What is the primary asset held by the SPDR Gold Trust (GLD)?

The primary asset held by the SPDR Gold Trust (GLD) is physical gold bullion.

How does the SPDR Gold Trust generate revenue?

The Trust generates gains from the appreciation of the gold it holds. Revenue is also recognized from the sale of gold to cover operational expenses and from the distribution of gold during the redemption of shares. The Trust does not generate revenue from traditional sources like interest or dividends.

What is the impact of gold price fluctuations on GLD?

The performance of the SPDR Gold Trust's shares is directly correlated with the price movements of gold bullion. Fluctuations in gold prices, influenced by factors like inflation expectations, currency exchange rates, and global economic events, will impact the Net Asset Value (NAV) and market price of GLD shares.

Why does the Trust have zero cash balance?

The SPDR Gold Trust is designed to minimize holdings of assets other than gold. Therefore, when operational expenses arise, the Trustee sells the exact amount of gold needed to cover these costs, resulting in no cash balance at the end of reporting periods.

GLD 10-Q Quarterly Report Q3 FY2012 — Revenue, Net Income, EPS

Summary

The SPDR Gold Trust (GLD) reported its financial results for the quarter and nine months ended June 30, 2012. The Trust's primary asset is gold bullion, and its objective is to reflect the performance of the price of gold. During the nine-month period, the Trust saw significant activity in both the creation and redemption of its shares, with a net increase in outstanding shares and a corresponding adjustment in the amount of gold held. The Trust's financial performance is directly tied to the fluctuations in the price of gold, which experienced volatility during the reporting period. Despite changes in gold prices, the Trust maintained a substantial gold reserve, valued at over $65 billion at the end of the period. Key financial metrics indicate a decrease in net gain from operations compared to the same period in the prior year, primarily driven by a lower gain on gold distributed for share redemptions. This reflects the dynamic nature of gold prices and investor activity. The Trust operates with minimal cash reserves, as gold is sold to cover expenses, aligning with its core strategy of holding gold as its primary asset. Investors should note that the Trust's performance is intrinsically linked to gold price movements and the associated costs of managing the trust.

Financial Highlights

15 data points

Beta

Net Income

$550.35M

EPS (Diluted)

$1.30

Total Assets

$47.01B

Free Cash Flow

$0.00

Financial Statements

Beta

Gross Profit	$20.50M
Operating Expenses	$65.91M
Net Income	$550.35M
EPS (Basic)	$1.30
Shares Outstanding (Basic)	423.50M

Key Highlights

1Total Assets stood at $47.01 billion as of June 30, 2012, comprising solely its investment in gold.
2The market value of the Trust's gold holdings was $65.87 billion as of June 30, 2012, exceeding its cost basis of $47.01 billion by approximately $18.86 billion, indicating unrealized gains.
3Net gain from operations for the nine months ended June 30, 2012, was $1.60 billion, a decrease from $3.92 billion for the same period in 2011.
4The Trust experienced significant creation and redemption activity, with 52.2 million shares created and 35.2 million shares redeemed during the nine months ended June 30, 2012.
5The Trust's outstanding shares increased to 423.8 million as of June 30, 2012, from 406.8 million as of September 30, 2011.
6The Trust reported no cash and cash equivalents at the end of the reporting periods, as gold is sold to cover operational expenses.

SPDR GOLD TRUST Quarterly Report for Q3 Ended Jun 30, 2012

Summary

Financial Highlights

Key Highlights

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