10-KPeriod: FY2017

SPDR GOLD TRUST Annual Report, Year Ended Sep 30, 2017

Filed November 28, 2017For Securities:GLD

Summary

SPDR Gold Trust (GLD) filed its annual report on Form 10-K for the period ending September 29, 2017. The report highlights the Trust's objective to reflect the performance of the price of gold bullion, less expenses. The Trust holds physical gold bullion, acting as a passive investment vehicle. Key operational aspects include the creation and redemption of Shares through Authorized Participants, with gold as the underlying asset. The Trust's expenses, primarily the sponsor's fee, are paid through the sale of gold. The report also details the gold industry landscape, market risks associated with gold price volatility, and the operational framework of the Trust, including its custodian and trustee. For investors, understanding GLD means understanding the price of gold and the trust's expense structure. The report emphasizes that the value of GLD is directly tied to the price of gold, and any fluctuations in gold prices will materially impact the Shares' value. The fee structure, with a 0.40% sponsor's fee, is also a critical factor for investors to consider in their overall return.

Financial Highlights

11 data points
Beta

Net Income

-$1.89B

EPS (Diluted)

$-6.59

Total Assets

$35.67B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$136.08M
Operating Income-$136.08M
Net Income-$1.89B
EPS (Basic)$-6.59
Shares Outstanding (Basic)287.35M

Key Highlights

  • 1The SPDR Gold Trust (GLD) aims to provide investors with a convenient and cost-effective way to gain exposure to the price of gold bullion.
  • 2Shares of GLD are exchange-traded and backed by physical gold held by a custodian.
  • 3The Trust's investment objective is to track the performance of gold prices, less the Trust's expenses.
  • 4Expenses, including a 0.40% annual sponsor's fee, are paid by selling gold, which gradually reduces the amount of gold represented by each share over time.
  • 5The value of GLD is directly correlated with the market price of gold, and is subject to its volatility.
  • 6Creation and redemption of Shares are conducted in Baskets by Authorized Participants, ensuring the Shares' market price generally stays close to the Net Asset Value (NAV) of the underlying gold.
  • 7The report details the gold industry's supply and demand dynamics, as well as the operational framework involving the Sponsor, Trustee, and Custodian.

Frequently Asked Questions

The primary 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 offer investors a cost-effective and convenient way to gain investment benefits similar to holding physical gold.

The Trust's expenses, primarily the sponsor's fee (0.40% of daily NAV), are paid by selling the Trust's gold holdings. This means that over time, the amount of gold represented by each Share gradually decreases, irrespective of the gold price movement.

The primary risk is the volatility of the price of gold. Fluctuations in gold prices can materially affect the value of GLD Shares. Other risks include potential discrepancies in the LBMA Gold Price calculation, the Trust's passive investment strategy, and the possibility of Shares trading at a premium or discount to their Net Asset Value (NAV).

GLD utilizes an 'Authorized Participant' mechanism for the creation and redemption of Shares in Baskets. This process, which involves exchanging gold for Shares and vice-versa, helps to keep the market price of the Shares aligned with the Net Asset Value (NAV) of the underlying gold.