ISHARES GOLD TRUST Quarterly Report for Q3 Ended Sep 30, 2018

Summary

This 10-Q filing for the iShares Gold Trust (IAU) for the period ending September 30, 2018, reveals a decrease in Net Asset Value (NAV) per Share, primarily driven by a decline in the price of gold during the quarter. The Trust holds gold bullion valued at $10,214,299,135, which represents nearly all of its assets. Despite a net increase in Shares issued and outstanding for the nine-month period, the overall performance was negatively impacted by the market price of gold. Investors should note the ongoing Sponsor's fee of 0.25% annually, which contributes to the NAV decline relative to the gold price. The Trust's operations for the nine months ended September 30, 2018, show a significant net decrease in assets due to operations, largely driven by a substantial unrealized loss on gold bullion ($1,023,390,704). While there were net realized gains from gold distributed for redemptions and sold to cover expenses, these were not enough to offset the unrealized depreciation. The fund continues to operate as a passive investment vehicle, aiming to mirror the price of gold, with Shares created and redeemed in-kind using gold bullion.

Key Highlights

• 1The Trust's total assets are primarily composed of gold bullion, valued at $10,214,299,135 as of September 30, 2018.
• 2The Net Asset Value (NAV) per Share decreased to $11.38 as of September 30, 2018, down from $12.45 at the beginning of the year, reflecting a decline in gold prices.
• 3For the nine months ended September 30, 2018, the Trust reported a net decrease in net assets resulting from operations of $1,016,894,888, heavily influenced by an unrealized loss of $1,023,390,704 on gold bullion.
• 4The Trust experienced a net increase in Shares issued and outstanding for the nine months ended September 30, 2018, with 82,350,000 new shares issued.
• 5Sponsor's fees amounted to $20,757,047 for the first nine months of 2018, representing an annualized fee of 0.25% of the Trust's NAV.
• 6The Trust's operations are directly tied to the price of gold; a decline in gold prices leads to a decrease in the Trust's NAV and vice versa.
• 7Shares are created and redeemed in large aggregations (baskets) of 50,000 Shares, exclusively in exchange for physical gold bullion, not cash.

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