Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 01, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Registrant Name | GOLDMAN SACHS PHYSICAL GOLD ETF | |
Entity Central Index Key | 0001708646 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-38620 | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 61-1848163 | |
Entity Address, Address Line One | 240 Greenwich Street | |
Entity Address, Address Line Two | 8th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10286 | |
City Area Code | 212 | |
Local Phone Number | 635-6314 | |
Title of 12(b) Security | Goldman Sachs Physical Gold ETF | |
Trading Symbol | AAAU | |
Security Exchange Name | CboeBZX | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,350,000 |
Statements of Assets and Liabil
Statements of Assets and Liabilities - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Investment in gold, at fair value (cost $447,396,288 and $408,696,923, respectively) | $ 400,298,339 | $ 424,287,056 |
Total assets | 400,298,339 | 424,287,056 |
Liabilities | ||
Sponsor fee payable | 63,519 | 63,676 |
Total liabilities | 63,519 | 63,676 |
Net Assets | $ 400,234,820 | $ 424,223,380 |
Common stock, issued | 24,120,000 | 23,450,000 |
Common stock, outstanding | 24,120,000 | 23,450,000 |
Net asset value per share | $ 16.59 | $ 18.09 |
Statements of Assets and Liab_2
Statements of Assets and Liabilities (Parentheticals) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Statement of Financial Position [Abstract] | ||
Investment in gold at cost | $ 447,396,288 | $ 408,696,923 |
Common stock, share authorized | Unlimited | Unlimited |
Common stock, par value | $ 0 | $ 0 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Expenses | ||||
Sponsor fee | $ (225,175) | $ (172,760) | $ (780,094) | $ (503,341) |
Total expenses | (225,175) | (172,760) | (780,094) | (503,341) |
Net investment (loss) | (225,175) | (172,760) | (780,094) | (503,341) |
Net realized and unrealized gain (loss) | ||||
Net realized gain (loss) on gold bullion distributed for redemptions | (4,334,332) | 0 | 19,888,824 | 47,462,394 |
Net realized gain (loss) on gold transferred to pay expenses | (29,400) | (2,352) | (64,667) | (38,462) |
Net realized gain (loss) | (4,363,732) | (2,352) | 19,824,157 | 47,423,932 |
Net change in unrealized appreciation (depreciation) on investment in gold | (36,979,756) | (4,914,001) | (62,688,082) | (82,432,920) |
Net realized and unrealized gain (loss) from operations | (41,343,488) | (4,916,353) | (42,863,925) | (35,008,988) |
Net Income (Loss) | $ (41,568,663) | $ (5,089,113) | $ (43,644,019) | $ (35,512,329) |
Net income (loss) per share | $ (1.44) | $ (0.24) | $ (1.37) | $ (1.7) |
Average number of shares (in Shares) | 28,829,457 | 21,397,826 | 31,767,070 | 20,841,850 |
Statements of Changes in Net As
Statements of Changes in Net Assets - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Net Assets, beginning of period | $ 597,240,256 | $ 364,839,059 | $ 424,223,380 | $ 510,765,231 |
Creations | 84,962,562 | 37,974,733 | 486,042,991 | 68,718,369 |
Redemptions | (240,399,335) | 0 | (466,387,532) | (146,246,592) |
Net creations (redemptions) | (155,436,773) | 37,974,733 | 19,655,459 | (77,528,223) |
Net investment loss | (225,175) | (172,760) | (780,094) | (503,341) |
Net realized gain (loss) | (4,363,732) | (2,352) | 19,824,157 | 47,423,932 |
Net change in unrealized appreciation (depreciation) on investments in gold | (36,979,756) | (4,914,001) | (62,688,082) | (82,432,920) |
Net Assets, end of period | $ 400,234,820 | $ 397,724,679 | $ 400,234,820 | $ 397,724,679 |
Financial Highlights
Financial Highlights - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Per Share Performance (for a share outstanding throughout each year) | |||||
Net asset value per share, beginning of period | $ 18.04 | $ 17.54 | $ 18.09 | $ 18.83 | |
Net investment loss | [1] | (0.01) | (0.01) | (0.02) | (0.02) |
Net realized and unrealized gain (loss) on investment in gold | (1.44) | (0.2) | (1.48) | (1.48) | |
Change in net assets from operations | (1.45) | (0.21) | (1.5) | (1.5) | |
Net asset value per share, end of year | 16.59 | 17.33 | 16.59 | 17.33 | |
Market value per share, beginning of year | 17.94 | 17.6 | 18.18 | 18.94 | |
Market value per share, end of year | $ 16.5 | $ 17.46 | $ 16.5 | $ 17.46 | |
Total Return, at net asset value | [2] | (8.04%) | (1.20%) | (8.29%) | (7.97%) |
Total Return, at market value | [2] | (8.05%) | (0.80%) | (9.27%) | (7.81%) |
Net assets ($000's) (in Dollars) | $ 400,235 | $ 397,725 | $ 400,235 | $ 397,725 | |
Ratios to average net assets | |||||
Net investment loss | [3] | (0.18%) | (0.18%) | (0.18%) | (0.18%) |
Total expenses | [3] | (0.18%) | (0.18%) | (0.18%) | (0.18%) |
[1]Calculated using average shares outstanding.[2]Total Return, at net asset value (“NAV”) is calculated assuming an initial investment made at the NAV at the beginning of the period, reinvestment of any dividends and distributions at NAV during the period, and redemption of Shares on the last day of the period. Total Return, at NAV includes adjustments in accordance with U.S. GAAP and as such, the NAV for financial reporting purposes and the returns based upon those NAVs may differ from the NAVs and returns for shareholder transactions. Total Return, at market value is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at market value during the period and redemption of Shares at the market value on the last day of the period. Total returns for periods less than one full year are not annualized.[3]Annualized. |
Schedules of Investments
Schedules of Investments | 9 Months Ended |
Sep. 30, 2022 | |
Schedule of Investments [Abstract] | |
Schedules of Investments | September 30, 2022 (unaudited) Ounces Cost Fair Value % of Net Assets Investment in gold, at fair value 239,448.7 $ 447,396,288 $ 400,298,339 100.02 % Total Investments $ 447,396,288 $ 400,298,339 100.02 % Liabilities in excess of other assets (63,519 ) (0.02 )% Net Assets $ 400,234,820 100.00 % December 31, 2021 Ounces Cost Fair Value % of Net Assets Investment in gold, at fair value 233,111.9 $ 408,696,923 $ 424,287,056 100.02 % Total Investments $ 408,696,923 $ 424,287,056 100.02 % Liabilities in excess of other assets (63,676 ) (0.02 )% Net Assets $ 424,223,380 100.00 % |
Organization
Organization | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION | 1. ORGANIZATION Goldman Sachs Physical Gold ETF (the “Trust”) is organized as a New York trust. The Trust is governed by the provisions of the First Amended and Restated Depositary Trust Agreement (as amended from time to time, the “Trust Agreement”) executed after the close of business on December 11, 2020 by Goldman Sachs Asset Management, L.P. (the “Sponsor”) and The Bank of New York Mellon (the “Trustee”). The Trust issues Goldman Sachs Physical Gold ETF Shares (the “Shares”), which represent units of fractional undivided beneficial interest in the Trust. The Trust commenced operations on July 26, 2018. The Sponsor of the Trust is Goldman Sachs Asset Management, L.P., a Delaware limited partnership. Goldman Sachs Asset Management, L.P. is an indirect, wholly-owned subsidiary of The Goldman Sachs Group, Inc. (“GS Group Inc.”) and an affiliate of Goldman Sachs & Co. LLC. The Trustee is generally responsible for the day-to-day Physical gold that the Trust holds consists of gold bullion that meets the specifications for “good delivery” gold bars (“London Good Delivery Standards”), including the specifications for weight, dimension, fineness (or purity), identifying marks and appearance of gold bars, set forth in the good delivery rules promulgated by the London Bullion Market Association (“LBMA”). The Trust issues Shares in blocks of at least 25,000 shares called “Baskets” in exchange for gold from certain registered broker-dealers or other securities market participants (the “Authorized Participants”), which is then allocated as physical gold and stored by the Custodian. The Trust issues and redeems Baskets on an ongoing basis at net asset value (“NAV” or “Net Asset Value”) to and from Authorized Participants who have entered into a contract with the Sponsor and the Trustee. As of September 30, 2022, each of Virtu Americas LLC and Goldman Sachs & Co. LLC has signed an Authorized Participant Agreement with the Sponsor and the Trustee, and may create and redeem Baskets. The Trust’s investment 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. The Shares trade on the Cboe BZX Exchange, Inc. (“Cboe BZX Exchange”) under the symbol “AAAU.” Effective February 3, 2022, the listing of the Trust was transferred from NYSE Arca to Cboe BZX Exchange. The Trust’s fiscal year-end |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES In preparing financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”), management of the Sponsor 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 following is a summary of significant accounting policies followed by the Trust. 2.1. Basis of Presentation 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, and has concluded that solely for reporting purposes (and not for any other purpose), the Trust is classified as an Investment Company (as defined in ASC 946). The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. 2.2. Valuation of Gold The Trust follows the provisions of ASC 820, Fair Value Measurements (“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. On each business day that the Cboe BZX Exchange is open for regular trading, as promptly as practicable after 4:00 p.m. New York City time, the Trustee will value the gold held by the Trust and will determine the Net Asset Value of the Trust. The Net Asset Value of the Trust is the aggregate value of gold and other assets, if any, of the Trust (other than any amounts credited to the Trust’s reserve account, if any) including cash, if any, less liabilities of the Trust, which include estimated accrued but unpaid fees, expenses and other liabilities. The reserve account, if established, will be a separate non-interest as selected by the Trustee, in the name, and for the benefit, of the Trust, subject only to draft or order by the Trustee acting pursuant to the terms of the Trust Agreement. All gold is valued based on its fine troy ounce (“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 Ounce of unallocated gold the Trust may hold is calculated by multiplying the number of Fine Ounce with the price of gold determined by the Trustee. The Trustee values the gold held by the Trust based on the LBMA Gold Price PM. The LBMA Gold Price PM is set at 3:00 p.m. London time via an auction independently operated and administered by ICE Benchmark Administration (“IBA”). The price is set in U.S. dollars per Fine Ounce. If no LBMA Gold Price PM is available for the required day, the Trustee uses the LBMA Gold Price AM. If no LBMA Gold Price PM or LBMA Gold Price AM is available for the day, the Trustee values the Trust’s gold based on the most recently announced LBMA Gold Price PM or LBMA Gold Price AM. If the Sponsor determines that such price is inappropriate to use, it must identify an alternate basis for evaluation to be employed by the Trustee. The Sponsor may instruct the Trustee to use a different price which is reasonably available to the Trustee at no cost to the Trustee that the Sponsor determines to represent fairly the commercial value of the Trust’s gold. U.S. GAAP defines the fair value of a financial instrument as the amount 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 (i.e., the exit price); the Trust’s policy is to use the market approach. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety. The levels used for classifying investments are not necessarily an indication of the risk associated with investing in these investments. The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active or financial instruments for which significant inputs are observable (including, but not limited to, quoted prices for similar investments, interest rates, foreign exchange rates, volatility and credit spreads), either directly or indirectly; Level 3: Prices or valuations that require significant unobservable inputs (including Sponsor’s assumptions in determining fair value measurement). The Trustee categorizes the Trust’s investment in gold as a Level 1 asset within the ASC 820 hierarchy. 2.3. Expenses, Realized Gains and Losses The Trust’s only ordinary recurring fee is expected to be the fee paid to the Sponsor, which will accrue daily at an annualized rate equal to 0.18% of the daily Net Asset Value of the Trust, paid monthly in arrears (the “Sponsor Fee”). The Sponsor Fee accrues daily based on the prior business day’s Net Asset Value and is payable in cash from the Trust property or the sale of gold in accordance with the Trust Agreement. Realized gains and losses result from the transfer of gold for share redemptions and payment of Trust expenses and are recognized on a trade date basis as the difference between the fair value and cost of gold transferred. The cost of gold is determined using the specific identification method. 2.4. 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 the gold is transferred within two business days of the trade date. 2.5. Creations and Redemptions of Shares The Trust issues and redeems Shares in one or more blocks of at least 25,000 shares (a block of 25,000 shares is called a “Basket”) 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 or redeem Baskets may be placed only by Authorized Participants. 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 redemptio 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 a Sponsor or the Trust, and no such person has any obligation or responsibility to a Sponsor or the Trust to affect any sale or resale of shares. Changes in the shares during the three months ended September 30, 2022 and 2021 are: Three Months Ended September 30, September 30, Beginning Share Balance 33,100,000 20,800,000 Creations (representing 196 and 86 baskets, respectively) 4,900,000 2,150,000 Redemptions (representing 555 and – (13,880,000 ) — Ending Share Balance 24,120,000 22,950,000 Changes in the shares during the nine months ended September 30, 2022 and 2021 are: Nine Months Ended September 30, September 30, Beginning Share Balance 23,450,000 27,125,000 Creations (representing 1,066 and 153 baskets, respectively) 26,650,000 3,825,000 Redemptions (representing 1,039 and 320 baskets, respectively) (25,980,000 ) (8,000,000 ) Ending Share Balance 24,120,000 22,950,000 2.6. Income Taxes The Trust is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust itself is not subject to United States federal income tax. Instead, the Trust’s income, gain, losses, and expenses will “flow through” to the shareholders, and the Trustee reports these to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of September 30, 2022 and does not believe that there are any uncertain tax positions that require recognition of a tax liability. |
Investment in Gold
Investment in Gold | 9 Months Ended |
Sep. 30, 2022 | |
Investment Holdings [Abstract] | |
INVESTMENT IN GOLD | 3. INVESTMENT IN GOLD The following represents the changes in ounces of gold and the respective fair value during the three months ended September 30, 2022: Amount in Amount in Balance at June 30, 2022 328,743.4 $ 597,326,789 Creations 48,646.5 84,962,562 Redemptions (137,799.9 ) (240,399,335 ) Net realized gain (loss) from gold bullion distributed for redemptions — (4,334,332 ) Transfer of gold to pay expenses (141.3 ) (248,189 ) Net realized gain (loss) from gold transferred to pay expenses — (29,400 ) Change in unrealized appreciation (depreciation) on investment in gold — (36,979,756 ) Balance at September 30, 2022 239,448.7 $ 400,298,339 The following represents the changes in ounces of gold and the respective fair value during the nine months ended September 30, 2022: Amount in Amount in Balance at December 31, 2021 233,111.9 $ 424,287,056 Creations 264,757.9 486,042,991 Redemptions (257,995.2 ) (466,387,532 ) Net realized gain (loss) from gold bullion distributed for redemptions — 19,888,824 Transfer of gold to pay expenses (425.9 ) (780,251 ) Net realized gain (loss) from gold transferred to pay expenses — (64,667 ) Change in unrealized appreciation (depreciation) on investment in gold — (62,688,082 ) Balance at September 30, 2022 239,448.7 $ 400,298,339 |
Related Parties - Sponsor, Trus
Related Parties - Sponsor, Trustee, Custodian and Marketing Fees | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES –SPONSOR, TRUSTEE, CUSTODIAN AND MARKETING FEES | 4. RELATED PARTIES – SPONSOR, TRUSTEE, CUSTODIAN AND MARKETING FEES A fee is paid to the Sponsor as compensation for services performed under the Trust Agreement. The Sponsor’s Fee is payable at an annualized rate of 0.18% of the Trust’s Net Asset Value, accrued on a daily basis computed on the prior business day’s Net Asset Value and paid in cash monthly in arrears. In exchange for the Sponsor Fee, the Sponsor has agreed to assume and be responsible for the payment of the following expenses, up to the Fee Cap (as defined below): fees for the Trustee’s ordinary services and reimbursement of its ordinary out-of-pocket From time to time, the Sponsor may waive all or a portion of the Sponsor Fee at its discretion. The Sponsor is under no obligation to continue a waiver after the end of a stated period, and, if such waiver is not continued, the Sponsor Fee will thereafter be paid in full. Presently, the Sponsor does not intend to waive any of its fees. Affiliates of the Trustee may from time to time act as Authorized Participants or purchase or sell gold or Trust 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 |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF RISK | 5. 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, and new production projects; (ii) investors’ expectations regarding future inflation rates; (iii) currency exchange rate volatility; (iv) interest rate volatility; and (v) political, economic, global or regional incidents. In addition, there is no assurance that gold will maintain its long-term value in terms of purchasing power in the future. In the event that the price of gold declines, the Sponsor expects the value of an investment in the shares to decline proportionately. Each of these events could have a material effect on the Trust’s financial position and results of operations. |
Indemnification
Indemnification | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
INDEMNIFICATION | 6. INDEMNIFICATION The Trust Agreement provides that the Trustee, its directors, officers, employees, shareholders, agents and affiliates (as defined under the Securities Act of 1933, as amended) shall be indemnified from the Trust and held harmless against any loss, liability or expense (including the reasonable fees and expenses of counsel) arising out of or in connection with the performance of its obligations under the Trust Agreement and under each other agreement entered into by the Trustee in furtherance of the administration of the Trust (including the Custody Agreement and any Authorized Participant Agreement, including the Trustee’s indemnification obligations under these agreements), or otherwise by reason of the Trustee’s acceptance or administration of the Trust to the extent such loss, liability or expense was incurred without (i) gross negligence, bad faith, willful misconduct or willful malfeasance on the part of such indemnified party in connection with the performance of its obligations under the Trust Agreement or any such other agreement, or any actions taken in accordance with the provisions of this Agreement or any such other agreement, or (ii) reckless disregard on the part of such indemnified party of its obligations and duties under the Trust Agreement or any such other agreement. Each indemnified party shall indemnified from the Trust and held harmless against any loss, liability or expense (including the reasonable fees and expenses of counsel) arising out of or in connection with any services the Custodian may, directly or indirectly, separately offer or provide to any beneficial owner. Such indemnities shall include payment from the Trust of the reasonable costs and expenses incurred by such indemnified party in investigating or defending itself against any such loss, liability or expense or any claim therefor, provided that such indemnified party shall repay to the Trust the amount of any such reasonable costs and expenses paid by the Trust to the extent it may be ultimately determined that such indemnified party was not entitled to be indemnified under the Trust Agreement because clause (i) or clause (ii) of the sentence preceding the prior sentence applied. Any amounts payable to an indemnified party may be payable in advance or shall be secured by a lien on the Trust. The Sponsor and its members, managers, directors, officers, employees, agents and affiliates shall be indemnified from the Trust and held harmless against any loss, liability or expense (including the reasonable fees and expenses of counsel) arising out of or in connection with the performance of its obligations under the Trust Agreement and under each other agreement entered into by the Sponsor in furtherance of the administration of the Trust (including Authorized Participant Agreements to which the Sponsor is a party, including the Sponsor’s indemnification obligations thereunder) or any actions taken in accordance with the provisions of the Trust Agreement, to the extent such loss, liability or expense was incurred without (i) gross negligence, bad faith, willful misconduct or willful malfeasance on the part of such indemnified party in connection with the performance of its obligations under the Trust Agreement or any such other agreement or any actions taken in accordance with the provisions of the Trust Agreement, or any such other agreement or (ii) reckless disregard on the part of such indemnified party of its obligations and duties under the Trust Agreement, or any such other agreement. The Sponsor and its members, managers, directors, officers, employees, agents and affiliates shall be indemnified from the Trust and held harmless against any loss, liability or expense (including the reasonable fees and expenses of counsel) arising out of or in connection with any services the Custodian may, directly or indirectly, separately offer or provide to any beneficial owner. Such indemnities shall include payment from the Trust of the reasonable costs and expenses incurred by such indemnified party in investigating or defending itself against any such loss, liability or expense or any claim therefor, provided that such indemnified party shall repay to the Trust the amount of any such reasonable costs and expenses paid by the Trust to the extent it may be ultimately determined that such indemnified party was not entitled to be indemnified under the Trust Agreement because clause (i) or clause (ii) of this paragraph applied. In addition, the Trustee or the Sponsor may, in its sole discretion, undertake any action that it may deem necessary or desirable in respect of the Trust Agreement and in such event, the reasonable legal expenses and costs and other disbursements of any such actions shall be expenses and costs of the Trust and the Trustee or the Sponsor, as the case may be, shall be entitled to reimbursement by the Trust. 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. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2.1. Basis of Presentation 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, and has concluded that solely for reporting purposes (and not for any other purpose), the Trust is classified as an Investment Company (as defined in ASC 946). The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. |
Valuation of Gold | 2.2. Valuation of Gold The Trust follows the provisions of ASC 820, Fair Value Measurements (“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. On each business day that the Cboe BZX Exchange is open for regular trading, as promptly as practicable after 4:00 p.m. New York City time, the Trustee will value the gold held by the Trust and will determine the Net Asset Value of the Trust. The Net Asset Value of the Trust is the aggregate value of gold and other assets, if any, of the Trust (other than any amounts credited to the Trust’s reserve account, if any) including cash, if any, less liabilities of the Trust, which include estimated accrued but unpaid fees, expenses and other liabilities. The reserve account, if established, will be a separate non-interest as selected by the Trustee, in the name, and for the benefit, of the Trust, subject only to draft or order by the Trustee acting pursuant to the terms of the Trust Agreement. All gold is valued based on its fine troy ounce (“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 Ounce of unallocated gold the Trust may hold is calculated by multiplying the number of Fine Ounce with the price of gold determined by the Trustee. The Trustee values the gold held by the Trust based on the LBMA Gold Price PM. The LBMA Gold Price PM is set at 3:00 p.m. London time via an auction independently operated and administered by ICE Benchmark Administration (“IBA”). The price is set in U.S. dollars per Fine Ounce. If no LBMA Gold Price PM is available for the required day, the Trustee uses the LBMA Gold Price AM. If no LBMA Gold Price PM or LBMA Gold Price AM is available for the day, the Trustee values the Trust’s gold based on the most recently announced LBMA Gold Price PM or LBMA Gold Price AM. If the Sponsor determines that such price is inappropriate to use, it must identify an alternate basis for evaluation to be employed by the Trustee. The Sponsor may instruct the Trustee to use a different price which is reasonably available to the Trustee at no cost to the Trustee that the Sponsor determines to represent fairly the commercial value of the Trust’s gold. U.S. GAAP defines the fair value of a financial instrument as the amount 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 (i.e., the exit price); the Trust’s policy is to use the market approach. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety. The levels used for classifying investments are not necessarily an indication of the risk associated with investing in these investments. The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active or financial instruments for which significant inputs are observable (including, but not limited to, quoted prices for similar investments, interest rates, foreign exchange rates, volatility and credit spreads), either directly or indirectly; Level 3: Prices or valuations that require significant unobservable inputs (including Sponsor’s assumptions in determining fair value measurement). The Trustee categorizes the Trust’s investment in gold as a Level 1 asset within the ASC 820 hierarchy. |
Expenses, Realized Gains and Losses | 2.3. Expenses, Realized Gains and Losses The Trust’s only ordinary recurring fee is expected to be the fee paid to the Sponsor, which will accrue daily at an annualized rate equal to 0.18% of the daily Net Asset Value of the Trust, paid monthly in arrears (the “Sponsor Fee”). The Sponsor Fee accrues daily based on the prior business day’s Net Asset Value and is payable in cash from the Trust property or the sale of gold in accordance with the Trust Agreement. Realized gains and losses result from the transfer of gold for share redemptions and payment of Trust expenses and are recognized on a trade date basis as the difference between the fair value and cost of gold transferred. The cost of gold is determined using the specific identification method. |
Gold Receivable and Payable | 2.4. 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 the gold is transferred within two business days of the trade date. |
Creations and Redemptions of Shares | 2.5. Creations and Redemptions of Shares The Trust issues and redeems Shares in one or more blocks of at least 25,000 shares (a block of 25,000 shares is called a “Basket”) 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 or redeem Baskets may be placed only by Authorized Participants. 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 redemptio 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 a Sponsor or the Trust, and no such person has any obligation or responsibility to a Sponsor or the Trust to affect any sale or resale of shares. Changes in the shares during the three months ended September 30, 2022 and 2021 are: Three Months Ended September 30, September 30, Beginning Share Balance 33,100,000 20,800,000 Creations (representing 196 and 86 baskets, respectively) 4,900,000 2,150,000 Redemptions (representing 555 and – (13,880,000 ) — Ending Share Balance 24,120,000 22,950,000 Changes in the shares during the nine months ended September 30, 2022 and 2021 are: Nine Months Ended September 30, September 30, Beginning Share Balance 23,450,000 27,125,000 Creations (representing 1,066 and 153 baskets, respectively) 26,650,000 3,825,000 Redemptions (representing 1,039 and 320 baskets, respectively) (25,980,000 ) (8,000,000 ) Ending Share Balance 24,120,000 22,950,000 |
Income Taxes | 2.6. Income Taxes The Trust is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust itself is not subject to United States federal income tax. Instead, the Trust’s income, gain, losses, and expenses will “flow through” to the shareholders, and the Trustee reports these to the Internal Revenue Service on that basis. The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of September 30, 2022 and does not believe that there are any uncertain tax positions that require recognition of a tax liability. |
Schedules of Investments (Table
Schedules of Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Schedule of Investments [Abstract] | |
Schedules of Investments | September 30, 2022 (unaudited) Ounces Cost Fair Value % of Net Assets Investment in gold, at fair value 239,448.7 $ 447,396,288 $ 400,298,339 100.02 % Total Investments $ 447,396,288 $ 400,298,339 100.02 % Liabilities in excess of other assets (63,519 ) (0.02 )% Net Assets $ 400,234,820 100.00 % December 31, 2021 Ounces Cost Fair Value % of Net Assets Investment in gold, at fair value 233,111.9 $ 408,696,923 $ 424,287,056 100.02 % Total Investments $ 408,696,923 $ 424,287,056 100.02 % Liabilities in excess of other assets (63,676 ) (0.02 )% Net Assets $ 424,223,380 100.00 % |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of changes in ounces of gold and respective fair value | Changes in the shares during the three months ended September 30, 2022 and 2021 are: Three Months Ended September 30, September 30, Beginning Share Balance 33,100,000 20,800,000 Creations (representing 196 and 86 baskets, respectively) 4,900,000 2,150,000 Redemptions (representing 555 and – (13,880,000 ) — Ending Share Balance 24,120,000 22,950,000 Changes in the shares during the nine months ended September 30, 2022 and 2021 are: Nine Months Ended September 30, September 30, Beginning Share Balance 23,450,000 27,125,000 Creations (representing 1,066 and 153 baskets, respectively) 26,650,000 3,825,000 Redemptions (representing 1,039 and 320 baskets, respectively) (25,980,000 ) (8,000,000 ) Ending Share Balance 24,120,000 22,950,000 |
Investment in Gold (Tables)
Investment in Gold (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investment Holdings [Abstract] | |
Schedule of valuation of investments | The following represents the changes in ounces of gold and the respective fair value during the three months ended September 30, 2022: Amount in Amount in Balance at June 30, 2022 328,743.4 $ 597,326,789 Creations 48,646.5 84,962,562 Redemptions (137,799.9 ) (240,399,335 ) Net realized gain (loss) from gold bullion distributed for redemptions — (4,334,332 ) Transfer of gold to pay expenses (141.3 ) (248,189 ) Net realized gain (loss) from gold transferred to pay expenses — (29,400 ) Change in unrealized appreciation (depreciation) on investment in gold — (36,979,756 ) Balance at September 30, 2022 239,448.7 $ 400,298,339 The following represents the changes in ounces of gold and the respective fair value during the nine months ended September 30, 2022: Amount in Amount in Balance at December 31, 2021 233,111.9 $ 424,287,056 Creations 264,757.9 486,042,991 Redemptions (257,995.2 ) (466,387,532 ) Net realized gain (loss) from gold bullion distributed for redemptions — 19,888,824 Transfer of gold to pay expenses (425.9 ) (780,251 ) Net realized gain (loss) from gold transferred to pay expenses — (64,667 ) Change in unrealized appreciation (depreciation) on investment in gold — (62,688,082 ) Balance at September 30, 2022 239,448.7 $ 400,298,339 |
Schedules of Investments - Sche
Schedules of Investments - Schedules of Investments (Details) | Sep. 30, 2022 USD ($) oz | Jun. 30, 2022 oz | Dec. 31, 2021 USD ($) oz |
Summary of Investment Holdings [Line Items] | |||
Ounces (in Grams) | oz | 239,448.7 | 328,743.4 | 233,111.9 |
Cost | $ 447,396,288 | $ 408,696,923 | |
Investment in gold, at fair value [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Ounces (in Grams) | oz | 239,448.7 | 233,111.9 | |
Cost | $ 447,396,288 | $ 408,696,923 | |
Fair Value | $ 400,298,339 | $ 424,287,056 | |
% of Net Assets | 100.02% | 100.02% | |
Total Investments [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Cost | $ 447,396,288 | $ 408,696,923 | |
Fair Value | $ 400,298,339 | $ 424,287,056 | |
% of Net Assets | 100.02% | 100.02% | |
Liabilities in excess of other assets [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Fair Value | $ (63,519) | $ (63,676) | |
% of Net Assets | (0.02%) | (0.02%) | |
Net Assets [Member] | |||
Summary of Investment Holdings [Line Items] | |||
Fair Value | $ 400,234,820 | $ 424,223,380 | |
% of Net Assets | 100% | 100% |
Organization (Details)
Organization (Details) | 9 Months Ended |
Sep. 30, 2022 shares | |
Organization (Details) [Line Items] | |
Operations commenced date | Jul. 26, 2018 |
Minimum [Member] | |
Organization (Details) [Line Items] | |
Shares issued in basket in exchange for gold | 25,000 |
Significant Accounting Polici_4
Significant Accounting Policies - Schedule of changes in ounces of gold and respective fair value (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Changes In Ounces Of Gold And Respective Fair Value [Abstract] | ||||
Beginning Share Balance | 33,100,000 | 20,800,000 | 23,450,000 | 27,125,000 |
Creations | 4,900,000 | 2,150,000 | 26,650,000 | 3,825,000 |
Redemptions | (13,880,000) | 0 | (25,980,000) | (8,000,000) |
Ending Share Balance | 24,120,000 | 22,950,000 | 24,120,000 | 22,950,000 |
Significant Accounting Polici_5
Significant Accounting Policies - Schedule of changes in ounces of gold and respective fair value (Parentheticals) (Details) - Baskets | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Schedule Of Changes In Ounces Of Gold And Respective Fair Value [Abstract] | ||||
Number of baskets issued | 196 | 86 | 1,066 | 153 |
Number of baskets redeemed | 555 | 0 | 1,039 | 320 |
Significant Accounting Polici_6
Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) shares | |
Accounting Policies [Abstract] | |
Annualized rate of sponsors fee | 0.18% |
Basket of shares | shares | 25,000 |
Transaction fee (in Dollars) | $ | $ 500 |
Investment in Gold - Schedule o
Investment in Gold - Schedule of valuation of investments (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) oz | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) oz | Sep. 30, 2021 USD ($) | |
Schedule Of Valuation Of Investments [Abstract] | ||||
Balance at beginning (in Ounces) | oz | 328,743.4 | 233,111.9 | ||
Creations (in Ounces) | oz | 48,646.5 | 264,757.9 | ||
Redemptions (in Ounces) | oz | (137,799.9) | (257,995.2) | ||
Net realized gain (loss) from gold bullion distributed for redemptions (in Ounces) | oz | ||||
Transfer of gold to pay expenses (in Ounces) | oz | (141.3) | (425.9) | ||
Net realized gain (loss) from gold transferred to pay expenses (in Ounces) | oz | 0 | 0 | ||
Change in unrealized appreciation (depreciation) on investment in gold (in Ounces) | oz | ||||
Balance at ending (in Ounces) | oz | 239,448.7 | 239,448.7 | ||
Investment in gold, fair value, beginning balance | $ | $ 597,326,789 | $ 424,287,056 | ||
Creations | $ | 84,962,562 | 486,042,991 | ||
Redemptions | $ | (240,399,335) | (466,387,532) | ||
Net realized gain (loss) from gold bullion distributed for redemptions | $ | (4,334,332) | 19,888,824 | ||
Transfer of gold to pay expenses | $ | (248,189) | (780,251) | ||
Net realized gain (loss) from gold transferred to pay expenses | $ | (29,400) | (64,667) | ||
Change in unrealized appreciation (depreciation) on investment in gold | $ | (36,979,756) | $ (4,914,001) | (62,688,082) | $ (82,432,920) |
Investment in gold, fair value, ending balance | $ | $ 400,298,339 | $ 400,298,339 |
Related Parties - Sponsor, Tr_2
Related Parties - Sponsor, Trustee, Custodian and Marketing Fees (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Related Party Transactions [Abstract] | |
Payment of maximum amount of expenses | $ 500,000 |
Percentage of funds asset | 0.15% |
Annualized rate of sponsors fee | 0.18% |