WHY US GOLD OPPORTUNITY FUND, LP IS UNIQUE

US Gold Opportunity Fund is a Qualified Opportunity Fund that is in the business of actively engaging in the purchase and sale, storage, transport, assay, and other activities related to managing physical gold bullion.  US Gold Opportunity Fund is a limited partnership formed under the Delaware Revised Uniform Limited Partnership Act.  US Gold Opportunity Fund was founded on June 11, 2020 and operates in an Opportunity Zone.

US Gold Opportunity Fund will operate and maintain an office in an Opportunity Zone.  In addition to operating within the legal requirements of Opportunity Zones, US Gold Opportunity Fund will also endeavor to embrace the spirit of the enacted legislation. US Gold Opportunity Fund is committed to increasing economic activity within Opportunity Zones.

USGO also aims to provide institutional investors fee-based consulting services concerning their acquisition, ownership and disposition of physical gold bullion. These consulting services will include assistance related to the purchase and sale of gold bullion, secure gold storage, insurance needs, and ensuring the authenticity of the acquired gold.

Further, USGO aims to provide a comprehensive set of bespoke services to investment managers that intend to use gold bullion as collateral for acquiring futures contracts or other financial instruments. Like separate managed account financial services, USGO will assist clients by reducing the burden of acquiring, managing and selling physical gold bullion. In addition to the physical gold consulting services, USGO intends to advise investment managers in structuring and implementing investment vehicles and financial arrangements that efficiently permit the purchase of derivative contracts using gold as collateral.

US Gold Opportunity Fund was founded with two missions: (i) to make a positive difference in communities that are economically challenged, and (ii) to provide tax-advantaged access to owning physical gold, an investment thesis that has historically provided benefits over a wide range of economic scenarios.

The global economy is experiencing an unprecedented amount of monetary and fiscal stimulus seeking to attenuate the impact of the pandemic on employment and economic activity. Many U.S. investors have shifted into assets traditionally viewed as safe havens, such as precious metals, primarily through exchange traded funds (“ETFs”) that hold physical gold bullion. What they do not perhaps fully comprehend is that, when they invest in gold ETFs, they ship their wealth overseas. Virtually all the gold bullion owned by U.S. ETFs, currently about $100 billion, is purchased and warehoused overseas.

US Gold Opportunity Fund’s physical gold will be stored in one or more Opportunity Zones.  US Gold Opportunity Fund’s gold storage strategy is in stark contrast to that used by most other U.S. physical gold ETFs, which in aggregate store more than 95% of their gold, currently about $100 billion, in England, Switzerland, Australia, and Canada.  The aim of US Gold Opportunity Fund is to shift the economic activity associated with American wealth that is stored overseas by U.S. ETFs, back to opportunity zones in America, thereby increasing economic activity in economically challenged U.S. communities.

OPPORTUNITY ZONES

Opportunity Zones, often referred to as OZs, are census tracts generally composed of economically distressed communities that qualify for the Opportunity Zone designation according to criteria outlined in The Tax Cuts and Jobs Act of 2017. The legislation aims to increase economic activity within economically challenged U.S. communities by providing capital gains tax incentives on investments made in Qualified Opportunity Funds.

A Qualified Opportunity Fund (“QOF”) is a US partnership or corporation that intends to invest at least 90% of its assets in Opportunity Zones Property.

#1: Temporary Capital Gains Tax Deferral

Investors can potentially defer the inclusion of realized capital gains in taxable income. This deferral is only applicable to capital gains reinvested in an Opportunity Fund within 180 days of realization. Use our reinvestment date calculator.

#2: Step-Up In Basis For Capital Gains

Investors can potentially avail themselves of a step-up in the basis for capital gains that are reinvested in an Opportunity Fund. The basis is increased by 10 percent if the investment in the Opportunity Fund is held for at least five years. The step-up in basis can help investors exclude up to 10 percent of the original gain from taxation.

#3: Permanent Exclusion

For any gain invested in USGO, investors can potentially exclude from taxable income any capital gains realized on the sale or exchange of the investment they make in an Opportunity Fund, provided the initial investment is held for at least 10 years. This exclusion does not apply to gains realized before an investment has been made in a Qualified Opportunity Fund.

Yes!  US Gold Opportunity Fund is a Qualified Opportunity Fund.

SUBSCRIPTION AND REDEMPTION

Buying and selling limited partnership interests (“units”) in US Gold Opportunity Fund may be done directly on a monthly basis.

At your request, we will forward you the subscription documents (which include a Private Placement Memorandum (“PPM”), Limited Partnership Agreement (“LPA”) and a Subscription Agreement) for your review and signature.  We recommend that you consult your tax and legal advisors as you review and complete the PPM, LPA, and Subscription Agreement.

You can submit the Subscription Agreement to an electronic data room that our team will create for you.

Payment is made by a simple wire transfer, and units of US Gold Opportunity Fund are issued to you by the Fund’s  Administrator.*

* Descriptions of the subscription and redemption process on this FAQ are provided as a simple summary for ease of use. All subscriptions and redemptions are subject to the terms and procedures required and described in the PPM/LPA.  All investors in USGO attest at the time of subscription that they have read and understand the PPM/LPA.

To invest in US Gold Opportunity Fund, an investor must meet the qualifications of an Accredited Investor.

All units in US Gold Opportunity Fund are issued by the Fund Administrator (Apex Fund Services) and registered in each limited partner’s name on the effective date of the subscription.

You will be issued a username and password to gain access to USGO’s Administrator’s online portal, where you will be able to see the status of your holdings. In addition, you will receive a monthly statement.

You can redeem units in US Gold Opportunity Fund monthly, subject to a minimum of 500 units per withdrawal. You may request to take physical delivery of gold in exchange for your units in lieu of cash. The number of units to be delivered must (1) correspond to at least one Fine Ounce of gold and (2) have a minimum dollar value in an amount that is specified by USGO from time-to-time. For this service, USGO will charge you an appropriate processing fee. The processing fee will be calculated based on several factors including but not limited to: (1) an exchange service fee payable to USGO, (2) transportation costs, and 3) sales taxes (if applicable).

EXPENSES AND PRICING

US Gold Opportunity Fund’s expenses will be capped at 0.40% of NAV.*

*For more details, see the Private Placement Memorandum.  Capped expenses shall mean expenses minus any incurred or accrued (i) extraordinary expenses, (ii) non-recurring expenses, (iii) legal expenses in excess of $100,000, (iv) out-of-pocket expenses related to preparing partnership tax returns and distributing forms and documents related to such returns, and (v) taxes or fees imposed by any governmental body.

The fair market value of each ounce of gold bullion owned by US Gold Opportunity Fund will be determined by the spot price of an ounce of gold during the afternoon session of the twice daily determination which starts at 3:00 PM (local time) in London, and is performed by participants in a physically settled, electronic and tradable auction administered by the ICE Benchmark Administration (such price, “LBMA Gold Price PM”).

Limited Partnership Interests in US Gold Opportunity Fund are offered in a minimum subscription amount for new investors of 1,000 units (approximately $200,000).

SECURITY, LOGISTICS, OPERATIONS

US Gold Opportunity Fund will purchase physical gold from StoneX Group, Inc. StoneX is a Fortune 100 company with a nearly 100-year track record (NASDAQ: SNEX) that is in the business of purchasing and selling gold bullion.

US Gold Opportunity Fund will purchase London Good Delivery (“LGD”) gold bars, or gold bullion that meets the CME’s gold standards for physical delivery and settlement of futures contracts listed on its exchange.

In 1750, the Bank of England set up the London Good Delivery List for gold which formally recognized those refineries which produced gold bars to the required standard.  Today, the London Bullion Market Association (“LBMA“) owns and manages Good Delivery Lists for gold bullion. LGD bars are generally accepted by institutional gold dealers without assaying because such London Bars are produced according to strict LBMA specifications and regularly audited to ensure that their specifications meet those stated.  When traded exclusively among certain institutional gold dealers, LGD are considered to remain within the chain of integrity.  By remaining in the chain of integrity, LGD bars are generally available at the lowest transaction costs of any gold bullion because assay costs are minimized.

US Gold Opportunity Fund may also purchase gold bars that meet the CME’s standards for physical delivery of gold for the settlement of futures contracts listed on its exchange.  Like the LBMA, the CME has put forth strict requirements regarding brand, metal specifications, and the chain of integrity.  The requirements include a list of approved refinery brands, carriers, assayers, and depositories.  In addition, the CME requires strict control over the chain of integrity including the movement, transport and warehousing of the gold bullion to mitigate risks associated with theft and the counterfeiting of gold bars.

US Gold Opportunity Fund will use Brink’s Global Services (‘Brink’s’) to manage all aspects of gold custody and transportation. Upon receiving the physical gold in the Opportunity Zone storage location for the first time, Brink’s will weigh the physical gold using their expertise and specialized equipment.  Brink’s is an approved weigher by the LBMA and the CME.  In addition, Brink’s will verify that each gold bar’s serial number, weight and refinery markings match the assay certificate.

Brink’s Global Services is a division of Brink’s, a leading international provider of secure logistics, security solutions and risk management. The entire global network spans nearly 1,000 facilities in more than 120 countries. For more information about Brink’s Global Services, please visit brinksglobal.com

US Gold Opportunity Fund’s gold storage facility is managed and operated by Brink’s in Springfield Gardens, New York in a Qualified Opportunity Zone. The gold is stored in guarded security vaults, equipped with time locks and automatic re-locking devices. Access is restricted and regulated by dual control procedures. All activity in and around the facility is digitally recorded 24 hours per day, 365 days per year.

Yes.  At launch, US Gold Opportunity Fund will have two employees: Robert Enck and Scott Victor.  They will be responsible for the operation of US Gold Opportunity Fund.  They will serve as the main point of contact for the limited partners and service providers.

US Gold Opportunity Fund will endeavor to hire independent contractors who operate out of an OZ.  US Gold Opportunity Fund will periodically require independent contractors to submit an attestation confirming the physical address where substantially all the work was performed on behalf of US Gold Opportunity Fund.

At launch, US Gold Opportunity Fund has hired the following independent contractors:

Administration:  Apex Fund Services, Portland, Maine (Opportunity Zone)

Auditor: Novogradac & Company LLP, Portland, Oregon (Opportunity Zone)

Storage: Brink’s Global Services, Springfield Gardens, New York (Opportunity Zone)

Legal: Dechert LLP, Philadelphia, PA Office (Opportunity Zone)

Custodian: US Bank Corp, Milwaukee, WI 

US Gold Opportunity Fund aims to substantially reduce the burden, risks, and complexity often associated with directly owning physical gold, which could result in a loss of monetary value.  US Gold Opportunity Fund sources, assays, weighs, securely warehouses, and insures the physical gold bullion it owns.  US Gold Opportunity Fund’s dedicated team will provide the necessary oversight and management required to reduce the risk of fraud or theft.