How is the value of iShares Gold Trust (IAU) shares determined?

The value of IAU shares is designed to reflect the price of the gold bullion held by the Trust, less the Trust's accrued expenses and liabilities. The Trust uses the COMEX Spot Settlement Price to value its gold holdings and calculate the net asset value per share.

How does an investor buy or sell shares of iShares Gold Trust (IAU)?

Individual investors cannot directly buy or redeem shares from the Trust. Shares are issued and redeemed in large blocks (baskets) by 'Authorized Participants,' which are registered broker-dealers. Individual investors typically purchase or sell IAU shares on the AMEX exchange through their brokerage accounts.

What are the main expenses associated with holding IAU?

The primary expense for IAU is the Sponsor's fee, which accrues daily at an annualized rate of 0.40% of the adjusted daily net asset value. The Sponsor also covers various administrative and marketing expenses, such as trustee fees, custodian fees, and listing fees.

What is the main risk associated with investing in iShares Gold Trust (IAU)?

The primary risk is concentration risk. The Trust's assets consist almost entirely of gold bullion, meaning the value of IAU shares is directly and significantly influenced by fluctuations in the price of gold. A decline in gold prices will adversely affect the value of the Trust's shares.

IAU 10-Q Quarterly Report Q3 FY2005 — Revenue, Net Income, EPS

Summary

The iShares Gold Trust (IAU) has filed its quarterly report for the period ending September 30, 2005. This report details the Trust's initial operations since its inception on January 21, 2005. The Trust's primary asset is gold bullion, and its objective is for the value of its shares to reflect the price of gold, less expenses. As of September 30, 2005, the Trust held approximately $217.7 million in gold bullion, with a fair value of $238.5 million. During the quarter, the Trust experienced a net loss of $0.19 million, primarily due to sponsor fees, despite a gain on gold sales to cover expenses. For the period since inception, the Trust reported a net income of $7.57 million. The Trust's shares are issued and redeemed in-kind for gold bullion with authorized participants, not directly with individual investors. The report highlights concentration risk, as the Trust's performance is directly tied to the price of gold.

Key Highlights

1As of September 30, 2005, iShares Gold Trust (IAU) held $217.7 million in gold bullion, with a fair value of $238.5 million.
2For the quarter ended September 30, 2005, the Trust reported a net loss of $0.19 million, largely due to $0.19 million in sponsor fees.
3Since its inception on January 21, 2005, through September 30, 2005, the Trust generated a net income of $7.57 million.
4The Trust's shares are issued and redeemed in exchange for physical gold bullion, not cash, through authorized participants.
5The Trust's net assets increased significantly from $6.4 million at inception to $238.5 million by September 30, 2005.
6The net asset value per share closely tracked the COMEX Spot Settlement Price for gold, with a slight reduction due to sponsor fees.
7The Trust faces concentration risk due to its sole investment in gold bullion, making its value highly dependent on gold price fluctuations.

ISHARES GOLD TRUST Quarterly Report for Q3 Ended Sep 30, 2005

Summary

Key Highlights

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