How has SPDR Gold Trust's (GLD) investment in gold changed?

The Trust's 'Investment in Gold' (at cost) increased from $6.2 billion as of September 30, 2006, to $8.2 billion as of March 31, 2007. The market value of its gold holdings also rose significantly from $7.4 billion to over $10.2 billion over the same period, reflecting an increase in the price of gold.

What is the Trust's net gain from operations?

For the three months ended March 31, 2007, the Trust reported a net gain from operations of $79.6 million. This is a substantial increase compared to the $3.2 million net gain reported for the same period in 2006, driven primarily by gains from gold distributed for share redemptions and the appreciation of gold prices.

How does GLD manage its expenses, and does it hold cash?

GLD's expenses are paid by selling small amounts of the Trust's gold holdings. As a result, the Trust typically holds no cash and cash equivalents at the end of reporting periods, which is by design to minimize the holding of assets other than gold. This operational characteristic means that expenses reduce the amount of gold backing each share over time.

What is the trend in the number of GLD shares outstanding and the price of gold?

The number of outstanding shares increased from 125.1 million at September 30, 2006, to 157.0 million at March 31, 2007, indicating increased investor demand for gold exposure. Concurrently, the price of gold per ounce increased from $599.25 at the end of September 2006 to $661.75 at the end of March 2007, reflecting the positive market trend for gold.

GLD 10-Q Quarterly Report Q2 FY2007 — Revenue, Net Income, EPS

Summary

SPDR Gold Trust (GLD) reported significant growth in its assets for the quarter ending March 31, 2007. The Trust's investment in gold increased substantially from $6.2 billion to $8.2 billion, with the market value of gold holdings reaching over $10.2 billion. This growth is driven by strong investor demand, reflected in the issuance of new shares and corresponding gold deposits. The Trust's net gain from operations also saw a dramatic increase, rising from $3,152,000 in the same period last year to $79,594,000, indicating a robust performance in alignment with gold price appreciation. Despite the positive financial performance, it's crucial for investors to understand that GLD's objective is to track the price of gold bullion, less expenses. The Trust holds physical gold, and its value fluctuates directly with the market price of gold. While the Trust's net asset value has grown, the operational expenses, though managed to minimize impact, do lead to a gradual decrease in the amount of gold represented by each share over time. This filing highlights strong asset growth and operational gains, driven by favorable gold market conditions.

Key Highlights

1Investment in gold increased significantly by $2.0 billion to $8.2 billion from September 30, 2006, to March 31, 2007.
2Market value of gold holdings reached $10.2 billion at March 31, 2007, up from $7.4 billion at September 30, 2006.
3Net gain from operations for the three months ended March 31, 2007, was $79.6 million, a substantial increase from $3.2 million in the prior year period.
4The number of outstanding shares increased from 125.1 million to 157.0 million during the period, reflecting strong investor demand.
5The Trust generated a significant gain on gold distributed for share redemptions ($87.6 million in Q1 2007), driven by a rising gold price.
6The Trust had no cash and cash equivalents at the end of the period, as gold is sold to cover expenses, which is a normal operating characteristic.
7The price of gold per ounce increased to $661.75 at the end of March 2007, from $599.25 at the end of September 2006.

SPDR GOLD TRUST Quarterly Report for Q2 Ended Mar 31, 2007

Summary

Key Highlights

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