What is the primary asset and objective of the SPDR Gold Trust (GLD)?

The primary asset of the SPDR Gold Trust is physical gold bullion. Its investment objective is for its Shares to reflect the performance of the price of gold bullion, less the Trust's expenses, providing investors with a cost-effective and convenient way to invest in gold.

How does the Trust manage its expenses?

The Trust pays its expenses by selling portions of its gold holdings. This process means the Trust does not typically generate cash flow from operations and has a zero cash balance at period-end, as gold is sold to cover liabilities as they arise.

What is the market value of the Trust's gold holdings as of June 30, 2005, and how does this compare to its inception?

As of June 30, 2005, the Trust held approximately 5.64 million ounces of gold with a market value of $2.46 billion. This represents a significant increase from its inception on November 12, 2004, when it held 30,000 ounces with a market value of $13.08 million.

Are there any significant legal proceedings that could impact the Trust?

Yes, the Sponsor, the Trust, and others are defendants in a civil lawsuit filed in 2003 alleging breach of contract and misappropriation of trade secrets. The Sponsor believes it has strong defenses and does not anticipate a material adverse effect on the Trust's financial statements.

GLD 10-Q Quarterly Report Q3 FY2005 — Revenue, Net Income, EPS

Summary

The SPDR Gold Trust (GLD), in its August 2005 10-Q filing for the period ending June 29, 2005, demonstrated significant growth since its inception in November 2004. The Trust's primary asset is its investment in gold, which had a market value of $2.46 billion as of June 30, 2005, a substantial increase from its initial $13.08 million. This growth reflects strong investor demand and a rising gold price environment. The Trust reported a net gain of $47.7 million for the three months ending June 30, 2005, driven primarily by the increase in the value of its gold holdings. While operating expenses are incurred and paid for by selling gold, leading to no reported cash flow from operations, the Trust's structure is designed to allow investors to track the price of gold bullion, minus expenses. Investors should note the Trust's objective of mirroring gold prices and the inherent risks associated with gold price volatility.

Key Highlights

1The SPDR Gold Trust's investment in gold grew substantially to a market value of $2.46 billion by June 30, 2005, up from $13.08 million at its inception on November 12, 2004.
2For the three months ending June 30, 2005, the Trust reported a net gain of $47.7 million, with a significant portion ($48.9 million) attributed to the increase in the value of its investment in gold.
3Total expenses for the three months ending June 30, 2005, were $2.42 million, primarily consisting of custody, trustee, sponsor, and marketing agent fees.
4The Trust's structure involves the creation and redemption of shares in exchange for physical gold, with the Trust holding approximately 5.64 million ounces of gold as of June 30, 2005.
5The Trust had no cash flow from operations during the period, as expenses are settled by selling gold, and reported zero cash and cash equivalents at the end of the period.
6The Net Asset Value (NAV) per share at the end of the period was $43.60, reflecting the value of the gold held by the Trust, less expenses.
7A lawsuit was disclosed, filed in 2003, alleging breach of contract and misappropriation of trade secrets, with the Sponsor believing it has strong defenses and that the outcome will not materially affect the Trust.

SPDR GOLD TRUST Quarterly Report for Q3 Ended Jun 30, 2005

Summary

Key Highlights

Frequently Asked Questions