What was the primary driver of the Trust's net loss for the quarter?

The primary driver of the Trust's net loss for the quarter ending December 31, 2013, was a substantial unrealized loss of $603.3 million on its investment in gold. This loss reflects the decrease in the market value of the gold held by the Trust during the period.

How has the Trust's gold holding changed compared to the previous quarter?

The Trust's investment in gold decreased from a market value of $38.8 billion on September 30, 2013, to $31.1 billion on December 31, 2013. This decline is due to both a decrease in the number of ounces held and a fall in the market price of gold.

What is the significance of the Trust having zero cash balance?

The Trust maintains a zero cash balance as its operational model involves selling gold to cover trust expenses. This approach minimizes the Trust's holdings of assets other than gold and means that cash flow from operations is not expected to be recorded. The Trust's financial performance is therefore directly reflected in the value of its gold holdings and the net change in that value.

Why did the number of outstanding Shares decrease during the quarter?

The number of outstanding Shares decreased from 301.6 million to 266.0 million because the volume of Share redemptions (42.4 million Shares) exceeded the volume of Share creations (6.8 million Shares) during the quarter. This indicates that more investors redeemed their shares for gold than created new shares.

GLD 10-Q Quarterly Report Q1 FY2014 — Revenue, Net Income, EPS

Summary

SPDR Gold Trust (GLD) reported its financial results for the quarter ending December 31, 2013. The Trust experienced a significant decline in its investment in gold, primarily driven by a substantial unrealized loss on its gold holdings. This resulted in a net loss from operations for the quarter, a stark contrast to the net gain reported in the same period of the prior year. Investors should note the Trust's core objective is to reflect the performance of gold bullion prices, less expenses. The reported period saw a decrease in both the market value and cost of gold held by the Trust, alongside a reduction in the number of outstanding Shares. The Trust's financial condition is directly tied to the price of gold, and the reported period reflects a downturn in gold prices contributing to the negative financial performance.

Financial Highlights

18 data points

Beta

Net Income

-$501.55M

EPS (Diluted)

$-1.76

Total Assets

$31.07B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements

Beta

Gross Profit	$1.20M
Operating Expenses	$35.32M
Operating Income	-$35.32M
Net Income	-$501.55M
EPS (Basic)	$-1.76
Shares Outstanding (Basic)	285.05M

Key Highlights

1The Trust reported a net loss of $501.6 million for the three months ended December 31, 2013, compared to a net gain of $538.6 million in the prior year's comparable period.
2Investment in gold decreased significantly from $35.8 billion at September 30, 2013, to $31.1 billion at December 31, 2013, reflecting a decline in gold prices.
3An unrealized loss of $603.3 million on the investment in gold was recognized for the quarter, significantly impacting the overall financial results.
4The number of outstanding Shares decreased from 301.6 million to 266.0 million during the quarter due to redemptions exceeding creations.
5The Trust's cash balance remained at $0, consistent with its operational model where gold is sold to cover expenses, and no cash is generated from operations.
6Redemptions of Shares (42.4 million) significantly outweighed creations (6.8 million) during the quarter, leading to a decrease in outstanding shares and gold holdings.
7The redemption value per redeemable share decreased by 20.2% during the quarter, indicating a decline in the value of underlying gold holdings.

SPDR GOLD TRUST Quarterly Report for Q1 Ended Dec 31, 2013

Summary

Financial Highlights

Key Highlights

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