SPDR GOLD TRUST Quarterly Report for Q2 Ended Mar 31, 2012

Summary

SPDR Gold Trust (GLD) reported its financial results for the quarter and six months ended March 31, 2012. The Trust's primary asset is gold bullion, and its objective is to reflect the performance of the price of gold, less expenses. During the period, the Trust experienced significant increases in its gold holdings through creations and decreases through redemptions, reflecting investor activity in the gold market. The Trust's financial statements show a considerable unrealized gain on its gold investments, indicating that the market value of its gold holdings significantly exceeds its cost basis. Operationally, GLD generated gains from both the sale of gold to cover expenses and the distribution of gold during share redemptions. While the Trust does not hold cash balances as gold is sold to cover operational costs, the overall financial performance is closely tied to the fluctuations in the gold market. The report highlights the Trust's reliance on the London Fix for valuation and details the fees associated with its management by the Sponsor, Trustee, and Marketing Agent.

Key Highlights

• 1Total Assets increased from $42.74 billion to $46.66 billion between September 30, 2011, and March 31, 2012, primarily driven by the value of its gold holdings.
• 2The Trust's 'Investment in Gold' at market value reached $68.77 billion as of March 31, 2012, compared to $64.68 billion at September 30, 2011, reflecting a significant unrealized gain of over $22 billion.
• 3For the three months ended March 31, 2012, the Trust reported a Net Gain from Operations of $261.22 million, a decrease from $1.64 billion in the same period of the prior year, driven by a substantial drop in the 'Gain on gold distributed for the redemption of Shares'.
• 4The number of outstanding Shares increased from 406.8 million to 425.7 million between September 30, 2011, and March 31, 2012, indicating net inflows and creation of new shares.
• 5The Trust's net cash flow from operating activities is consistently reported as $0, as gold is sold to cover expenses, and the Trust does not maintain cash balances.
• 6Total expenses for the three months ended March 31, 2012, were $68.83 million, up from $54.19 million in the prior year period, with custody and sponsor fees being the most significant components.
• 7The Trust's gold holdings increased in ounces from 39.93 million to 41.37 million between September 30, 2011, and March 31, 2012, primarily due to net creations exceeding redemptions.

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