Summary
The SPDR Gold Trust (GLD) 10-Q filing for the period ending December 31, 2008, indicates robust growth in its gold holdings, with the market value of its investment in gold increasing to $21.56 billion from $20.58 billion at the end of the previous quarter. This growth is driven by increased creations of shares, which outpaced redemptions, reflecting strong investor demand for gold as a safe-haven asset amidst a volatile economic climate. Total assets grew to $18.62 billion, while liabilities remained minimal. The Trust experienced a net gain from operations of $56.8 million for the quarter, a decrease from the prior year's $114.5 million, largely due to lower gains on gold distributed for share redemptions and higher expenses. Despite a decrease in net gain per share to $0.23 from $0.59 in the prior year's comparable quarter, the Trust's financial position remains strong. The Trust's primary asset is its gold holdings, valued at market. The filing highlights that the value of shares directly correlates with the price of gold, and investors should be aware of potential fluctuations and the ongoing impact of trust expenses on the net asset value. The Trust's operational model, where gold is sold to cover expenses, means it typically holds no cash, with its liquidity tied to its gold reserves.
Financial Highlights
10 data points| Gross Profit | $1.25M |
| Operating Expenses | $19.55M |
| Net Income | $56.80M |
| EPS (Basic) | $0.23 |
| Shares Outstanding (Basic) | 247.62M |
Key Highlights
- 1Investment in gold saw a significant increase in market value, reaching $21.56 billion as of December 31, 2008, up from $20.58 billion on September 30, 2008, reflecting positive gold price performance.
- 2Total assets grew to $18.62 billion by year-end 2008, driven by the appreciation of gold holdings and increased share creations.
- 3Share creations (21,100,000 shares) exceeded redemptions (12,700,000 shares) during the quarter, indicating strong investor demand for gold exposure.
- 4The Trust reported a Net Gain from Operations of $56.8 million for the three months ended December 31, 2008, though this was down from $114.5 million in the same period of 2007.
- 5Net gain per share decreased to $0.23 from $0.59 year-over-year, reflecting both lower gains and increased expenses.
- 6Total expenses increased to $19.6 million from $15.3 million in the prior year's quarter, primarily due to higher custody, trustee, and sponsor/marketing agent fees.
- 7The Trust maintained zero cash balance from operations, as gold is sold to cover expenses, a standard operating procedure designed to minimize non-gold assets.