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.