How did the iShares Gold Trust (IAU) perform financially in the quarter ended June 30, 2010?

The Trust experienced significant growth in its net asset value (NAV), increasing by 24.85% to $3.44 billion. This was driven by a strong performance in the price of gold, with the COMEX Spot Settlement Price rising by 11.87%. The Trust also reported a net income of $3.84 million for the quarter, a substantial improvement compared to a net loss in the prior year's comparable quarter.

What are the primary assets and liabilities of the iShares Gold Trust?

The Trust's primary asset is gold bullion, valued at $3.44 billion at fair value as of June 30, 2010. The main liability is the redeemable capital shares, representing investor interests, valued at $3.438 billion. Sponsor's fees payable is a minor current liability.

How are the shares of the iShares Gold Trust created and redeemed?

Shares of the Trust are created and redeemed in aggregations known as 'Baskets' (50,000 shares) and are exchanged for physical gold bullion, not cash. This process is conducted through 'Authorized Participants,' which are registered broker-dealers that have entered into agreements with the Trust and its Sponsor.

What changes were made to the Trust's expenses or fees during this period?

A significant change occurred after the quarter ended: on June 30, 2010, an amendment was executed to reduce the annual Sponsor's fee from 0.40% to 0.25% of the adjusted net asset value, effective July 1, 2010. For the quarter itself, Sponsor's fees were the primary expense, totaling $3.11 million.

IAU 10-Q Quarterly Report Q2 FY2010 — Revenue, Net Income, EPS

Summary

The ISHARES GOLD TRUST (IAU) reported its quarterly results for the period ending June 30, 2010. The Trust, which aims to reflect the price of gold bullion less expenses, saw a significant increase in its net asset value during the quarter. This growth was primarily driven by an 11.87% rise in the COMEX Spot Settlement Price for gold and an increase in the number of outstanding shares. The Trust's financial performance reflects the underlying commodity's price movements. Despite the appreciation in gold prices, the Trust's net asset value per share grew slightly less than the COMEX price due to the accrual of Sponsor's fees. The Trust experienced positive net income for the quarter, largely attributed to gains on gold sales and distributions related to share redemptions. The Trust continues to operate as a passive investment vehicle, with its primary assets being gold bullion.

Financial Highlights

6 data points

Beta

Net Income

$3.84M

Total Assets

$2.22B

Cash & Equivalents

$0.00

Financial Statements

Beta

Operating Expenses	$3.11M
Net Income	$3.84M

Key Highlights

1Net asset value increased by 24.85% during the quarter ended June 30, 2010, reaching $3,438,012,903.
2The primary driver for the NAV increase was a 11.87% rise in the COMEX Spot Settlement Price of gold.
3Outstanding shares increased by approximately 11.5% during the quarter, indicating investor demand.
4The Trust reported a net income of $3.84 million for the quarter, a significant improvement from a net loss of $1.52 million in the same period of 2009.
5Sponsor's fees represented the main operating expense, amounting to $3.11 million for the quarter.
6Effective July 1, 2010, the annual Sponsor's fee was reduced from 0.40% to 0.25% of the adjusted net asset value.

ISHARES GOLD TRUST Quarterly Report for Q2 Ended Jun 30, 2010

Summary

Financial Highlights

Key Highlights

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