Summary
This 10-Q filing for SPDR Gold Trust (GLD) for the period ending March 31, 2010, showcases a significant increase in assets and a substantial net gain from operations compared to the prior year. The Trust's "Investment in Gold" grew to over $30.1 billion at cost, with a market value reaching approximately $40.3 billion, reflecting a considerable unrealized gain. This growth was driven by strong inflows of gold, indicated by the substantial increase in "Redeemable Shares" and "Shares issued and outstanding." Financially, the Trust reported a net gain from operations of $286 million for the quarter and $501.7 million for the first six months of the fiscal year, a dramatic improvement from a net loss in the comparable periods of the prior year. This profitability is primarily attributable to significant gains on gold distributed for share redemptions and sales to cover expenses, driven by the overall upward trend in gold prices. Investors should note that the Trust's primary risk remains the volatility of gold prices, which directly impacts the value of the Shares.
Financial Highlights
17 data points| Gross Profit | $10.02M |
| Operating Expenses | $39.12M |
| Net Income | $286.01M |
| EPS (Basic) | $0.78 |
| Shares Outstanding (Basic) | 365.75M |
Key Highlights
- 1Total assets increased to $30.29 billion as of March 31, 2010, up from $28.50 billion as of September 30, 2009.
- 2Investment in Gold, at market value, was $40.33 billion as of March 31, 2010, an increase from $35.03 billion at the end of the prior fiscal year, indicating significant unrealized gains.
- 3The Trust reported a net gain from operations of $286 million for the three months ended March 31, 2010, a substantial improvement from a net loss of $22 million in the same period of 2009.
- 4For the six months ended March 31, 2010, the Trust reported a net gain of $501.7 million, compared to $34.8 million in the prior year period.
- 5The number of outstanding Shares increased to 370.9 million as of March 31, 2010, from 358.9 million as of September 30, 2009, indicating strong investor demand.
- 6Gold prices have shown a strong upward trend, with the average price for the six months ended March 31, 2010, being $1,104.41 per ounce.
- 7The Trust holds its gold with HSBC Bank USA, N.A. as Custodian and operates under a 'grantor trust' structure for U.S. federal income tax purposes, meaning income and expenses flow through to shareholders.