What is the primary asset held by the iShares COMEX Gold Trust (IAU)?

The primary asset held by the iShares COMEX Gold Trust is gold bullion.

How does the Trust generate revenue or gains?

The Trust primarily generates gains from the sale of gold to cover expenses and from gold distributed for the redemption of shares. Its objective is not to profit from gold price changes but to reflect the price of gold less expenses.

What are the main expenses for the Trust?

The main expense for the Trust 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 assumes other administrative and marketing expenses.

How are shares of the Trust created and redeemed?

Shares of the Trust are created and redeemed in aggregations of 50,000 shares, typically in exchange for gold bullion rather than cash. These transactions are conducted with registered broker-dealers known as Authorized Participants.

IAU 10-Q Quarterly Report Q3 FY2007 — Revenue, Net Income, EPS

Summary

The iShares COMEX Gold Trust (IAU) reported its quarterly results for the period ending September 30, 2007. The Trust's primary asset is gold bullion, and its objective is to reflect the price of gold, less expenses. During the quarter, the Trust saw a significant increase in the value of its redeemable shares, driven by an increase in outstanding shares as new shares were created. The net asset value per share also rose, largely in line with the COMEX Spot Settlement Price of gold, which experienced a notable increase during the period. Financially, the Trust reported a net loss for the quarter primarily due to Sponsor's Fees, although this was partially offset by gains on gold sales. For the nine-month period, the Trust reported a net income, benefiting from both gains on gold sales and gold distributed for share redemptions, again with Sponsor's Fees being the main expense. The Trust's balance sheet shows a substantial holding of gold bullion at fair value, with redeemable capital shares representing the largest liability.

Key Highlights

1Gold bullion inventory (fair value) increased significantly from $907,966,000 at December 31, 2006, to $1,194,612,000 at September 30, 2007.
2The Trust experienced a net loss of $833,939 for the three months ended September 30, 2007, primarily due to Sponsor's Fees of $1,037,555.
3For the nine months ended September 30, 2007, the Trust reported a net income of $496,167, driven by gains on gold sales and redemptions, offset by Sponsor's Fees.
4The value of the Trust's redeemable shares grew by 24.87% during the quarter ended September 30, 2007, from $956,364,616 to $1,194,248,922.
5Net asset value per share increased from $64.19 at June 30, 2007, to $73.49 at September 30, 2007, mirroring the rise in the COMEX Spot Settlement Price of gold.
6No shares were redeemed during the quarter ended September 30, 2007; instead, 1,350,000 shares were created.
7The Trust's assets are heavily concentrated in gold bullion, exposing investors to the volatility of gold prices.

ISHARES GOLD TRUST Quarterly Report for Q3 Ended Sep 30, 2007

Summary

Key Highlights

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