01—Abstract
Summary
Summary of the 10-K filed November 22, 2023. Cited figures are marked; the original filing is the authoritative source.
SPDR Gold Trust (GLD) filed its annual report on Form 10-K for the period ending September 29, 2023.
The Trust's primary objective is to reflect the performance of the price of gold bullion, less expenses. The report indicates that the Trust holds a significant amount of gold, with its value primarily determined by the LBMA Gold Price PM. Key operational aspects include the creation and redemption of shares in Baskets by Authorized Participants and the management of gold custody by HSBC and JPMorgan.
The Trust's financial performance for the fiscal year ending September 30, 2023, showed a net income of $5,548,188,000,a a significant turnaround from the net loss of $(2,944,530,000) in the prior year. This was primarily driven by a substantial unrealized gain on gold holdings, reflecting the increase in gold prices during the period.
The Trust's expenses, mainly the sponsor fee, are paid by selling gold, which can impact the amount of gold held per share over time. Investors are cautioned about the inherent risks associated with gold price volatility and the operational aspects of the Trust.
02—Key points
Key Highlights
- The SPDR Gold Trust (GLD) aims to track the price of gold bullion, less expenses, holding physical gold as its primary asset.
- As of September 30, 2023, the Trust held approximately 28.1 million ounces of gold with a market value of $52.5 billion.
- The Trust reported a net income of $5.55 billion for the fiscal year ended September 30, 2023, a significant improvement from a net loss of $2.94 billion in the prior year, largely due to an increase in the market value of gold holdings.
- The Sponsor fee is 0.40% annually, and is paid by selling the Trust's gold holdings, which gradually reduces the amount of gold represented by each share over time.
- The Trust's net asset value (NAV) is determined daily based on the LBMA Gold Price PM.
- Gold is held by custodians HSBC and JPMorgan, with regular audits to verify holdings.
- Authorized Participants are the exclusive entities that can create or redeem Shares in Baskets, facilitating liquidity.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed November 22, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Operating Expenses | $221.61M$238.50M | −7.1% |
| Net Income | $5.55B-$2.94B | +288.4% |
| EPS (Basic) | $17.50$-8.39 | +308.6% |
| Shares Outstanding (Basic) | 316.95M350.92M | −9.7% |
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 the 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 invest in gold.
How is the value of the Trust's gold holdings determined?
The value of the Trust's gold holdings is determined by the Trustee using the LBMA Gold Price PM (the price set by the London Bullion Market Association's afternoon auction) on each day the NYSE Arca is open for regular trading. If the LBMA Gold Price PM is not available, the next most recent LBMA Gold Price (AM or PM) is used.
How are the Trust's expenses paid?
The Trust's expenses, primarily the Sponsor's fee, are paid by selling the Trust's gold holdings. This means that over time, the amount of gold represented by each Share gradually decreases, regardless of the gold price.
What are the main risks associated with investing in GLD?
The primary risks include the volatility of the price of gold, which directly impacts the value of the Shares. Other risks involve the custody of the gold (potential for loss, damage, or theft), limitations on the Custodians' liability, and the fact that the Trust is a passive investment vehicle with no active management to mitigate losses.
06—Continue