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New words:
advantage, advisory, anniversary, attestation, auditor, bitcoin, calendar, cautionary, commencement, compensation, debt, earliest, exemption, golden, governmental, issuer, long, mandatory, million, parachute, perception, plan, plustwo, qualified, remain, rotation, sheet, substantially, terminology, utilize, world
Removed:
July
Financial report summary
?Risks
- An investment in the Fund is subject to market risk with respect to the gold markets.
- The Fund is not a diversified investment and, therefore, may be more volatile than other investments.
- Adverse developments in gold bullion trading prices may affect the value of an investment in the Fund.
- Economic or other events could result in large-scale sales of gold, which could decrease the price of gold and the value of an investment in the Fund.
- The Fund is subject to the risk that the Fund’s gold bullion may be sold at low prices to pay expenses.
- Temporary increases in the price of gold due to purchases of gold bullion to deliver to the Fund in exchange for Creation Units may adversely affect the Fund.
- The price of gold may be affected by the sale of gold by exchange-traded funds (“ETFs”) or other exchange-traded vehicles tracking gold markets.
- Substantial sales of gold by the “official” sector could adversely affect an investment in the Shares.
- Potential discrepancies in the calculation of the LBMA Gold Price PM, as well as any future changes to the LBMA Gold Price PM, could offset the value of the gold bullion held by the Fund and could have an adverse effect on the methodology used to calculate an investment in the Fund.
- The Fund is a passive investment vehicle and is not actively managed.
- An investment in the Fund has inherent costs, which may detract significantly from Fund’s investment results.
- The Fund is subject to responsible sourcing due diligence risk.
- An active and liquid market for the Shares of the Fund may not be sustained.
- If the process of creation and redemption of Creation Units encounters any unanticipated difficulties, or unanticipated operational or trading problems arise, the possibility for arbitrage transactions intended to keep the price of the Shares closely linked to the price of gold may not exist and, as a result, the price of the Shares may fall.
- The amount of gold represented by each Share will decrease over the life of the Fund due to the sales of gold necessary to pay the Sponsor’s Fee and Fund expenses. Without increases in the price of gold sufficient to compensate for that decrease, the price of the Shares will also decline and you will lose money on your investment in Shares.
- An investment in the Shares may be adversely affected by competition from other methods of investing in gold.
- The liquidation of the Fund or the Trust may occur at a time when the disposition of the Fund’s gold will result in losses to investors in Shares.
- Redemption orders may be subject to rejection, suspension or postponement.
- The liquidity of the Fund’s Shares may be affected by the withdrawal of Authorized Participants and substantial redemptions by Authorized Participants.
- Shareholders do not have the protections associated with ownership of shares in an investment company registered under the 1940 Act or the protections afforded by the CEA.
- Shareholders do not have the rights enjoyed by investors in certain other vehicles.
- NYSE Arca may halt trading in the Shares, which would adversely impact your ability to sell your Shares.
- The Trust is an “emerging growth company” and it cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make the Shares less attractive to investors.
- The Fund will rely on the Custodian for the safekeeping of essentially all of the Fund’s gold bullion. As a result, failure by the Custodian to exercise due care in the safekeeping of the Fund’s gold bullion could result in a loss to the Fund.
- The value of the Shares will be adversely affected if gold owned by the Fund is lost or damaged in circumstances in which the Fund is not in a position to recover the corresponding loss.
- Although the terms of the Custody Agreements concerning the Fund’s gold are expressly governed by English law, a court hearing any legal dispute concerning that arrangement may disregard that choice of law and apply U.S. law, in which case the ability of the Fund to seek legal redress against the Custodian may be impaired.
- Shareholders and Authorized Participants lack the right under the Custody Agreements to assert claims directly against the Custodian, which significantly limits their options for recourse.
- Gold transferred to the Fund in connection with the creation transactions may not be of the quality required under applicable contractual arrangements. The Fund will sustain a loss if the Fund issues Shares in exchange for gold of inferior quality and that loss will adversely affect the value of all existing Shares.
- Resignation of the Custodian would likely lead to the termination of the Fund if no successor is appointed.
- The gold bullion custody operations of the Custodian are not subject to specific governmental regulatory supervision.
- If a U.S. investor who or that is an individual, estate or trust (each referred to in this paragraph and the next paragraph as an “individual”) sells or exchanges Shares held for more than a year, any gain recognized on the sale or exchange generally will be subject to U.S. federal income tax at a maximum rate of 28% rather than the lower maximum rates applicable to most other long-term capital gains an individual recognizes.
- The Fund is exposed to various operational risks.
- Market disruption events or extraordinary events could cause a disruption in the operation of the Fund and its secondary market.
- The service providers engaged by the Fund may not carry adequate insurance to cover claims against them by the Fund, which could adversely affect the value of the Fund’s net assets.
- The Fund’s obligation to indemnify certain of its service providers could adversely affect an investment in the Shares.
- Potential conflicts of interest may arise among the Sponsor or its affiliates and the Fund.
- Loss of intellectual property rights related to the Fund, or competing claims over ownership of those rights, could adversely affect the Fund and an investment in the Shares.
Management Discussion
- At December 31, 2023, the Custodian held 28,059.466 ounces of gold on behalf of the Fund in its vault, with a market value of $57,869,843 (cost: $50,942,301) based on the LBMA PM Gold Price at period end.
- For the three months ended December 31, 2023, no Shares were issued and (500,000) Shares were redeemed in exchange for (6,680.800) ounces of gold. The Fund’s NAV per Share began the period at $25.00 and ended the period at $27.55. The increase in NAV per Share was due to a higher price of gold of $2,062.40 at period end, which represented an increase of 10.26% from $1,870.50 at September 30, 2023.
- The change in net assets from operations for the three months ended December 31, 2023 was $6,529,425, which was due to (i) the Sponsor Fee of $(24,388), (ii) net realized gain from gold distributed for the redemption of shares and sold to pay expenses of $1,537,276 and (iii) a net change in unrealized appreciation (depreciation) on investment of gold of $5,016,537. Other than the Sponsor Fee the Fund had no expenses during the three months ended December 31, 2023.