SPDR GOLD TRUST Quarterly Report for Q3 Ended Jun 30, 2008

Summary

The SPDR Gold Trust (GLD) 10-Q filing for the period ending June 30, 2008, reflects a significant increase in its investment in gold, driven by both market appreciation and substantial share creations. Total assets grew to $13.78 billion from $10.64 billion in the prior year, primarily due to a rise in the 'Investment in Gold' asset, which appreciated from $10.64 billion to $13.31 billion at cost, and significantly more to $18.79 billion at market value. This surge in gold's value and investor demand is further evidenced by the increase in redeemable shares to $19.26 billion from $13.80 billion. The Trust generated substantial gains during the period. For the nine months ended June 30, 2008, the Net Gain from Operations was $1.31 billion, a significant increase from $309.04 million in the same period of the prior year. This performance is largely attributable to the appreciation of gold held by the Trust. The filing also highlights that the Trust's operations generate no cash flow, as gold is sold to cover expenses, and the amount of gold per share gradually declines over time unless offset by price appreciation. Investors should note that the value of the Shares directly correlates with the price of gold, which has experienced significant volatility.

Key Highlights

• 1Total Assets increased significantly to $13.78 billion as of June 30, 2008, up from $10.64 billion as of September 30, 2007.
• 2The market value of the Trust's gold holdings saw substantial appreciation, rising to $18.79 billion at June 30, 2008, from $13.81 billion at September 30, 2007.
• 3Net Gain from Operations for the nine months ended June 30, 2008, was $1.31 billion, a substantial increase compared to $309.04 million for the same period in 2007.
• 4The Trust experienced significant inflows, with 'Creations' of shares increasing by 72.7 million shares for the nine months ended June 30, 2008, compared to 92.1 million shares in the prior fiscal year's comparable period.
• 5Redemption Value per Redeemable Share increased from $73.46 at September 30, 2007, to $91.70 at June 30, 2008, reflecting the rising price of gold.
• 6The Trust's financial statements show no net cash flow from operations, as the Trust utilizes gold sales to cover expenses, leading to a zero cash balance at period end.
• 7The filing notes a name change to SPDR Gold Trust and a transfer of listing to NYSE Arca, effective in late 2007/early 2008.

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