What is the primary driver of the iShares Gold Trust's performance?

The primary driver of the iShares Gold Trust's performance is the price of gold bullion. The Trust aims to reflect the performance of the price of gold before expenses and liabilities.

What accounting changes were implemented on January 1, 2014?

Effective January 1, 2014, the Trust qualified as an investment company for accounting purposes. Key changes include valuing gold bullion at fair value (instead of lower of cost or market), reporting unrealized appreciation/depreciation on the Income Statement, and classifying Shares as 'Shareholders' Equity' instead of 'Redeemable Capital Shares'.

What are the risks associated with the London gold fix?

The Trust uses the London PM Fix to value its gold holdings and calculate fees. Recent announcements indicate a review and potential change in the administration of this benchmark. Any disruption or perceived lack of transparency in the gold fixing process could affect the price of gold and, consequently, the value of the Trust's Shares and its operations.

How are expenses managed by the Trust?

The Sponsor pays most of the Trust's administrative and marketing expenses, including the Trustee's fee, Custodian's fee, listing fees, and audit fees. The Trust's primary ordinary expense is the Sponsor's fee, which accrues daily at an annualized rate of 0.25% of the Trust's NAV.

IAU 10-Q Quarterly Report Q2 FY2014 — Revenue, Net Income, EPS

Summary

iShares Gold Trust (IAU) reported strong performance for the six months ended June 30, 2014, with its Net Asset Value (NAV) increasing by 11.06% to approximately $6.96 billion. This growth was primarily driven by a 9.45% increase in the price of gold, as measured by the London fix price. The Trust transitioned to investment company accounting standards effective January 1, 2014, resulting in gold bullion being valued at fair value and unrealized gains/losses being reported on the Income Statement. This change also led to Shares being classified as Shareholders' Equity, rather than Redeemable Capital Shares. For the quarter ended June 30, 2014, the Trust's NAV increased by 1.53%, also largely attributed to a rise in gold prices. Despite these gains, investors should be aware of ongoing considerations regarding the administration of the London gold fix, which is a critical benchmark for gold pricing and Trust operations. Any perceived disruption could impact the value of Shares.

Financial Highlights

14 data points

Beta

Net Income

$116.23M

EPS (Diluted)

$0.42

Total Assets

$6.97B

Cash & Equivalents

$0.00

Free Cash Flow

$0.00

Financial Statements

Beta

Operating Expenses	$4.23M
Operating Income	-$4.23M
Net Income	$116.23M
EPS (Basic)	$0.42
Shares Outstanding (Basic)	271.70M

Key Highlights

1The Trust experienced a significant 11.06% increase in Net Asset Value (NAV) for the first six months of 2014, reaching approximately $6.96 billion.
2This NAV growth was primarily driven by a 9.45% rise in the price of gold.
3Effective January 1, 2014, the Trust adopted investment company accounting standards, valuing gold at fair value and reporting unrealized gains/losses on the income statement.
4Shareholder equity significantly increased due to the adoption of new accounting standards, reclassifying redeemable capital shares to shareholders' equity.
5The Trust's NAV per share increased by 9.26% from $11.66 to $12.74 during the first six months of 2014.
6A key risk factor highlighted is the potential impact of changes in the administration of the London gold fix on gold prices and the Trust's valuation.
7The Trust's total return for the period was 9.26%, based on the change in net asset value per Share.

ISHARES GOLD TRUST Quarterly Report for Q2 Ended Jun 30, 2014

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions