Summary
SPDR Gold Trust (GLD) filed its 2006 annual report (10-K) on November 29, 2006, detailing its structure and operations as of September 30, 2006. The Trust was established in November 2004 to offer investors a convenient and cost-efficient way to gain exposure to the price of gold bullion. It achieves this by holding physical gold and issuing shares that represent fractional ownership of this gold, aiming to track the performance of gold prices less Trust expenses. The Trust operates by creating and redeeming shares in large blocks called 'Baskets,' exclusively through Authorized Participants. These shares are exchange-traded on the NYSE, offering liquidity and ease of access compared to direct gold ownership. The filings highlight the Trust's reliance on service providers like the Sponsor (World Gold Trust Services LLC), Trustee (The Bank of New York), Custodian (HSBC Bank USA, N.A.), and Marketing Agent (State Street Global Markets, LLC). The report also provides insights into the global gold market, including supply and demand dynamics and the historical price movements of gold leading up to September 2006.
Key Highlights
- 1SPDR Gold Trust (GLD) aims to mirror the performance of gold bullion prices, less expenses, by holding physical gold.
- 2Shares are created and redeemed in 'Baskets' exclusively through Authorized Participants.
- 3The Trust is exchange-traded on the NYSE, offering liquidity for investors.
- 4Key service providers include the Sponsor (WGTS), Trustee (BNY), Custodian (HSBC), and Marketing Agent (SSGM).
- 5The report details historical gold price movements, noting a significant upward trend from early 2001 through September 2006.
- 6Expenses are paid through the sale of the Trust's gold, which can reduce the amount of gold per share over time.
- 7The Trust is structured as a grantor trust for tax purposes, with income and expenses flowing through to shareholders.