Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Document and Entity Information [Abstract] | ||
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001222333 | |
Current Fiscal Year End Date | --09-30 | |
Document Period End Date | Jun. 30, 2019 | |
Trading Symbol | GLD | |
Entity Registrant Name | SPDR GOLD TRUST | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 284,600,000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-32356 | |
Entity Tax Identification Number | 81-6124035 | |
Entity Current Reporting Status | Yes | |
Entity Address, Address Line One | c/o World Gold Trust Services, LLC | |
Entity Address, Address Line Two | 685 Third Ave. 27th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10017 | |
City Area Code | 212 | |
Local Phone Number | 317-3800 | |
Security Exchange Name | NYSEArca | |
Title of 12(b) Security | SPDR® Gold Trust | |
Entity Incorporation, State or Country Code | NY |
Statements of Financial Conditi
Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | |
ASSETS | |||
Investment in Gold, at fair value (cost $32,544,266 and $30,017,229 at June 30, 2019 and September 30, 2018, respectively) | $ 36,143,319 | $ 28,331,953 | |
Total Assets | 36,143,319 | 28,331,953 | |
LIABILITIES | |||
Accounts payable to Sponsor | 11,062 | 9,434 | |
Gold payable | 172,823 | 0 | |
Total Liabilities | 183,885 | 9,434 | |
Net Assets | $ 35,959,434 | $ 28,322,519 | |
Shares issued | [1] | 270,500,000 | 252,100,000 |
Shares outstanding | [1] | 270,500,000 | 252,100,000 |
Net asset value per Share | $ 132.94 | $ 112.35 | |
[1] | Authorized share capital is unlimited and the par value of the Shares is $0.00. |
Statements of Financial Condi_2
Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Investment in Gold, at cost | $ 32,544,266 | $ 30,017,229 |
Common stock, par value | $ 0 | $ 0 |
Investment in Gold [Member] | ||
Investment in Gold, at cost | $ 32,544,266 | $ 30,017,229 |
Schedules of Investment
Schedules of Investment $ in Thousands | Jun. 30, 2019USD ($)oz | Sep. 30, 2018USD ($)oz |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Total Investment, % of Net Assets | 100.51% | 100.03% |
Liabilities in excess of other assets | (0.51%) | (0.03%) |
Net Assets, % of Net Assets | 100.00% | 100.00% |
Total Investment, Fair Value | $ 36,143,319 | $ 28,331,953 |
Liabilities in excess of other assets | (183,885) | (9,434) |
Net Assets, Fair Value | 35,959,434 | 28,322,519 |
Total Investment, Cost | $ 32,544,266 | $ 30,017,229 |
Investment in Gold [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Total Investment, % of Net Assets | 100.51% | 100.03% |
Total Investment, Fair Value | $ 36,143,319 | $ 28,331,953 |
Total Investment, Ounces of gold | oz | 25,651,800 | 23,863,500 |
Total Investment, Cost | $ 32,544,266 | $ 30,017,229 |
Unaudited Statements of Operati
Unaudited Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
EXPENSES | ||||
Sponsor fees | $ 31,689 | $ 35,604 | $ 94,602 | $ 105,825 |
Total expenses | 31,689 | 35,604 | 94,602 | 105,825 |
Net investment loss | (31,689) | (35,604) | (94,602) | (105,825) |
Net realized and change in unrealized gain/(loss) on investment in gold | ||||
Net realized gain/(loss) from investment in gold sold to pay expenses | 930 | 1,533 | 1,199 | 4,041 |
Net realized gain/(loss) from gold distributed for the redemption of shares | 98,484 | 74,938 | 181,451 | 262,015 |
Net change in unrealized appreciation/(depreciation) on investment in gold | 2,677,530 | (2,061,214) | 5,284,329 | (1,154,045) |
Net realized and change in unrealized gain/(loss) on investment in gold | 2,776,944 | (1,984,743) | 5,466,979 | (887,989) |
Net income/(loss) | $ 2,745,255 | $ (2,020,347) | $ 5,372,377 | $ (993,814) |
Net income/(loss) per share | $ 10.68 | $ (7.01) | $ 20.56 | $ (3.48) |
Weighted average number of shares (in 000's) | 257,056 | 288,154 | 261,302 | 285,990 |
Unaudited Statements of Cash Fl
Unaudited Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
INCREASE/DECREASE IN CASH FROM OPERATIONS: | ||||
Proceeds received from sales of gold | $ 31,644 | $ 36,527 | $ 92,974 | $ 106,312 |
Expenses paid | (31,644) | (36,527) | (92,974) | (106,312) |
Increase/(Decrease) 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 | 3,563,070 | 1,514,314 | 9,590,263 | 5,518,134 |
Value of gold distributed for redemption of shares-net of gold payable | 2,828,224 | 2,471,992 | 7,152,902 | 7,158,579 |
RECONCILIATION OF NET INCOME/(LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES | ||||
Net income/(loss) | 2,745,255 | (2,020,347) | 5,372,377 | (993,814) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities | ||||
Proceeds from sales of gold to pay expenses | 31,644 | 36,527 | 92,974 | 106,312 |
Net realized (gain)/loss from investment in gold sold to pay expenses | (930) | (1,533) | (1,199) | (4,041) |
Net realized (gain)/loss from gold distributed for the redemption of shares | (98,484) | (74,938) | (181,451) | (262,015) |
Net change in unrealized (appreciation)/depreciation on investment in gold | (2,677,530) | 2,061,214 | (5,284,329) | 1,154,045 |
Increase/(Decrease) in accounts payable to Sponsor | 45 | (923) | 1,628 | (487) |
Net cash provided by operating activities | $ 0 | $ 0 | $ 0 | $ 0 |
Unaudited Statements of Changes
Unaudited Statements of Changes in Net Assets - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Partners' Capital [Abstract] | ||||
Net Assets - Opening Balance | $ 32,652,157 | $ 36,001,272 | $ 28,322,519 | $ 35,657,505 |
Creations | 3,563,070 | 1,514,314 | 9,590,263 | 5,518,134 |
Redemptions | (3,001,048) | (2,578,597) | (7,325,725) | (7,265,183) |
Net investment loss | (31,689) | (35,604) | (94,602) | (105,825) |
Net realized gain/(loss) from investment in gold sold to pay expenses | 930 | 1,533 | 1,199 | 4,041 |
Net realized gain/(loss) from gold distributed for the redemption of shares | 98,484 | 74,938 | 181,451 | 262,015 |
Net change in unrealized appreciation/(depreciation) on investment in gold | 2,677,530 | (2,061,214) | 5,284,329 | (1,154,045) |
Net Assets - Closing Balance | $ 35,959,434 | $ 32,916,642 | $ 35,959,434 | $ 32,916,642 |
Organization
Organization | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization | Notes to the Unaudited Financial Statements 1. Organization The SPDR ® November 12, 2004 September 30 th 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 also listed on the Hong Kong Exchanges and Clearing Limited, the Mexican Stock Exchange (Bolsa Mexicana de Valores), the Singapore Exchange Limited, and the Tokyo Stock Exchange. 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 June 30, 2019, and the statements of operations, changes in net assets and cash flows for the three and nine months ended June 30, 2019 and 2018 have been prepared on behalf of the Trust without audit. In the opinion of management of the Sponsor of the Trust, 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 nine months ended June 30, 2019 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 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2019 | |
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 (“U.S. GAAP”) 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. Basis of Accounting The Trust is an investment company and, therefore, applies the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. 2.2. Fair Value Measurement FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value adjustments. The Trust does not hold any derivative instruments, and its assets only consist of allocated gold bullion and, from time to time, (i) gold receivable, representing gold covered by contractually binding orders for the creation of Shares where the gold has not yet been transferred to the Trust’s account and (ii) cash, which is used to pay expenses. 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. Various inputs are used in determining the fair value of assets and 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 or 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$) June 30, 2019 Level 1 Level 2 Level 3 Investment in Gold $ 36,143,319 $ — $ — Total $ 36,143,319 $ — $ — (Amounts in 000’s of US$) September 30, 2018 Level 1 Level 2 Level 3 Investment in Gold $ 28,331,953 $ — $ — Total $ 28,331,953 $ — $ — There were no transfers between Level 1 and other Levels for the period ended June 30, 2019 or for the year ended September 30, 2018. The Trustee values the gold held by the Trust on the basis of the price of an ounce of gold as determined by the 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 London Bullion Market Association (“LBMA”). 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 (30 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 a price is inappropriate to use as the basis for such determination. 2.3. Custody of Gold Gold is held by HSBC Bank plc, on behalf of the Trust. During the year ended September 30, 2018 and the nine months ended June 30, 2019, no gold was held by a subcustodian. 2.4. 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, ownership of the gold is transferred within two (Amounts in 000’s of US$) Jun-30 Sep-30, Gold receivable $ — $ — 2.5. 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, ownership of the gold is transferred within two (Amounts in 000’s of US$) Jun-30 Sep-30, Gold payable $ 172,823 $ — 2.6. 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 for financial reporting purposes. Activity in the number of Shares created and redeemed for the nine months ended June 30, 2019 and June 30, 2018 are as follows: Nine Months Jun-30 Nine Months Jun-30 (All amounts are in 000’s) 2019 2018 Activity in Number of Shares Created and Redeemed: Creations 78,500 44,300 Redemptions (60,100 ) (58,900 ) Net Change in Number of Shares Created and Redeemed 18,400 (14,600 ) Nine Months Jun-30 Nine Months Jun-30 (Amounts in 000’s of US$) 2019 2018 Activity in Value of Shares Created and Redeemed: Creations $ 9,590,263 $ 5,518,134 Redemptions (7,325,725 ) (7,265,183 ) Net Change in Value of Shares Created and Redeemed $ 2,264,538 $ (1,747,049 ) 2.7. Income and Expense (Amounts in 000’s of US$) 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 nine months ended June 30, 2019 of $5,466,979 is made up of a realized gain of $1,199 from the sale of gold to pay expenses, a realized gain of $181,451 from gold distributed for the redemption of Shares, and a change in unrealized appreciation of $5,284,329 on investment in gold. The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the nine months ended June 30, 2018 of ($887,989) is made up of a realized gain of $4,014 from the sale of gold to pay expenses, a realized gain of $262,015 from gold distributed for the redemption of Shares, and a change in unrealized depreciation of ($1,154,045) on investment in gold. 2.8. Income Taxes The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. 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 The Sponsor evaluates tax positions taken or expected to be taken in the course of its tax treatment, and its tax reporting to its shareholders, of these positions 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 relevant income taxing authority. As of June , , the , , and tax years remain open for examination. There are no examinations in progress at period end. 2.9. New Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update 2018-13, 2018-13”). 2018-13 |
Related Parties - Sponsor and T
Related Parties - Sponsor and Trustee | 9 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Parties - Sponsor and Trustee | 3. Related Parties – Sponsor and Trustee The Trust’s only recurring fixed 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 | 9 Months Ended |
Jun. 30, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | 4. Concentration of Risk The Trust’s sole business activity is the investment of gold. Several factors could affect the price of gold including: (i) global supply and demand, which is influenced by such factors as gold’s uses in jewelry, technology and industrial applications, purchases made by investors in the form of bars, coins and other gold products, 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, 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; (vi) other economic variables such as income growth, economic output, and monetary policies; and (vii) global or regional political, economic or financial events and situations, especially those that are unexpected in nature. In addition, while gold is used to preserve wealth by investors around the world, 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 | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Indemnification | 5. Indemnification The Sponsor, and its shareholders, members, directors, officers, employees, affiliates and subsidiaries, are indemnified by 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 by 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 by 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 is also indemnified by the Trust and held harmless against any loss, liability or expense arising under the Amended and Restated Marketing Agent Agreement between the Sponsor and the Marketing Agent effective July 17, 2015, as amended, 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’s assets. 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 | 9 Months Ended |
Jun. 30, 2019 | |
Investment Company [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 nine month period ended June 30, 2019 and 2018, respectively. 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 Nine Months Nine Months Ended Jun-30 Jun-30 Jun-30 Jun-30 Net Asset Value Net asset value per Share, beginning of period $ 122.34 $ 125.53 $ 112.35 $ 121.91 Net investment income/(loss) (0.12 ) (0.12 ) (0.36 ) (0.37 ) Net Realized and Change in Unrealized Gain/(Loss) 10.72 (6.96 ) 20.95 (3.09 ) Net Income/(Loss) 10.60 (7.08 ) 20.59 (3.46 ) Net asset value per Share, end of period $ 132.94 $ 118.45 $ 132.94 $ 118.45 Market value per Share, beginning of period $ 122.01 $ 125.79 $ 112.76 $ 121.58 Market value per Share, end of period $ 133.20 $ 118.65 $ 133.20 $ 118.65 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) 8.66 % (5.64 )% 18.33 % (2.84 )% Total Return, at market value (2) 9.17 % (5.68 )% 18.13 % (2.41 )% (1) Percentages are annualized. (2) Percentages are not annualized. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | 2.1. Basis of Accounting The Trust is an investment company and, therefore, applies the specialized accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 Financial Services—Investment Companies. |
Fair Value Measurement | 2.2. Fair Value Measurement FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value adjustments. The Trust does not hold any derivative instruments, and its assets only consist of allocated gold bullion and, from time to time, (i) gold receivable, representing gold covered by contractually binding orders for the creation of Shares where the gold has not yet been transferred to the Trust’s account and (ii) cash, which is used to pay expenses. 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. Various inputs are used in determining the fair value of assets and 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 or 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$) June 30, 2019 Level 1 Level 2 Level 3 Investment in Gold $ 36,143,319 $ — $ — Total $ 36,143,319 $ — $ — (Amounts in 000’s of US$) September 30, 2018 Level 1 Level 2 Level 3 Investment in Gold $ 28,331,953 $ — $ — Total $ 28,331,953 $ — $ — There were no transfers between Level 1 and other Levels for the period ended June 30, 2019 or for the year ended September 30, 2018. The Trustee values the gold held by the Trust on the basis of the price of an ounce of gold as determined by the 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 London Bullion Market Association (“LBMA”). In determining the net asset value (“NAV”) of the Trust, the Trustee values the gold held |
Custody of Gold | 2.3. Custody of Gold Gold is held by HSBC Bank plc, on behalf of the Trust. During the year ended September 30, 2018 and the nine months ended June 30, 2019, no gold was held by a subcustodian. |
Gold Receivable | 2.4. 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, ownership of the gold is transferred within two (Amounts in 000’s of US$) Jun-30 Sep-30, Gold receivable $ — $ — |
Gold Payable | 2.5. 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, ownership of the gold is transferred within two (Amounts in 000’s of US$) Jun-30 Sep-30, Gold payable $ 172,823 $ — |
Creations and Redemptions of Shares | 2.6. 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 for financial reporting purposes. Activity in the number of Shares created and redeemed for the nine months ended June 30, 2019 and June 30, 2018 are as follows: Nine Months Jun-30 Nine Months Jun-30 (All amounts are in 000’s) 2019 2018 Activity in Number of Shares Created and Redeemed: Creations 78,500 44,300 Redemptions (60,100 ) (58,900 ) Net Change in Number of Shares Created and Redeemed 18,400 (14,600 ) Nine Months Jun-30 Nine Months Jun-30 (Amounts in 000’s of US$) 2019 2018 Activity in Value of Shares Created and Redeemed: Creations $ 9,590,263 $ 5,518,134 Redemptions (7,325,725 ) (7,265,183 ) Net Change in Value of Shares Created and Redeemed $ 2,264,538 $ (1,747,049 ) |
Income and Expense | 2.7. Income and Expense (Amounts in 000’s of US$) 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 nine months ended June 30, 2019 of $5,466,979 is made up of a realized gain of $1,199 from the sale of gold to pay expenses, a realized gain of $181,451 from gold distributed for the redemption of Shares, and a change in unrealized appreciation of $5,284,329 on investment in gold. The Trust’s net realized and change in unrealized gain/(loss) on investment in gold for the nine months ended June 30, 2018 of ($887,989) is made up of a realized gain of $4,014 from the sale of gold to pay expenses, a realized gain of $262,015 from gold distributed for the redemption of Shares, and a change in unrealized depreciation of ($1,154,045) on investment in gold. |
Income Taxes | 2.8. Income Taxes The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis. The Sponsor of the Trust has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no The Sponsor evaluates tax positions taken or expected to be taken in the course of its tax treatment, and its tax reporting to its shareholders, of these positions to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet that threshold would be recorded as an expense in the current year. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of June , , the , , and tax years remain open for examination. There are no examinations in progress at period end. |
New Accounting Pronouncements | 2.9. New Accounting Pronouncements In August 2018, the FASB issued Accounting Standards Update 2018-13, 2018-13”). 2018-13 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Trust's Investments at Fair Value | The following table summarizes the Trust’s investments at fair value: (Amounts in 000’s of US$) June 30, 2019 Level 1 Level 2 Level 3 Investment in Gold $ 36,143,319 $ — $ — Total $ 36,143,319 $ — $ — (Amounts in 000’s of US$) September 30, 2018 Level 1 Level 2 Level 3 Investment in Gold $ 28,331,953 $ — $ — Total $ 28,331,953 $ — $ — |
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, ownership of the gold is transferred within two (Amounts in 000’s of US$) Jun-30 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, ownership of the gold is transferred within two (Amounts in 000’s of US$) Jun-30 Sep-30, Gold payable $ 172,823 $ — |
Creations and Redemptions of Shares | Activity in the number of Shares created and redeemed for the nine months ended June 30, 2019 and June 30, 2018 are as follows: Nine Months Jun-30 Nine Months Jun-30 (All amounts are in 000’s) 2019 2018 Activity in Number of Shares Created and Redeemed: Creations 78,500 44,300 Redemptions (60,100 ) (58,900 ) Net Change in Number of Shares Created and Redeemed 18,400 (14,600 ) Nine Months Jun-30 Nine Months Jun-30 (Amounts in 000’s of US$) 2019 2018 Activity in Value of Shares Created and Redeemed: Creations $ 9,590,263 $ 5,518,134 Redemptions (7,325,725 ) (7,265,183 ) Net Change in Value of Shares Created and Redeemed $ 2,264,538 $ (1,747,049 ) |
Financial Highlights (Tables)
Financial Highlights (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Investment Company [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 nine month period ended June 30, 2019 and 2018, respectively. 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 Nine Months Nine Months Ended Jun-30 Jun-30 Jun-30 Jun-30 Net Asset Value Net asset value per Share, beginning of period $ 122.34 $ 125.53 $ 112.35 $ 121.91 Net investment income/(loss) (0.12 ) (0.12 ) (0.36 ) (0.37 ) Net Realized and Change in Unrealized Gain/(Loss) 10.72 (6.96 ) 20.95 (3.09 ) Net Income/(Loss) 10.60 (7.08 ) 20.59 (3.46 ) Net asset value per Share, end of period $ 132.94 $ 118.45 $ 132.94 $ 118.45 Market value per Share, beginning of period $ 122.01 $ 125.79 $ 112.76 $ 121.58 Market value per Share, end of period $ 133.20 $ 118.65 $ 133.20 $ 118.65 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) 8.66 % (5.64 )% 18.33 % (2.84 )% Total Return, at market value (2) 9.17 % (5.68 )% 18.13 % (2.41 )% (1) Percentages are annualized. (2) Percentages are not annualized. |
Organization - Additional Infor
Organization - Additional Information (Detail) | 9 Months Ended |
Jun. 30, 2019shares | |
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 Polici_4
Significant Accounting Policies - Summary of Trust's Investments at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Investment Holdings [Line Items] | ||
Investment in Gold | $ 36,143,319 | $ 28,331,953 |
Level 1 [Member] | ||
Investment Holdings [Line Items] | ||
Investment in Gold | 36,143,319 | 28,331,953 |
Level 1 [Member] | Investment in Gold [Member] | ||
Investment Holdings [Line Items] | ||
Investment in Gold | 36,143,319 | 28,331,953 |
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 Polici_5
Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)tshares | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($)t | |
Accounting Policies [Abstract] | |||||
Fair value of assets and liabilities, amount transferred between levels | $ 0 | $ 0 | |||
Gold held by subcustodian | t | 0 | 0 | |||
Maximum number of business days within which ownership of the gold is transferred | 2 days | ||||
Minimum denomination of shares issued redeemed against gold | shares | 100,000 | ||||
Net realized and change in unrealized gain/(loss) on investment in gold | $ 2,776,944,000 | $ (1,984,743,000) | $ 5,466,979,000 | $ (887,989,000) | |
Net realized gain/(loss) from investment in gold sold to pay expenses | 930,000 | 1,533,000 | 1,199,000 | 4,041,000 | |
Net realized gain/(loss) from gold distributed for the redemption of shares | 98,484,000 | 74,938,000 | 181,451,000 | 262,015,000 | |
Net change in unrealized appreciation/(depreciation) on investment in gold | 2,677,530,000 | $ (2,061,214,000) | 5,284,329,000 | $ (1,154,045,000) | |
Liability for uncertain tax positions - current | $ 0 | $ 0 | $ 0 |
Significant Accounting Polici_6
Significant Accounting Policies - Gold Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Gold Receivable [Abstract] | ||
Gold receivable | $ 0 | $ 0 |
Significant Accounting Polici_7
Significant Accounting Policies - Gold Payable (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Gold Payable | ||
Gold payable | $ 172,823 | $ 0 |
Significant Accounting Polici_8
Significant Accounting Policies - Creations and Redemptions of Shares (Detail) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Activity in Number of Shares Created and Redeemed: | ||||
Creations | 78,500 | 44,300 | ||
Redemptions | (60,100) | (58,900) | ||
Net Change in Number of Shares Created and Redeemed | 18,400 | (14,600) | ||
Activity in Value of Shares Created and Redeemed: | ||||
Creations | $ 3,563,070 | $ 1,514,314 | $ 9,590,263 | $ 5,518,134 |
Redemptions | $ (3,001,048) | $ (2,578,597) | (7,325,725) | (7,265,183) |
Net Change in Value of Shares Created and Redeemed | $ 2,264,538 | $ (1,747,049) |
Related Parties - Sponsor and_2
Related Parties - Sponsor and Trustee - Additional Information (Detail) | 9 Months Ended |
Jun. 30, 2019 | |
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 | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Net Asset Value | |||||
Net asset value per Share, beginning of period | $ 122.34 | $ 125.53 | $ 112.35 | $ 121.91 | |
Net investment income/(loss) | (0.12) | (0.12) | (0.36) | (0.37) | |
Net Realized and Change in Unrealized Gain (Loss) | 10.72 | (6.96) | 20.95 | (3.09) | |
Net Income/(Loss) | 10.60 | (7.08) | 20.59 | (3.46) | |
Net asset value per Share, end of period | 132.94 | 118.45 | 132.94 | 118.45 | |
Market value per Share, beginning of period | 122.01 | 125.79 | 112.76 | 121.58 | |
Market value per Share, end of period | $ 133.20 | $ 118.65 | $ 133.20 | $ 118.65 | |
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] | 8.66% | (5.64%) | 18.33% | (2.84%) |
Total Return, at market value | [2] | 9.17% | (5.68%) | 18.13% | (2.41%) |
[1] | Percentages are annualized. | ||||
[2] | Percentages are not annualized. |