8-KOther EventsExhibits & Filings

ISHARES GOLD TRUST 8-K Report, Corporate Update (Dec 8, 2010)

Filed December 8, 2010For Securities:IAU

Summary

This 8-K filing by iShares Gold Trust (IAU) on December 8, 2010, announced a significant change in its methodology for valuing its underlying gold holdings. Effective December 9, 2010, the Trust will transition from its previous valuation method to using the afternoon price of gold fixed by the London Gold Market Fixing Ltd. This change is important for investors as it directly impacts how the Trust's Net Asset Value (NAV) is calculated, which in turn influences the trading price of IAU shares. Investors should note that this update primarily concerns the operational mechanics of the Trust and its valuation process. While the underlying asset remains physical gold, the specific pricing mechanism has been altered. This could lead to minor differences in daily NAV calculations compared to the previous methodology and is a key detail for investors monitoring the Trust's performance and seeking to understand the factors influencing its share price.

Key Highlights

  • 1Effective December 9, 2010, IAU will use the afternoon London Gold Market Fixing Ltd. price for gold valuation.
  • 2This change impacts the daily Net Asset Value (NAV) calculation of the iShares Gold Trust.
  • 3The change was announced by Blackrock Asset Management International Inc., the sponsor of IAU.
  • 4This operational update is detailed in an attached press release (Exhibit 99.1).
  • 5The filing is a Form 8-K, indicating a material event disclosure.
  • 6No financial statements are presented in this specific filing; it's focused on an event update.

Frequently Asked Questions

The main change is that iShares Gold Trust (IAU) will begin using the afternoon price of gold fixed by the London Gold Market Fixing Ltd. for valuing its gold holdings, effective December 9, 2010.

This change directly impacts how the Trust calculates its Net Asset Value (NAV) on a daily basis. Investors should be aware that the specific pricing source for the Trust's underlying gold has been updated.

The filing does not explicitly state the reason for the change, but it is communicated by the sponsor, Blackrock Asset Management International Inc., and is presented as an update to the Trust's operational procedures.

The press release dated December 8, 2010, which is attached as Exhibit 99.1 to this Form 8-K filing, contains the detailed announcement.