What is the primary investment objective of the SPDR Gold Trust (GLD)?

The primary investment objective of the SPDR Gold Trust (GLD) is for its Shares to reflect the performance of the price of gold bullion, less the Trust's expenses. It aims to provide investors with a cost-effective and convenient way to gain exposure to the gold market.

How is the value of GLD shares determined?

The value of GLD shares is directly linked to the value of the physical gold bullion held by the Trust. The Net Asset Value (NAV) per share is calculated by valuing the Trust's gold holdings based on the London PM fix price and then subtracting accrued expenses and liabilities.

What are the main expenses incurred by the SPDR Gold Trust?

The main expenses incurred by the Trust include fees paid to the Sponsor (0.15% of ANAV), the Trustee (0.02% of ANAV), the Custodian (varying rates based on ounces), and the Marketing Agent (0.15% of ANAV), as well as other administration fees such as legal and audit expenses. These expenses are paid by selling the Trust's gold.

How do investors buy or sell GLD shares?

Investors can buy or sell GLD shares on major stock exchanges, such as NYSE Arca, through a brokerage account. Shares are created or redeemed from the Trust in large blocks called 'Baskets' by Authorized Participants, who are typically large financial institutions.

What are the tax implications for U.S. shareholders of GLD?

For U.S. federal income tax purposes, the Trust is treated as a grantor trust. Shareholders are taxed as if they directly owned a pro rata share of the underlying gold. Gains on the sale of gold by the Trust or by the shareholder, or gains attributable to the appreciation of gold held by the Trust, are generally treated as capital gains. Gold is considered a 'collectible' for tax purposes, meaning long-term capital gains on gold held for over a year may be taxed at a higher rate (up to 28%) than other long-term capital gains.

GLD 10-K FY2010 Annual Report — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-K filed November 22, 2010. Cited figures are marked; the original filing is the authoritative source.

The SPDR Gold Trust (GLD), as of its fiscal year ending September 30, 2010, reported robust performance reflecting the appreciation of gold prices.

The Trust's primary objective is to track the performance of gold bullion, less expenses. During the reporting period, the Trust held approximately 41.8 million ounces of gold, with a market value exceeding $54 billion^a. Significant gains were recorded both from gold sold to cover expenses and from gold distributed during share redemptions.

Investors in GLD benefit from a cost-effective and accessible way to gain exposure to gold. The Trust's shares are traded on major exchanges, offering liquidity and ease of trading compared to direct physical gold ownership.

Key expenses include custody, trustee, sponsor, and marketing fees, which are borne by the Trust through periodic sales of gold. The Trust's structure as a grantor trust ensures that it is not directly taxed at the entity level, with gains and losses flowing through to shareholders.

02—Key points

Key Highlights

The SPDR Gold Trust (GLD) holds physical gold bullion as its primary asset, aiming to mirror the price performance of gold.
As of September 30, 2010, the Trust held approximately 41.8 million ounces of gold with a market value of over $54.6 billion.
The Trust generated significant gains from gold distributed during share redemptions and from gold sold to cover operational expenses.
GLD shares are exchange-traded, offering investors a convenient and liquid method to gain exposure to gold without the complexities of physical storage and insurance.
Key expenses include custody, trustee, sponsor, and marketing fees, which are managed through the Trust's gold holdings.
The Trust operates as a grantor trust for U.S. federal income tax purposes, meaning income and gains are passed through to shareholders.

03—One dollar

04—Financials

Financial Highlights

10-KFY2010filed November 22, 2010

Net Income$1.21B EPS (Diluted)$3.10 Total Assets$37.99B Cash & Equivalents$0.00 Free Cash Flow$0.00

Financial Statements

FY2010 against FY2009

Line item	FY2010FY2009	FY2009	Change
Gross Profit	$45.83M$14.74M	$14.74M	+210.9%
Operating Expenses	$177.12M$113.61M	$113.61M	+55.9%
Net Income	$1.21B$394.86M	$394.86M	+206.0%
EPS (Basic)	$3.10$1.24	$1.24	+150.0%
Shares Outstanding (Basic)	389.97M319.35M	319.35M	+22.1%

05—Questions

Frequently Asked Questions

What is the primary investment objective of the SPDR Gold Trust (GLD)?
The primary investment objective of the SPDR Gold Trust (GLD) is for its Shares to reflect the performance of the price of gold bullion, less the Trust's expenses. It aims to provide investors with a cost-effective and convenient way to gain exposure to the gold market.
How is the value of GLD shares determined?
The value of GLD shares is directly linked to the value of the physical gold bullion held by the Trust. The Net Asset Value (NAV) per share is calculated by valuing the Trust's gold holdings based on the London PM fix price and then subtracting accrued expenses and liabilities.
What are the main expenses incurred by the SPDR Gold Trust?
The main expenses incurred by the Trust include fees paid to the Sponsor (0.15% of ANAV), the Trustee (0.02% of ANAV), the Custodian (varying rates based on ounces), and the Marketing Agent (0.15% of ANAV), as well as other administration fees such as legal and audit expenses. These expenses are paid by selling the Trust's gold.
How do investors buy or sell GLD shares?
Investors can buy or sell GLD shares on major stock exchanges, such as NYSE Arca, through a brokerage account. Shares are created or redeemed from the Trust in large blocks called 'Baskets' by Authorized Participants, who are typically large financial institutions.
What are the tax implications for U.S. shareholders of GLD?
For U.S. federal income tax purposes, the Trust is treated as a grantor trust. Shareholders are taxed as if they directly owned a pro rata share of the underlying gold. Gains on the sale of gold by the Trust or by the shareholder, or gains attributable to the appreciation of gold held by the Trust, are generally treated as capital gains. Gold is considered a 'collectible' for tax purposes, meaning long-term capital gains on gold held for over a year may be taxed at a higher rate (up to 28%) than other long-term capital gains.

06—Continue

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