What is the primary driver of SPDR Gold Trust's (GLD) Net Asset Value (NAV)?

The primary driver of GLD's NAV is the market price of gold bullion. The Trust holds physical gold, and its performance aims to mirror the fluctuations in the price of gold, less operating expenses.

Why did GLD's Net Assets decrease significantly during the period?

The Net Assets decreased primarily due to a significant net realized and change in unrealized loss on the Trust's gold holdings. This was exacerbated by substantial share redemptions, leading to a reduction in the total number of shares outstanding and thus the overall Net Assets.

How does GLD handle its expenses?

GLD's expenses, primarily the Sponsor's fee, are accrued daily at an annual rate of 0.40% of the daily NAV. These expenses are typically paid by selling the minimum amount of gold necessary to cover them, which minimizes the Trust's holdings of assets other than gold.

Does GLD engage in hedging or investment strategies to manage gold price risk?

No, the Trust's investment objective is solely to reflect the performance of gold bullion prices. The Trustee does not actively manage the gold holdings, does not use hedging techniques, and does not engage in derivative transactions. Any losses sustained by the Trust are a direct result of declines in the price of gold.

GLD 10-Q Quarterly Report Q2 FY2017 — Revenue, Net Income, EPS

Summary

The SPDR Gold Trust (GLD) 10-Q filing for the period ending March 31, 2017, indicates a decrease in Net Assets from $40.3 billion to $33.3 billion compared to September 30, 2016. This decline is primarily attributed to a significant net realized and change in unrealized loss on investment in gold during the six months ended March 31, 2017, amounting to approximately $2.64 billion, contrasting with a gain of $2.71 billion in the prior year's comparable period. The Trust experienced substantial share redemptions, with a net decrease of 38.4 million shares outstanding during the first six months of 2017. Despite the overall decline in net assets and share count, the Trust's investment objective remains to reflect the performance of gold bullion prices, less expenses. The market value per share saw an increase for the three months ended March 31, 2017, indicating a positive short-term movement in gold prices. Investors should note the Trust's sole holding is gold, and its performance is directly tied to gold price fluctuations.

Financial Highlights

9 data points

Beta

Net Income

$2.21B

EPS (Diluted)

$7.95

Total Assets

$33.36B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements

Beta

Operating Expenses	$31.85M
Net Income	$2.21B
EPS (Basic)	$7.95
Shares Outstanding (Basic)	278.46M

Key Highlights

1Net Assets decreased from $40.3 billion (Sep 30, 2016) to $33.3 billion (Mar 31, 2017).
2Total Shares Outstanding decreased by 38.4 million during the six months ended March 31, 2017, indicating net redemptions.
3The Trust experienced a net realized and change in unrealized loss on investment in gold of $2.64 billion for the six months ended March 31, 2017, a reversal from a gain of $2.71 billion in the prior year's period.
4For the three months ended March 31, 2017, the Net Asset Value (NAV) per Share was $118.51, and the Market Value per Share was $118.72.
5Total expenses are consistently reported at 0.40% of average net assets, reflecting the Sponsor's fee.
6The Trust holds 100% of its assets in allocated gold bullion, with no derivative instruments or cash balances at the end of the period.
7Gold is held by HSBC Bank plc (Custodian) and valued based on the LBMA Gold Price PM.

SPDR GOLD TRUST Quarterly Report for Q2 Ended Mar 31, 2017

Summary

Financial Highlights

Key Highlights

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