10-KPeriod: FY2021

SPDR GOLD TRUST Annual Report, Year Ended Sep 30, 2021

Filed November 24, 2021For Securities:GLD

Summary

The SPDR Gold Trust (GLD) 10-K filing for the period ending September 29, 2021, details its structure as an investment trust holding physical gold bullion. The Trust's primary objective is for its Shares (GLD) to track the performance of the gold price, less expenses. It achieves this by holding gold bars, with BNY Mellon Asset Servicing as the Trustee and HSBC Bank plc as the Custodian. The Trust is not actively managed and generally only sells gold to cover operational expenses. Key operational aspects include the creation and redemption of Shares through Authorized Participants, who exchange gold for Shares or vice versa. The Trust's Net Asset Value (NAV) is determined daily based on the LBMA Gold Price PM. The filing highlights that the Trust does not hold derivatives and its performance is directly tied to the price of gold, with expenses being the primary drag on performance. Significant risk factors include gold price volatility, the potential for large-scale gold sales by official sectors, and risks associated with gold custody.

Financial Highlights

10 data points
Beta

Net Income

-$5.75B

EPS (Diluted)

$-15.25

Total Assets

$55.47B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$257.60M
Net Income-$5.75B
EPS (Basic)$-15.25
Shares Outstanding (Basic)376.93M

Key Highlights

  • 1The SPDR Gold Trust aims to provide investors with a cost-effective and convenient way to gain exposure to the price of gold bullion.
  • 2The Trust holds physical gold bullion, with its Net Asset Value (NAV) directly linked to the fluctuating market price of gold, as determined by the LBMA Gold Price PM.
  • 3Shares (GLD) are created and redeemed by Authorized Participants, who exchange physical gold for Shares or vice versa.
  • 4The Trust's primary expenses are covered by the sale of a small portion of its gold holdings, which can lead to a gradual decrease in the amount of gold represented by each Share over time.
  • 5Key service providers include World Gold Trust Services, LLC (Sponsor), BNY Mellon Asset Servicing (Trustee), and HSBC Bank plc (Custodian).
  • 6Significant risk factors include the inherent volatility of gold prices, potential issues with gold custody and storage, and the impact of large-scale gold sales by official entities.
  • 7The Trust is not an investment company registered under the Investment Company Act of 1940 and does not trade commodity futures, thus investors do not have the protections associated with those regulatory frameworks.

Frequently Asked Questions

The SPDR Gold Trust is an investment trust that holds physical gold bullion. Its primary investment objective is for its Shares (GLD) to reflect the performance of the price of gold bullion, minus the Trust's expenses. Investors gain exposure to gold prices through the purchase of Shares, which are designed to be a convenient and cost-efficient alternative to directly holding gold.

The Net Asset Value (NAV) of the SPDR Gold Trust is determined daily, based on the LBMA Gold Price PM (the afternoon London Bullion Market Association gold price). The Trustee subtracts all estimated accrued fees, expenses, and other liabilities from the total value of the gold held by the Trust to arrive at the NAV. The trading price of the Shares on an exchange like NYSE Arca may differ from the NAV due to market supply and demand.

The primary risks include the inherent volatility of gold prices, which can fluctuate significantly due to various global economic and political factors. Additionally, there are risks related to the custody and safekeeping of the physical gold held by the Trust, including the potential for loss, damage, or theft, and limitations on recovery. The Trust's expenses are paid by selling gold, which can lead to a gradual decrease in the amount of gold backing each share over time, regardless of gold price movements. Investors also do not have the same protections as those investing in registered investment companies or commodity pools.

Shares are created and redeemed in large blocks called 'Baskets' by entities known as Authorized Participants (APs). APs deliver physical gold to the Trust to receive new Shares (creation), or deliver Shares to the Trust to receive physical gold (redemption). These APs are typically large financial institutions that facilitate the process, and they pay a transaction fee for each creation or redemption order.