10-QPeriod: Q1 FY2021

SPDR GOLD TRUST Quarterly Report for Q1 Ended Dec 31, 2020

Filed February 5, 2021For Securities:GLD

Summary

SPDR Gold Trust (GLD) reported a decrease in Net Assets from $76,952,551,000 as of September 30, 2020, to $71,157,721,000 as of December 31, 2020. This decline is primarily attributed to significant redemptions of shares, with $8,558,030,000 worth of gold distributed for redemptions compared to $2,814,327,000 in creations during the three months ended December 31, 2020. Despite a substantial increase in the net change in unrealized depreciation on its gold investments, the Trust experienced a net loss of $51,127,000 for the quarter, a stark contrast to the net income of $1,017,503,000 in the prior year's comparable quarter. The Trust's holdings consist almost entirely of gold bullion, valued at $71,128,374,000 as of December 31, 2020. The significant net realized and change in unrealized gain/(loss) on investment in gold for the quarter was a negative $1,635,989,000, driven by a $1,659,393,000 decrease in unrealized appreciation, partially offset by realized gains from sales to pay expenses and redemptions. Investors should note the significant outflows through redemptions and the resulting decrease in the Trust's overall asset value.

Financial Highlights

9 data points
Beta

Net Income

-$51.13M

EPS (Diluted)

$-0.12

Total Assets

$71.18B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$74.53M
Net Income-$51.13M
EPS (Basic)$-0.12
Shares Outstanding (Basic)419.40M

Key Highlights

  • 1Net Assets decreased by approximately $5.8 billion from $76.95 billion to $71.16 billion during the quarter ended December 31, 2020.
  • 2Significant share redemptions occurred, with $8.56 billion in gold distributed for redemptions versus $2.81 billion in gold received for creations.
  • 3The Trust reported a net loss of $51.13 million for the three months ended December 31, 2020, compared to a net income of $1.02 billion in the prior year.
  • 4Investments in gold, at fair value, stood at $71.13 billion as of December 31, 2020, representing 99.96% of total assets.
  • 5The net change in unrealized appreciation/depreciation on investment in gold was a significant negative $1.66 billion for the quarter.
  • 6Sponsor fees increased to $74.53 million from $43.27 million in the prior year's comparable quarter.
  • 7The Trust's net asset value (NAV) per share remained relatively stable, increasing slightly from $177.15 to $177.36.

Frequently Asked Questions

The primary driver of the decrease in Net Assets was a significant net outflow from share redemptions. The Trust distributed $8.56 billion worth of gold for redemptions while only receiving $2.81 billion in gold for creations during the three months ended December 31, 2020.

The SPDR Gold Trust reported a net loss of $51.13 million for the three months ended December 31, 2020. This contrasts sharply with the net income of $1.02 billion reported in the same period of the prior year, largely due to a significant decrease in the net change in unrealized appreciation on its gold holdings.

The Trustee values the gold held by the Trust based on the LBMA Gold Price PM (London Bullion Market Association Gold Price). The Net Asset Value (NAV) of the Trust is determined daily, typically using the LBMA Gold Price PM or the LBMA Gold Price AM if the PM price is unavailable, at the earlier of 12:00 PM New York time or the announcement of the LBMA Gold Price.

No, at December 31, 2020, the Trust did not have any cash balances. The Trust's policy is to sell only the exact amount of gold needed to cover expenses, minimizing holdings of assets other than gold. Consequently, it typically has zero cash balance at the end of each reporting period.