SPDR Gold Shares (GLD) 10-Q 10 May 10 2010 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Thousands, except Share data	6 Months Ended Mar. 31, 2010	May. 07, 2010	Mar. 31, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	SPDR GOLD TRUST
Entity Central Index Key	0001222333
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$33,217,691
Entity Common Stock, Shares Outstanding (actual number)		390,400,000

Condensed Statements of Financi

Condensed Statements of Financial Condition (Unaudited) (USD $)
In Thousands	Mar. 31, 2010		Sep. 30, 2009
ASSETS
Investment in Gold, at cost	$30,103,537	[1]	$28,463,669	[1],[2]
Gold Receivable	185,653		39,068	[2]
Total Assets	30,289,190		28,502,737	[2]
LIABILITIES
Accounts payable to related parties	12,556		10,672	[2]
Accounts payable	434		1,085	[2]
Accrued expenses	3,048		400	[2]
Total Liabilities	16,038		12,157	[2]
Redeemable Shares:
Shares at redemption value to investors	40,504,446	[3]	35,054,043	[2],[3]
Shareholders' Deficit	(10,231,294)		(6,563,463)	[2]
Total Liabilities, Redeemable Shares & Shareholders' Deficit	$30,289,190		$28,502,737	[2]
[1]The market value of Investment in Gold at March 31, 2010 is $40,334,831 and at September 30, 2009, is $35,027,132.
[2]Derived from audited statement of condition as of September 30, 2009.
[3]Authorized share capital is unlimited and the par value of the Shares is $0.00. Shares issued and outstanding at March 31, 2010 was 370,900,000 and at September 30, 2009 was 358,900,000.

1_Condensed Statements of Finan

Condensed Statements of Financial Condition (Unaudited) (Footnote Amounts) (USD $)
In Thousands, except Share data	6 Months Ended Mar. 31, 2010	12 Months Ended Sep. 30, 2009
ASSETS
Market value of investment in Gold	$40,334,831	$35,027,132
Redeemable Shares:
Common stock, par value	0	0
Common stock, shares authorized	unlimited	unlimited
Common stock, shares issued	370,900,000	358,900,000
Common stock, shares outstanding	370,900,000	358,900,000

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009	6 Months Ended Mar. 31, 2010	6 Months Ended Mar. 31, 2009
REVENUES
Proceeds from sales of gold	$37,685	$23,869	$74,973	$42,721
Cost of gold sold to pay expenses	(27,664)	(20,102)	(55,012)	(37,708)
Gain on gold sold to pay expenses	10,021	3,767	19,961	5,013
Gain on gold distributed for the redemption of Shares	315,102	1,508	560,554	76,621
Total Gain on gold	325,123	5,275	580,515	81,634
EXPENSES
Custody fees	6,452	4,494	12,996	7,839
Trustee fees	493	493	997	997
Sponsor fees	14,606	10,112	29,439	17,045
Marketing agent fees	14,606	10,112	29,439	17,045
Other expenses	2,959	2,071	5,983	3,911
Total expenses	39,116	27,282	78,854	46,837
Net Gain/(Loss) from Operations	$286,007	($22,007)	$501,661	$34,797
Net Gain/(Loss) per Share	0.78	-0.07	1.37	0.13
Weighted average number of Shares (000's)	365,749	309,078	365,863	278,009

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009	6 Months Ended Mar. 31, 2010	6 Months Ended Mar. 31, 2009
INCREASE / DECREASE IN CASH FROM OPERATIONS:
Cash proceeds received from sales of gold	$37,685	$23,869	$74,973	$42,721
Cash expenses paid	(37,685)	(23,869)	(74,973)	(42,721)
(Decrease) / Increase in cash resulting from operations	0	0	0	0
Cash and cash equivalents at beginning of period	0	0	0	0
Cash and cash equivalents at end of period	0	0	0	0
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Value of gold received for creation of shares - net of gold receivable	904,330	10,235,748	3,197,937	12,021,545
Value of gold distributed for redemption of Shares	882,666	7,823	1,540,794	928,233
RECONCILIATION OF NET GAIN/(LOSS) FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net Gain/(Loss) from Operations	286,007	(22,007)	501,661	34,797
Adjustments to reconcile net gain to net cash provided by operating activities
Increase in investment in gold	(25,125)	(10,344,571)	(1,639,868)	(11,953,378)
(Increase)/Decrease in gold receivable	(153,197)	64,095	(146,585)	825,121
Increase in liabilities	1,431	3,412	3,881	4,115
Increase/(decrease) in redeemable Shares
Creations	1,088,652	10,308,401	3,382,259	12,094,198
Redemptions	(1,197,768)	(9,330)	(2,101,348)	(1,004,853)
Net cash provided by operating activities	$0	$0	$0	$0

Condensed Statement of Changes

Condensed Statement of Changes in Shareholder's Deficit (Unaudited) (USD $)
In Thousands	6 Months Ended Mar. 31, 2010
Condensed Statement of Changes in Shareholders' Deficit (Unaudited) [Abstract]
Shareholders' Deficit - Opening Balance	($6,563,463)	[1]
Net Gain for the period	501,661
Adjustment of Redeemable Shares to redemption value	(4,169,492)
Shareholders' Deficit - Closing balance	($10,231,294)
[1]Derived from audited statement of condition as of September 30, 2009.

Organization

Organization
	3 Months Ended Mar. 31, 2010
Organization [Abstract]
Organization	1. Organization The SPDR Gold Trust (the Trust) is an investment trust formed on November12, 2004 (Date of Inception) under New York law pursuant to a trust indenture. The fiscal year end for the Trust is September30th. The Trust holds gold and issues shares (Shares) (in minimum blocks of 100,000Shares, also referred to as Baskets) in exchange for deposits of gold and distributes gold in connection with redemption of Baskets. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the Trusts expenses. The condensed statements of condition at March31, 2010 and September30, 2009, the condensed statements of operations and of cash flows for the three and six months ended March31, 2010 and 2009 and the condensed statement of changes in shareholders deficit for the six months ended March31, 2010 have been prepared on behalf of the Trust without audit. In the opinion of management of the sponsor of the Trust, World Gold TrustServices, LLC (the Sponsor), all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows as of and for the three months ended March31, 2010 and for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Trusts Annual Report on Form10-K for the fiscal year ended September30, 2009. The results of operations for the three and six months ended March31, 2010 are not necessarily indicative of the operating results for the full year.

Significant accounting policies

Significant accounting policies
	3 Months Ended Mar. 31, 2010
Significant accounting policies [Abstract]
Significant accounting policies	2. Significant accounting policies The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires those responsible for preparing financial statements to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust. 2.1. Valuation of Gold Gold is held by HSBC Bank USA, N.A. (the Custodian), on behalf of the Trust, and is valued, for financial statement purposes, at the lower of cost or market. The cost of gold is determined according to the average cost method and the market value is based on the price of gold set by the London gold fix (London Fix) used to determine the Net Asset Value (NAV) of the Trust. Realized gains and losses on sales of gold, or gold distributed for the redemption of Shares, are calculated on a trade date basis using average cost. The table below summarizes the impact of unrealized gains or losses on the Trusts gold holdings as of March31, 2010 and September30, 2009: Mar-31, Sep-30, (Amounts in 000s of US$) 2010 2009 Investment in gold-average cost $ 30,103,537 $ 28,463,669 Unrealized gain on investment in gold 10,231,294 6,563,463 Investment in gold-market value $ 40,334,831 $ 35,027,132 The Trust recognizes the diminution in value of the investment in gold which arises from market declines on an interim basis. Increases in the value of the same investment in gold through market price recoveries in later interim periods of the same fiscal year are recognized in the later interim period. Increases in value recognized on an interim basis may not exceed the previously recognized diminution in value. 2.2.Gold receivable Gold receivable represents the quantity of gold covered by contractually binding orders for the creation of Shares where the gold has not yet been transferred to the Trusts account. Generally, ownership of the gold is transferred within three days of the trade date. As of March31, 2010 there was $185,653,480 gold receivable and as of September30, 2009 there was $39,068,311 gold receivable. 2.3.Creations and Redemptions of Shares The Trust creates and redeems Shares from time to time, but only in one or more Baskets (a Basket equals a block of 100,000Shares). The Trust issues Shares in Baskets to certain authorized participants (Authorized Participants) on an ongoing basis. The creation and redemption of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of gold and any cash represented by the Baskets being created or redeemed, the amount of which will be based on the combined net asset value of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received. As the Shares of the Trust are redeema

Investment in Gold

Investment in Gold
	3 Months Ended Mar. 31, 2010
Investment in Gold [Abstract]
Investment in Gold	3. Investment in Gold The following represents the changes in ounces of gold and the respective values for the six months ended March31, 2010 and for the year ended September30, 2009: Six Months Ended Year Ended Mar-31, Sep-30, (Ounces of gold are in 000s and value of gold is in 000s of US$) 2010 2009 Ounces of Gold: Opening Balance 35,176.6 23,268.2 Creations (excluding gold receivable at March31, 2010- 166.4, and at September30, 2009- 39.2) 2,920.6 16,607.2 Redemptions (1,871.7 ) (4,578.9 ) Sales of gold (67.0 ) (119.9 ) Closing Balance 36,158.5 35,176.6 Investment in Gold (lower of cost or market): Opening Balance $ 28,463,669 $ 16,878,554 Creations (excluding gold receivable at March31, 2010- $185,653, and at September30, 2009- $39,068) 3,235,674 15,266,663 Redemptions (1,540,794 ) (3,588,054 ) Sales of gold (55,012 ) (93,494 ) Closing Balance $ 30,103,537 $ 28,463,669

Related Parties - Sponsor, Trus

Related Parties - Sponsor, Trustee, Custodian and Marketing Agent Fees
	3 Months Ended Mar. 31, 2010
Related Parties - Sponsor, Trustee, Custodian and Marketing Agent Fees [Abstract]
Related Parties - Sponsor, Trustee, Custodian and Marketing Agent Fees	4. Related Parties- Sponsor, Trustee, Custodian and Marketing Agent Fees Fees are paid to the Sponsor as compensation for services performed under the TrustIndenture and for services performed in connection with maintaining the Trusts website and marketing the Shares. The Sponsors fee is payable monthly in arrears and is accrued daily at an annual rate equal to 0.15% of the adjusted net asset value (ANAV) of the Trust, subject to reduction as described below. The Sponsor will receive reimbursement from the Trust for all of its disbursements and expenses incurred in connection with the Trust. Fees are paid to the Trustee, as compensation for services performed under the TrustIndenture. The Trustees fee is payable monthly in arrears and is accrued daily at an annual rate equal to 0.02% of the ANAV of the Trust, subject to a minimum fee of $500,000 and a maximum fee of $2million per year. The Trustees fee is subject to modification as determined by the Trustee and the Sponsor in good faith to account for significant changes in the Trusts administration or the Trustees duties. The Trustee will charge the Trust for its expenses and disbursements incurred in connection with the Trust (including the expenses of the Custodian paid by the Trustee), exclusive of fees of agents for services to be performed by the Trustee, and for any extraordinary services performed by the Trustee for the Trust. Affiliates of the Trustee may from time to time act as Authorized Participants or purchase or sell gold or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. Fees are paid to the Custodian under the Allocated Bullion Account Agreement (as amended, the Allocated Bullion Account Agreement) as compensation for its custody services. Under the Allocated Bullion Account Agreement, the Custodians fee is computed at an annual rate equal to 0.10% of the average daily aggregate value of the first 4.5million ounces of gold held in the Trusts allocated gold account (TrustAllocated Account) and the Trusts unallocated gold account (TrustUnallocated Account) and 0.06% of the average daily aggregate value of all gold held in the TrustAllocated Account and the TrustUnallocated Account in excess of 4.5million ounces. The Custodian does not receive a fee under the Unallocated Bullion Account Agreement. The Custodian and its affiliates may from time to time act as Authorized Participants or purchase or sell gold or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. Fees are paid to the marketing agent for the Trust, State Street Global Markets, LLC (the Marketing Agent), by the Trustee from the assets of the Trust as compensation for services performed pursuant to the agreement between the Sponsor and the Marketing Agent (as amended, the Marketing Agent Agreement). The Marketing Agents fee is payable monthly in arrears and is accrued daily at an annual rate equal to 0.15% of the ANAV of the Trust, subject to reduction as described below. The Marketing Agent and its affiliates may from time t

Concentration of Risk

Concentration of Risk
	3 Months Ended Mar. 31, 2010
Concentration of Risk [Abstract]
Concentration of Risk	5. Concentration of Risk The Trusts sole business activity is the investment in gold. Several factors could affect the price of gold: (i)global gold supply and demand, which is influenced by such factors as forward selling by gold producers, purchases made by gold producers to unwind gold hedge positions, central bank purchases and sales, and production and cost levels in major gold-producing countries such as China, Australia, South Africa and the United States (ii)investors expectations with respect to the rate of inflation; (iii)currency exchange rates; (iv)interest rates; (v)investment and trading activities of hedge funds and commodity funds; and (vi)global or regional political, economic or financial events and situations. In addition, the Sponsor believes there is no assurance that gold will maintain its long-term value in terms of purchasing power in the future. In the event that the price of gold declines, the Sponsor expects the value of an investment in the Shares to decline proportionately. Each of these events could have a material affect on the Trusts financial position and results of operations.

Indemnification

Indemnification
	3 Months Ended Mar. 31, 2010
Indemnification [Abstract]
Indemnification	6. Indemnification The Sponsor and its shareholders, members, directors, officers, employees, affiliates and subsidiaries are indemnified from the Trust and held harmless against certain losses, liabilities or expenses incurred in the performance of its duties under the TrustIndenture without gross negligence, bad faith, willful misconduct, willful malfeasance or reckless disregard of the indemnified partys obligations and duties under the TrustIndenture. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any claim or liability under the TrustIndenture. Under the TrustIndenture, the Sponsor may be able to seek indemnification from the Trust for payments it makes in connection with the Sponsors activities under the TrustIndenture to the extent its conduct does not disqualify it from receiving such indemnification under the terms of the TrustIndenture. The Sponsor will also be indemnified from the Trust and held harmless against any loss, liability or expense arising under the distribution agreement between the Sponsor and the Purchaser, dated November16, 2004 (the Distribution Agreement), the Marketing Agent Agreement or any agreement entered into with an Authorized Participant which provides the procedures for the creation and redemption of Baskets and for the delivery of gold and any cash required for creations and redemptions insofar as such loss, liability or expense arises from any untrue statement or alleged untrue statement of a material fact contained in any written statement provided to the Sponsor by the Trustee. Any amounts payable to the Sponsor are secured by a lien on the Trust. The Sponsor has agreed to indemnify certain parties against certain liabilities and to contribute to payments that such parties may be required to make in respect of those liabilities. The Trustee has agreed to reimburse such parties, solely from and to the extent of the Trusts assets, for indemnification and contribution amounts due from the Sponsor in respect of such liabilities to the extent the Sponsor has not paid such amounts when due. The Sponsor has agreed that, to the extent the Trustee pays any amount in respect of the reimbursement obligations described in the preceding sentence, the Trustee, for the benefit of the Trust, will be subrogated to and will succeed to the rights of the party so reimbursed against the Sponsor.

Subsequent Events

Subsequent Events
	3 Months Ended Mar. 31, 2010
Subsequent Events [Abstract]
Subsequent Events	7. Subsequent Events The Company has evaluated events subsequent to the March31, 2010 quarter end through to the date of filing of this Form10-Q. During this period, no material disclosable subsequent events were identified.