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on a trade date basis as the difference between the fair value and cost of gold transferred. December 31, 2021 December 31, 2020 December 31, 2019 (Amounts in 000’s of US$) Investment in gold - cost $ 2,033,883 $ 2,135,209 $ 1,011,343 Unrealized gain on investment in gold 357,695 517,682 181,808 Investment in gold- fair value $ 2,391,578 $ 2,652,891 $ 1,193,151 Inspection of Gold Under the Custody Agreements, the Trustee, the Sponsor and the |
Trust’s auditors and inspectors may, only up to twice a year, visit the premises of the Custodian and the Zurich Sub-Custodian |
for the purpose of examining the Trust’s gold and certain related records maintained by the Custodian. Under the |
Allocated Account Agreement, the Custodian agreed to procure similar inspection rights from the Zurich Sub-Custodian. Visits by |
auditors and inspectors to the Zurich Sub-Custodian’s facilities will be arranged through the Custodian. Other than with respect |
to the Zurich Sub-Custodian, the Trustee and the Sponsor have no right to visit the premises of any sub-custodian for the purposes |
of examining the Trust’s gold or any records maintained by the sub-custodian, and no sub-custodian is obligated to cooperate |
in any review the Trustee or the Sponsor may wish to conduct of the facilities, procedures, records or creditworthiness of such |
sub-custodian. The Sponsor has exercised its right to visit the Custodian in order to examine the gold and the records maintained by the Custodian. An inspection was conducted by Inspectorate |
International Limited, a leading commodity inspection and testing company retained by the Sponsor, as of July 23, 2021 and December |
31, 2021. There can be no guarantee that the Sponsor or the Trust’s |
auditors and inspectors will be able to perform physical inspections of the Trust’s gold as planned. Local policies, regulations, |
or ordinances, as well as polices or restrictions adopted by the Custodian or a sub-custodian, may temporarily prevent, or otherwise |
impair the ability of, the Sponsor or the Trust’s auditors and inspectors, from performing a physical inspection of the Trust’s |
gold on a desired date. In those situations, the Sponsor or the Trust’s auditors and inspectors may seek to verify the gold |
held by the Trust by alternate means, including through virtual inspections of the Trust’s gold and/or a review of pertinent |
records. Liquidity The Trust is not aware of any trends, demands, conditions, events |
or uncertainties that are reasonably likely to result in material changes to its liquidity needs. In exchange for the Sponsor’s |
Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only expense of the Trust during |
the period covered by this report was the Sponsor’s Fee. The Trust’s only source of liquidity is its transfers and |
sales of gold. 39 The Trustee will, at the direction of the Sponsor or in its |
own discretion, sell the Trust’s gold as necessary to pay the Trust’s |
expenses not otherwise assumed by the Sponsor. The Trustee will not sell gold to pay the Sponsor’s Fee but will pay |
the Sponsor’s Fee through in-kind transfers of gold to the Sponsor. At December 31, 2021 and 2020 , |
the Trust did not have any cash balances. Review of Financial Results Financial Highlights Year Ended December 31, 2021 Year Ended December 31, 2020 Year Ended December 31, 2019 (Amounts in 000’s of US$) Total gain/(loss) on gold $ (126,860 ) $ 367,389 $ 155,359 Net change assets from operations $ (130,982 ) $ 363,748 $ 153,679 Net cash provided by operating activities $ — $ — $ — The net asset value (“NAV”) of the Trust is obtained |
by subtracting the Trust’s expenses and liabilities on any day from the value of the gold owned by the Trust on that day; |
the NAV per Share is obtained by dividing the NAV of the Trust on a given day by the number of Shares outstanding on that day. The year ended December 31, 2021 The Trust’s NAV decreased from $2,652,511,503 at December |
31, 2020 to $2,391,232,291 at December 31, 2021, a 9.85% decrease for the year. The decrease in the Trust’s NAV resulted |
primarily from a decrease in the price per ounce of gold, which fell 4.33% from $1,887.60 at December 31, 2020 to $1,805.85 at |
December 31, 2021. There was also a decrease in outstanding Shares, which fell from 146,200,000 Shares at December 31, 2020 to |
138,000,000 Shares at December 31, 2021, a result of 7,200,000 Shares (72 Baskets) being created and 15,400,000 Shares (154 Baskets) |
being redeemed during the year. The NAV per Share decreased 4.47% from $18.14 at December 31, |
2020 to $17.33 at December 31, 2021. The Trust’s NAV per Share fell slightly more than the price per ounce of gold on a percentage |
basis due to the Sponsor’s Fee, which was $4,122,059 for the year, or 0.17% of the Trust’s ANAV. The NAV per Share of $18.68 at January 4, 2021 was the highest |
during the year, compared with a low of $16.18 at March 30, 2021. The decrease in net assets from operations for the year ended |
December 31, 2021 was $130,981,959, resulting from a realized gain of $635,467 on the transfer of gold to pay expenses and a realized |
gain of $32,491,117 on gold distributed for the redemption of Shares, offset by a change in unrealized loss on investment of gold |
of $159,986,484,and the Sponsor’s Fee of $4,122,059. Other than the Sponsor’s Fee, the Trust had no expenses during |
the year ended December 31, 2021. The year ended December 31, 2020 The Trust’s NAV increased from $1,195,896,624 at December |
31, 2019 to $ 2,652,511,503 at December 31, 2020, a 121.80% increase for the year. The increase in the Trust’s NAV resulted |
primarily from an increase in the price per ounce of gold, which rose 24.61% from $1,514.75 at December 31, 2019 to $1,887.60 |
at December 31, 2020 and an increase in outstanding Shares, which rose from 82,000,000 Shares at December 31, 2019 to 146,200,000 |
Shares at December 31, 2020, a result of 76,700,000 Shares (767 Baskets) being created and 12,500,000 Shares (125 Baskets) being |
redeemed during the year. 40 The NAV per Share increased 24.42% from $14.58 at December 31, |
2019 to $18.14 at December 31, 2020. The Trust’s NAV per Share rose slightly less than the price per ounce of gold on a percentage |
basis due to the Sponsor’s Fee, which was $3,640,527 for the year, or 0.17% of the Trust’s ANAV. The NAV per Share of $19.88 at August 6, 2020 was the highest |
during the year, compared with a low of $14.19 at March 19, 2020. The increase in net assets from operations for the year ended |
December 31, 2020 was $363,748,468, resulting from a realized gain of $642,860 on the transfer of gold to pay expenses, a realized |
gain of $30,872,826 on gold distributed for the redemption of Shares, a change in unrealized gain on investment of gold of $335,873,309, |
offset by the Sponsor’s Fees of $3,640,527. Other than the Sponsor’s Fee, the Trust had no expenses during the year |
ended December 31, 2020. The year ended December 31, 2019 1 The Trust’s NAV increased from $846,715,993 at December |
31, 2018 to $1,195,896,624 at December 31, 2019, a 41.24% increase for the year. The increase in the Trust’s NAV resulted |
primarily from an increase in the price per ounce of gold, which rose 18.19% from $1,281.65 at December 31, 2018 to $1,514.75 at |
December 31, 2019 and an increase in outstanding Shares, which rose from 68,500,000 Shares at December 31, 2018 to 82,000,000 Shares |
at December 31, 2019, a result of 21,300,000 Shares (213 Baskets) being created and 7,800,000 Shares (78 Baskets) being redeemed |
during the year 1 . The NAV per Share increased 17.95% from $12.36 at December 31, |
2018 to $14.58 at December 31, 2019. The Trust’s NAV per Share rose slightly less than the price per ounce of gold on a percentage |
basis due to the Sponsor’s Fee, which was $1,680,258 for the year, 0.17% of the Trust’s ANAV. The NAV per Share of $14.89 at September 4, 2019 was the highest |
during the year, compared with a low of $12.24 at April 23, 2019. The increase in net assets from operations for the year ended |
December 31, 2019 was $153,678,908, resulting from a realized gain of $154,397 on the transfer of gold to pay expenses, a realized |
gain of $8,540,847 on gold distributed for the redemption of Shares, a change in unrealized gain on investment of gold of $146,663,922, |
offset by the Sponsor’s Fees of $1,680,258. Other than the Sponsor’s Fee, the Trust had no expenses during the year |
ended December 31, 2019. 1 After the close of markets on November 1, 2019, the Trust effected a ten-for-one forward share split of the Shares |
issued by the Trust (the “Split”). In addition, effective November 4, 2019, the number of Shares in a block that constitutes |
a Basket increased from 50,000 Shares to 100,000 Shares (the “Basket Size Change”). The information presented attributable |
to periods prior to the Split and the Basket Size Change has been adjusted to reflect the effects of the Split and the Basket |
Size Change. Off-Balance Sheet Arrangements The Trust is not a party to any off-balance sheet arrangements. Item 7A. Quantitative and Qualitative Disclosures about Market |
Risk The Trust Agreement does not authorize the Trustee to borrow |
for payment of the Trust’s ordinary expenses. The Trust does not engage in transactions in foreign currencies which could |
expose the Trust or holders of Shares to any foreign currency related market risk. The Trust invests in no derivative financial |
instruments and has no foreign operations or long-term debt instruments.. 41 Item 8. Financial Statements and Supplementary Data (Unaudited) Quarterly Income Statements Year Ended December 31, 2021 Three months ended Year ended (Amounts in 000’s of US$, except for Share and per Share data) March 31 June 30 September 30 December 31 December 31 EXPENSES Sponsor’s Fee $ 1,051 $ 1,015 $ 1,028 $ 1,028 $ 4,122 Total expenses 1,051 1,015 1,028 1,028 4,122 Net investment loss (1,051 ) (1,015 ) (1,028 ) (1,028 ) (4,122 ) REALIZED AND UNREALIZED GAINS / (LOSSES) Realized gain on gold transferred to pay expenses 195 141 157 142 635 Realized gain on gold distributed for the redemption of Shares 20,641 6,102 3,685 2,063 32,491 Change in unrealized gain and loss on investment in gold (298,124 ) 87,618 (30,782 ) 81,302 (159,986 ) Total (loss)/gain on investment in gold (277,288 ) 93,861 (26,940 ) 83,507 (126,860 ) Change in net assets from operations $ (278,339 ) $ 92,846 $ (27,968 ) $ 82,479 $ (130,982 ) Net increase in net assets per Share $ (1.91 ) $ 0.67 $ (0.20 ) $ 0.60 $ (0.93 ) Weighted average number of Shares 145,787,778 138,387,912 138,592,391 138,152,174 140,204,658 Year Ended December 31, 2020 Three months ended Year ended (Amounts in 000’s of US$, except for Share and per Share data) March 31 June 30 September |
30 December 31 December 31 EXPENSES Sponsor’s Fee $ 588 $ 808 $ 1,102 $ 1,143 $ 3,641 Total expenses 588 808 1,102 1,143 3,641 Net investment loss (588 ) (808 ) (1,102 ) (1,143 ) (3,641 ) REALIZED AND UNREALIZED GAINS / (LOSSES) Realized gain on gold transferred to pay expenses 89 120 208 226 643 Realized gain / (loss) on gold distributed for the redemption of Shares 9,417 — 4,384 17,072 30,873 Change in unrealized gain on investment in gold 59,879 164,597 130,063 (18,666 ) 335,873 Total gain on investment in gold 69,385 164,717 134,655 (1,368 ) 367,389 Change in net assets from operations $ 68,797 $ 163,909 $ 133,553 $ (2,511 ) $ 363,748 Net increase in net assets per Share $ 0.76 $ 1.42 $ 0.94 $ 0.02 $ 2.93 Weighted average number of Share ) 90,987,912 115,749,451 142,115,217 147,114,565 124,112,022 Note: Quarterly balances may not add to totals due to independent |
rounding. 42 The financial statements required by Regulation S-X, together |
with the report of the Trust’s independent registered public accounting firm appear on pages F-1 to F-13 of this filing. Item 9. Changes in and Disagreements with Accountants on |
Accounting and Financial Disclosure None. Item 9A. Controls and Procedures Conclusion Regarding the Effectiveness of Disclosure Controls |
and Procedures The Trust maintains disclosure controls and procedures that |
are designed to ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized |
and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such |
information is accumulated and communicated to the Chief Executive Officer and Chief Financial Officer of the Sponsor, and to the |
audit committee, as appropriate, to allow timely decisions regarding required disclosure. Under the supervision and with the participation of the Chief |
Executive Officer and the Chief Financial Officer of the Sponsor, the Sponsor conducted an evaluation of the Trust’s disclosure |
controls and procedures, as defined under Exchange Act Rules 13a-15(e) and 15d-15(e). Based on this evaluation, the Chief Executive |
Officer and the Chief Financial Officer of the Sponsor concluded that, as of December 31, 2021, the Trust’s disclosure controls |
and procedures were effective. Internal controls over financial reporting have been maintained |
throughout the Trust’s fiscal year ended December 31, 2021. There have been no changes that have materially affected, or |
are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial reporting. Management’s Report on Internal Control over Financial |
Reporting The Sponsor’s management is responsible for establishing |
and maintaining adequate internal control over financial reporting, as defined under Exchange Act Rules 13a-15(f) and 15d-15(f). |
The Trust’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the |
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting |
principles generally accepted in the United States. Internal control over financial reporting includes those policies and procedures |
tha (1) pertain to the |
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Trust’s |
assets; (2) provide reasonable |
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally |
accepted accounting principles, and that the Trust’s receipts and expenditures are being made only in accordance with appropriate |
authorizations; and (3) provide reasonable |
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Trust’s assets |
that could have a material effect on the financial statements. 43 Because of its inherent limitations, internal control over financial |
reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject |
Subsets and Splits