| Significant Accounting Policies | 2. Significant
Accounting Policies The
preparation of financial statements in accordance with 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
Sponsor has determined that the Trust falls within the scope of Financial Accounting Standards Board (“FASB”) Accounting
Standards Codification (“ASC”) 946, Financial Services—Investment Companies 2.2. Valuation
of Gold The
Trust follows the provisions of ASC 820, Fair Value Measurement The
Trust’s gold is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London,
England and Zurich, Switzerland vaulting premises and may also be held at the Zurich, Switzerland vaulting premises of UBS AG,
or any other firm selected by the Custodian, to hold the Trust’s gold in the Trust’s allocated account in the firm’s vault premises
on a segregated basis. Effective as of the close of business June 20, 2019, the Sponsor approved the addition of London,
England as a location where the Custodian may custody allocated gold bullion deposited with and held by the Trust. At December
31, 2023, none The
Trust’s gold is recorded at fair value. The cost of gold is determined according to the average cost method and the fair value
is based on the London Bullion Market Association (“LBMA”) PM Gold Price. Realized gains and losses on transfers of
gold, or gold distributed for the redemption of Shares, are calculated on a trade date basis as the difference between the fair
value and average cost of gold transferred. The
LBMA PM Gold Price is set using the afternoon session of the ICE Benchmark Administration (“IBA”) equilibrium
auction, an electronic, tradable and auditable over-the-counter auction market with the ability to participate in US Dollars,
Euros or British Pounds for LBMA-authorized participating gold bullion banks or market makers that establishes a reference
gold price for that day’s trading. Once
the value of gold has been determined, the net asset value (the “NAV”) is computed by the Trustee by deducting
all accrued fees, expenses and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s
Fee”), from the fair value of the gold and all other assets held by the Trust. The
Trust recognizes changes in fair value of the investment in gold as changes in unrealized gains or losses on investment in gold
through the Statement of Operations. The
per Share amount of gold exchanged for a purchase or redemption is calculated daily by the Trustee using the LBMA PM Gold
Price to calculate the gold amount in respect of any liabilities for which covering gold sales have not yet been made,
and represents the per Share amount of gold held by the Trust, after giving effect to its liabilities, to cover expenses
and liabilities and any losses that may have occurred. Fair
Value Hierarchy ASC
820 establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs
are as follows: – Level
1. Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. – Level
2. Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly
or indirectly. These inputs may include quoted prices for the identical instrument on
an inactive market, prices for similar instruments and similar data. – Level
3. Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing
the Trust’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability,
and that would be based on the best information available. To
the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination
of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for
instruments categorized in level 3. The
inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes,
the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the
lowest level input that is significant to the fair value measurement in its entirety. The
Trust’s investment in gold is classified as a level 1 asset, as its value is calculated using unadjusted
quoted prices from primary market sources. The
categorization of the Trust’s assets is as shown below:
(Amounts in 000’s of US$) December
31, 2023 December
31, 2022
Level 1
Investment in gold $ 2,826,667 $ 2,427,492 There were no transfers between levels during the years ended December 31, 2023 and 2022. 2.3. Gold
Receivable and Payable Gold receivable
or payable represents the quantity of gold covered by contractually binding orders for the creation or redemption of Shares
respectively, where the gold has not yet been transferred to or from the Trust’s account. Generally, ownership of gold
is transferred within two business days of the trade date. At December 31, 2023, the Trust had no 15,636,662 no 2.4. Creations
and Redemptions of Shares The
Trust expects to create and redeem Shares from time to time, but only in one or more Baskets (a Basket equals a block of 100,000 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 represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV
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. Authorized
Participants may, on any business day, place an order with the Trustee to create or redeem one or more Baskets. The typical settlement
period for Shares is two business days. In the event of a trade date at period end, where a settlement is pending, a respective
account receivable and/or payable will be recorded. When gold is exchanged in settlement of a redemption, it is considered
a sale of gold for financial statement purposes. The
amount of gold represented by the Baskets created or redeemed can only be settled to the nearest 1/1000th of an ounce. As
a result, the value attributed to the creation or redemption of Shares may differ from the value of gold to be delivered
or distributed by the Trust. In order to ensure that the correct amount of gold is available at all times to back the Shares,
the Sponsor accepts an adjustment to its Sponsor Fee in the event of any shortfall or excess on each transaction. For each transaction,
this amount is not more than 1/1000th of an ounce of gold. As
the Shares of the Trust are subject to redemption at the option of Authorized Participants, the Trust has classified the outstanding
Shares as Net Assets. Changes in the number of Shares outstanding are presented in the Statement of Changes in Net Assets. 2.5. 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 has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined
that no 2.6. Investment
in Gold Changes
in ounces of gold and their respective values for the years ended December 31, 2023 and 2022 are set out below:
Year
Ended December 31, 2023 Year
Ended December 31, 2022
(Amounts in 000’s of US$, except for ounces data)
Ounces of gold
Opening balance 1,338,383.1 1,324,350.2
Creations 159,902.9 204,255.2
Redemptions (135,932.8 ) (187,874.4 )
Transfers of gold to pay expenses (2,332.5 ) (2,347.9 )
Closing balance 1,360,020.7 1,338,383.1
Investment in gold
Opening balance $ 2,427,492 $ 2,391,578
Creations 313,015 382,148
Redemptions (259,646 ) (328,867 )
Realized gain on gold distributed for the redemption of Shares 41,270 33,258
Transfers of gold to pay expenses (4,481 ) (4,233 )
Realized gain on gold transferred to pay expenses 723 556
Change in unrealized gain / (loss) on investment in gold 308,294 (46,948 )
Closing balance $ 2,826,667 $ 2,427,492
2.7. Expenses
/ Realized Gains / Losses
The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of gold to the
Sponsor. The
Trust will transfer gold to the Sponsor to pay the Sponsor’s Fee that accrues daily at an annualized rate equal to
0.17 The
Sponsor has agreed to assume administrative and marketing expenses incurred by the Trust, including the Trustee’s monthly
fee and out of pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses, exchange listing
fees, United States Securities and Exchange Commission (the “SEC”) registration fees, printing and mailing costs,
audit fees and up to $ 100,000 For
the year ended December 31, 2023, 2022 and 2021, the Sponsor’s Fee was $ 4,543,699 4,232,956 4,122,059 At December
31, 2023 and at December 31, 2022, the fees payable to the Sponsor were $ 408,442 346,303 With
respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion,
sell the Trust’s gold as necessary to pay these expenses. When selling gold to pay expenses, the Trustee will
endeavor to sell the smallest amounts of gold needed to pay these expenses in order to minimize the Trust’s holdings
of assets other than gold. Other than the Sponsor’s Fee, the Trust had no Unless
otherwise directed by the Sponsor, when selling gold the Trustee will endeavor to sell at the price established by the LBMA
PM Gold Price. The Trustee will place orders with dealers (which may include the Custodian) through which the Trustee expects
to receive the most favorable price and execution of orders. The Custodian may be the purchaser of such gold only if the
sale transaction is made at the next LBMA PM Gold Price or such other publicly available price that the Sponsor deems fair, in
each case as set 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. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason
of any sale. Realized
gains and losses result from the transfer of gold for Share redemptions and / or to pay expenses and are recognized on a
trade date basis as the difference between the fair value and average cost of gold transferred. 2.8. Subsequent
Events In
accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events |
