Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2017 | Apr. 25, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | GLD | |
Entity Registrant Name | SPDR GOLD TRUST | |
Entity Central Index Key | 1,222,333 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 288,500,000 |
Statements of Financial Conditi
Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 | |
ASSETS | |||
Investment in Gold (cost $33,237,393 and $37,872,834, at March 31, 2017 and September 30, 2016, respectively) | $ 33,359,636 | $ 40,357,092 | |
Total Assets | 33,359,636 | 40,357,092 | |
LIABILITIES | |||
Gold payable | 47,404 | 50,461 | |
Accounts payable to Sponsor | 11,214 | 13,184 | |
Total Liabilities | 58,618 | 63,645 | |
Net Assets | $ 33,301,018 | $ 40,293,447 | |
Shares issued | [1] | 281,000,000 | 319,400,000 |
Shares outstanding | [1] | 281,000,000 | 319,400,000 |
Net asset value per Share | $ 118.51 | $ 126.15 | |
[1] | Authorized share capital is unlimited and the par value of the Shares is $0.00. |
Statements of Financial Condit3
Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Investment in Gold, at cost | $ 33,237,393 | $ 37,872,834 |
Common stock, par value | $ 0 | $ 0 |
Investment in Gold [Member] | ||
Investment in Gold, at cost | $ 33,237,393 | $ 37,872,834 |
Schedules of Investment
Schedules of Investment $ in Thousands | Mar. 31, 2017USD ($)oz | Sep. 30, 2016USD ($)oz |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Total Investment, % of Net Assets | 100.18% | 100.16% |
Liabilities in excess of other assets, % of Net Assets | (0.18%) | (0.16%) |
Net Assets, % of Net Assets | 100.00% | 100.00% |
Total Investment, Fair Value | $ 33,359,636 | $ 40,357,092 |
Liabilities in excess of other assets | (58,618) | (63,645) |
Net Assets, Fair Value | 33,301,018 | 40,293,447 |
Total Investment, Cost | $ 33,237,393 | $ 37,872,834 |
Investment in Gold [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Total Investment, % of Net Assets | 100.18% | 100.16% |
Total Investment, Fair Value | $ 33,359,636 | $ 40,357,092 |
Total Investment, Ounces of gold | oz | 26,798.1 | 30,515.8 |
Total Investment, Cost | $ 33,237,393 | $ 37,872,834 |
Statements of Operations
Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Expenses | ||||
Sponsor fees | $ 31,847 | $ 27,557 | $ 67,765 | $ 51,375 |
Total expenses | 31,847 | 27,557 | 67,765 | 51,375 |
Net investment loss | (31,847) | (27,557) | (67,765) | (51,375) |
Net realized and change in unrealized gain/(loss) on investment in gold | ||||
Net realized gain/(loss) from investment in gold sold to pay expenses | (898) | (953) | (830) | (3,773) |
Net realized gain/(loss) from gold distributed for the redemption of shares | (71,852) | 1,927 | (277,748) | (360,557) |
Net change in unrealized appreciation/(depreciation) on investment in gold | 2,317,536 | 3,823,285 | (2,362,015) | 3,069,394 |
Net realized and change in unrealized gain/(loss) on investment in gold | 2,244,786 | 3,824,259 | (2,640,593) | 2,705,064 |
Net income/(loss) | $ 2,212,939 | $ 3,796,702 | $ (2,708,358) | $ 2,653,689 |
Net income/(loss) per share | $ 7.95 | $ 15.51 | $ (9.27) | $ 11.33 |
Weighted average number of shares (in 000's) | 278,457 | 244,855 | 292,177 | 234,180 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2016 | |
INCREASE / DECREASE IN CASH FROM OPERATIONS: | |||||
Cash proceeds received from sales of gold | $ 31,250 | $ 24,261 | $ 69,735 | $ 48,774 | |
Cash expenses paid | (31,250) | (24,261) | (69,735) | (48,774) | |
Increase/(Decrease) in cash resulting from operations | 0 | 0 | 0 | 0 | |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | $ 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | 0 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: | |||||
Value of gold received for creation of shares - net of gold receivable | 3,106,702 | 7,848,145 | 4,705,042 | 9,477,321 | |
Value of gold distributed for redemption of shares - net of gold payable | 2,643,951 | 867,537 | 8,992,170 | 3,877,262 | |
RECONCILIATION OF NET INCOME/(LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES | |||||
Net Income/(Loss) | 2,212,939 | 3,796,702 | (2,708,358) | 2,653,689 | |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities | |||||
Cash proceeds received from sales of gold | 31,250 | 24,261 | 69,735 | 48,774 | |
Net realized (gain)/loss from investment in gold sold to pay expenses | 898 | 953 | 830 | 3,773 | (614) |
Net realized (gain)/loss from gold distributed for the redemption of Shares | 71,852 | (1,927) | 277,748 | 360,557 | 6,601 |
Net change in unrealized (appreciation)/depreciation on investment in gold | (2,317,536) | (3,823,285) | 2,362,015 | (3,069,394) | $ (5,084,486) |
Increase/(Decrease) in accounts payable to Sponsor | 597 | 3,296 | (1,970) | 2,601 | |
Increase/(Decrease) in cash resulting from operations | $ 0 | $ 0 | $ 0 | $ 0 |
Statements of Changes in Net As
Statements of Changes in Net Assets - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2016 | |
Statement of Partners' Capital [Abstract] | |||||
Net Assets - Opening Balance | $ 40,293,447 | $ 24,612,170 | $ 24,612,170 | ||
Creations | 4,705,042 | 20,832,493 | |||
Redemptions | (8,989,113) | (10,102,639) | |||
Net investment loss | $ (31,847) | $ (27,557) | (67,765) | (51,375) | (127,076) |
Net realized gain/(loss) from investment in gold sold to pay expenses | (898) | (953) | (830) | (3,773) | 614 |
Net realized gain/(loss) from gold distributed for the redemption of shares | (71,852) | 1,927 | (277,748) | (360,557) | (6,601) |
Net change in unrealized appreciation/(depreciation) on investment in gold | 2,317,536 | $ 3,823,285 | (2,362,015) | $ 3,069,394 | 5,084,486 |
Net Assets - Closing Balance | $ 33,301,018 | $ 33,301,018 | $ 40,293,447 |
Organization
Organization | 6 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization | 1. Organization The SPDR ® The Shares trade on the NYSE Arca, Inc. (“NYSE Arca”) under the symbol “GLD”, providing investors with an efficient means to obtain market exposure to the price of gold bullion. The Shares are eligible for margin accounts. The Shares are also listed on the Mexican Stock Exchange ( Bolsa Mexicana de Valores BNY Mellon Asset Servicing, a division of The Bank of New York Mellon (the “Trustee”) does not actively manage the gold held by the Trust. This means that the Trustee does not sell gold at times when its price is high, or acquire gold at low prices in the expectation of future price increases. It also means that the Trustee does not make use of any of the hedging techniques available to professional gold investors to attempt to reduce the risk of losses resulting from price decreases. Any losses sustained by the Trust will adversely affect the value of the Shares. The statement of financial condition and schedule of investment at March 31, 2017, the statements of operations and of cash flows for the three and six months ended March 31, 2017 and 2016 and the statement of changes in net assets for the six months ended March 31, 2017 have been prepared on behalf of the Trust without audit. In the opinion of management of the sponsor of the Trust, World Gold Trust Services, 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 and six months ended March 31, 2017 and for all periods presented have been made. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Trust’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016. The results of operations for the three and six months ended March 31, 2017 are not necessarily indicative of the operating results for the full fiscal year. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies The following is a summary of significant accounting policies followed by the Trust. 2.1. Basis of Accounting The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. 2.2. Investment Company Status The Trust is an investment company in accordance with U.S. GAAP and follows the accounting and reporting guidance according to Accounting Standards Codification (“ASC”) Topic 946. The Trust is not registered, and is not required to be registered under the Investment Company Act. 2.3. Fair Value Measurement U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investments at fair value. The Trust does not hold derivative instruments, and its assets only consist of allocated gold bullion and, from time to time, cash, which is used to pay expenses. Various inputs are used in determining the fair value of the Trust’s assets or liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3 – Inputs that are unobservable for the asset and liability, including the Trust’s assumptions used in determining the fair value of investments. The following table summarizes the Trust’s investments at fair value: (Amounts in 000’s of US$) March 31, 2017 Level 1 Level 2 Level 3 Investment in Gold $ 33,359,636 $ — $ — Total $ 33,359,636 $ — $ — September 30, 2016 Investment in Gold $ 40,357,092 $ — $ — Total $ 40,357,092 $ — $ — There were no transfers between Level 1 and other Levels for the six months ended March 31, 2017, and for the year ended September 30, 2016. The Trustee values the gold held by the Trust on the basis of the price of an ounce of gold as determined by ICE Benchmark Administration Limited (“IBA”), a benchmark administrator, which provides an independently administered auction process as well as the overall administration and governance for the LBMA Gold Price. In determining the net asset value (“NAV”) of the Trust, the Trustee values the gold held by the Trust on the basis of the price of an ounce of gold determined by the IBA 3:00 PM auction process (“LBMA Gold Price PM”), which is an electronic auction, with the imbalance calculated, and the price adjusted in rounds (45 seconds in duration). The auction runs twice daily at 10:30 AM and 3:00 PM London time. The Trustee determines the NAV of the Trust on each day the NYSE Arca is open for regular trading, at the earlier of the LBMA Gold Price PM for the day or 12:00 PM New York time. If no LBMA Gold Price is made on a particular evaluation day or if the LBMA Gold Price has not been announced by 12:00 PM New York time on a particular evaluation day, the next most recent LBMA Gold Price (AM or PM) is used in the determination of the NAV of the Trust, unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate to use as the basis for such determination. 2.4. Custody of Gold Gold is held by HSBC Bank plc (the “Custodian”) on behalf of the Trust. During the six month period ended March 31, 2017, no gold was held by a subcustodian. During the year ended September 30, 2016, the only time gold was held by a subcustodian (the Bank of England) was during the period January through March and the greatest amount of gold held during such period was approximately 29 tonnes, or approximately 3.8% of the Trust’s gold at the time. 2.5. 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 Trust’s account. Generally, the gold is transferred to the Trust’s allocated bullion account at the Custodian within three business days of the trade date. (Amounts in 000’s of US$) Mar-31, Sep-30, Gold receivable $ — $ — 2.6. Gold Payable Gold payable represents the quantity of gold covered by contractually binding orders for the redemption of Shares where the gold has not yet been transferred out of the Trust’s account. Generally, the gold is transferred from the Trust’s allocated bullion account with the Custodian within three business days of the trade date. (Amounts in 000’s of US$) Mar-31, Sep-30, Gold payable $ 47,404 $ 50,461 2.7. 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 100,000 Shares). 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 redeemable in Baskets at the option of the Authorized Participants, the Trust has classified the Shares as Net Assets as of March 31, 2017. Changes in the Shares for the six months ended March 31, 2017 and for the year ended September 30, 2016, are as follows: (All amounts are in 000’s) Six Months Ended Year Ended Activity in Number of Shares Issued and Outstanding: Creations 39,900 174,700 Redemptions (78,300 ) (86,000 ) Net change in number of Shares Issued and Outstanding (38,400 ) 88,700 (Amounts in 000’s of US$) Six Months Ended Year Ended Activity in Value of Shares Issued and Outstanding: Creations $ 4,705,042 $ 20,832,493 Redemptions (8,989,113 ) (10,102,639 ) Net change in value of Shares Issued and Outstanding ($ 4,284,071 ) $ 10,729,854 2.8. Revenue Recognition Policy The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s gold as necessary to pay the Trust’s expenses. When selling gold to pay expenses, the Trustee will endeavor to sell the smallest amount of gold needed to pay expenses in order to minimize the Trust’s holdings of assets other than gold. Unless otherwise directed by the Sponsor the Trustee will sell gold to the Custodian at the next LBMA Gold Price PM following the sale order. A gain or loss is recognized based on the difference between the selling price and the average cost of the gold sold, and such amounts are reported as net realized gain/(loss) from investment in gold sold to pay expenses on the Statement of Operations. The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the six month period ended March 31, 2017 of ($2,640,593) is made up of a realized loss of ($830) from the sale of gold to pay expenses, a realized loss of ($277,748) from gold distributed for the redemption of Shares, and a change in unrealized depreciation of ($2,362,015) on investment in gold. The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the six month period ended March 31, 2016 of $2,705,064 is made up of a realized loss of ($3,773) from the sale of gold to pay expenses, a realized loss of ($360,557) from gold distributed for the redemption of Shares, and a change in unrealized appreciation of $3,069,394 on investment in gold. 2.9. Income Taxes The Trust identifies its major tax jurisdiction as the United States. The Trust is classified as a “grantor trust” for US federal income tax purposes. As a result, the Trust itself will not be subject to US federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis. The Sponsor of the Trust has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2017 or September 30, 2016. The Sponsor evaluates tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet that threshold would be recorded as an expense in the current year. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the Internal Revenue Service. As of March 31, 2017, the 2016, 2015 and 2014 tax years remain open for examination. There are no examinations in progress at period end. |
Related Parties - Sponsor
Related Parties - Sponsor | 6 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Parties - Sponsor | 3. Related Parties – Sponsor The Trust’s only recurring expense is the Sponsor’s fee which accrues daily at an annual rate equal to 0.40% of the daily NAV, in exchange for the Sponsor assuming the responsibility to pay all ordinary fees and expenses of 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. |
Concentration of Risk
Concentration of Risk | 6 Months Ended |
Mar. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | 4. Concentration of Risk The Trust’s sole business activity is the investment in gold. Various factors could affect the price of gold including: (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, 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 effect on the Trust’s financial position and results of operations. |
Indemnification
Indemnification | 6 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Indemnification | 5. 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 their duties under the Trust Indenture without gross negligence, bad faith, willful misconduct, willful malfeasance or reckless disregard of the indemnified party’s obligations and duties under the Trust Indenture. Such indemnity includes payment from the Trust of the costs and expenses incurred in defending against any claim or liability under the Trust Indenture. Under the Trust Indenture, the Sponsor may be able to seek indemnification from the Trust for payments it makes in connection with the Sponsor’s activities under the Trust Indenture to the extent its conduct does not disqualify it from receiving such indemnification under the terms of the Trust Indenture. The Sponsor will also be indemnified from the Trust and held harmless against any loss, liability or expense arising under 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 Trust’s 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. |
Financial Highlights
Financial Highlights | 6 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Financial Highlights | 6. Financial Highlights The Trust is presenting the following financial highlights related to investment performance and operations of a Share outstanding for the three and six month period ended March 31, 2017 and 2016. The net investment loss and total expense ratios have been annualized. The total return at net asset value is based on the change in net asset value of a Share during the period and the total return at market value is based on the change in market value of a Share on the NYSE Arca during the period. An individual investor’s return and ratios may vary based on the timing of capital transactions. Three Months Three Months Six Months Six Months Net Asset Value Net asset value per Share, beginning of period $ 110.45 $ 101.62 $ 126.15 $ 106.68 Net investment income/(loss) (0.11 ) (0.11 ) (0.23 ) (0.22 ) Net realized and change in unrealized gain/ (loss) 8.17 16.72 (7.41 ) 11.77 Net Income/(Loss) 8.06 16.61 (7.64 ) 11.55 Net asset value per Share, end of period $ 118.51 $ 118.23 $ 118.51 $ 118.23 Market value per Share, beginning of period $ 109.61 $ 101.46 $ 125.64 $ 106.86 Market value per Share, end of period $ 118.72 $ 117.64 $ 118.72 $ 117.64 Ratio to average net assets Net Investment Loss(1) (0.40 %) (0.40 %) (0.40 %) (0.40 %) Gross Expenses(1) (0.40 %) (0.40 %) (0.40 %) (0.40 %) Net expenses(1) (0.40 %) (0.40 %) (0.40 %) (0.40 %) Total Return, at net asset value(2) 7.30 % 16.35 % (6.06 %) 10.83 % Total Return, at market value(2) 8.31 % 15.95 % (5.51 %) 10.09 % (1) Percentages are annualized. (2) Percentages are not annualized. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 7. Subsequent Events The Sponsor has evaluated events through the issuance of financial statements and determined that no events have occurred that require disclosure. |
Significant Accounting Polici15
Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting | 2.1. Basis of Accounting The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. |
Investment Company Status | 2.2. Investment Company Status The Trust is an investment company in accordance with U.S. GAAP and follows the accounting and reporting guidance according to Accounting Standards Codification (“ASC”) Topic 946. The Trust is not registered, and is not required to be registered under the Investment Company Act. |
Fair Value Measurement | 2.3. Fair Value Measurement U.S. GAAP defines fair value as the price the Trust would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trust’s policy is to value its investments at fair value. The Trust does not hold derivative instruments, and its assets only consist of allocated gold bullion and, from time to time, cash, which is used to pay expenses. Various inputs are used in determining the fair value of the Trust’s assets or liabilities. Inputs may be based on independent market data (“observable inputs”) or they may be internally developed (“unobservable inputs”). These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes. The level of a value determined for an asset or liability within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are as follows: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not considered to be active, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived principally from or corroborated by observable market data by correlation or other means; and Level 3 – Inputs that are unobservable for the asset and liability, including the Trust’s assumptions used in determining the fair value of investments. The following table summarizes the Trust’s investments at fair value: (Amounts in 000’s of US$) March 31, 2017 Level 1 Level 2 Level 3 Investment in Gold $ 33,359,636 $ — $ — Total $ 33,359,636 $ — $ — September 30, 2016 Investment in Gold $ 40,357,092 $ — $ — Total $ 40,357,092 $ — $ — There were no transfers between Level 1 and other Levels for the six months ended March 31, 2017, and for the year ended September 30, 2016. The Trustee values the gold held by the Trust on the basis of the price of an ounce of gold as determined by ICE Benchmark Administration Limited (“IBA”), a benchmark administrator, which provides an independently administered auction process as well as the overall administration and governance for the LBMA Gold Price. In determining the net asset value (“NAV”) of the Trust, the Trustee values the gold held by the Trust on the basis of the price of an ounce of gold determined by the IBA 3:00 PM auction process (“LBMA Gold Price PM”), which is an electronic auction, with the imbalance calculated, and the price adjusted in rounds (45 seconds in duration). The auction runs twice daily at 10:30 AM and 3:00 PM London time. The Trustee determines the NAV of the Trust on each day the NYSE Arca is open for regular trading, at the earlier of the LBMA Gold Price PM for the day or 12:00 PM New York time. If no LBMA Gold Price is made on a particular evaluation day or if the LBMA Gold Price has not been announced by 12:00 PM New York time on a particular evaluation day, the next most recent LBMA Gold Price (AM or PM) is used in the determination of the NAV of the Trust, unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate to use as the basis for such determination. |
Custody of Gold | 2.4. Custody of Gold Gold is held by HSBC Bank plc (the “Custodian”) on behalf of the Trust. During the six month period ended March 31, 2017, no gold was held by a subcustodian. During the year ended September 30, 2016, the only time gold was held by a subcustodian (the Bank of England) was during the period January through March and the greatest amount of gold held during such period was approximately 29 tonnes, or approximately 3.8% of the Trust’s gold at the time. |
Gold Receivable | 2.5. 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 Trust’s account. Generally, the gold is transferred to the Trust’s allocated bullion account at the Custodian within three business days of the trade date. (Amounts in 000’s of US$) Mar-31, Sep-30, Gold receivable $ — $ — |
Gold Payable | 2.6. Gold Payable Gold payable represents the quantity of gold covered by contractually binding orders for the redemption of Shares where the gold has not yet been transferred out of the Trust’s account. Generally, the gold is transferred from the Trust’s allocated bullion account with the Custodian within three business days of the trade date. (Amounts in 000’s of US$) Mar-31, Sep-30, Gold payable $ 47,404 $ 50,461 |
Creations and Redemptions of Shares | 2.7. 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 100,000 Shares). 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 redeemable in Baskets at the option of the Authorized Participants, the Trust has classified the Shares as Net Assets as of March 31, 2017. Changes in the Shares for the six months ended March 31, 2017 and for the year ended September 30, 2016, are as follows: (All amounts are in 000’s) Six Months Ended Year Ended Activity in Number of Shares Issued and Outstanding: Creations 39,900 174,700 Redemptions (78,300 ) (86,000 ) Net change in number of Shares Issued and Outstanding (38,400 ) 88,700 (Amounts in 000’s of US$) Six Months Ended Year Ended Activity in Value of Shares Issued and Outstanding: Creations $ 4,705,042 $ 20,832,493 Redemptions (8,989,113 ) (10,102,639 ) Net change in value of Shares Issued and Outstanding ($ 4,284,071 ) $ 10,729,854 |
Revenue Recognition Policy | 2.8. Revenue Recognition Policy The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s gold as necessary to pay the Trust’s expenses. When selling gold to pay expenses, the Trustee will endeavor to sell the smallest amount of gold needed to pay expenses in order to minimize the Trust’s holdings of assets other than gold. Unless otherwise directed by the Sponsor the Trustee will sell gold to the Custodian at the next LBMA Gold Price PM following the sale order. A gain or loss is recognized based on the difference between the selling price and the average cost of the gold sold, and such amounts are reported as net realized gain/(loss) from investment in gold sold to pay expenses on the Statement of Operations. The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the six month period ended March 31, 2017 of ($2,640,593) is made up of a realized loss of ($830) from the sale of gold to pay expenses, a realized loss of ($277,748) from gold distributed for the redemption of Shares, and a change in unrealized depreciation of ($2,362,015) on investment in gold. The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the six month period ended March 31, 2016 of $2,705,064 is made up of a realized loss of ($3,773) from the sale of gold to pay expenses, a realized loss of ($360,557) from gold distributed for the redemption of Shares, and a change in unrealized appreciation of $3,069,394 on investment in gold. |
Income Taxes | 2.9. Income Taxes The Trust identifies its major tax jurisdiction as the United States. The Trust is classified as a “grantor trust” for US federal income tax purposes. As a result, the Trust itself will not be subject to US federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis. The Sponsor of the Trust has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2017 or September 30, 2016. The Sponsor evaluates tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet that threshold would be recorded as an expense in the current year. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the Internal Revenue Service. As of March 31, 2017, the 2016, 2015 and 2014 tax years remain open for examination. There are no examinations in progress at period end. |
Significant Accounting Polici16
Significant Accounting Policies (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Trust's Investments at Fair Value | The following table summarizes the Trust’s investments at fair value: (Amounts in 000’s of US$) March 31, 2017 Level 1 Level 2 Level 3 Investment in Gold $ 33,359,636 $ — $ — Total $ 33,359,636 $ — $ — September 30, 2016 Investment in Gold $ 40,357,092 $ — $ — Total $ 40,357,092 $ — $ — |
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 Trust’s account. Generally, the gold is transferred to the Trust’s allocated bullion account at the Custodian within three business days of the trade date. (Amounts in 000’s of US$) Mar-31, Sep-30, Gold receivable $ — $ — |
Gold Payable | Gold payable represents the quantity of gold covered by contractually binding orders for the redemption of Shares where the gold has not yet been transferred out of the Trust’s account. Generally, the gold is transferred from the Trust’s allocated bullion account with the Custodian within three business days of the trade date. (Amounts in 000’s of US$) Mar-31, Sep-30, Gold payable $ 47,404 $ 50,461 |
Creations and Redemptions of Shares | Changes in the Shares for the six months ended March 31, 2017 and for the year ended September 30, 2016, are as follows: (All amounts are in 000’s) Six Months Ended Year Ended Activity in Number of Shares Issued and Outstanding: Creations 39,900 174,700 Redemptions (78,300 ) (86,000 ) Net change in number of Shares Issued and Outstanding (38,400 ) 88,700 (Amounts in 000’s of US$) Six Months Ended Year Ended Activity in Value of Shares Issued and Outstanding: Creations $ 4,705,042 $ 20,832,493 Redemptions (8,989,113 ) (10,102,639 ) Net change in value of Shares Issued and Outstanding ($ 4,284,071 ) $ 10,729,854 |
Financial Highlights (Tables)
Financial Highlights (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Text Block [Abstract] | |
Summary of Financial Highlights | The Trust is presenting the following financial highlights related to investment performance and operations of a Share outstanding for the three and six month period ended March 31, 2017 and 2016. The net investment loss and total expense ratios have been annualized. The total return at net asset value is based on the change in net asset value of a Share during the period and the total return at market value is based on the change in market value of a Share on the NYSE Arca during the period. An individual investor’s return and ratios may vary based on the timing of capital transactions. Three Months Three Months Six Months Six Months Net Asset Value Net asset value per Share, beginning of period $ 110.45 $ 101.62 $ 126.15 $ 106.68 Net investment income/(loss) (0.11 ) (0.11 ) (0.23 ) (0.22 ) Net realized and change in unrealized gain/ (loss) 8.17 16.72 (7.41 ) 11.77 Net Income/(Loss) 8.06 16.61 (7.64 ) 11.55 Net asset value per Share, end of period $ 118.51 $ 118.23 $ 118.51 $ 118.23 Market value per Share, beginning of period $ 109.61 $ 101.46 $ 125.64 $ 106.86 Market value per Share, end of period $ 118.72 $ 117.64 $ 118.72 $ 117.64 Ratio to average net assets Net Investment Loss(1) (0.40 %) (0.40 %) (0.40 %) (0.40 %) Gross Expenses(1) (0.40 %) (0.40 %) (0.40 %) (0.40 %) Net expenses(1) (0.40 %) (0.40 %) (0.40 %) (0.40 %) Total Return, at net asset value(2) 7.30 % 16.35 % (6.06 %) 10.83 % Total Return, at market value(2) 8.31 % 15.95 % (5.51 %) 10.09 % (1) Percentages are annualized. (2) Percentages are not annualized. |
Organization - Additional Infor
Organization - Additional Information (Detail) | 6 Months Ended |
Mar. 31, 2017shares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Formation date | Nov. 12, 2004 |
Minimum denomination of shares issued redeemed against gold | 100,000 |
Significant Accounting Polici19
Significant Accounting Policies - Summary of Trust's Investments at Fair Value (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Investment Holdings [Line Items] | ||
Investment in Gold | $ 33,359,636 | $ 40,357,092 |
Level 1 [Member] | ||
Investment Holdings [Line Items] | ||
Investment in Gold | 33,359,636 | 40,357,092 |
Level 1 [Member] | Investment in Gold [Member] | ||
Investment Holdings [Line Items] | ||
Investment in Gold | 33,359,636 | 40,357,092 |
Level 2 [Member] | ||
Investment Holdings [Line Items] | ||
Investment in Gold | 0 | 0 |
Level 2 [Member] | Investment in Gold [Member] | ||
Investment Holdings [Line Items] | ||
Investment in Gold | 0 | 0 |
Level 3 [Member] | ||
Investment Holdings [Line Items] | ||
Investment in Gold | 0 | 0 |
Level 3 [Member] | Investment in Gold [Member] | ||
Investment Holdings [Line Items] | ||
Investment in Gold | $ 0 | $ 0 |
Significant Accounting Polici20
Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)tshares | Mar. 31, 2016USD ($) | Sep. 30, 2016USD ($) | |
Schedule Of Significant Accounting Policies [Line Items] | |||||
Fair value of assets and liabilities, amount transferred between levels | $ 0 | $ 0 | |||
Maximum number of business days within which gold is transferred from the Trust's allocated bullion account with the Custodian | 3 days | ||||
Minimum denomination of shares issued redeemed against gold | shares | 100,000 | ||||
Net realized and change in unrealized gain/(loss) on investment in gold | $ 2,244,786,000 | $ 3,824,259,000 | $ (2,640,593,000) | $ 2,705,064,000 | |
Net realized gain/(loss) from investment in gold sold to pay expenses | (898,000) | (953,000) | (830,000) | (3,773,000) | 614,000 |
Net realized gain/(loss) from gold distributed for the redemption of shares | (71,852,000) | 1,927,000 | (277,748,000) | (360,557,000) | (6,601,000) |
Net change in unrealized appreciation/(depreciation) on investment in gold | 2,317,536,000 | $ 3,823,285,000 | (2,362,015,000) | $ 3,069,394,000 | 5,084,486,000 |
Liability for uncertain tax positions - current | $ 0 | $ 0 | $ 0 | ||
Bank of England [Member] | |||||
Schedule Of Significant Accounting Policies [Line Items] | |||||
Gold held by subcustodian | t | 29 | ||||
Percentage of gold held by subcustodian | 3.80% |
Significant Accounting Polici21
Significant Accounting Policies - Gold Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Gold Receivable | ||
Gold receivable | $ 0 | $ 0 |
Significant Accounting Polici22
Significant Accounting Policies - Gold Payable (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Gold Payable | ||
Gold payable | $ 47,404 | $ 50,461 |
Significant Accounting Polici23
Significant Accounting Policies - Creations and Redemptions of Shares (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Sep. 30, 2016 | |
Activity in Number of Shares Issued and Outstanding: | ||
Creations | 39,900,000 | 174,700,000 |
Redemptions | (78,300,000) | (86,000,000) |
Net change in number of Shares Issued and Outstanding | (38,400,000) | 88,700,000 |
Activity in Value of Shares Issued and Outstanding: | ||
Creations | $ 4,705,042 | $ 20,832,493 |
Redemptions | (8,989,113) | (10,102,639) |
Net change in value of Shares Issued and Outstanding | $ (4,284,071) | $ 10,729,854 |
Related Parties - Sponsor - Add
Related Parties - Sponsor - Additional Information (Detail) | 6 Months Ended |
Mar. 31, 2017 | |
Sponsor [Member] | |
Related Party Transaction [Line Items] | |
Related party fees payable at annual rate | 0.40% |
Financial Highlights - Summary
Financial Highlights - Summary of Financial Highlights (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Net Asset Value | ||||
Net asset value per Share, beginning of period | $ 110.45 | $ 101.62 | $ 126.15 | $ 106.68 |
Net investment income/(loss) | (0.11) | (0.11) | (0.23) | (0.22) |
Net realized and change in unrealized gain/ (loss) | 8.17 | 16.72 | (7.41) | 11.77 |
Net Income/(Loss) | 8.06 | 16.61 | (7.64) | 11.55 |
Net asset value per Share, end of period | 118.51 | 118.23 | 118.51 | 118.23 |
Market value per Share, beginning of period | 109.61 | 101.46 | 125.64 | 106.86 |
Market value per Share, end of period | $ 118.72 | $ 117.64 | $ 118.72 | $ 117.64 |
Ratio to average net assets | ||||
Net Investment Loss | (0.40%) | (0.40%) | (0.40%) | (0.40%) |
Gross Expenses | (0.40%) | (0.40%) | (0.40%) | (0.40%) |
Net expenses | (0.40%) | (0.40%) | (0.40%) | (0.40%) |
Total Return, at net asset value | 7.30% | 16.35% | (6.06%) | 10.83% |
Total Return, at market value | 8.31% | 15.95% | (5.51%) | 10.09% |