Summary
For the nine months ended September 30, 2017, iShares Gold Trust (IAU) reported a significant increase in net assets, growing by approximately 29% from $7.31 billion to $9.43 billion. This growth was driven by a substantial increase in the Trust's net asset value (NAV) per share, which rose by 10.70% in conjunction with a corresponding increase in the price of gold. The Trust experienced substantial inflows of capital through the creation of new shares, indicating strong investor demand for gold exposure. Despite a net investment loss due to ongoing operational expenses, the overall gains from the appreciation of gold bullion significantly outweighed these costs, resulting in positive returns for investors. The Trust's financial position remains robust, primarily holding gold bullion valued at fair market prices.
Financial Highlights
8 data points| Operating Expenses | $5.57M |
| Operating Income | -$5.57M |
| Net Income | $267.22M |
| EPS (Basic) | $0.74 |
Key Highlights
- 1The Trust's Net Asset Value (NAV) increased by 28.96% to $9.43 billion for the nine months ended September 30, 2017, up from $7.31 billion at the end of 2016.
- 2NAV per Share grew from $11.16 at the beginning of the period to $12.33 at the end of the period, reflecting the rise in gold prices.
- 3Significant capital inflows were observed, with 170 million Shares created and 60.55 million Shares redeemed during the nine-month period, leading to a net increase of 109.45 million Shares outstanding.
- 4The primary asset of the Trust is gold bullion, valued at $9.43 billion as of September 30, 2017, representing an increase from $7.31 billion at December 31, 2016.
- 5The Trust experienced a net investment loss of $15.51 million for the nine months ended September 30, 2017, primarily due to Sponsor's fees (0.25% of NAV).
- 6Despite the net investment loss, the Trust achieved a substantial net increase in net assets from operations of $780.64 million, driven by unrealized gains from the appreciation of gold bullion.
- 7The Trust's investment in gold bullion is valued using the LBMA Gold Price PM, categorized as a Level 1 asset in the fair value hierarchy, indicating direct valuation from active market prices.