01—Abstract
Summary
Summary of the 10-Q filed November 7, 2024. Cited figures are marked; the original filing is the authoritative source.
The iShares Gold Trust (IAU) reported substantial growth in its net assets for the nine months ending September 30, 2024, driven by a significant increase in the price of gold.
Total assets grew to $31.32 billiona from $26.42 billion at the end of 2023. This appreciation is largely reflected in the Net Asset Value (NAV) per Share, which rose to $49.68 from $39.03 year-to-date. Despite the positive performance in gold prices, the Trust experienced a decrease in the number of outstanding Shares, indicating more redemptions than creations during the period.
Operationally, the Trust generated a substantial net increase in net assets due to operations, amounting to $6.84 billionb for the nine-month period. This was primarily driven by a significant unrealized gain on its gold bullion holdings ($5.80 billion) and realized gains from gold distributed for share redemptions.
The Trust's primary expense remains the Sponsor's fee, which was $52.67 millionc for the nine months. Investors should note that IAU's performance is directly tied to the price of gold, and while the current period shows strong gains, the Trust is subject to the inherent volatility and risks associated with gold price fluctuations.
02—Key points
Key Highlights
- Net assets increased by 18.49% to $31.31 billion as of September 30, 2024, from $26.42 billion at the end of 2023.
- Net Asset Value (NAV) per Share rose significantly to $49.68 as of September 30, 2024, from $39.03 at the beginning of the year, reflecting the appreciation of gold prices.
- The Trust generated a net increase in net assets from operations of $6.84 billion for the nine months ended September 30, 2024.
- Unrealized appreciation on gold bullion was a major contributor to the period's performance, totaling $5.80 billion.
- The number of outstanding Shares decreased from 677.05 million at year-end 2023 to 630.25 million at the end of the third quarter of 2024, indicating net redemptions.
- Total expenses for the nine-month period were $52.67 million, primarily consisting of Sponsor's fees.
- The Trust's investment in gold bullion is valued using the LBMA Gold Price PM, categorized as a Level 1 input in the fair value hierarchy.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 7, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Operating Expenses | $18.64M$17.07M | +9.2% |
| Operating Income | -$18.64M-$17.07M | −9.2% |
| Net Income | $3.54B-$555.88M | +737.0% |
| EPS (Basic) | $5.58$-0.75 | +844.0% |
05—Questions
Frequently Asked Questions
What is the primary driver of the iShares Gold Trust's (IAU) performance?
The primary driver of IAU's performance is the spot price of gold. The Trust is designed to reflect the performance of gold prices before expenses.
How is the value of the gold bullion held by the Trust determined?
The gold bullion held by the Trust is valued using the LBMA Gold Price PM (London Bullion Market Association Gold Price PM). If this price is unavailable, the LBMA Gold Price AM (morning price) is used, unless deemed inappropriate by the Trustee and Sponsor. This valuation method is considered a Level 1 input in the fair value hierarchy, meaning it relies on unadjusted quoted prices in active markets for identical assets.
What are the main expenses for the iShares Gold Trust?
The main expense for the Trust is the Sponsor's fee, which is accrued daily at an annualized rate of 0.25% of the Trust's net asset value. Other administrative and operational costs are typically covered by the Sponsor.
Did the iShares Gold Trust experience more share creations or redemptions during this period?
During the nine months ended September 30, 2024, the Trust experienced net redemptions. The number of outstanding shares decreased from 677.05 million at the end of 2023 to 630.25 million as of September 30, 2024, with 80.6 million shares redeemed versus 33.8 million shares issued.
06—Continue