Physical Gold Fund provides full transparency to its investors, and is bound by a framework of segregation of duties, and a strict regulatory environment.
1. The Fund is regulated by the Cayman Islands Monetary Authority (CIMA).
2. Paying Agent CIBC Bank provides transfer of cash directly to refinery for acquisition and liquidation of Fund assets.
3. Precious Metals Agent (AFECC) supervises acquisition, transport, and vaulting logistics. AFECC has several decades of experience dealing with good delivery gold and silver, and does not participate in derivative trading, lease lending, swaps, futures, or paper gold of any kind. This provides an additional measure of ability for Physical Gold Fund to avoiding risks of potential conflict of interest that may arise through other providers with substantial positions in the paper markets.
4. The Fund buys and sells precious metals at the core of the industry, directly with LBMA certified refineries. This provides excellent liquidity, and an additional level of faith that the freshly poured bullion bars are bona fide pure precious metal.
5. Precious metal bars is transported directly from the refinery to the vault by an accredited security transport provider.
6. All physical good delivery bars acquired by the Fund are visually inspected by a globally recognized Auditor. This “Bullion Auditor” sight verifies every bar and serial number entered into the vault.
7. The Fund stores bullion in state of the art high security vaults. By utilizing a world class security provider that is not a bank and has no conflict of interest with its safekeeping duties, Physical Gold Fund is able to provide a level of safety against systemic risk not available through other funds. The vaulting provider does not trade in the precious metals markets by derivative or physical means, and does not hold short positions in the underlying assets on any market. Its business is security, transport, and vaulting only.
8. Precious Metals are insured to 100% of their market value during the entire process.
9. Globally recognized Auditor Ernst & Young performs overall audit services.