All gold accounts hold allocated physical gold. This means that the gold is stored under a safekeeping or custody arrangement at the Vault by or for you or on your behalf. The Vault does not retain a proprietary interest in the gold.
We have sought the advice of international counsel as to the best way to ensure that you own the gold you buy. This is not as simple as it sounds, because the solution needs to be viable and offer protection under the laws that govern our agreement with you as well as being robust in the place the gold is located. We have therefore taken additional steps by creating a combination of established legal protections. We do this in the following ways:
- Legal Title – Property in gold purchased through Glint transfers to the purchaser (you) under the law governing your purchase from us. Title transfers to you immediately after we have acquired the gold that we have agreed to sell to you.
- Storage – We arrange storage of your gold under “bailment”. This term describes a relationship under which property belonging to a person (the “bailor”) is delivered into the possession of another person (known as the “bailee”) but ownership is not, however, transferred. It is a common occurrence and other examples include: lending an umbrella to a friend; leaving a car at a garage for repair; leaving documents at a bank for safekeeping. Although the vault has physical custody of gold purchased on the Glint Platform, this does not affect your ownership interest in the gold.
- Constructive possession – There is a general principle that a person who has possession of property is to be presumed to be the owner of it. However, the law recognises in some cases that physical delivery would be impractical due to the nature or location of the object. “Constructive possession” occurs when a person who does not physically hold property is yet deemed to be in legal possession of it. By purchasing gold on the Glint Platform, you acquire legal possession of your gold held in custody by the vault.
- Legal relationship of Trust – The advice we have received is to add a further layer of protection in the form of a legally binding confirmation from us that, to the extent that we have any ownership interest in the gold, we hold this on your behalf. This is important because it allows us to transfer to you, in addition to the gold, any rights we have against third parties, insurers etc in the unlikely event there was a physical loss with the effect that these rights are held on behalf of our customers in a legally binding manner.
Glint is committed to being a safe haven for your physical gold which is why we have sought to structure our platform to be robust against all eventualities.