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.