Why is GLD adding a second custodian for its gold?

GLD is adding JPMorgan Chase Bank, N.A. as a second custodian to enhance the security, operational resilience, and diversification of its gold holdings. This reduces reliance on a single custodian and provides additional safeguarding locations in London, New York, and Zurich.

When will JPMorgan Chase Bank officially begin acting as a custodian?

JPMorgan Chase Bank's role as a second custodian will be effective starting December 6, 2022.

Does this change affect the way I, as an investor, hold my GLD shares?

No, this change relates to the physical custody of the Trust's gold assets. It does not directly alter how you hold or trade your GLD shares on the stock exchange. The primary goal is to strengthen the underlying operational infrastructure of the Trust.

What does it mean that the Custody Agreements were amended?

The Custody Agreements (Allocated Precious Metal Account Agreement and Unallocated Precious Metal Account Agreement) formalize the relationship and terms between the Trust and its custodians. Amending them means the terms of service have been updated to incorporate JPMorgan Chase Bank as a new custodian alongside HSBC.

GLD 8-K: Material Agreements

Summary

SPDR Gold Trust (GLD) has announced a significant operational update through an 8-K filing on November 30, 2022. The primary development is the appointment of JPMorgan Chase Bank, N.A. (JPM) as a second custodian for the Trust's gold holdings, effective December 6, 2022. This move diversifies the custodial services for GLD, adding JPM's vaults in London, New York, and Zurich to the existing safekeeping provided by HSBC Bank plc. This expansion of custodial arrangements is intended to enhance the security and operational resilience of the Trust. The Trust Indenture, Participant Agreements, and Marketing Agent Agreement have all been amended to reflect JPM's new role. Investors should view this as a measure to strengthen the infrastructure supporting the physical gold backing of GLD, potentially reducing single points of failure and improving overall operational capacity.

Key Highlights

1JPMorgan Chase Bank, N.A. appointed as a second custodian for GLD's physical gold.
2New custodial services effective December 6, 2022.
3JPM will safeguard gold in London, New York, and Zurich vaults.
4This diversifies custodial risk, complementing existing custodian HSBC Bank plc.
5Key Trust agreements (Trust Indenture, Participant Agreements, Marketing Agent Agreement) have been amended to include JPM.
6The amendments are dated November 30, 2022, with the operational changes effective December 6, 2022.
7The move aims to enhance the security and operational robustness of the Trust.

SPDR GOLD TRUST 8-K Report, Material Agreement (Nov 30, 2022)

Summary

Key Highlights

Frequently Asked Questions