10-KPeriod: FY2022

SPDR GOLD TRUST Annual Report, Year Ended Sep 30, 2022

Filed November 23, 2022For Securities:GLD

Summary

The SPDR Gold Trust (GLD), as of its 2022 10-K filing, continues its primary function as an investment trust holding physical gold bullion. Its investment objective remains to reflect the performance of the price of gold, less trust expenses. The Trust issues SPDR Gold Shares (GLD) which represent fractional undivided beneficial interests in the Trust's gold holdings. These shares are designed to offer investors a convenient and cost-efficient way to gain exposure to the gold market without the logistical challenges of direct gold ownership. The Trust's assets primarily consist of allocated gold bullion stored with HSBC Bank plc as the Custodian. The Trust is not actively managed and its gold is primarily sold only to cover operational expenses. The Net Asset Value (NAV) of the Trust is determined daily based on the LBMA Gold Price PM. Key service providers include World Gold Trust Services, LLC as the Sponsor, BNY Mellon Asset Servicing as the Trustee, and State Street Global Advisors Funds Distributors, LLC as the Marketing Agent.

Financial Highlights

10 data points
Beta

Net Income

-$2.94B

EPS (Diluted)

$-8.39

Total Assets

$50.69B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$238.50M
Net Income-$2.94B
EPS (Basic)$-8.39
Shares Outstanding (Basic)350.92M

Key Highlights

  • 1SPDR Gold Trust (GLD) aims to mirror the performance of the gold bullion price, net of expenses.
  • 2The Trust holds physical gold bullion, primarily allocated and stored in London with HSBC as the Custodian.
  • 3Shares (GLD) are created and redeemed by Authorized Participants in exchange for gold, facilitating investor access to the gold market.
  • 4The Trust's Net Asset Value (NAV) is calculated daily using the LBMA Gold Price PM.
  • 5Operational expenses are covered by selling a portion of the Trust's gold holdings, which gradually reduces the amount of gold represented by each share over time.
  • 6The Trust is not managed like a corporation and does not invest in commodity futures or derivatives.
  • 7Key service providers include the Sponsor (World Gold Trust Services, LLC), Trustee (BNY Mellon), and Custodian (HSBC).

Frequently Asked Questions

The SPDR Gold Trust aims to reflect the performance of the price of gold bullion. It achieves this by holding physical gold in trust and issuing shares (GLD) that represent fractional undivided beneficial interests in that gold. The value of the shares is designed to closely track the price of gold, minus the trust's operational expenses.

The physical gold held by the SPDR Gold Trust is stored in allocated form in vaults in London, England, with HSBC Bank plc acting as the Custodian.

Shares are created and redeemed by 'Authorized Participants' (typically large financial institutions) who exchange physical gold with the Trust for creation units (Baskets of shares) and vice versa. This mechanism ensures that the market price of the shares generally stays close to the Net Asset Value (NAV) of the underlying gold.

The Net Asset Value (NAV) of the SPDR Gold Trust is determined daily. The Trustee values the gold holdings based on the LBMA Gold Price PM (the afternoon London Bullion Market Association Gold Price). All accrued fees, expenses, and liabilities are then subtracted from the total value of the gold and other assets to arrive at the Trust's NAV.

The primary recurring expense is the Sponsor's fee, which accrues daily at an annual rate of 0.40% of the daily NAV. Other ordinary expenses include fees for the Trustee and Custodian, taxes, and marketing costs. These expenses are paid by selling a portion of the Trust's gold holdings as needed, which can lead to a gradual decrease in the amount of gold represented by each outstanding share over time.