Treasury Storage and Safeguards

The primary focus of GoldTrust is the security of investors’ capital and security
of the gold in which it is invested.

Treasury Storage:
           Gold assets of Central GoldTrust are stored in the treasury vaults of a major Canadian bank.  The term “treasury vault” means that the vault has the highest security rating for treasury storage purposes and qualifies for storage by the bank of assets on behalf of the Bank of Canada.

Safeguards:
          The Deed of Trust of GoldTrust specifies that at least 90% of the assets of GoldTrust are to be invested in pure, refined gold bullion. However the policy of the Board of Trustees of GoldTrust specifies that at least 95% of the assets of GoldTrust shall be invested in gold at this time.

          The gold held for GoldTrust may not be delivered by the bank custodian for any sale or other purpose without receipt of a certified resolution of the Board of Trustees specifying the purpose and giving direction in respect to specific amounts.

           No Trustee or Officer of GoldTrust may enter the vault storage facility area of the bank where gold is held on behalf of GoldTrust without being accompanied by a representative of the firm of auditors appointed as Auditors of GoldTrust and by two officers of the bank where GoldTrust’s gold is stored.

          The gold shall be audited annually and spot audited on at least one more occasion each year by bar number, refiner, weight and purity in the presence of a Trustee or Officer of GoldTrust, at least one representative of GoldTrust’s Auditor and two bank representatives.