Document And Entity Information
Document And Entity Information | 9 Months Ended |
Oct. 31, 2015USD ($)shares | |
Document Information [Line Items] | |
Entity Registrant Name | Van Eck Merk Gold Trust |
Document Type | 10-Q |
Current Fiscal Year End Date | --12-31 |
Entity Public Float | $ | $ 0 |
Amendment Flag | false |
Entity Central Index Key | 1,546,652 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Oct. 31, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Van Eck Merk Gold Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 6,969,119 |
Common Class A [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 0 |
Statement of Assets and Liabili
Statement of Assets and Liabilities - USD ($) | Oct. 31, 2015 | Jan. 31, 2015 | ||
Assets | ||||
Investments in gold bullion (cost: $ 86,062,740 and $ 65,938,882, respectively) | $ 79,145,630 | $ 64,750,586 | ||
Receivable from capital shares sold | 20,597 | |||
Total Assets | 79,145,630 | 64,771,183 | ||
Liabilities | ||||
Sponsor's fee payable | 11 | 20,600 | ||
Total Liabilities | 11 | 20,600 | ||
Net Assets | 79,145,619 | 64,750,583 | [1] | |
Net Assets Consist of: | ||||
Paid-in-capital | 86,632,077 | 66,087,586 | ||
Accumulated net investment loss | (352,573) | (154,685) | ||
Accumulated net realized gain (loss) | (216,775) | 5,978 | ||
Unrealized appreciation (depreciation) on investment in gold bullion | (6,917,110) | (1,188,296) | ||
$ 79,145,619 | $ 64,750,583 | [1] | ||
Shares issued and outstanding (no par value; unlimited shares authorized) (in Shares) | 6,969,119 | 5,152,630 | ||
Net asset value per share (in Dollars per share) | [1] | $ 11.36 | $ 12.57 | |
[1] | Commencement of operations. |
Statement of Assets and Liabil3
Statement of Assets and Liabilities (Parentheticals) - USD ($) | Oct. 31, 2015 | Jan. 31, 2015 |
Cost of gold bullion | $ 86,062,740 | $ 65,938,882 |
Statement of Operations (Unaudi
Statement of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2015 | [1] | |
Expenses | |||||
Sponsor’s fees | $ 75,153 | $ 57,544 | $ 94,950 | $ 197,888 | |
Total expenses | 75,153 | 57,544 | 94,950 | 197,888 | |
Net investment loss | (75,153) | (57,544) | (94,950) | (197,888) | |
Net Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) from gold bullion distributed for redemptions | 7,840 | 8,476 | (222,753) | ||
Net change in unrealized appreciation (depreciation) on investment in gold bullion | 2,563,332 | (5,739,065) | (5,925,652) | (5,728,814) | |
Net realized and unrealized gain (loss) from operations | 2,563,332 | (5,731,225) | (5,917,176) | (5,951,567) | |
Net Increase (Decrease) in Net Assets resulting from operations | $ 2,488,179 | $ (5,788,769) | $ (6,012,126) | $ (6,149,455) | |
[1] | Commencement of operations. |
Statement of Changes in Net Ass
Statement of Changes in Net Assets - USD ($) | 9 Months Ended | |||
Oct. 31, 2015 | Jan. 31, 2015 | |||
Net Assets - beginning of period | [1] | $ 64,750,583 | $ 1,306,250 | |
Creations | 24,161,126 | 65,559,010 | [1] | |
Redemptions | (3,616,635) | (777,674) | [1] | |
Net Investment loss | (197,888) | (154,685) | [1] | |
Net realized gain (loss) from gold bullion distributed for redemptions | [1] | (222,753) | 5,978 | |
Net change in unrealized appreciation (depreciation) on investment in gold bullion | [1] | (5,728,814) | (1,188,296) | |
Net Assets - end of period | $ 79,145,619 | $ 64,750,583 | [1] | |
[1] | Commencement of operations. |
Financial Highlights
Financial Highlights | 9 Months Ended |
Oct. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Additional Financial Information Disclosure [Text Block] | Per Share Performance (for a share outstanding throughout each period) Three Months ended (unaudited) Three Months ended (unaudited) Nine Months ended (unaudited) For the Period (unaudited) Net asset value per share, beginning of period $ 10.93 $ 12.84 $ 12.57 $ 13.06 Net investment loss (a) (0.01 ) (0.01 ) (0.03 ) (0.02 ) Net realized and unrealized gain (loss) on investment in gold bullion 0.44 (1.21 ) (1.18 ) (1.42 ) Net change in net assets from operations 0.43 (1.22 ) (1.21 ) (1.44 ) Net asset value per Share, end of period $ 11.36 $ 11.62 $ 11.36 $ 11.62 Total return, at net asset value (b) 3.93% (9.50)% (9.63)% (11.03)% Ratio to average net assets (c) Net investment loss (0.40)% (0.40)% (0.40)% (0.40)% Net expenses 0.40% 0.40% 0.40% 0.40% * Commencement of operations. (a) Calculated using average shares outstanding (b) Not annualized (c) Annualized |
Schedule of Investments (Unaudi
Schedule of Investments (Unaudited) | 9 Months Ended |
Oct. 31, 2015 | |
Schedule of Investments [Abstract] | |
Investment Holdings, Schedule of Investments [Text Block] | Van Eck Merk Gold Trust (formerly known as Merk Gold Trust) October 31, 2015 (Unaudited) Fine Ounces Cost Fair Value % of Net Assets Gold Bullion 69,283 $86,062,740 $79,145,630 100.00% Total Investments $86,062,740 $79,145,630 100.00% Liabilities in excess of other assets (11) 0.00% (a) Net Assets $79,145,619 100.00% January 31, 2015 Fine Ounces Cost Fair Value % of Net Assets Gold Bullion 51,379 $65,938,882 $64,750,586 100.00% Total Investments $65,938,882 $64,750,586 100.00% Liabilities in excess of other assets (3) 0.00% (a) Net Assets $64,750,583 100.00% (a) Amount is less than 0.005% See notes to unaudited financial statements. |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Oct. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 1. ORGANIZATION The Van Eck Merk Gold Trust (the “Trust”; known as the Merk Gold Trust prior to October 26, 2015) is an investment trust formed on May 6, 2014 under New York law pursuant to a depository trust agreement. After consideration of Financial Accounting Standards Topic 946, Merk Investments LLC (the “Sponsor”) has concluded the Trust meets the fundamental characteristics of an investment company. In addition, while the Trust does not currently possess all of the typical characteristics of an investment company, it believes its activities are consistent with those of an investment company and will therefore apply the guidance in Financial Accounting Standards Topic 946, including disclosure of the financial support contractually required to be provided by an investment company to any of its investees. Virtu Financial, also known as the Lead Market Maker, was the Initial Purchaser and contributed 1,000 ounces of Gold in exchange for 100,000 shares on May 6, 2014. At contribution, the value of the gold deposited with the Trust was based on the price of an ounce of Gold of $1,306.25. The Initial Purchaser is not affiliated with the Sponsor or the Trustee. The Trust’s primary objective is to provide investors with an opportunity to invest in gold through the shares and be able to take delivery of physical gold bullion and gold coins (physical gold) in exchange for their shares. The Trust’s secondary objective is for the shares to reflect the performance of the price of gold less the expenses of the Trust’s operations. The Trust is not actively managed. 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 end January 31, 2015. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SIGNIFICANT ACCOUNTING POLICIES In preparing financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), management makes estimates and assumptions that affect the reported amounts of assets, liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amount of revenue and expenses reported during the period. Actual results could differ from these estimates. The accompanying unaudited financial statements were prepared in accordance with GAAP for interim financial information and with the instructions for the Form 10-Q and the rules and regulations of the United States Securities and Exchange Commission. In the opinion of the Trust’s management, all adjustments (which consists of normal recurring adjustments) necessary to present fairly the financial position and the results of operations, as presented, have been made. The following is a summary of significant accounting policies followed by the Trust. 2.1. Valuation of Gold FASB Accounting Standards Codification 820, “Fair Value Measurements and Disclosures” (“ASC 820”), provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value adjustments. Various inputs are used in determining the fair value of the Trust’s assets or liabilities. These inputs are categorized into three broad levels. Level 1 includes unadjusted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market based inputs (including prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include management’s own assumptions in determining the fair value of investments. The Trust does not hold any derivative instruments, and its assets only consist of allocated gold bullion and 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, from time to time, cash, which is used to pay expenses. The following table summarizes the inputs used as of October 31, 2015 Level 1 Level 2 Level 3 Investment in Gold $ 79,145,630 $ - $ - Total $ 79,145,630 $ - $ - The following table summarizes the inputs used as of January 31, 2015 Level 1 Level 2 Level 3 Investment in Gold $ 64,750,586 $ - $ - Total $ 64,750,586 $ - $ - London Gold Delivery Bars are held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at the London, United Kingdom vaulting premises. All gold is valued based on its Fine Ounce content, calculated by multiplying the weight of gold by its purity; the same methodology is applied independent of the type of gold held by the Trust; similarly, the value of up to 430 Fine Ounces of unallocated gold the Trust may hold is calculated by multiplying the number of Fine Ounces with the price of gold determined by the Trustee as follows. The Trustee values the gold held by the Trust based on the afternoon session of the twice daily fix of the price of a Fine Ounce of gold which starts at 3:00 PM London, England time and is performed in London by the ICE Benchmark Administration as an independent third-party administrator (the “LBMA PM Gold Price”) and is therefore classified as Level 1. There were no transfers between levels during the period. The Trustee also determines the net asset value per share. If on a day when the Trust’s net asset value is being calculated the LBMA PM Gold Price for that day is not available, the Trustee will value the gold held by the Trust based on that day’s morning session of the twice daily fix of the price of a Fine Ounce of gold, which starts at 10:30 AM London, England time and is performed in London by the ICE Benchmark Administration as an independent third-party administrator (the “LBMA AM Gold Price”). If no fix is available for the day, the Trustee will value the Trust’s gold based on the most recently announced LBMA AM Gold Price or LBMA PM Gold Price. Prior to March 20, 2015, the Trustee utilized the daily fix of the price of a Fine Ounce of gold as performed by the five members of the London gold fix, which has now been replaced by the ICE Benchmark Administration as an independent third-party administrator. All other valuation metrics remain unchanged. On each business day, as soon as practicable after 4:00pm (New York time), the net asset value of the trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the gold held by the Trust and other assets of the Trust. The result is the net asset value of the Trust. The Trustee computes the net asset value per Share by dividing the net assets of the Trust by the number of the shares outstanding on the date the computation is made. 2.2. Expenses The Trustee issues shares to pay the Sponsor’s fee; the Sponsor pays the Trust’s ordinary expenses. The net asset value of the Trust is used to compute the Sponsor’s fee, and the Trustee subtracts from the net asset value of the Trust the amount of accrued Sponsor’s fee. To the extent the Trust issues additional shares to pay the Sponsor’s fee or sells gold to cover expenses or liabilities, the amount of gold represented by each share will decrease. New deposits of gold, received in exchange for new shares issued by the Trust, would not reverse this trend. 2.3. Creations & Redemptions of Shares Shares are issued and redeemed by the Trust in blocks of 50,000 shares called “Baskets” in exchange for gold from certain registered broker-dealers or other securities market participants (“Authorized Participants”). Investors that are not Authorized Participants may also take delivery of physical gold in exchange for their shares (“Delivery Applicants”). Authorized Participants The Trust issues and redeems Baskets only to Authorized Participants. The creation and redemption of Baskets will only be 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 will be based on the combined Fine Ounces represented by 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. Orders to create and redeem Baskets may be placed only by Authorized Participants. An Authorized Participant must: (1) be a registered broker-dealer or other securities market participant, such as a bank or other financial institution, which, but for an exclusion from registration, would be required to register as a broker-dealer to engage in securities transactions, (2) be a participant in DTC, and (3) must have an agreement with the Custodian establishing an unallocated account in London or have an existing unallocated account meeting the standards described herein. To become an Authorized Participant, a person must enter into an Authorized Participant Agreement with the Sponsor and the Trustee. The Authorized Participant Agreement provides the procedures for the creation and redemption of Baskets and for the delivery of the gold required for such creations and redemptions. The Authorized Participant Agreement and the related procedures attached thereto may be amended by the Trustee and the Sponsor, without the consent of any investor or Authorized Participant. A transaction fee of $500 will be assessed on all creation and redemption transactions. Multiple Baskets may be created on the same day, provided each Basket meets the requirements described below and that the Custodian is able to allocate gold to the Trust Allocated Account such that the Trust Unallocated Account holds no more than 430 Fine Ounces of gold at the close of a business day. Authorized Participants who make deposits with the Trust in exchange for Baskets will receive no fees, commissions or other form of compensation or inducement of any kind from either the Sponsor or the Trust, and no such person has any obligation or responsibility to the Sponsor or the Trust to affect any sale or resale of shares. Delivery Applicants In exchange for its shares and payment of a processing fee, a Delivery Applicant will be entitled to one or more bars or coins of physical gold having approximately the total Fine Ounces represented by the shares on the day on which the Delivery Applicant’s broker-dealer submits his or her shares to the Trust in exchange for physical gold (“Share Submission Day”). As it is unlikely that the total Fine Ounces of physical gold will exactly correspond to the Fine Ounces represented by a specific number of shares, a Delivery Applicant will likely receive some cash representing the net sale proceeds of any excess Fine Ounces (the “Cash Proceeds”). To minimize the Cash Proceeds of any exchange, the delivery application requires that the number of shares submitted closely correspond in Fine Ounces to the Fine Ounces of physical gold that is held or that is to be acquired by the Trust for which the delivery is sought. Share submissions are processed in the order approved. Changes in the shares for the period ending October 31, 2015 Shares Amount Shares, beginning of period at January 31, 2015 5,152,630 $ 66,087,586 Shares issued 2,117,193 24,161,126 Shares redeemed (300,704 ) (3,616,635 ) Shares, end of period at October 31, 2015 6,969,119 $ 86,632,077 Changes in the shares for the period ending January 31, 2015 Shares Amount Shares, beginning of period at May 6, 2014 100,000 $ 1,306,250 Shares issued 5,112,551 65,559,010 Shares redeemed (59,921 ) (777,674 ) Shares, end of period at January 31, 2015 5,152,630 $ 66,087,586 2.4. Income Taxes The Trust is treated as a “grantor trust” for US federal tax purposes. As a result, the Trust itself is not subject to US federal income tax. Instead, the Trust's income and expenses “flow through” to the shareholders and the Trustee reports the Trust's income, gains, losses and deductions 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 reserves for uncertain tax positions are required as of October 31, 2015 2.5. Revenue Recognition Policy A gain or loss is recognized based on the difference between the selling price and the average cost method of the gold sold on a trade date basis. |
INVESTMENT IN GOLD
INVESTMENT IN GOLD | 9 Months Ended |
Oct. 31, 2015 | |
Investment Holdings [Abstract] | |
Investment Holdings [Text Block] | 3. INVESTMENT IN GOLD The following represents the changes in ounces of gold and the respective fair value at October 31, 2015 Ounces Fair Value Beginning balance as of January 31, 2015 51,379 $ 64,750,586 Gold bullion contributed 20,900 23,963,246 Gold bullion distributed (2,996 ) (3,616,635 ) Change in unrealized depreciation — (5,728,814 ) Realized gain from gold distributed from in-kind — (222,753 ) Ending balance as of October 31, 2015 69,283 $ 79,145,630 The following represents the changes in ounces of gold and the respective fair value at January 31, 2015 Ounces Fair Value Beginning balance as of May 6, 2014 1,000 $ 1,306,250 Gold bullion contributed 50,978 65,404,328 Gold bullion distributed (599 ) (777,674 ) Change in unrealized depreciation — (1,188,296 ) Realized gain from gold distributed from in-kind — 5,978 Ending balance as of January 31, 2015 51,379 $ 64,750,586 |
RELATED PARTIES - SPONSOR, TRUS
RELATED PARTIES - SPONSOR, TRUSTEE, CUSTODIAN AND MARKETING FEES | 9 Months Ended |
Oct. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 4. RELATED PARTIES - SPONSOR, TRUSTEE, CUSTODIAN AND MARKETING FEES Fees paid are to the Sponsor as compensation for services performed under the Trust Agreement. The Sponsor's fee is payable at an annualized rate of 0.40% of the Trust’s Net Asset Value, accrued on a daily basis computed on the prior Business Day’s Net Asset Value and paid monthly in arrears. The Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s monthly fee and out-of-pocket expenses; the Custodian’s fee; the marketing support fees and expenses; expenses reimbursable under the Custody Agreement; the precious metals dealer’s fees and expenses reimbursable under its agreement with the Sponsor; exchange listing fees; Securities and Exchange Commission registration fees; printing and mailing costs; maintenance expenses for the Trust’s website; audit fees; and up to $100,000 per annum in legal expenses. On October 22, 2015, the Sponsor, for the benefit of the Trust, entered into a Marketing Agent Agreement (the “Marketing Agreement”) with Van Eck Securities Corporation (“Van Eck” or “Marketing Agent”). Pursuant to the Marketing Agreement, Van Eck now provides assistance in the marketing of the shares issued by the Trust. The obligations created by the Marketing Agreement are obligations of the Sponsor of the Trust and any fees payable under the Marketing Agreement to Van Eck are payable from the Sponsor’s fee (as calculated and defined in the Trust Agreement). The Trust will not incur additional financial or other performance obligations pursuant to the Marketing Agreement. Affiliates of the Trustee, as well as affiliates of the Custodian may from time to time act as Authorized Participants to purchase or sell gold or shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. |
SHAREHOLDER OWNERSHIP
SHAREHOLDER OWNERSHIP | 9 Months Ended |
Oct. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Shareholders' Equity and Share-based Payments [Text Block] | 5. SHAREHOLDER OWNERSHIP Merk Hard Currency Fund owned a market value of $23,285,728 which equates to 29.42% ownership in the Trust at October 31, 2015 |
CONCENTRATION OF RISK
CONCENTRATION OF RISK | 9 Months Ended |
Oct. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 6. CONCENTRATION OF RISK The Trust’s sole business activity is the investment in Gold bullion. Several factors could affect the price of gold: (i) global gold supply and demand, which is influenced by such factors as forward selling by gold producers, purchases made by gold producers to unwind gold hedge positions, central bank purchases and sales, and production and cost levels in major gold-producing countries; (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 adverse effect on the Trust’s financial position and results of operations. |
INDEMNIFICATION
INDEMNIFICATION | 9 Months Ended |
Oct. 31, 2015 | |
Policy Text Block [Abstract] | |
Guarantees, Indemnifications and Warranties Policies [Policy Text Block] | 7. INDEMNIFICATION Under the Trust’s organizational documents, each of the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees, affiliates) is indemnified against any liability, cost or expense it incurs without gross negligence, bad faith or willful misconduct on its part and without reckless disregard on its part of its obligations and duties under the Trust’s organizational documents. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on industry experience, management believes the risk of loss is remote. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Oct. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 8. SUBSEQUENT EVENTS Management has evaluated the events and transactions that have occurred through the date the financial statements were issued and noted no items requiring adjustment of the financial statements or additional disclosures. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Jul. 31, 2015 | |
Accounting Policies [Abstract] | |
Valuation Of Gold [Policy Text Block] | Valuation of Gold FASB Accounting Standards Codification 820, “Fair Value Measurements and Disclosures” (“ASC 820”), provides a single definition of fair value, a hierarchy for measuring fair value and expanded disclosures about fair value adjustments. Various inputs are used in determining the fair value of the Trust’s assets or liabilities. These inputs are categorized into three broad levels. Level 1 includes unadjusted prices in active markets for identical assets or liabilities. Level 2 includes other significant observable market based inputs (including prices for similar securities, interest rates, prepayment speed, and credit risk). Level 3 includes unobservable inputs, which may include management’s own assumptions in determining the fair value of investments. The Trust does not hold any derivative instruments, and its assets only consist of allocated gold bullion and 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, from time to time, cash, which is used to pay expenses. The following table summarizes the inputs used as of October 31, 2015 Level 1 Level 2 Level 3 Investment in Gold $ 79,145,630 $ - $ - Total $ 79,145,630 $ - $ - The following table summarizes the inputs used as of January 31, 2015 Level 1 Level 2 Level 3 Investment in Gold $ 64,750,586 $ - $ - Total $ 64,750,586 $ - $ - London Gold Delivery Bars are held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at the London, United Kingdom vaulting premises. All gold is valued based on its Fine Ounce content, calculated by multiplying the weight of gold by its purity; the same methodology is applied independent of the type of gold held by the Trust; similarly, the value of up to 430 Fine Ounces of unallocated gold the Trust may hold is calculated by multiplying the number of Fine Ounces with the price of gold determined by the Trustee as follows. The Trustee values the gold held by the Trust based on the afternoon session of the twice daily fix of the price of a Fine Ounce of gold which starts at 3:00 PM London, England time and is performed in London by the ICE Benchmark Administration as an independent third-party administrator (the “LBMA PM Gold Price”) and is therefore classified as Level 1. There were no transfers between levels during the period. The Trustee also determines the net asset value per share. If on a day when the Trust’s net asset value is being calculated the LBMA PM Gold Price for that day is not available, the Trustee will value the gold held by the Trust based on that day’s morning session of the twice daily fix of the price of a Fine Ounce of gold, which starts at 10:30 AM London, England time and is performed in London by the ICE Benchmark Administration as an independent third-party administrator (the “LBMA AM Gold Price”). If no fix is available for the day, the Trustee will value the Trust’s gold based on the most recently announced LBMA AM Gold Price or LBMA PM Gold Price. Prior to March 20, 2015, the Trustee utilized the daily fix of the price of a Fine Ounce of gold as performed by the five members of the London gold fix, which has now been replaced by the ICE Benchmark Administration as an independent third-party administrator. All other valuation metrics remain unchanged. On each business day, as soon as practicable after 4:00pm (New York time), the net asset value of the trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the gold held by the Trust and other assets of the Trust. The result is the net asset value of the Trust. The Trustee computes the net asset value per Share by dividing the net assets of the Trust by the number of the shares outstanding on the date the computation is made. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Expenses The Trustee issues shares to pay the Sponsor’s fee; the Sponsor pays the Trust’s ordinary expenses. The net asset value of the Trust is used to compute the Sponsor’s fee, and the Trustee subtracts from the net asset value of the Trust the amount of accrued Sponsor’s fee. To the extent the Trust issues additional shares to pay the Sponsor’s fee or sells gold to cover expenses or liabilities, the amount of gold represented by each share will decrease. New deposits of gold, received in exchange for new shares issued by the Trust, would not reverse this trend. |
Stockholders' Equity, Policy [Policy Text Block] | Creations & Redemptions of Shares Shares are issued and redeemed by the Trust in blocks of 50,000 shares called “Baskets” in exchange for gold from certain registered broker-dealers or other securities market participants (“Authorized Participants”). Investors that are not Authorized Participants may also take delivery of physical gold in exchange for their shares (“Delivery Applicants”). Authorized Participants The Trust issues and redeems Baskets only to Authorized Participants. The creation and redemption of Baskets will only be 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 will be based on the combined Fine Ounces represented by 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. Orders to create and redeem Baskets may be placed only by Authorized Participants. An Authorized Participant must: (1) be a registered broker-dealer or other securities market participant, such as a bank or other financial institution, which, but for an exclusion from registration, would be required to register as a broker-dealer to engage in securities transactions, (2) be a participant in DTC, and (3) must have an agreement with the Custodian establishing an unallocated account in London or have an existing unallocated account meeting the standards described herein. To become an Authorized Participant, a person must enter into an Authorized Participant Agreement with the Sponsor and the Trustee. The Authorized Participant Agreement provides the procedures for the creation and redemption of Baskets and for the delivery of the gold required for such creations and redemptions. The Authorized Participant Agreement and the related procedures attached thereto may be amended by the Trustee and the Sponsor, without the consent of any investor or Authorized Participant. A transaction fee of $500 will be assessed on all creation and redemption transactions. Multiple Baskets may be created on the same day, provided each Basket meets the requirements described below and that the Custodian is able to allocate gold to the Trust Allocated Account such that the Trust Unallocated Account holds no more than 430 Fine Ounces of gold at the close of a business day. Authorized Participants who make deposits with the Trust in exchange for Baskets will receive no fees, commissions or other form of compensation or inducement of any kind from either the Sponsor or the Trust, and no such person has any obligation or responsibility to the Sponsor or the Trust to affect any sale or resale of shares. Delivery Applicants In exchange for its shares and payment of a processing fee, a Delivery Applicant will be entitled to one or more bars or coins of physical gold having approximately the total Fine Ounces represented by the shares on the day on which the Delivery Applicant’s broker-dealer submits his or her shares to the Trust in exchange for physical gold (“Share Submission Day”). As it is unlikely that the total Fine Ounces of physical gold will exactly correspond to the Fine Ounces represented by a specific number of shares, a Delivery Applicant will likely receive some cash representing the net sale proceeds of any excess Fine Ounces (the “Cash Proceeds”). To minimize the Cash Proceeds of any exchange, the delivery application requires that the number of shares submitted closely correspond in Fine Ounces to the Fine Ounces of physical gold that is held or that is to be acquired by the Trust for which the delivery is sought. Share submissions are processed in the order approved. Changes in the shares for the period ending October 31, 2015 Shares Amount Shares, beginning of period at January 31, 2015 5,152,630 $ 66,087,586 Shares issued 2,117,193 24,161,126 Shares redeemed (300,704 ) (3,616,635 ) Shares, end of period at October 31, 2015 6,969,119 $ 86,632,077 Changes in the shares for the period ending January 31, 2015 Shares Amount Shares, beginning of period at May 6, 2014 100,000 $ 1,306,250 Shares issued 5,112,551 65,559,010 Shares redeemed (59,921 ) (777,674 ) Shares, end of period at January 31, 2015 5,152,630 $ 66,087,586 |
Income Tax, Policy [Policy Text Block] | Income Taxes The Trust is treated as a “grantor trust” for US federal tax purposes. As a result, the Trust itself is not subject to US federal income tax. Instead, the Trust's income and expenses “flow through” to the shareholders and the Trustee reports the Trust's income, gains, losses and deductions 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 reserves for uncertain tax positions are required as of October 31, 2015 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Policy A gain or loss is recognized based on the difference between the selling price and the average cost method of the gold sold on a trade date basis. |
Financial Highlights (Tables)
Financial Highlights (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Financial Highlights [Table Text Block] | Per Share Performance (for a share outstanding throughout each period) Three Months ended (unaudited) Three Months ended (unaudited) Nine Months ended (unaudited) For the Period (unaudited) Net asset value per share, beginning of period $ 10.93 $ 12.84 $ 12.57 $ 13.06 Net investment loss (a) (0.01 ) (0.01 ) (0.03 ) (0.02 ) Net realized and unrealized gain (loss) on investment in gold bullion 0.44 (1.21 ) (1.18 ) (1.42 ) Net change in net assets from operations 0.43 (1.22 ) (1.21 ) (1.44 ) Net asset value per Share, end of period $ 11.36 $ 11.62 $ 11.36 $ 11.62 Total return, at net asset value (b) 3.93% (9.50)% (9.63)% (11.03)% Ratio to average net assets (c) Net investment loss (0.40)% (0.40)% (0.40)% (0.40)% Net expenses 0.40% 0.40% 0.40% 0.40% * Commencement of operations. (a) Calculated using average shares outstanding (b) Not annualized (c) Annualized |
Schedule of Investments (Unau18
Schedule of Investments (Unaudited) (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Schedule of Investments [Abstract] | |
Investment Holdings, Schedule of Investments [Table Text Block] | October 31, 2015 (Unaudited) Fine Ounces Cost Fair Value % of Net Assets Gold Bullion 69,283 $86,062,740 $79,145,630 100.00% Total Investments $86,062,740 $79,145,630 100.00% Liabilities in excess of other assets (11) 0.00% (a) Net Assets $79,145,619 100.00% January 31, 2015 Fine Ounces Cost Fair Value % of Net Assets Gold Bullion 51,379 $65,938,882 $64,750,586 100.00% Total Investments $65,938,882 $64,750,586 100.00% Liabilities in excess of other assets (3) 0.00% (a) Net Assets $64,750,583 100.00% (a) Amount is less than 0.005% |
SIGNIFICANT ACCOUNTING POLICI19
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Cost Method Investments [Table Text Block] | The following table summarizes the inputs used as of October 31, 2015 in determining the Trust’s investments at fair value for purposes of ASC 820: Level 1 Level 2 Level 3 Investment in Gold $ 79,145,630 $ - $ - Total $ 79,145,630 $ - $ - Level 1 Level 2 Level 3 Investment in Gold $ 64,750,586 $ - $ - Total $ 64,750,586 $ - $ - |
Schedule of Capital Units [Table Text Block] | Changes in the shares for the period ending October 31, 2015 are as follows: Shares Amount Shares, beginning of period at January 31, 2015 5,152,630 $ 66,087,586 Shares issued 2,117,193 24,161,126 Shares redeemed (300,704 ) (3,616,635 ) Shares, end of period at October 31, 2015 6,969,119 $ 86,632,077 Shares Amount Shares, beginning of period at May 6, 2014 100,000 $ 1,306,250 Shares issued 5,112,551 65,559,010 Shares redeemed (59,921 ) (777,674 ) Shares, end of period at January 31, 2015 5,152,630 $ 66,087,586 |
INVESTMENT IN GOLD (Tables)
INVESTMENT IN GOLD (Tables) | 9 Months Ended |
Oct. 31, 2015 | |
Investment Holdings [Abstract] | |
Activity in Gold Bullion [Table Text Block] | The following represents the changes in ounces of gold and the respective fair value at October 31, 2015: Ounces Fair Value Beginning balance as of January 31, 2015 51,379 $ 64,750,586 Gold bullion contributed 20,900 23,963,246 Gold bullion distributed (2,996 ) (3,616,635 ) Change in unrealized depreciation — (5,728,814 ) Realized gain from gold distributed from in-kind — (222,753 ) Ending balance as of October 31, 2015 69,283 $ 79,145,630 Ounces Fair Value Beginning balance as of May 6, 2014 1,000 $ 1,306,250 Gold bullion contributed 50,978 65,404,328 Gold bullion distributed (599 ) (777,674 ) Change in unrealized depreciation — (1,188,296 ) Realized gain from gold distributed from in-kind — 5,978 Ending balance as of January 31, 2015 51,379 $ 64,750,586 |
Financial Highlights (Details)
Financial Highlights (Details) - Financial Highlights - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2014 | Oct. 31, 2015 | [1] | |||
Financial Highlights [Abstract] | |||||||
Net asset value per share, beginning of period | $ 10.93 | $ 12.84 | $ 13.06 | $ 12.57 | |||
Net investment loss (a) (in Dollars) | $ (0.01) | [2] | $ (0.01) | [2] | $ (0.02) | $ (0.03) | [2] |
Net realized and unrealized gain (loss) on investment in gold bullion | $ 0.44 | $ (1.21) | $ (1.42) | $ (1.18) | |||
Net change in net assets from operations | 0.43 | (1.22) | (1.44) | (1.21) | |||
Net asset value per Share, end of period | $ 11.36 | [1] | $ 11.62 | $ 11.62 | $ 11.36 | ||
Total return, at net asset value (b) | 3.93% | [3] | (9.50%) | [3] | (11.03%) | (9.63%) | [3] |
Ratio to average net assets (c) | |||||||
Net investment loss | (0.40%) | [4] | (0.40%) | [4] | (0.40%) | (0.40%) | [4] |
Net expenses | 0.40% | [4] | 0.40% | [4] | 0.40% | 0.40% | [4] |
[1] | Commencement of operations. | ||||||
[2] | Calculated using average shares outstanding | ||||||
[3] | Not annualized | ||||||
[4] | Annualized |
Schedule of Investments (Unau22
Schedule of Investments (Unaudited) (Details) | Oct. 31, 2015 | Jan. 31, 2015 |
Schedule of Investments (Unaudited) (Details) [Line Items] | ||
Investment Owned, Percent of Net Assets | 100.00% | 100.00% |
Liabilities in excess of other assets [Member] | ||
Schedule of Investments (Unaudited) (Details) [Line Items] | ||
Investment Owned, Percent of Net Assets | 0.005% |
Schedule of Investments (Unau23
Schedule of Investments (Unaudited) (Details) - Schedule of Investment | Oct. 31, 2015USD ($)oz | Jan. 31, 2015USD ($)oz | May. 06, 2014oz | May. 05, 2014USD ($) | |
Schedule of Investments [Line Items] | |||||
Fine Ounces (in Ounces) | oz | 1,000 | ||||
Cost | $ 86,062,740 | $ 65,938,882 | |||
Fair Value | $ 79,145,630 | $ 64,750,586 | $ 1,306,250 | ||
% of Net Assets | 100.00% | 100.00% | |||
Gold Bullion [Member] | |||||
Schedule of Investments [Line Items] | |||||
Fine Ounces (in Ounces) | oz | 69,283 | 51,379 | |||
Cost | $ 86,062,740 | $ 65,938,882 | |||
Fair Value | $ 79,145,630 | $ 64,750,586 | |||
% of Net Assets | 100.00% | 100.00% | |||
Liabilities in excess of other assets [Member] | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | $ (11) | $ (3) | |||
% of Net Assets | [1] | ||||
Net Assets [Member] | |||||
Schedule of Investments [Line Items] | |||||
Fair Value | $ 79,145,619 | $ 64,750,583 | |||
% of Net Assets | 100.00% | 100.00% | |||
[1] | Amount is less than 0.005% |
ORGANIZATION (Details)
ORGANIZATION (Details) | May. 06, 2014$ / ozsharesoz |
Disclosure Text Block [Abstract] | |
Gold | oz | 1,000 |
Common Stock, Shares, Issued | shares | 100,000 |
Gold, Value | $ / oz | 1,306.25 |
SIGNIFICANT ACCOUNTING POLICI25
SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended |
Oct. 31, 2015USD ($)sharesoz | |
Accounting Policies [Abstract] | |
Gold, Maximum Unallocated Held | oz | 430 |
Shares Prescribed Aggregation | shares | 50,000 |
Transaction Fee | $ | $ 500 |
SIGNIFICANT ACCOUNTING POLICI26
SIGNIFICANT ACCOUNTING POLICIES (Details) - Summary of Inputs Used in Determining the Trust's Investments - USD ($) | Oct. 31, 2015 | Jan. 31, 2015 | May. 05, 2014 |
Schedule of Cost-method Investments [Line Items] | |||
Investment in Gold | $ 79,145,630 | $ 64,750,586 | $ 1,306,250 |
Fair Value, Inputs, Level 1 [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Investment in Gold | 79,145,630 | 64,750,586 | |
Total | $ 79,145,630 | $ 64,750,586 | |
Fair Value, Inputs, Level 2 [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Investment in Gold | |||
Total | |||
Fair Value, Inputs, Level 3 [Member] | |||
Schedule of Cost-method Investments [Line Items] | |||
Investment in Gold | |||
Total |
SIGNIFICANT ACCOUNTING POLICI27
SIGNIFICANT ACCOUNTING POLICIES (Details) - Changes in Shares - USD ($) | 9 Months Ended | |
Oct. 31, 2015 | Jan. 31, 2015 | |
Changes in Shares [Abstract] | ||
Shares | 5,152,630 | 100,000 |
Amounts | $ 66,087,586 | $ 1,306,250 |
Shares issued | 2,117,193 | 5,112,551 |
Amount issued | $ 24,161,126 | $ 65,559,010 |
Shares redeemed | (300,704) | (59,921) |
Amount redeemed | $ (3,616,635) | $ (777,674) |
Shares | 6,969,119 | 5,152,630 |
Amounts | $ 86,632,077 | $ 66,087,586 |
INVESTMENT IN GOLD (Details) -
INVESTMENT IN GOLD (Details) - Activity in Gold Bullion | 9 Months Ended | |
Oct. 31, 2015USD ($)oz | Jan. 31, 2015USD ($)oz | |
Activity in Gold Bullion [Abstract] | ||
Ounces (in Ounces) | oz | 51,379 | 1,000 |
Fair Value | $ 64,750,586 | $ 1,306,250 |
Gold bullion contributed, Ounces (in Ounces) | oz | 20,900 | 50,978 |
Gold bullion contributed, Fair Value | $ 23,963,246 | $ 65,404,328 |
Gold bullion distributed, Ounces (in Ounces) | oz | (2,996) | (599) |
Gold bullion distributed, Fair Value | $ (3,616,635) | $ (777,674) |
Change in unrealized depreciation | (5,728,814) | (1,188,296) |
Realized gain from gold distributed from in-kind | $ (222,753) | $ 5,978 |
Ounces (in Ounces) | oz | 69,283 | 51,379 |
Fair Value | $ 79,145,630 | $ 64,750,586 |
RELATED PARTIES - SPONSOR, TR29
RELATED PARTIES - SPONSOR, TRUSTEE, CUSTODIAN AND MARKETING FEES (Details) | 9 Months Ended |
Oct. 31, 2015USD ($) | |
Related Party Transactions [Abstract] | |
Trust Management Fee, Percentage Fee | 0.40% |
Administrative Fees Expense | $ 100,000 |
SHAREHOLDER OWNERSHIP (Details)
SHAREHOLDER OWNERSHIP (Details) | Oct. 31, 2015USD ($) |
Disclosure Text Block Supplement [Abstract] | |
Equity Method Investment, Quoted Market Value | $ 23,285,728 |
Equity Method Investment, Ownership Percentage | 29.42% |