01—Abstract
Summary
Summary of the 10-Q filed August 8, 2024. Cited figures are marked; the original filing is the authoritative source.
The iShares Gold Trust (IAU) reported a net asset value (NAV) of $28.36 billiona as of June 30, 2024, representing a significant increase from $26.42 billion at the end of 2023.
This growth was primarily driven by a substantial rise in the price of gold, which increased by over 13%b during the first six months of 2024. The trust's net assets resulting from operations also saw a considerable increase, largely due to unrealized appreciation in the value of its gold bullion holdings. During the period, the Trust experienced a net decrease in the number of outstanding shares, as redemptions outpaced creations.
Despite this, the overall value of the trust's assets grew substantially, reflecting positive performance in the gold market. The trust's expenses are minimal, consisting mainly of the Sponsor's fee, which is set at 0.25%c of the net asset value.
02—Key points
Key Highlights
- Net assets increased to $28.36 billion as of June 30, 2024, up from $26.42 billion at the end of 2023.
- The increase in net assets was primarily driven by a 13.02% rise in the price of gold during the first six months of 2024.
- The Trust generated a net increase in net assets from operations of $3.3 billion for the six months ended June 30, 2024.
- A significant portion of the net increase from operations was due to unrealized appreciation in gold bullion holdings ($2.81 billion).
- Shares outstanding decreased from 677.05 million at year-end 2023 to 643.75 million at June 30, 2024, indicating net redemptions.
- The Trust's primary expense is the Sponsor's fee, amounting to 0.25% of the net asset value.
- The fair value of the Trust's gold bullion is categorized as Level 1 within the fair value hierarchy, indicating it is based on unadjusted quoted prices in active markets.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 8, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Operating Expenses | $17.83M$17.92M | −0.5% |
| Operating Income | -$17.83M-$17.92M | +0.5% |
| Net Income | $1.43B-$1.01B | +241.1% |
| EPS (Basic) | $2.20$-1.32 | +266.7% |
05—Questions
Frequently Asked Questions
What was the primary driver of the iShares Gold Trust's net asset value growth during the period?
The primary driver was the significant increase in the price of gold. For the six months ended June 30, 2024, the price of gold increased by 13.02%, which directly contributed to the rise in the Trust's net asset value from $26.42 billion to $28.36 billion.
Did the number of outstanding shares increase or decrease, and what does this indicate?
The number of outstanding shares decreased from 677,050,000 at the end of 2023 to 643,750,000 at June 30, 2024. This decrease indicates that more shares were redeemed than created during the period, meaning investors, on net, reduced their holdings in the Trust.
What are the main expenses for the iShares Gold Trust?
The Trust's main expense is the Sponsor's fee, which is accrued daily at an annualized rate of 0.25% of the net asset value of the Trust. The Sponsor also assumes other administrative and marketing expenses, meaning the Trust itself incurs very few operational costs beyond the Sponsor's fee.
How is the value of the gold bullion held by the Trust determined?
The gold bullion is valued daily using the LBMA Gold Price PM (or LBMA Gold Price AM if the PM price is unavailable). This valuation is considered a Level 1 input in the fair value hierarchy, meaning it is based on unadjusted quoted prices in active markets for identical assets.
06—Continue