What is the primary driver of the change in SPDR Gold Trust's assets and liabilities?

The primary driver for the decrease in assets is the decline in the market value of gold holdings. The decrease in liabilities is mainly due to the reduction in 'Gold payable' and a decrease in redeemable shares as investors redeemed more shares than were created during the period.

How does the SPDR Gold Trust report gains, and what is the impact of redemptions on these gains?

The Trust reports gains from two main sources: sales of gold to pay expenses and gold distributed for the redemption of shares. The significant 'Gain on gold distributed for the redemption of Shares' indicates that the Trust is distributing gold that has appreciated in value to redeem shares. This is a substantial contributor to the reported net gain from operations, especially during periods of high redemption activity.

Does the SPDR Gold Trust hold cash, and how are its expenses managed?

No, the Trust does not hold cash. Its operational model is designed such that when expenses arise, the Trustee sells the exact amount of gold needed to cover those expenses. Consequently, the Trust typically has no cash balance at the end of reporting periods, and its cash flow from operations is zero.

What does the decrease in 'Redeemable Shares' and 'Shareholders' Deficit' signify for investors?

The decrease in 'Redeemable Shares' indicates that more investors redeemed their shares than purchased new ones during the period, leading to a net outflow of assets from the Trust. The 'Shareholders' Deficit' (a negative number) reflects the difference between the market value of gold and the total liabilities and redeemable shares. While the deficit narrowed significantly on a reported basis due to gains, the underlying asset base (gold holdings) decreased.

GLD 10-Q Quarterly Report Q2 FY2013 — Revenue, Net Income, EPS

Summary

This SEC filing for SPDR Gold Trust (GLD) for the quarter ending March 31, 2013, reveals a significant decrease in the Trust's assets and liabilities compared to the previous fiscal year's end. The total investment in gold, valued at cost, declined from $50.7 billion to $47.7 billion. This reduction is primarily driven by a substantial increase in share redemptions, which outweighed creations, leading to a decrease in outstanding shares and a corresponding drop in the value of redeemable shares. Despite the decrease in asset value, the Trust reported a considerable net gain from operations for the quarter and year-to-date, largely due to unrealized gains from the appreciation of gold holdings and gains on gold distributed for share redemptions. The market value of the Trust's gold holdings also saw a notable decline, reflecting broader market trends. For investors, the key takeaway is the inverse relationship between share redemptions and the Trust's overall asset value. The substantial gain on gold distributed for redemptions indicates a period where the Trust sold gold to meet redemption requests, which, coupled with an increase in the market value of gold relative to its cost basis, resulted in significant reported gains. However, the decrease in both cost and market value of gold holdings signals a shrinking asset base. Expenses remained relatively stable, with custody and trustee fees being minor components compared to sponsor and marketing agent fees. The Trust's operational model means it does not hold cash, with gold sales specifically earmarked for expenses.

Financial Highlights

17 data points

Beta

Net Income

$1.95B

EPS (Diluted)

$4.54

Total Assets

$47.76B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements

Beta

Gross Profit	$16.85M
Operating Expenses	$66.90M
Net Income	$1.95B
EPS (Basic)	$4.54
Shares Outstanding (Basic)	429.09M

Key Highlights

1Total assets decreased from $50.73 billion (Sept 30, 2012) to $47.76 billion (Mar 31, 2013), reflecting a decline in the value of gold holdings.
2The market value of investment in gold decreased from $76.02 billion to $62.75 billion over the same period, indicating a significant drop in gold prices.
3Total liabilities saw a sharp reduction from $629.4 million to $27.2 million, primarily due to a decrease in 'Gold payable'.
4Redeemable shares outstanding decreased from 75.4 million to 62.7 million, indicating net redemptions of shares during the period.
5The Trust reported a Net Gain from Operations of $1.95 billion for the three months ended March 31, 2013, up from $261.2 million in the prior year's comparable period.
6This significant gain was largely driven by a substantial 'Gain on gold distributed for the redemption of Shares' ($2.0 billion for the quarter).
7The Trust's expense ratio remains relatively low, with total expenses for the quarter at $66.9 million.

SPDR GOLD TRUST Quarterly Report for Q2 Ended Mar 31, 2013

Summary

Financial Highlights

Key Highlights

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