01—Abstract
Summary
Summary of the 10-Q filed February 5, 2025. Cited figures are marked; the original filing is the authoritative source.
SPDR Gold Trust (GLD) reported its first-quarter fiscal 2025 results (quarter ended December 31, 2024) in this 10-Q.
The Trust's sole business is holding allocated gold bullion, and it has no operating revenue. Net assets fell to $73.22 billiona at December 31, 2024 from $73.70 billion at September 30, 2024, a decline of about 0.7%. Net asset value per share dropped from $243.01 to $241.00, and the Trust reported a net loss of $604.3 million, or $(1.98) per share, for the quarter.
The loss reflects a $2.70 billionb unrealized loss on gold, partly offset by $2.15 billion of realized gains on gold distributed for share redemptions. Gold prices rose during the period, but the Trust's NAV still declined because of the gold price path within the quarter and the timing of the valuation date. Note that the NAV per share fell even though the LBMA Gold Price rose from about $2,630 to $2,611 at period end.
Investors should treat the reported loss as a mark-to-market effect on the Trust's gold holdings rather than an operating result. Flows were modest relative to the Trust's size. The Trust created 29.6 million shares (296 baskets) and redeemed 29.1 million shares (291 baskets), leaving a net increase of 500,000 shares outstanding, which reached 303.8 million.
Creations and redemptions were valued at $7.27 billionc and $7.16 billion, respectively. The Trust's gold holdings were 28,052,231.5 ounces at December 31, 2024, fully allocated London Good Delivery bars held by HSBC and JPMorgan. The expense structure is unchanged, with a sponsor fee of 0.40% of NAV, which cost $75.7 million in the quarter, up from $55.7 million a year earlier.
Management reported that disclosure controls were effective, that there were no legal proceedings, and that there were no subsequent events requiring disclosure. The filing shows a fund with a single, passive exposure to gold and no leverage, derivatives, or hedging.
Its performance therefore tracks the LBMA gold price less expenses, with the sponsor fee creating a steady drag over time. Investors should recognize that the trust's NAV and market price can diverge from the gold spot price, and that the filing offers no forward-looking guidance on gold prices or flows.
02—Key points
Key Highlights
- Net assets were $73.22 billion at December 31, 2024, down from $73.70 billion at September 30, 2024, and NAV per share fell from $243.01 to $241.00.
- The Trust reported a net loss of $604.3 million, or $(1.98) per share, driven by a $2.70 billion unrealized loss on gold, partly offset by $2.15 billion in realized gains on gold distributed for redemptions.
- Share creations (29.6 million) slightly exceeded redemptions (29.1 million), raising shares outstanding to 303.8 million at period end.
- The Trust held 28,052,231.5 ounces of allocated gold at December 31, 2024, with a market value of $73.24 billion based on the LBMA Gold Price PM of $2,610.85 (last business day of the period).
- The sponsor fee of 0.40% of NAV totaled $75.7 million for the quarter, up from $55.7 million a year earlier, reflecting the larger asset base.
- The Trust uses no derivatives, leverage, or hedging and does not borrow, so its exposure is a direct, unhedged gold position.
- Management concluded disclosure controls were effective, with no legal proceedings, no changes to risk factors, and no subsequent events requiring disclosure.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed February 5, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Operating Expenses | $75.69M$55.75M | +35.8% |
| Net Income | -$604.33M$5.27B | −111.5% |
| EPS (Basic) | $-1.98$17.44 | −111.4% |
| Shares Outstanding (Basic) | 305.43M302.25M | +1.1% |
05—Questions
Frequently Asked Questions
Why did GLD report a net loss in the quarter when gold prices were higher at the end of the period?
The Trust's results are based on the fair value of its gold holdings at the valuation time each day, and the unrealized change for the quarter was a $2.70 billion loss. The NAV is struck using the LBMA Gold Price PM, and at period end the Trust used the LBMA Gold Price AM of $2,610.85 because no PM price was set on December 31, 2024. Investors should note that the quarterly loss is an accounting mark-to-market figure and does not reflect a cash outflow from the Trust.
Did investor demand for GLD increase or decrease during the quarter?
Demand was roughly balanced, with net creations of 500,000 shares, which is a small increase relative to the 303.8 million shares outstanding. Creations were valued at $7.27 billion and redemptions at $7.16 billion, a net inflow of about $115 million in value. The change is small and does not indicate a major shift in investor positioning.
What does the 0.40% sponsor fee mean for investors?
The sponsor fee accrues daily at an annual rate of 0.40% of NAV and is paid by selling gold, so it reduces the amount of gold per share over time. The filing reports $75.7 million in sponsor fees for the quarter. Because the fee is the Trust's only recurring expense, the Shares' performance will trail the gold price by roughly that amount each year.
Does GLD use leverage, derivatives, or active management to manage its gold exposure?
No. The Trust holds only allocated gold bullion, invests in no derivatives or long-term debt, and does not borrow to pay expenses. The Trustee does not actively buy or sell gold to time the market and does not hedge. As a result, the Shares move in line with the gold price less expenses, and investors bear the full price volatility of gold.
Where is the Trust's gold held and how is it verified?
All gold is held by HSBC Bank plc and JPMorgan Chase Bank, N.A. as custodians in the form of London Good Delivery bars, 100% of which are allocated to the Trust. Bureau Veritas conducts an annual full bar count at the September 30 fiscal year end and a random sample count during the year. Results are published on the Sponsor's website, www.spdrgoldshares.com.
06—Continue