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Item 2. Management’s Discussion and Analysis

2021-05-05 compared with 2021-02-03 · 82 added, 91 removed, 17 unchanged (91% of the section changed)

Management’s Discussion and Analysis of Financial Condition and Results of Operations

information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of

Part I of this Form 10-Q.

The discussion and analysis that follows may contain statements that relate to future events or future

In some cases, such forward-looking statements can be identified by terminology such as “may,” “should,”

“could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,”

“predict,” “potential” or the negative of these terms or other comparable terminology.

Except as required

by applicable disclosure laws, neither the Sponsor, nor any other person assumes responsibility for the accuracy or completeness

of any forward-looking statements.

Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements

to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions.

information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of Part

I of this Form 10-Q.

The discussion and analysis that follows may contain statements that relate to future events or future performance.

In some cases, such forward-looking statements can be identified by terminology such as “may,” “should,” “could,”

“expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,”

“potential” or the negative of these terms or other comparable terminology.

Except as required by applicable disclosure laws,

neither the Sponsor, nor any other person assumes responsibility for the accuracy or completeness of any forward-looking statements.

Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual

results or to a change in the Sponsor’s expectations or predictions.

Trust is a common law trust, formed under the laws of the state of New York on August 24, 2017.

The Trust is not managed like

a corporation or an active investment vehicle.

It does not have any officers, directors, or employees and is administered by the

Trustee pursuant to the Trust Agreement.

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.

It does not hold or trade in commodity futures contracts, nor is it a

commodity pool, or subject to regulation as a commodity pool operator or a commodity trading adviser in connection with issuing

Trust holds gold and is expected to issue Baskets in exchange for deposits of gold, and to distribute gold in connection with

redemptions of Baskets.

The Trust is not managed like a corporation

or an active investment vehicle.

It does not have any officers, directors, or employees and is administered by the Trustee pursuant to

the Trust Agreement.

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.

It does not hold or trade in commodity futures contracts, nor is it a commodity pool, or subject to regulation

as a commodity pool operator or a commodity trading adviser in connection with issuing Shares.

Trust holds gold and is expected to issue Baskets in exchange for deposits of gold, and to distribute gold in connection with redemptions

Shares issued by the Trust represent units of undivided beneficial interest in and ownership of the Trust.

The investment objective of the Trust is for the Shares to reflect the performance of the price of gold, less the Trust’s

The Sponsor believes that, for many investors, the Shares will represent a cost effective investment relative to traditional

means of investing in gold.

Trust issues and redeems Shares only with Authorized Participants in exchange for gold and only in aggregations of 50,000 Shares

or integral multiples thereof.

The investment

objective of the Trust is for the Shares to reflect the performance of the price of gold, less the Trust’s expenses.

believes that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in

Trust issues and redeems Shares only with Authorized Participants in exchange for gold and only in aggregations of 50,000 Shares or integral

multiples thereof.

A list of current Authorized Participants is available from the Sponsor or the Trustee.

2 unchanged sentences

each business day, as soon as practicable after 4:00 p.m.

(New York time), the Trustee evaluates the gold held by the Trust and

determines the net asset value of the Trust and the NAV.

The Trustee values the gold held by the Trust using that day’s

LBMA Gold Price PM.

If there is no announced LBMA Gold Price PM on a business day, the Trustee is authorized to use that day’s

LBMA Gold Price AM.

Having valued the gold held by the Trust, the Trustee then subtracts all accrued fees, expenses and other

liabilities of the Trust from the value of the gold and other assets of the Trust.

(New York time), the Trustee evaluates the gold held by the Trust and determines

the net asset value of the Trust and the NAV.

The Trustee values the gold held by the Trust using that day’s LBMA Gold Price PM.

If there is no announced LBMA Gold Price PM on a business day, the Trustee is authorized to use that day’s LBMA Gold Price AM.

Having valued the gold held by the Trust, the Trustee then subtracts all accrued fees, expenses and other liabilities of the Trust from

the value of the gold and other assets of the Trust.

The result is the net asset value of the Trust.

The Trustee computes the NAV by dividing the net asset value of the Trust by the number of Shares outstanding on the date the

computation is made.

The Trustee computes the NAV by

dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

and Capital Resources

Trust is not aware of any trends, demands, commitments, 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 ordinary expense of the Trust during the period covered by this report was the Sponsor’s

Trust is not aware of any trends, demands, commitments, 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

As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s Fee.

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.

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 March 31, 2021 the Trust did not have any cash balances.

2 unchanged sentences

Accounting Policies

financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United

States of America.

The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s

financial position and results of operations.

These estimates and assumptions affect the Trust’s application of accounting

Below, the Trust describes the valuation of gold bullion, a critical accounting policy that the Trust believes is important

to understanding its results of operations and financial position.

In addition, please refer to Note 2 to the financial statements

included in this report for further discussion of the Trust’s accounting policies.

financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States

The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial

position and results of operations.

These estimates and assumptions affect the Trust’s application of accounting policies.

the Trust describes the valuation of gold bullion, a critical accounting policy that the Trust believes is important to understanding

its results of operations and financial position.

In addition, please refer to Note 2 to the financial statements included in this report

for further discussion of the Trust’s accounting policies.

of Operations

Quarter Ended December 31, 2020

Trust’s net asset value decreased from $1,291,876,211 on September 30, 2020 to $1,111,848,655 on December 31, 2020, a 13.9%

The decrease in the Trust’s net asset value over this period was due to a reduction in the number of shares outstanding

from 68,850,000 to 59,150,000, a 14.1% decrease.

The 9,700,000 shares decrease was the net result of 48 creation orders and 242

redemption orders (50,000 shares per creation and redemption order).

The impact of the redemption activity on the Trust’s

net asset value was slightly reduced by the positive change in the price of gold, which increased 0.2% from $1,886.90 on September

30, 2020 to $1,891.10 on December 31, 2020.

0.2% increase in the Trust’s net asset value per share, from $18.76 on September 30, 2020 to $18.80 on December 31, 2020

is directly related to the 0.22% increase in the price of gold.

Trust’s net asset value per share increased slightly less than the price of gold on a percentage basis due to the Sponsor’s

fees, which were $529,994 for the quarter, or 0.044% of the Trust’s average weighted net assets of $1,193,238,449 during

The net asset value per share of $19.30 on November 06, 2020 was the highest during the quarter, compared with a

low during the quarter of $17.52 on November 30, 2020.

decrease in net assets resulting from operations for the quarter ended December 31, 2020 was $659,009, resulting from an unrealized

loss on investment in gold bullion of $43,020,231, compensated by a gain of $42,888,216 on metal sold to cover the redemption

orders and the Sponsor’s fees but reduced by the Sponsor’s fees of $526,994.

Other than the Sponsor’s fees the

Trust had no expenses during the quarter.

Months Ended December 31, 2020

Trust’s net asset value grew from $1,041,316,068 on June 30, 2020 to $1,111,848,655 on December 31, 2020, a 6.8% increase.

The increase in the Trust’s net asset value occurred despite a small reduction in the number of shares outstanding from

59,200,000 to 59,150,000 over this period, or 0.1%.

The 50,000 shares decrease was the net result of 249 creations orders and

250 redemption orders (50,000 shares per creation and redemption order).

The increase in the Trust’s net asset value was

due to a change in the price of gold, which increased 6.96% from $1,768.10 on June 30, 2020 to $1,891.10 on December 31, 2020.

6.82% increase in the Trust’s net asset value per share, from $17.59 at June 30, 2020 to $18.80 at December 31, 2020 is

directly related to the 6.96% increase in the price of gold.

Trust’s net asset value per share increased slightly less than the price of gold on a percentage basis due to the Sponsor’s

fees, which were $1,075,194 for the period, or 0.088% of the Trust’s average weighted net assets of $1,219,349,772 during

the six-month period.

The net asset value per share of $20.56 on August 6, 2020 was the highest during the period, compared with

a low during the period of $17.52 on November 30, 2020.

increase in net assets resulting from operations for the 6 months period ending December 31, 2020 was $64,276,914, resulting from

an unrealized gain on investment in gold bullion of $20,556,472, increased by a gain of $44,795,636 on metal sold to cover the

redemption orders and the Sponsor’s fees but reduced by the Sponsor’s fees of $1,075,194 Other than the Sponsor’s

fees the Trust had no expenses during the quarter.

Quarter Ended March 31, 2021

Trust’s net asset value decreased from $1,111,848,655 on December 31, 2020 to $1,005,554,824 on March 31, 2021, a 9.6% decrease.

The decrease in the Trust’s net asset value was due to a change in the price of gold, which decreased 10.6% from $1,891.10 on December

31, 2020 to $1,691.05 on March 31, 2021.

The impact of the decrease in gold price was slightly reduced by the increase in the number

of shares outstanding from 59,150,000 to 59,850,000, a 1.2% increase which was the net result of 67 creation orders and 53 redemption

orders (50,000 shares per creation and redemption order).

10.64% decrease in the Trust’s net asset value per share, from $18.80 on December 31, 2020 to $16.80 on March 31, 2021 is directly

related to the 10.6% decrease in the price of gold.

Trust’s net asset value per share decreased slightly more than the price of gold on a percentage basis due to the Sponsor’s

fees, which were $468,098 for the quarter, or 0.043% of the Trust’s average weighted net assets of $1,085,564,030 during the quarter.

The net asset value per share of $19.31 on January 04, 2021 was the highest during the quarter, compared with a low during the quarter

of $16.73 on March 30, 2021.

decrease in net assets resulting from operations for the quarter ended March 31, 2021 was $122,319,797, resulting from an unrealized

loss on investment in gold bullion of $127,177,901, compensated by a gain of $5,326,202 on metal sold to cover the redemption orders

and the Sponsor’s fees but reduced by the Sponsor’s fees of $468,098.

Other than the Sponsor’s fees the Trust had no

expenses during the quarter.

Months Ended March 31, 2021

Trust’s net asset value decreased from $1,041,316,067 on June 30, 2020 to $1,005,554,824 on March 31, 2021, a 3.4%

The decrease in the Trust’s net asset value was mainly due to a change in the price of gold, which decreased 4.36%

from $1,768.10 on June 30, 2020 to $1,691.05 on March 31, 2021.

The impact of the decrease in gold price was slightly reduced

by the increase in the number of shares outstanding from 59,200,000 to 59,850,000 over this period, or 1.1%.

The 650,000 shares

increase was the net result of 316 creations orders and 303 redemption orders (50,000 shares per creation and redemption order).

4.49% decrease in the Trust’s net asset value per share, from $17.59 on June 30, 2020 to $16.80 on March 31, 2021 is directly related

to the 4.36% decrease in the price of gold.

Trust’s net asset value per share decreased slightly more than the price of gold on a percentage basis due to the Sponsor’s

fees, which were $1,543,292 for the period, or 0.131% of the Trust’s average weighted net assets of $1,175,405,550 during the nine-month

The net asset value per share of $20.56 on August 6, 2020 was the highest during the period, compared with a low during the period

of $16.73 on March 30, 2021.

decrease in net assets resulting from operations for the 9 months period ending March 31, 2021 was $58,042,884, resulting from an unrealized

loss on investment in gold bullion of $106,621,429, increased by a gain of $50,121,837 on metal sold to cover the redemption orders and

the Sponsor’s fees but reduced by the Sponsor’s fees of $1,543,292 Other than the Sponsor’s fees the Trust had no expenses

during the quarter.

Quantitative and Qualitative Disclosures About Market Risk

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis