What is the main business of iShares COMEX Gold Trust (IAU)?

The iShares COMEX Gold Trust is designed to provide investors with a way to gain exposure to the price movements of gold bullion. Its primary asset is physical gold held by a custodian, and its shares are intended to reflect the value of the gold held, less Trust expenses.

How did the Trust perform financially in the nine months ended September 30, 2008?

For the nine months ended September 30, 2008, the Trust's net asset value grew by 20.39% to $1.78 billion. The Trust reported a net income of $66.7 million, primarily driven by gains on gold distributions for share redemptions and sales of gold to cover expenses, while sponsor fees were the main expense.

What are the main risks associated with investing in IAU?

The principal risk is concentration in gold bullion. Any significant decline in the market price of gold will adversely affect the value of the Trust's assets and, consequently, the value of its shares. Factors influencing gold prices, such as official sector sales, hedging activities, and speculative sentiment, are key considerations.

How are shares of the Trust created and redeemed?

Shares are created and redeemed continuously in aggregations of 50,000 shares (called 'Baskets') by Authorized Participants, which are typically registered broker-dealers. These transactions are conducted in exchange for physical gold bullion, not cash. Individual investors cannot directly create or redeem shares with the Trust.

IAU 10-Q Quarterly Report Q3 FY2008 — Revenue, Net Income, EPS

Summary

iShares COMEX Gold Trust (IAU) reported its financial results for the quarter ended September 30, 2008. The Trust's primary asset is gold bullion, and its objective is for the value of its shares to track the price of gold, less expenses. During the nine months ended September 30, 2008, the Trust saw a significant increase in its net asset value, driven by both an increase in the price of gold and the creation of new shares. The Trust experienced a 20.39% increase in net asset value from December 31, 2007, to September 30, 2008, reaching $1.78 billion. This growth was fueled by an increase in the COMEX Spot Settlement Price of gold by 4.71% and the issuance of new shares by Authorized Participants. The net asset value per share also saw a corresponding increase. The Trust generated net income of $66.7 million for the nine-month period, primarily from gains on gold distributed for share redemptions and sales of gold to cover expenses, partially offset by sponsor fees.

Key Highlights

1The Trust's net asset value (NAV) increased by 20.39% to $1.78 billion as of September 30, 2008, compared to December 31, 2007.
2The COMEX Spot Settlement Price for gold increased by 4.71% during the first nine months of 2008, contributing to the Trust's NAV growth.
3During the nine months ended September 30, 2008, 5.65 million shares were created and 2.9 million shares were redeemed, indicating active participation.
4The Trust reported a net income of $66.7 million for the first nine months of 2008, a substantial increase from $496 thousand in the same period of 2007.
5The primary driver of net income for the period was a $70.4 million gain on gold distributed for share redemptions.
6Sponsor's fees amounted to $5.29 million for the nine months ended September 30, 2008, representing the Trust's primary expense.
7The Trust's assets consist almost entirely of gold bullion, highlighting a significant concentration risk tied to gold price fluctuations.

ISHARES GOLD TRUST Quarterly Report for Q3 Ended Sep 30, 2008

Summary

Key Highlights

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