10-QPeriod: Q1 FY2013

SPDR GOLD TRUST Quarterly Report for Q1 Ended Dec 31, 2012

Filed February 5, 2013For Securities:GLD

Summary

The SPDR Gold Trust (GLD) 10-Q filing for the period ending December 30, 2012, reflects a decrease in the Trust's holdings and market value compared to the prior fiscal quarter, primarily driven by gold price depreciation. Despite this, the Trust continued to see inflows of gold through share creations, although redemptions also occurred. The Trust's primary asset remains its investment in gold bullion, valued at cost and market, with the market value lower than cost at period-end, indicating an unrealized loss. Operational gains were primarily derived from the appreciation of gold held by the Trust. Investors should note that the Trust's performance is directly tied to the price of gold. The filing highlights the impact of gold price fluctuations on the Trust's Net Asset Value (NAV) and Share price. While expenses are managed and covered by the sale of small amounts of gold, the Trust's objective is to mirror the price performance of gold bullion, less these operational costs. The Trust experienced a net gain from operations during the quarter, but this was lower than the same period in the prior year, consistent with the observed decrease in gold prices.

Financial Highlights

17 data points
Beta

Net Income

$538.60M

EPS (Diluted)

$1.21

Total Assets

$52.44B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Gross Profit$22.79M
Operating Expenses$74.68M
Net Income$538.60M
EPS (Basic)$1.21
Shares Outstanding (Basic)445.26M

Key Highlights

  • 1Total assets decreased from $50,726,261,000 to $52,435,608,000 (at cost) as of December 31, 2012, compared to September 30, 2012, with the market value of gold declining more significantly.
  • 2The market value of the Trust's investment in gold was $72,267,900,000 at December 31, 2012, down from $76,019,208,000 at September 30, 2012, indicating a decrease in gold's market price.
  • 3The Trust generated a Net Gain from Operations of $538,595,000 for the three months ended December 31, 2012, a decrease from $785,297,000 in the same period of the prior year, reflecting the decline in gold prices.
  • 4Shareholders' Deficit narrowed from $(25,292,947,000) to $(19,832,292,000) during the quarter, indicating a reduction in the overall deficit.
  • 5The Trust had no cash and cash equivalents at the end of the period, as it sells gold to cover expenses, aligning with its operational model.
  • 6Creations of Shares (in exchange for gold deposits) exceeded redemptions, with 2,189.8 million ounces of gold added and 1,521.3 million ounces redeemed during the quarter.
  • 7The Net Asset Value (NAV) per Share was $161.14 at December 31, 2012, a decrease from $172.16 at September 30, 2012, reflecting the decline in the price of gold.

Frequently Asked Questions

The Trust's primary asset is its investment in gold. While the cost value of the gold increased slightly from $50,726,261,000 to $52,435,608,000 between September 30, 2012, and December 31, 2012, the market value of these holdings decreased from $76,019,208,000 to $72,267,900,000. This indicates that the market price of gold declined during the quarter.

For the three months ended December 31, 2012, the Trust reported a Net Gain from Operations of $538,595,000. This represents a decrease compared to the $785,297,000 reported for the same period in 2011. The gain is largely driven by the appreciation of gold held by the Trust, which was offset by various operating expenses.

The Trust had no cash and cash equivalents at the end of the reporting period. The Trust's operational model involves selling small amounts of gold to cover its expenses, such as custody and trustee fees. This strategy aims to minimize the Trust's holdings of assets other than gold.

The Net Asset Value (NAV) per Share at December 31, 2012, was $161.14, down from $172.16 at September 30, 2012. This decline is consistent with the decrease in the market value of the Trust's gold holdings. The Trust aims to reflect the performance of gold bullion, less expenses, and the NAV per share directly correlates with the price of gold.