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IAU · iShares Gold Trust

22 filings

10-K

IAU 10-K Annual Reports

iShares Gold Trust - 22 annual reports

Filing record · 2016–202610-K1110-Q328-K11

2025
iShares Gold Trust Annual Report, Year Ended Dec 31, 2025
ISHARES GOLD TRUST (IAU) filed its 10-K for the fiscal year ending December 31, 2025, reporting a significant increase in its net asset value, which rose by 107.48% to $68,376,501,330. This growth was primarily driven by a substantial 65.00% surge in the price of gold, which reached $4,307.95 per ounce by year-end. The Trust's objective is to mirror the performance of gold prices, and it achieved this by increasing its outstanding shares from 668,650,000 to 842,850,000, reflecting significant creation activity against redemptions. The Trust operates as a passive investment vehicle, with its primary assets being physical gold bullion held by a custodian. The Sponsor, iShares Delaware Trust Sponsor LLC, a subsidiary of BlackRock, assumes most of the Trust's operational expenses, with its fees amounting to $124,023,218 for the year, representing 0.25% of the Trust's average assets. While the Trust aims to reflect gold's performance, investors should note that shares may trade at a premium or discount to their net asset value due to market supply and demand dynamics and differing trading hours between gold markets and the NYSE Arca.
Feb 27, 2026
2024
iShares Gold Trust Annual Report, Year Ended Dec 31, 2024
iShares Gold Trust (IAU) ended 2024 with net assets of $32.96 billion, up 24.71% from $26.42 billion at December 31, 2023. The increase was driven mainly by gold's 26.59% price gain, from $2,062.40 to $2,610.85 per ounce, partly offset by a net reduction of 8.4 million Shares outstanding (from 677.05 million to 668.65 million). NAV per Share rose 26.29%, from $39.03 to $49.29. The Trust is a passive vehicle that holds only physical gold, so its results track gold prices closely, less the Sponsor's 0.25% annual fee. The Trust's only ordinary expense is the Sponsor's fee, which totaled $73.4 million in 2024 and was paid by selling gold. The Sponsor assumes most other administrative and marketing costs, though taxes and legal costs above $500,000 per year are borne by the Trust. Because gold must be sold to cover fees, each Share represents a gradually shrinking amount of gold, so investors need gold prices to keep rising just to hold value per Share. Creations and redemptions were roughly balanced in 2024, with 75.25 million Shares created and 83.65 million redeemed. The auditor, PricewaterhouseCoopers LLP, issued a clean opinion on both the financial statements and internal control over financial reporting, and reported no critical audit matters. The Trust has no legal proceedings, pays no distributions, and reported no material cybersecurity incidents.
Feb 19, 2025
2023
iShares Gold Trust Annual Report, Year Ended Dec 31, 2023
iShares Gold Trust (IAU) provides investors with a cost-effective and accessible way to gain exposure to the price performance of gold. The Trust holds physical gold bullion, with each Share representing a fractional undivided beneficial interest in the Trust's assets. The primary objective is to reflect the price of gold, less the Trust's expenses. For the year ended December 31, 2023, the Trust saw a net asset value increase of 1.03%, largely driven by a 13.80% rise in the price of gold. The number of outstanding Shares decreased, indicating more redemptions than creations during the year. The Trust's main expense is the Sponsor's fee, which was $67.77 million for 2023, representing 0.25% of average assets. The Trust is not actively managed and relies on the LBMA Gold Price for valuation.
Feb 20, 2024
2022
iShares Gold Trust Annual Report, Year Ended Dec 31, 2022
iShares Gold Trust (IAU) reported a year-end 2022 net asset value of $26.15 billion, down 8.94% from $28.72 billion at December 31, 2021. The decline was driven mainly by a shrinking share count (829.75 million to 760.70 million shares) rather than a sharp fall in gold: the LBMA Gold Price slipped only 0.43%, from $1,820.10 to $1,812.35, and NAV per share fell 0.69%, from $34.62 to $34.38. Redemptions of 152.55 million shares outpaced creations of 83.5 million, and net assets fell by about $2.57 billion over the year, including $2.03 billion in net capital outflows. The Trust is a passive, unleveraged vehicle that holds only physical gold, with no income distributions. Its only ordinary expense is the Sponsor's fee of 0.25% of NAV, which totaled $71.45 million in 2022 and is funded by selling gold. Because gold must be sold to pay that fee, each share represents slightly less gold over time, so investors need gold prices to rise by roughly that fee amount just to hold their value. The 2022 results show the Trust's net investment loss of $71.45 million was more than offset by $583.8 million in realized gains, with a $1.05 billion unrealized loss on gold bullion, for a net decrease in net assets from operations of $538.96 million. The filing also highlights risks that investors should weigh: concentration in a single asset, custodial and insurance gaps (the Trust does not insure its gold, and the Custodian's coverage is held for its own benefit), reliance on the LBMA Gold Price PM for valuation, and sanctions-related disruptions to Russian-origin gold after the invasion of Ukraine. PricewaterhouseCoopers issued an unqualified opinion on both the financial statements and internal control over financial reporting, and reported no critical audit matters.
Feb 23, 2023
2021
iShares Gold Trust Annual Report, Year Ended Dec 31, 2021
iShares Gold Trust (IAU) ended 2021 with net assets of $28.72 billion, down 10.01% from $31.92 billion at December 31, 2020. The decline was driven mainly by a fall in shares outstanding (from 885.2 million to 829.75 million after a one-for-two reverse split effective May 24, 2021) and a 3.75% drop in the LBMA Gold Price, which closed the year at $1,820.10. NAV per share fell 3.99%, from $36.06 to $34.62, tracking gold closely. The Trust reported a net decrease in net assets from operations of $1.40 billion, reflecting a $1.90 billion unrealized loss on gold, partially offset by $578 million in net realized gains on gold distributed for redemptions and gold sold to pay expenses. The Trust is a passive, grantor-trust vehicle with no income, no distributions, and no active management. Its only ordinary expense is the Sponsor's fee of 0.25% annually, which totaled $72.8 million in 2021, up from $65.4 million in 2020. Because the Trust must sell gold to pay this fee, each share's gold backing shrinks over time unless gold prices rise enough to offset it. Shares are created and redeemed only in 50,000-share Baskets by Authorized Participants, which helps keep the market price close to NAV. Investors should note that secondary-market prices can trade at a premium or discount to NAV, particularly outside the hours when major gold markets are open. From a governance and operational standpoint, management concluded that internal control over financial reporting was effective as of December 31, 2021, and PricewaterhouseCoopers issued an unqualified opinion with no critical audit matters. Legal proceedings were none. Effective January 31, 2022, the Sponsor agreed to cover up to $500,000 per year in legal fees (up from $100,000), and the Trust became perpetual rather than terminating in 2045. The filing also notes custody risks: the custodian's liability is limited, the Trust does not insure its gold, and the custody agreement is governed by English law.
Mar 1, 2022
2020
iShares Gold Trust Annual Report, Year Ended Dec 31, 2020
iShares Gold Trust (IAU) ended 2020 with net assets of $31.92 billion, up from $17.63 billion a year earlier, an increase of about 81%. Growth came mainly from net share creation: 559.3 million net new shares were issued (719.3 million created, 160.0 million redeemed), taking shares outstanding to 1,770,450,000. Net asset value per share rose 23.83%, from $14.56 to $18.03, tracking the 24.16% rise in the LBMA Gold Price AM to $1,891.10. The Trust reported net income of $4.80 billion for 2020, driven by a $4.37 billion unrealized gain on gold bullion and $496 million of realized gains on gold distributed for redemptions, partly offset by $65.4 million in Sponsor's fees. The central structural point for investors is that the Trust has no income and funds its 0.25% annual Sponsor's fee by selling gold, so each share represents a gradually shrinking amount of gold. Holdings fell to about 16.88 million ounces, and the Trust must sell gold to pay expenses, so per-share gold content declines unless the gold price rises enough to offset it. The Trust also carries concentration risk, since it holds only gold, and it is passive and unhedged. Shares can trade at a premium or discount to NAV, and shareholders have limited legal recourse against the custodian, which operates under English law. Gold is valued at the LBMA Gold Price PM, and the Trust reports no material legal proceedings and an effective internal control assessment audited by PricewaterhouseCoopers LLP with no critical audit matters. The filing also documents that the Trust had approximately 163 DTC participating shareholders of record, paid no distributions in 2019 or 2020, and experienced a volatile price path during 2020, with NAV ranging from $14.08 in March to $19.73 in August. Fourth-quarter redemptions totaled 56.5 million shares. Its primary risks are gold price movements, operational and custody risks, and the structural erosion of gold per share from fees.
Mar 1, 2021
2019
iShares Gold Trust Annual Report, Year Ended Dec 31, 2019
iShares Gold Trust (IAU) ended 2019 with net assets of $17.63 billion, up from $11.54 billion a year earlier, a 52.7% increase. The growth was driven mainly by net share creations (1,211,150,000 shares outstanding at year-end, up from 940,200,000) and a 18.83% rise in the LBMA Gold Price AM to $1,523.00. NAV per share rose 18.57% to $14.56, closely tracking gold. The Trust reported net income of $2.28 billion for 2019, consisting almost entirely of an unrealized gain on gold bullion of $2.25 billion. Its only ordinary expense was the Sponsor's fee of 0.25% annually, totaling $35.3 million for the year, which is paid by selling gold, so holders gradually own a smaller amount of gold per share over time. The Trust is a passive, unleveraged vehicle with no distributions, no hedging, and no active management. It holds only physical gold, which is custodied by JPMorgan Chase Bank N.A. (London) and valued using the LBMA Gold Price PM. Key risks disclosed include the erosion of gold per share from fee-related sales, limited custodian liability and insurance recourse, a 75% shareholder vote power to terminate the Trust, and the possibility that shares trade at a premium or discount to NAV. The Trust's ICFR was audited by PricewaterhouseCoopers and was deemed effective with no critical audit matters. For investors, the 2019 results mostly reflect the rise in gold prices, with modest tracking differences caused by the fee. The Trust remains a simple vehicle for gold exposure, but it carries structural drag from its fee and limited legal protections compared with registered investment companies.
Feb 27, 2020
2018
iShares Gold Trust Annual Report, Year Ended Dec 31, 2018
iShares Gold Trust (IAU) reported a year of growth in assets but a net loss in its FY2018 10-K filed February 28, 2019. Net assets rose 13.77% to $11.54 billion at December 31, 2018, from $10.15 billion a year earlier, driven mainly by net share creation: 125.3 million net new shares were issued, bringing shares outstanding to 940.2 million. The NAV per share fell 1.37%, from $12.45 to $12.28, tracking a 1.15% decline in the LBMA Gold Price AM. The trust reported a net decrease in net assets from operations of $198.1 million, driven by a $194.1 million unrealized loss on gold bullion and $27.5 million in Sponsor's fees, partly offset by a $23.5 million realized gain. The trust is a passive, grantor-trust vehicle that holds only physical gold, custodied by JPMorgan Chase Bank N.A. (London branch), with The Bank of New York Mellon as trustee and iShares Delaware Trust Sponsor LLC (a BlackRock subsidiary) as sponsor. The Sponsor's fee is 0.25% annually, and the trust has no income, so it must sell gold to pay expenses. That structural drag is the core ongoing cost for holders: each share represents a steadily shrinking amount of gold unless the gold price rises enough to offset it. The filing also highlights risk factors around custody, limited custodian liability, reliance on the LBMA Gold Price PM benchmark, and limited investor protections, since the trust is not a registered investment company or commodity pool. For investors, the filing shows a trust that gained scale through inflows but whose share price tracks gold closely and absorbs a 0.25% annual cost. Results are dominated by the gold price, and the 2018 figures show that without a gold price gain, the trust's NAV declines. The filing reports no distributions, no employees, and no material legal proceedings, and it includes an unqualified audit opinion from PricewaterhouseCoopers LLP with effective internal controls.
Feb 28, 2019
2017
iShares Gold Trust Annual Report, Year Ended Dec 31, 2017
iShares Gold Trust (IAU) ended 2017 with net assets of $10.15 billion, up 38.81% from $7.31 billion at December 31, 2016. The increase was driven mainly by net share creations rather than trading gains alone: 228.25 million shares were created and 68.35 million redeemed, lifting shares outstanding from 655.0 million to 814.9 million. Net asset value per share rose 11.56% to $12.45, tracking the 11.85% increase in the LBMA Gold Price AM to $1,296.50 per ounce. Net income for the year was $881.9 million, consisting almost entirely of an $881.3 million unrealized gain on gold holdings, and the Trust reported no distributions to shareholders. The Trust is a passive, grantor-trust vehicle with no active management or hedging. Its only ordinary expense is the Sponsor's fee of 0.25% annually, which totaled $21.6 million in 2017 and is paid by selling gold, so each share represents a slowly shrinking amount of gold absent price gains. Gold is held by JPMorgan Chase Bank N.A. (London) as custodian, with the custodian's liability limited to negligence, fraud, or willful default, and the Trust carries no insurance of its own. Benchmark pricing moved from the discontinued London PM Fix to the LBMA Gold Price PM in March 2015, which the filing flags as a source of potential valuation and transition risk. For investors, the filing shows a fund that closely mirrors the spot gold price, with the main risks being gold price volatility, the cumulative drag from the fee-driven gold sales, custodial and benchmark concentration, and the limited legal recourse available to shareholders. Shares trade on NYSE Arca under IAU and can trade at a premium or discount to NAV, particularly outside major gold-market trading hours.
Feb 28, 2018
2016
iShares Gold Trust Annual Report, Year Ended Dec 31, 2016
iShares Gold Trust (IAU) ended 2016 with net assets of $7.31 billion, up from $5.21 billion a year earlier, a 40.31% increase. Most of that growth came from investor inflows rather than market performance alone: the Trust created 314.85 million Shares (6,297 Baskets) and redeemed 167.95 million Shares, lifting shares outstanding from 508.1 million to 655.0 million. NAV per Share rose 8.88%, from $10.25 to $11.16, tracking a 9.12% gain in the LBMA Gold Price AM over the year. The Trust is passive, holds only gold bullion, and charges a 0.25% annual Sponsor's fee ($20.3 million in 2016), which is paid by selling gold, so each Share represents slightly less gold over time. The filing also flags a compliance issue. Between February 19 and March 3, 2016, the Trust sold 24.9 million Shares, but only 20.1 million of those were unregistered excess Shares; the rest were covered by the 2015 registration statement. The Trust suspended issuance on March 3, 2016 after discovering the error and filed a new shelf registration. The excess Shares may carry rescission rights for purchasers, which could require the Trust to repurchase them with interest or pay damages. The risk is contingent and no amount is recorded, but investors should be aware of it. Operationally, the Trust reports no legal proceedings, effective internal controls audited by PricewaterhouseCoopers, and an unqualified audit opinion dated February 24, 2017. The key driver for IAU holders is gold price exposure. Fiscal 2016 showed a strong rebound after 2015's decline, with the net increase in net assets of $308.7 million driven mainly by $304.0 million in unrealized gains on gold. Investors should note that the Trust's Shares may trade at a premium or discount to NAV, and that the LBMA Gold Price PM benchmark replaced the London PM Fix in March 2015.
Feb 24, 2017
2015
iShares Gold Trust Annual Report, Year Ended Dec 31, 2015
iShares Gold Trust (IAU) ended 2015 with net asset value of $5.21 billion, down from $6.21 billion at year-end 2014, a 16.15% decline. The drop was driven mainly by the fall in gold prices, with the LBMA/London AM benchmark falling from $1,199.25 to $1,062.25 (about 11.4%). NAV per Share fell 11.71%, from $11.61 to $10.25, and the Trust reported a net loss of $762.1 million, or $1.40 per Share, for the year. Shares outstanding declined from 535.4 million to 508.1 million, as 99.35 million Shares were redeemed and 72.05 million were created. The Trust is a passive, grantor-trust vehicle that holds physical gold custodied by JPMorgan in London, New York and Toronto, and it does not hedge or actively manage its holdings. Its only ordinary expense is the Sponsor's fee of 0.25% per year, which totaled $15.2 million in 2015. Because the Trust has no income, that fee is covered by selling gold, so each Share represents a slowly shrinking amount of gold unless the gold price rises enough to offset the sales. The filing also notes that the benchmark changed on March 20, 2015, when the London PM Fix was replaced by the IBA-administered LBMA Gold Price PM, which became FCA-regulated in April 2015. The filing received an unqualified audit opinion from PricewaterhouseCoopers, which also found effective internal control over financial reporting. Investors should note the structural risks in the filing, including limited recourse against the custodian, the Trust's exposure to the gold price with no hedging, and the potential for Shares to trade at a discount or premium to NAV, particularly outside NYSE Arca and major gold market hours.
Feb 29, 2016
2014
iShares Gold Trust Annual Report, Year Ended Dec 31, 2014
The iShares Gold Trust (IAU) 10-K for fiscal 2014 shows a largely flat year for the Trust's net asset value, which edged down 0.92% to $6.21 billion at December 31, 2014, from $6.27 billion a year earlier. The decline was driven mainly by a 1.1% fall in the London gold fix, which dropped from $1,201.50 to $1,199.25, and by the Sponsor's fee, which reduced the gold held per Share. NAV per Share fell 0.43% to $11.61, and outstanding Shares declined from 538.0 million to 535.4 million as redemptions (50.7 million Shares) outpaced creations (48.1 million Shares). The Trust reported a net loss of $42.4 million, or $0.08 per Share, comprising a $16.6 million Sponsor's fee and $25.8 million of net realized and unrealized losses. The filing marks an accounting transition. Effective January 1, 2014, the Trust adopted investment company accounting (ASU 2013-08), so gold is now carried at fair value rather than lower of cost or market. Because of this change, 2014 results are not directly comparable with 2013, which recorded a $750.6 million inventory write-down and a $628.1 million net loss. The Trust remains a passive, grantor trust with no active management, and its only ordinary expense is the 0.25% Sponsor's fee, which requires ongoing gold sales. Those sales steadily shrink the gold backing each Share unless gold prices rise enough to offset them. The main forward-looking risk flagged is the planned discontinuation of the London PM Fix, the benchmark used to value the Trust's gold. The administrator change, announced in 2014 and due for completion in early 2015, is expected to move the Trust to an ICE Benchmark Administration price effective March 19, 2015. The Sponsor expects this successor price to fairly represent the gold's value, but the filing acknowledges that the transition could still affect Share prices.
Feb 27, 2015
2013
iShares Gold Trust Annual Report, Year Ended Dec 31, 2013
iShares Gold Trust (IAU) reported a significant decrease in its net asset value (NAV) for the fiscal year ended December 31, 2013, dropping from approximately $11.65 billion in 2012 to $6.27 billion. This decline was primarily driven by a substantial decrease in the price of gold, which fell by 27.79% during the year. Consequently, the number of outstanding Shares also decreased from 719.55 million to 538 million. The Trust's objective is to reflect the price of gold, less expenses. As a passive investment vehicle, it does not actively manage its gold holdings. The primary expense is the Sponsor's fee, which is 0.25% of the NAV. While the Sponsor covers many administrative costs, the Trust must sell gold to cover its own expenses and liabilities, leading to a gradual decrease in the amount of gold represented by each share over time. Investors should be aware that Share prices can trade at a premium or discount to the NAV due to market supply and demand and differing trading hours between gold markets and the NYSE Arca.
Feb 28, 2014
2012
iShares Gold Trust Annual Report, Year Ended Dec 31, 2012
The iShares Gold Trust (IAU) 2012 annual report highlights a significant increase in its net asset value, growing by 38.36% to $11.65 billion by year-end. This growth was driven by both an increase in outstanding shares and a rise in the price of gold, as measured by the London PM Fix. The Trust's objective remains to provide investors with a cost-effective way to gain exposure to the price of gold, with its shares backed by physical gold held by a custodian. The report details the Trust's passive investment strategy and the mechanisms for share creation and redemption through Authorized Participants. Key operational and financial aspects for investors include the Sponsor's fee of 0.25% of net asset value, which is the primary recurring expense. The Trust's performance is directly tied to the fluctuations in the gold market, and the report outlines various risk factors associated with this, including potential for losses due to gold price volatility and the gradual decrease in the amount of gold per share due to expense accruals. The Trust also notes its classification as a grantor trust for tax purposes, meaning income and expenses flow through to shareholders.
Feb 28, 2013
2011
iShares Gold Trust Annual Report, Year Ended Dec 31, 2011
The iShares Gold Trust (IAU) 2011 10-K report indicates significant growth in its Net Asset Value (NAV), rising from $5.32 billion in 2010 to $8.42 billion by the end of 2011, a notable increase of over 58%. This growth was driven by both an increase in outstanding Shares, which grew to 563.85 million, and a rise in the price of gold, as measured by the London PM Fix, which appreciated by 8.93% during the year. The Trust operates as a passive investment vehicle, designed to track the price of physical gold, less expenses. The Trust's primary recurring expense is the Sponsor's fee, which was 0.25% of the adjusted NAV. BlackRock Asset Management International Inc. serves as the Sponsor, with The Bank of New York Mellon as Trustee and JPMorgan Chase Bank, N.A., London branch as Custodian. While the Sponsor covers many administrative costs, the Trust must sell gold to cover its own expenses, leading to a gradual decrease in the amount of gold represented by each share over time. Investors should be aware that the value of their investment is directly tied to the volatile price of gold and the dilution effect of ongoing expenses.
Feb 29, 2012
2010
iShares Gold Trust Annual Report, Year Ended Dec 31, 2010
iShares Gold Trust (IAU), a passive grantor trust sponsored by BlackRock and listed on NYSE Arca, ended 2010 with net assets of $5.32 billion, up 90.4% from $2.79 billion at year-end 2009. Growth came from both a 28.3% rise in the London PM Fix gold price and a 49% increase in outstanding Shares, from 260.0 million to 386.95 million. Net asset value per Share rose 27.9% to $13.74. Net income was $32.3 million, or $0.11 per Share, and consisted of realized gains on gold distributed for redemptions and gold sold to pay expenses, offset by $11.1 million in Sponsor's fees. The trust's economics are structurally simple but carry a built-in drag. The Sponsor fee accrues at 0.25% annually (reduced from 0.40% effective July 1, 2010), and the trust has no income, so it must sell gold to pay that fee. Each Share therefore represents a slowly shrinking quantity of gold, and investors only break even if gold prices rise enough to offset that erosion. Management also notes that the trust does not hedge, does not actively manage, and that Shares can trade at premiums or discounts to NAV, particularly outside the hours when major gold markets are open. Operational changes during the year were significant. The custodian moved from The Bank of Nova Scotia to JPMorgan Chase Bank, N.A. (London branch) effective September 1, 2010, and the trust was renamed from iShares COMEX Gold Trust on September 2, 2010. Gold valuation shifted from the COMEX spot settlement price to the London PM Fix effective December 9, 2010. The Shares also underwent a ten-for-one split in June 2010. Management concluded that internal controls were effective, and PricewaterhouseCoopers issued an unqualified opinion on both the financial statements and internal control.
Feb 25, 2011
2009
iShares Gold Trust Annual Report, Year Ended Dec 31, 2009
The iShares Gold Trust (IAU), as of December 31, 2009, reported total assets of approximately $1.91 billion, a significant increase from the previous year, reflecting the growing investor interest in gold as an asset class. The Trust's objective is to provide investors with a cost-effective and accessible way to invest in physical gold, with its shares designed to track the price of gold less the Trust's expenses. During 2009, the Trust saw substantial growth in both its net asset value and outstanding shares, driven by a rise in the COMEX Spot Settlement Price for gold and increased creation of new shares by Authorized Participants. The Trust operates as a passive investment vehicle, holding physical gold with its value primarily determined by the COMEX settlement price. While the Sponsor, BlackRock Asset Management International Inc., assumes many administrative costs, a nominal sponsor's fee is charged, necessitating the sale of small amounts of gold to cover these expenses. This ongoing expense management, coupled with gold price volatility and potential market trading discrepancies, presents key considerations for investors.
Feb 26, 2010
2008
iShares Gold Trust Annual Report, Year Ended Dec 31, 2008
The iShares COMEX Gold Trust (IAU) 2008 annual report reveals a significant increase in the Trust's net assets and outstanding shares, reflecting investor interest in gold as an asset class during that period. The Trust's primary objective is to mirror the price of gold bullion held by the Trust, less expenses. During 2008, the Trust saw its net assets grow by 28.02% to $1.896 billion, with outstanding shares increasing to 21.8 million. Key operational aspects include the Trust's passive investment strategy, where gold is held by a custodian and shares are issued or redeemed in exchange for gold, primarily through Authorized Participants. The Trust's valuation is based on the COMEX spot settlement price for gold futures. While the Trust aims to track gold prices, it is subject to various risks, including gold price volatility, potential declines in gold value due to large sales or shifts in investor sentiment, and the inherent cost of expenses reducing the amount of gold per share over time.
Feb 27, 2009
2007-A
iShares Gold Trust Annual Report (Amendment), Year Ended Dec 31, 2007
This filing is an amendment to the iShares Gold Trust (IAU) 2007 annual report, primarily adding details on U.S. federal income tax consequences and filing executed agreements. The Trust's objective is to provide investors with a cost-effective way to gain exposure to the price of gold, backed by physical gold held by a custodian. The net assets of the Trust grew significantly from $907.7 million in 2006 to $1.48 billion in 2007, with outstanding shares increasing proportionally. The Trust is passively managed and does not aim to profit from gold price fluctuations but rather to reflect the underlying gold's value, less expenses. Investors should be aware that while iShares are designed to track the price of gold, they may trade at a premium or discount to their Net Asset Value (NAV) due to market supply and demand, and differing trading hours between gold markets and the AMEX. The value of iShares is directly tied to the price of gold, which can be volatile. Furthermore, ongoing trust expenses, primarily the sponsor's fee, are paid by selling gold, which gradually reduces the amount of gold backing each iShare. This dilution necessitates gold price appreciation to maintain or increase the iShare's value.
Nov 12, 2008
2007
iShares Gold Trust Annual Report, Year Ended Dec 31, 2007
The iShares COMEX Gold Trust (AMEX: IAU) 10-K for fiscal year 2007 shows a passive, grantor trust that holds physical gold bullion and issues shares representing fractional undivided interests in that gold. Net assets rose from $907.7 million at December 31, 2006 to $1,481.3 million at December 31, 2007, a 63.2% increase, driven mainly by share creation (3.8 million shares created, 250,000 redeemed) rather than investment performance. Shares outstanding grew from 14.4 million to 17.95 million. The COMEX spot settlement price rose 31.4% during the year, from $635.20 to $834.90 per ounce, and NAV per share rose 30.9% to $82.52. The trust reported a net loss of $507,145 for 2007, compared with net income of $2.35 million in 2006. The loss reflects $4.28 million in sponsor fees (0.40% of average assets) that exceeded realized gains on gold sales and redemptions. Because the trust has no income, it must sell gold to pay the sponsor's fee, so the gold backing each share shrinks over time unless gold prices rise enough to offset it. Investors should note that gold is carried at lower of cost or market for accounting, while the redeemable shares are reported at NAV, which creates a large equity deficit of $(477.6) million on the balance sheet. The filing also highlights structural risks: concentration in a single commodity, the trust's passive nature, potential liquidity constraints tied to Authorized Participants, and the possibility of trading at a discount or premium to NAV. For investors, the filing is primarily a disclosure of a strong gold-price year with a modest accounting loss from fees. The key considerations are that returns track gold closely, costs are low at 0.40% annually, and the trust carries no protections typical of registered investment companies or commodity pools.
Feb 27, 2008
2006
iShares Gold Trust Annual Report, Year Ended Dec 31, 2006
This 10-K covers the fiscal year ended December 31, 2006 for the iShares COMEX Gold Trust (AMEX: IAU), a passive grantor trust that holds physical gold bullion and issues shares representing fractional undivided interests in that gold. Net assets grew 146% during 2006, from $368.3 million to $907.7 million, as shares outstanding rose from 7.15 million to 14.4 million. The increase was driven mainly by a 22.8% rise in the COMEX spot settlement price (from $517.10 to $635.20 per ounce), with net asset value per share up 22.3% to $63.03. Net income was $2.35 million, or $0.19 per share, reflecting realized gains on gold distributed for redemptions and sales to cover expenses, offset by sponsor fees of $3.05 million (0.40% annual rate). Because the trust has no income stream, it must sell gold to pay its sponsor fee, so each share's gold content steadily declines unless gold prices rise enough to offset it. The filing also marks a change of sponsor: effective February 26, 2007, Barclays Global Investors International Inc. replaced Barclays Global Investors, N.A. The Bank of New York serves as trustee and The Bank of Nova Scotia as custodian. Management concluded that disclosure controls and internal control over financial reporting were effective, and PricewaterhouseCoopers issued an unqualified opinion. The risk factors are extensive and emphasize that the shares track gold prices with no hedging or active management, that shares can trade at a premium or discount to NAV, and that investors lack the protections of the Investment Company Act and the Commodity Exchange Act. For investors, the key takeaways are that IAU provides direct, low-cost gold exposure with a 0.40% annual fee and an exchange-traded structure, but returns depend entirely on gold prices, and the steady gold sales to pay fees create a structural drag. Trading-hour mismatches with the gold markets can also produce premiums or discounts to NAV.
Mar 1, 2007
2005
iShares Gold Trust Annual Report, Year Ended Dec 31, 2005
This 10-K covers the first fiscal period (January 21, 2005 through December 31, 2005) of the iShares COMEX Gold Trust (AMEX: IAU), a passive grantor trust sponsored by Barclays Global Investors, N.A. with The Bank of New York as trustee and The Bank of Nova Scotia as custodian. The trust holds physical gold bullion and issues shares only in Baskets of 50,000 shares to registered Authorized Participants in exchange for gold, giving investors a low-cost, exchange-traded way to track the price of gold without handling bars or storage. Net assets grew from $6.4 million at inception to $368.3 million at year-end, with shares outstanding rising from 150,000 to 7,150,000. Net asset value per share rose about 20.7%, from $42.67 to $51.52, slightly underperforming the roughly 21.2% gain in the COMEX spot price, mainly because of the sponsor's fee. The income statement is simple because the trust has no income from operations. Its only ordinary expense is a sponsor's fee accrued at 0.40% annually, which totaled $988,058 (about 0.38% of average net assets). The trust covers this by selling gold. The reported net income of $7.3 million, or $1.24 per weighted-average share, is mainly a non-cash gain of $8.25 million on gold distributed to meet redemptions, measured against average cost. It does not reflect investment profit or trading income. Under the lower-of-cost-or-market accounting policy, the gold is carried at $317.0 million, while the redemption-value fair value is $368.3 million. The $51.4 million difference is shown as an unrealized gain outside reported net income, and it flows through shareholders' deficit of $(51.4) million. For investors, the filing emphasizes that the shares are passive and fully exposed to gold price moves, with no hedging or active management. Each share's gold content declines over time as the sponsor's fee and other expenses are paid through gold sales, so the price must rise just to hold value. Other risks include trading premiums or discounts to NAV, reliance on authorized participants for arbitrage, possible losses from custodial or purity issues, and the fact that shareholders lack the protections of the Investment Company Act or the Commodity Exchange Act. Holders of 75% of shares can terminate the trust, and the trust has a 40-year term.
Mar 31, 2006