| 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
(“ASC 820”). ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs
to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset
or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Effective May 23, 2024, the Trustee, at the direction of the
Sponsor, entered into an Allocated Account Agreement and Unallocated Account Agreement with ICBC Standard Bank Plc (“ICBC”),
providing for the custody of the Trust’s gold. Effective August 8, 2024, JPMorgan Chase Bank N.A. no longer serves as a custodian of the Trust’s gold. At September 30, 2024, all of the Trust’s gold was held at ICBC. 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”)
Gold Price PM. 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 Gold Price PM 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 Gold Price PM 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$) September
30, 2024 December
31, 2023
Level 1
Investment in gold $ 3,732,989 $ 2,826,667 There
were no transfers between levels during the nine months ended September 30, 2024 or the year ended December 31, 2023. 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 one business day of
the trade date. At September 30, 2024, the Trust had $ 5,023,509 no 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. Effective May 28, 2024, the settlement period for Shares is one business
day. Prior to May 28, 2024, the standard settlement period for Shares was 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 three and nine months ended September 30, 2024 and 2023 are set out below:
Three Months Three Months
(Amounts in 000’s of US$, except for ounces data)
Ounces of gold
Opening balance 1,348,352.3 1,421,487.7
Creations 78,330.1 —
Redemptions (6,686.7 ) (38,278.6 )
Transfers of gold to pay expenses (581.1 ) (604.6 )
Closing balance 1,419,414.6 1,382,604.5
Investment in gold
Opening balance $ 3,142,874 $ 2,718,240
Creations 195,211 —
Redemptions (16,351 ) (73,689 )
Realized gain on gold distributed for the redemption of Shares 5,234 11,594
Transfers of gold to pay expenses (1,399 ) (1,171 )
Realized gain on gold transferred to pay expenses 432 190
Change in unrealized gain / (loss) on investment in gold 406,988 (69,008 )
Change in unrealized gain / (loss) on unsettled creations or redemptions — 6
Closing balance $ 3,732,989 $ 2,586,162
Nine Months Nine Months
(Amounts in 000’s of US$, except for ounces data)
Ounces of gold
Opening balance 1,360,020.7 1,338,383.1
Creations 124,211.0 155,120.2
Redemptions (63,094.9 ) (109,149.1 )
Transfers of gold to pay expenses (1,722.2 ) (1,749.7 )
Closing balance 1,419,414.6 1,382,604.5
Investment in gold
Opening balance $ 2,826,667 $ 2,427,492
Creations 297,916 303,623
Redemptions (133,816 ) (208,121 )
Realized gain on gold distributed for the redemption of Shares 30,948 33,199
Transfers of gold to pay expenses (3,870 ) (3,359 )
Realized gain on gold transferred to pay expenses 1,042 547
Change in unrealized gain on investment in gold 714,102 32,775
Change in unrealized gain on unsettled creations or redemptions — 6
Closing balance $ 3,732,989 $ 2,586,162 2.7. Expenses
/ Realized Gains / Losses 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 three months ended September 30, 2024 and
2023, the Sponsor's Fee was $1,475,220 $1,150,959 $3,975,629 $3,375,197 At September 30, 2024 and at December 31, 2023, the fees
payable to the Sponsor were $513,528 $408,442 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 Gold Price PM. 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 Gold Price PM 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 Effective November 12, 2024, immediately following the filing of this report, Brian Kordeck resigned as Treasurer and Chief Financial
Officer of the Sponsor. Mr. Kordeck had served as Principal Financial Officer of the Registrant. Effective November 12, 2024, Sharon Ferrari
was appointed Treasurer and Chief Financial Officer of the Sponsor. Ms. Ferrari will serve as Principal Financial Officer of the Registrant. |
