10-QPeriod: Q2 FY2022

SPDR GOLD TRUST Quarterly Report for Q2 Ended Mar 31, 2022

Filed May 9, 2022For Securities:GLD

Summary

The SPDR Gold Trust (GLD) reported strong growth in its net assets for the quarter ending March 31, 2022. Net assets increased to $68.13 billion from $55.46 billion at the end of the previous fiscal year. This growth was primarily driven by significant inflows of gold through share creations, which significantly outweighed redemptions. The Trust's investment in gold is valued at fair value and represents its primary asset, showing an appreciation in value during the period. Despite the increase in assets, investors should note that the Trust experienced a net investment loss due to sponsor fees. However, this was more than offset by substantial gains from unrealized appreciation on its gold holdings, leading to a net income of $3.92 billion for the quarter. The Trust's operational structure ensures that it holds no cash balances, as gold is sold to cover expenses, aligning its performance closely with the price of gold bullion, less fees.

Financial Highlights

10 data points
Beta

Net Income

$3.92B

EPS (Diluted)

$11.09

Total Assets

$68.15B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements
Beta
Operating Expenses$61.06M
Net Income$3.92B
EPS (Basic)$11.09
Shares Outstanding (Basic)353.90M

Key Highlights

  • 1Total assets grew significantly to $68.15 billion as of March 31, 2022, from $55.47 billion as of September 30, 2021.
  • 2Net assets increased to $68.13 billion from $55.46 billion over the same period, reflecting strong investor demand.
  • 3The Trust saw substantial inflows of gold through share creations ($11.47 billion) which more than offset redemptions ($5.07 billion) for the six months ended March 31, 2022.
  • 4Net income for the three months ended March 31, 2022, was $3.92 billion, a significant turnaround from a net loss of $7.29 billion in the same period last year.
  • 5The Trust's investment in gold is valued at $68.15 billion, representing 100.03% of net assets, and is classified as Level 1 under the fair value hierarchy, indicating it's based on unadjusted quoted prices in active markets.
  • 6Sponsor fees remained a consistent expense, totaling $61.06 million for the three months ended March 31, 2022.

Frequently Asked Questions

The primary driver of the increase in GLD's net assets is the net inflow of gold through share creations. For the six months ended March 31, 2022, the value of creations ($11.47 billion) significantly exceeded the value of redemptions ($5.07 billion), indicating strong investor demand for the Trust's shares.

GLD's expenses, primarily sponsor fees, are managed by selling a portion of the Trust's gold holdings. The Trust aims to sell the smallest amount of gold necessary to cover these expenses, minimizing its holdings of assets other than gold. Consequently, the Trust typically holds no cash balances at the end of reporting periods.

The filing notes that geopolitical events, including the war in Ukraine, could increase financial market volatility and potentially affect the gold market. However, for the period ending March 31, 2022, the Trust stated that the conflict had not materially affected its operations or the price of gold and its shares. The Trust's primary risk factor remains the price volatility of gold itself.

The value of GLD's gold holdings is determined using the LBMA Gold Price PM (London Bullion Market Association Gold Price) on each day the NYSE Arca is open for trading. This price is derived from an independently administered auction process. The gold held is classified as Level 1 within the fair value hierarchy, meaning it is valued using unadjusted quoted prices in active markets.