthly sales have been very small in comparison to the total holdings of the Trust.
Is the Trust's gold insured?
The Custodian, HSBC Bank plc maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody. The Trust is not a beneficiary of any such insurance and does not have the ability to dictate the existence, nature or amount of coverage. Therefore, Shareholders cannot be assured that the Custodian will maintain adequate insurance or any insurance with respect to the gold held by the Custodian on behalf of the Trust. In addition, the Custodian and the Trustee do not require any direct or indirect subcustodians to be insured or bonded with respect to their custodial activities or in respect of the gold held by them on behalf of the Trust. Consequently, a loss may be suffered with respect to the Trust’s gold which is not covered by insurance and for which no person is liable in damages.
What standards apply to the gold transferred to the Trust?
All gold represented by a credit to any Authorized Participant's unallocated account and to the Trust's unallocated account and all gold bars held in the Trust's allocated account with the Custodian must be of at least a minimum fineness (or purity) of 995 parts per 1,000 (99.5%) and otherwise conform to the rules, regulations, practices and customs of the LBMA, including the specifications for a London Good Delivery Bar. Typically referred to as 400-ounce bars, a London Good Delivery Bar must contain between 350 and 430 fine troy ounces of gold, be of good appearance and be easy to handle and stack. The fine gold content of a gold bar is calculated by multiplying the gross weight of the bar (expressed in units of 0.025 troy ounces) by the fineness of the bar. A London Good Delivery Bar must also bear the stamp of one of the melters and assayers who are on the LBMA approved list. Additional specifications for a London Good Delivery Bar are described in "The Good Delivery Rules for Gold and Silver Bars" published by the LBMA. For more information about the LBMA, please see the LBMA's website at www.lbma.org.uk*.
Is the Trust's gold ever traded, leased or loaned?
Gold held in the Trust's allocated account in bar form or credited to the Trust's unallocated account is the property of the Trust and is not traded, leased or loaned under any circumstances.
When does the Custodian employ subcustodians for the holding of the Trust's gold?
The Custodian may employ subcustodians to provide temporary custody and safekeeping of gold bars until transported to the Custodian's London vault premises. These subcustodians may in turn select other subcustodians to perform such temporary custody and safekeeping. The Custodian has agreed to use commercially reasonable efforts promptly to transport the gold from the subcustodian’s vault to the Custodian’s London vault, at the Custodian’s cost and risk. The sub-custodians selected and available for use by the Custodian as of December 22, 2014 are: Bank of England, The Bank of Nova Scotia-ScotiaMocatta, ICBC Standard Bank London, JPMorgan Chase Bank and UBS AG.
What effect would the insolvency of the Custodian have on the Trust's allocated account and the Trust's unallocated account?
The Trust has full ownership rights to the specific bars of gold allocated to the Trust's allocated account.
In the event of the insolvency of the Custodian, a liquidator may seek to freeze access to the gold held in all of the accounts maintained by the Custodian, including the Trust's allocated account. Although the Trust would own the properly allocated gold bars, the Trust could incur expenses in connection with asserting control over such gold bars and the actions of the liquidator could delay creations and redemptions of Baskets.
Gold which is transferred to or from the Trust in connection with the creation or redemption of Baskets will be held for a time in the Trust's unallocated account and, previously or subsequently, in the unallocated account of the purchasing or redeeming Authorized Participant. During those times, the Trust and the Authorized Participant, as the case may be, will have no proprietary rights to any specific bars of gold held by the Custodian and will each be an unsecured creditor of the Custodian with respect to the amount of gold held in such unallocated accounts. In the event the Custodian becomes insolvent at a time when gold is held in an unallocated account, the Custodian's assets might not be adequate to satisfy a claim by the Trust or the Authorized Participant for the amount of gold held in their respective unallocated accounts.
When can the Trustee or the Sponsor remove or replace the Custodian or hire additional custodians?
If the Trustee determines that maintaining gold with the Custodian is not in the best interests of the Trust's shareholders, the Trustee will so advise World Gold Trust Services, LLC, the sponsor of the Trust, or the Sponsor. The Trustee will then take such reasonable action as the Sponsor may direct concerning the Custodian. In the absence of such instruction, the Trustee may initiate action to remove the gold bars from the Custodian or take such other action as the Trustee determines appropriate to safeguard the interests of the Trust's shareholders.In addition, the Sponsor may direct the Trustee to employ one or more other custodians in addition to or in replacement of the Custodian. The Trustee, with the Sponsor's approval, may employ one or more other custodians selected by the Trustee for the safekeeping of gold and for services in connection with the deposit and delivery of gold. Before gold bars may be placed with any additional or successor custodian, the Trustee will determine that the custody agreements and any related custody arrangements applicable to the additional or successor custodian substantially satisfy specified requirements set forth in the Trust Indenture.
For more information: State Street Global Markets, LLC, One Lincoln Street, Boston, MA 02111 « 866.320.4053 » http://www.spdrgoldshares.com
This material must be delivered with a prospectus. The prospectus contains material information about the Trust and its Shares which is material and/or which may be important to you. You should read the entire prospectus, including “Risk Factors” before making an investment decision about the Shares. For Japanese investors, please refer to the regulatory filings in Japan.
Caution Concerning Forward-Looking Statements
The information on this website includes “forward-looking statements” which generally relate to future events or future performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. All statements (other than statements of historical fact) included on this website that address activities, events or developments that will or may occur in the future, including such matters as changes in commodity prices and market conditions (for gold and the Shares), the Trust’s operations, the Sponsor’s plans and references to the Trust’s future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses the Sponsor made based on its perception of historical trends, current conditions and expected future developments, as well as other factors believed appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor’s expectations and predictions, however, is subject to a number of risks and uncertainties, including, but not limited to:
• fluctuations in the price of gold;
• reductions in the amount of gold represented by each GLD share due to the payment of Trust’s expenses;
• the value of the gold held by the Trust is determined using the LBMA Gold Price PM, potential discrepancies in the calculation of the LBMA Gold Price PM could impact the value of the gold held by the Trust and could have an adverse effect on the value of an investment in GLD shares
• the effect of the Trust as a passive investment vehicle;
• the effect on the value of the GLD shares if the Trust’s gold is sold to pay expenses at a time of low gold prices;
• purchasing activity in the gold market associated with the purchase of Baskets from the Trust;
• the lack of protections associated with ownership of shares in an investment company registered under the Investment Company Act of 1940 or the protections afforded by the Commodity Exchange Act of 1936;
• the termination or liquidation of the Trust at a time that is disadvantageous to shareholders;
• the withdrawal of Authorized Participants;
• the lack of a an active trading market for the GLD shares or a halt in the trading of the Shares;
• the impact of the sale of gold by ETFs or other exchange traded vehicles on the price of gold;
• the postponement, suspension or rejection by the Trustee of redemption orders under certain circumstances;
• competition from other methods of investing in gold;
• the impact of large-scale distress sales of gold in times of crisis;
• the impact of substantial sales of gold by the official sector;
• the effect of a widening of interest rate differentials between the cost of money and the cost of gold;
• the loss or theft of, or damage or restrictions on access to, the Trust’s gold;
• the lack of adequate sources of recovery if the Trust’s gold is lost, damaged, stolen or destroyed, including a lack of insurance;
• the failure of gold bullion allocated to the Trust to meet the London Good Delivery Standards;
• the failure of subcustodians to exercise due care in the safekeeping of the Trust’s gold;
• the limited ability of the Trustee and the Custodian to take legal action against subcustodians;
• the insolvency of the Custodian;
• the lack of specific governmental regulatory supervision of the gold bullion custody operations of the Custodian;
• the reliance by the Trustee on certain information received from the Custodian in issuing Baskets;
• the Trust’s obligation to reimburse the Marketing Agent and the Authorized Participants for certain liabilities in the event the Sponsor fails to indemnify them; and
• other factors identified in the “Risk Factors” section of the Prospectus filed with the SEC (or the regulatory filings submitted to the Japanese authority) and in other filings made by the Trust from time to time with the SEC (or the Japanese authority).
Consequently, all the forward-looking statements made on this website are qualified by these cautionary statements, and there can be no assurance that the actual results or developments the Sponsor or Marketing Agent anticipates will be realized or, even if substantially realized, that they will result in the expected consequences to, or have the expected effects on, the Trust’s operations or the value of the Shares. Neither the Sponsor, Marketing Agent nor any other person assumes responsibility for the accuracy or completeness of the forward-looking statements. Neither the Trust, Marketing Agent nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to reflect a change in the Sponsor’s or Marketing Agent’s expectations or predictions.
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Important Risk Information
Investing in commodities entail significant risk and is not appropriate for all investors.
ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Brokerage commissions and ETF expenses will reduce returns.
Commodities and commodity-index linked securities may be affected by changes in overall market movements, changes in interest rates, and other factors such as weather, disease, embargoes, or political and regulatory developments, as well as trading activity of speculators and arbitrageurs in the underlying commodities.
Diversification does not ensure a profit or guarantee against loss.
Past performance is not a guarantee of future results.
The index returns are unmanaged and do not reflect the deduction of any fees or expenses. The index returns reflect all items of income, gain and loss and the reinvestment of dividends and other income.
The correlation coefficient measures the strength and direction of a linear relationship between two variables. It measures the degree to which the deviations of one variable from its mean are related to those of a different variable from its respective mean.
“SPDR” is a product of S&P Dow Jones Indices LLC (SPDJI), and has been licensed for use by State Street Corporation. Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC (S&P); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones); SPDR is a trademark of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by State Street Corporation. State Street Corporation’s financial products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of SPDR. Further limitations that could affect investor’s rights may be found in GLDs prospectus (or the regulatory filings in Japan).
Important Information Relating to SPDR Gold Shares Trust:
Investing involves risk, and you could lose money on an investment in GLD. Please see the GLD prospectus (or the regulatory filings in Japan) for a detailed discussion of the risks of investing in GLD shares. The GLD prospectus is available by clicking here, and the regulatory filings in Japan is available by clicking here.
GLD shares trade like stocks, are subject to investment risk and will fluctuate in market value. The value of GLD shares relates directly to the value of the gold held by GLD (less its expenses), and fluctuations in the price of gold could materially and adversely affect an investment in the shares. The price received upon the sale of the shares, which trade at market price, may be more or less than the value of the gold represented by them. GLD does not generate any income, and as GLD regularly sells gold to pay for its ongoing expenses, the amount of gold represented by each Share will decline over time.
For more information: State Street Global Markets, LLC, One Lincoln Street, Boston, MA, 02111 866.320.4053 http://www.spdrgoldshares.com.
ALL REFERENCES TO LBMA GOLD PRICE HAVE BEEN PROVIDED FOR INFORMATIONAL PURPOSES ONLY. ICE BENCHMARK ADMINISTRATION LIMITED ACCEPTS NO LIABILITY OR RESPONSIBILITY FOR THE ACCURACY OF THE PRICES OR THE UNDERLYING PRODUCT TO WHICH THE PRICES MAY BE REFERENCED.
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Expiration Date – 02/29/2016