10-QPeriod: Q3 FY2021

SPDR GOLD TRUST Quarterly Report for Q3 Ended Jun 30, 2021

Filed August 5, 2021For Securities:GLD

Summary

The SPDR Gold Trust (GLD) reported a significant decrease in its Net Assets and the value of its gold holdings for the period ending June 30, 2021, compared to September 30, 2020. Total Assets dropped from $76.98 billion to $59.28 billion, primarily due to a reduction in the fair value and quantity of gold held. Concurrently, the number of outstanding shares decreased from 434.4 million to 359.1 million, and the Net Asset Value (NAV) per share declined from $177.15 to $165.03. This reflects a period of gold price depreciation, as indicated by the Net change in unrealized depreciation on investment in gold for the nine months ended June 30, 2021, which was a loss of $8.8 billion. Despite the decline in gold's value, the Trust's operational expenses, primarily sponsor fees, remained relatively stable quarter-over-quarter. The Trust continues to operate as an investment vehicle for gold, with its performance directly tied to the price of gold bullion. Investors should note the significant redemptions of shares during the nine-month period, which resulted in a substantial outflow of gold, and understand that the Trust's NAV is directly influenced by gold market fluctuations and accumulated expenses.

Financial Highlights

9 data points
Beta

Net Income

$2.26B

EPS (Diluted)

$6.37

Total Assets

$59.28B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$60.11M
Net Income$2.26B
EPS (Basic)$6.37
Shares Outstanding (Basic)354.84M

Key Highlights

  • 1Net Assets decreased from $76.95 billion (Sep 30, 2020) to $59.26 billion (Jun 30, 2021).
  • 2Total Assets decreased from $76.98 billion (Sep 30, 2020) to $59.28 billion (Jun 30, 2021), primarily due to a decrease in the fair value of gold holdings.
  • 3Shares issued and outstanding decreased from 434.4 million to 359.1 million.
  • 4Net asset value per Share decreased from $177.15 (Sep 30, 2020) to $165.03 (Jun 30, 2021).
  • 5A net change in unrealized depreciation of $8.795 billion was recorded on the investment in gold for the nine months ended June 30, 2021.
  • 6Total expenses for the nine months ended June 30, 2021, were $198.6 million, up from $149.1 million in the prior year period, largely driven by sponsor fees.
  • 7Significant redemptions of shares occurred during the nine months ended June 30, 2021, with the value of redemptions ($23.18 billion) substantially exceeding the value of creations ($10.57 billion).

Frequently Asked Questions

The decrease in Net Assets and Shareholder Equity is primarily attributed to a decline in the fair value of the Trust's gold holdings. The nine months ended June 30, 2021, saw a substantial net change in unrealized depreciation of $8.795 billion on the investment in gold, indicating a decrease in gold prices during that period. Additionally, there was a significant net outflow of shares through redemptions exceeding creations.

The Trust held 33,622.8 ounces of gold at a fair value of $59.28 billion as of June 30, 2021. This is a decrease from 40,796.0 ounces of gold at a fair value of $76.98 billion as of September 30, 2020. This reduction reflects both the decrease in the market price of gold and a net redemption of Shares by investors.

The primary recurring expense is the Sponsor's fee, which accrues daily at an annual rate of 0.40% of the daily Net Asset Value (NAV). This fee covers all ordinary fees and expenses of the Trust, including those of the Trustee, Custodian, Sponsor, marketing agent, and other operational costs. For the nine months ended June 30, 2021, total expenses were $198.6 million, with sponsor fees being the largest component.

The Trust does not maintain significant cash balances. It aims to sell only the exact amount of gold needed to cover its expenses to minimize holdings of assets other than gold. Consequently, the Trust typically does not record any net cash flow from operations, and its cash balance is expected to be zero at the end of each reporting period.