SPDR GOLD TRUST Quarterly Report for Q1 Ended Dec 31, 2018

Summary

This 10-Q filing for SPDR Gold Trust (GLD) for the period ending December 30, 2018, reveals a significant increase in Net Assets, driven by a substantial rise in the value of its gold holdings. Total Assets grew from $28.3 billion to $32.4 billion, primarily due to an appreciation in the fair value of gold, which increased from $28.3 billion to $32.4 billion. This appreciation, coupled with a healthy net income of $2.28 billion for the quarter, led to a corresponding increase in Net Asset Value per Share from $112.35 to $121.16. The Trust experienced strong inflows of gold through share creations, with the value of creations ($3.21 billion) significantly outweighing redemptions ($1.36 billion) during the quarter. This indicates growing investor demand for gold exposure via the GLD ETF. Despite a modest net investment loss due to sponsor fees, the substantial gains in the value of gold more than compensated, resulting in robust overall performance. Investors should note that GLD's performance is directly tied to the price of gold, and the report highlights the Trust's strategy of holding physical gold without active management or hedging. The Trust maintains a simple operational structure with minimal liabilities, primarily consisting of sponsor fees, and it does not hold any cash, as expenses are settled by selling small amounts of gold. The filing confirms that GLD is not a shell company and its financial reporting is in accordance with U.S. GAAP.

Key Highlights

• 1Net Assets increased significantly from $28.3 billion to $32.4 billion between September 30, 2018, and December 31, 2018, driven by the appreciation of gold prices.
• 2The Net Asset Value (NAV) per Share rose from $112.35 to $121.16 during the quarter, reflecting the positive performance of gold.
• 3The Trust experienced substantial net creations of Shares, with $3.21 billion worth of gold added through creations, significantly exceeding $1.36 billion in redemptions.
• 4For the three months ended December 31, 2018, the Trust reported a net income of $2.28 billion, primarily from a $2.35 billion unrealized appreciation in the value of its gold holdings.
• 5Total expenses for the quarter were $30.17 million, consisting entirely of sponsor fees, with the Trust holding no cash and utilizing gold sales to cover operational costs.
• 6The Trust's investments consist solely of physical gold, valued at $32.46 billion at fair value as of December 31, 2018, representing 100.03% of net assets.
• 7No derivative instruments are held by the Trust, and it does not engage in foreign currency transactions, limiting its market risk exposure primarily to the price of gold.

Frequently Asked Questions