10-KPeriod: FY2011

SPDR GOLD TRUST Annual Report, Year Ended Sep 30, 2011

Filed November 22, 2011For Securities:GLD

Summary

SPDR Gold Trust (GLD) provides investors with a cost-efficient and convenient way to gain exposure to the price of gold bullion. The Trust holds physical gold, and its shares are designed to mirror the performance of gold prices, less trust expenses. The filing highlights that the Trust does not generate income and regularly sells gold to cover its operational costs, which gradually reduces the amount of gold represented by each share over time. Key operational aspects include the creation and redemption of shares in "Baskets" by Authorized Participants. The Trust's net asset value (NAV) is calculated daily, reflecting the market value of its gold holdings minus liabilities. Investors should be aware of the risks associated with gold price volatility, the passive nature of the Trust, and potential trading price deviations from NAV. The filing also details the various service providers, including the Sponsor (World Gold Trust Services, LLC), Trustee (BNY Mellon Asset Servicing), Custodian (HSBC Bank USA, N.A.), and Marketing Agent (State Street Global Markets, LLC).

Financial Highlights

17 data points
Beta

Net Income

$7.34B

EPS (Diluted)

$17.87

Total Assets

$42.74B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Gross Profit$83.12M
Operating Expenses$238.73M
Net Income$7.34B
EPS (Basic)$17.87
Shares Outstanding (Basic)410.73M

Key Highlights

  • 1The SPDR Gold Trust (GLD) aims to provide investors with exposure to the price performance of gold bullion, less trust expenses.
  • 2Shares are created and redeemed in large blocks called 'Baskets' exclusively by Authorized Participants.
  • 3The Trust holds physical gold bullion as its primary asset and does not engage in derivative trading.
  • 4Operational expenses are paid through the sale of the Trust's gold holdings, leading to a gradual decrease in the gold backing per share over time.
  • 5The Trust's Net Asset Value (NAV) per share is calculated daily based on the market value of its gold holdings and liabilities.
  • 6Key risks include the inherent volatility of gold prices, the passive investment strategy of the Trust, and the potential for shares to trade at a premium or discount to NAV.

Frequently Asked Questions

SPDR Gold Trust (GLD) provides investors with exposure to the price of gold bullion by holding physical gold. The shares of the Trust are designed to reflect the performance of the price of gold, less the Trust's expenses.

The creation and redemption of SPDR Gold Shares are handled exclusively by Authorized Participants, who are typically large financial institutions that have entered into specific agreements with the Sponsor and Trustee. These transactions occur in large blocks called 'Baskets'.

The Trust does not generate income and must sell some of its gold holdings to cover its operating expenses, such as fees for the Sponsor, Trustee, Custodian, and Marketing Agent. This sale of gold can gradually reduce the amount of gold backing each outstanding share.

Yes, the trading price of GLD shares on exchanges can fluctuate independently of the Trust's Net Asset Value (NAV). Factors such as market supply and demand, as well as non-concurrent trading hours between gold markets and stock exchanges, can cause the shares to trade at a premium or discount to their NAV.