GraniteShares Gold Trust 10-K

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 Rule 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 June 30, 2022, the Trust’s disclosure controls and procedures were effective. There have been no changes in the Trust’s or Sponsor’s internal control over financial reporting that occurred during the Trust’s recently completed fiscal quarter ended June 30, 2022 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 that: (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. 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 to the risk that controls may become ineffective because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. The Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer of the Sponsor assessed the effectiveness of the Trust’s internal control over financial reporting as of June 30, 2022. In making this assessment, they used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013) . Their assessment included an evaluation of the design of the Trust’s internal control over financial reporting and testing of the operational effectiveness of its internal control over financial reporting. Based on their assessment and those criteria, the Chief Executive Officer and Chief Financial Officer of the Sponsor concluded that the Trust maintained effective internal control over financial reporting as of June 30, 2022. 35 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To Management of the Trust’s Sponsor and Shareholders of GraniteShares Gold Trust Opinion on Internal Control Over Financial Reporting We have audited GraniteShares Gold Trust’s (the Trust) internal control over financial reporting as of June 30, 2022, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Trust maintained, in all material respects, effective internal control over financial reporting as of June 30, 2022, based on the criteria established in Internal Control—Integrated Framework (2013) issued by COSO. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the statements of assets and liabilities, including the schedules of investments, as of June 30, 2022 and 2021, and the related statements of operations, changes in net assets, and the financial highlights for each of the years in the three-year period ended June 30, 2022, and the related notes (collectively referred to as the financial statements) of the Trust, and our report dated August 12, 2022 expressed an unqualified opinion. Basis for Opinion The Trust’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Trust’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’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 generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (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 receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of the 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 to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. TAIT, WELLER & BAKER LLP Philadelphia, Pennsylvania August 12, 2022 36 Item 9B. Other Information Not applicable. PART III Item 10. Directors, Executive Officers and Corporate Governance The Trust does not have any directors, officers or employees. The creation and operation of the Trust has been arranged by the Sponsor. The Sponsor is not governed by a board of directors. The principals and executive officers of the Sponsor are as follows: William Rhind has been the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) of the Sponsor since its inception on January 6, 2017. Prior to forming the Sponsor and becoming its CEO and CFO, Mr. Rhind was the CEO of World Gold Trust Services, LLC (“WGTS”) from September 2014 to February 2016. WGTS is the sponsor of SPDR® Gold Trust, the largest gold fund in the world, and is a wholly-owned subsidiary of the World Gold Council, a market development organization for the gold industry. Mr. Rhind also served as the Managing Director, Institutional Investment, of the World Gold Council from September 2013 to February 2016. From March 2007 to September 2013, Mr. Rhind was employed by ETF Securities Ltd (“ETF Securities”), an independent exchange-traded product provider, in a number of leadership roles, including as Managing Director from June 2009 to September 2013. In that role, Mr. Rhind managed the company’s U.S. exchange traded fund business. Prior to joining ETF Securities, Mr. Rhind was a Principal for the iShares unit of Barclays Global Investors. He began his career as an investment banking analyst at Nomura International in London. Mr. Rhind earned a Bachelor of Arts in Modern Languages (French & Russian) and European Studies from the University of Bath in England. Mr. Rhind is 43 years old. Benoit Autier has been the Chief Accounting Officer (“CAO”) and Head of Products of the Sponsor since its inception on January 6, 2017. Mr. Autier was previously the Head of Product Management for the World Gold Council from September 2015 to October 2016. From January 2015 to September 2015, Mr. Autier was the President of ETF Securities Advisors, LLC, an affiliate of ETF Securities. As President, Mr. Autier managed all aspects of implementation of ETF Securities’ platform for funds registered under the Investment Company Act of 1940, as amended. Mr. Autier was also the Head of Product Management of ETF Securities from July 2005 to September 2015. Mr. Autier designed and implemented operational processes for over 300 European and U.S. financial products in that role. Mr. Autier previously was employed by Flow Traders, one of the leading market makers in Europe for exchange-traded commodities; by KPMG in Paris as a senior consultant; and by the Ernst and Young Corporate Finance. Mr. Autier holds a Masters in Finance from London Business School. Mr. Autier is 47 years old. Item 11. Executive Compensation The Trust has no directors or executive officers. The only ordinary expense paid by the Trust is the Sponsor’s Fee. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Security Ownership of Certain Beneficial Owners The Sponsor has no knowledge of any person being the direct or indirect beneficial owner of more than 5% of the Shares of the Trust. Under the Trust Agreement, Shareholders have no voting rights, except in limited circumstances. The Trustee may terminate the Trust upon the agreement of Shareholders owning at least 75% of the outstanding Shares. Security Ownership of Management Not applicable. Change In Control Neither the Sponsor nor the Trustee knows of any arrangements which may subsequently result in a change in control of the Trust. Item 13. Certain Relationships and Related Transactions, and Director Independence The Trust has no directors or executive officers. 37 Item 14. Principal Accounting Fees and Services Fees for services performed by Tait, Weller & Baker LLP for the fiscal years ended June 30, 2022 and 2021 specifically: June 30, 2022 June 30, 2021 Audit fees – Tait, Weller & Baker $ 25,000 $ 25,000 $ 25,000 $ 25,000 Audit Fees are fees paid by the Sponsor to Tait, Weller & Baker LLP for professional services for the audit of the Trust’s financial statements included in the Form 10-K and review of financial statements included in the Form 10-Qs, and for services that are normally provided by the accountants in connection with regulatory filings or engagements. Pre-Approval Policies and Procedures As referenced in Item 10 above, the Trust has no board of directors, and as a result, has no pre-approval policies or procedures with respect to fees paid to Tait, Weller & Baker LLP. Such determinations are made by the Sponsor. PART IV Item 15. Exhibits, Financial Statement Schedules 1. Financial Statements See Index to Financial Statements on Page F-1 for a list of the financial statements being filed herein. 2. Financial Statement Schedules Schedules have been omitted since they are either not required, not applicable, or the information has otherwise been included. 3. Exhibits Exhibit No. Description 4.1 Depositary Trust Agreement between GraniteShares LLC, as sponsor, and The Bank of New York Mellon, as trustee(1) 4.2 Form of Authorized Participant Agreement(2) 4.3 Form of Certificate of Shares of the Trust (included as Exhibit A to the Depositary Trust Agreement)(1) 10.1 Allocated Gold Account Agreement(1) 10.2 Unallocated Gold Account Agreement(1) 10.3 Marketing Agent Services Agreement between GraniteShares LLC and ALPS Distributors, Inc.(3) 10.4 License Agreement between The Bank of New York Mellon and GraniteShares LLC(1) 31.1 Chief Executive Officer and Chief Financial Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* 31.2 Chief Accounting Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002* 32.1 Chief Executive Officer and Chief Financial Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* 32.2 Chief Accounting Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* 101.INS Inline XBRL Instance Document 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Document 101.DEF Inline XBRL Taxonomy Extension Definitions Document 101.LAB InlineXBRL Taxonomy Extension Labels Document 101.PRE Inline XBRL Taxonomy Extension Presentation Document 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * Filed herewith. (1) Previously filed as an exhibit to the Registrant’s Registration Statement on Form S-1 (333-219319), filed on August 25, 2017 and incorporated by reference herein. (2) Previously filed as an exhibit to the Registrant’s Registration Statement on Form S-1 (333-219319), filed on July 17, 2017 and incorporated by reference herein. (3) Previously filed as an exhibit to the Registrant’s Registration Statement on Form 8-K (333-219319), filed on December 29, 2020 and incorporated by reference herein. Item 16. Form 10-K Summary Not applicable. 38 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities thereunto duly authorized. GraniteShares LLC Sponsor of the GraniteShares Gold Trust (Registrant) Date: August 12, 2022 /s/ William Rhind William Rhind* CEO and CFO Date: August 12, 2022 /s/ Benoit Autier Benoit Autier* Chief Accounting Officer *The Registrant is a trust and the persons are signing in their capacities as officers of GraniteShares LLC, the Sponsor of the Registrant. 39 GRANITESHARES GOLD TRUST FINANCIAL STATEMENTS AS OF JUNE 30, 2022 INDEX Page Report of Independent Registered Public Accounting Firms (PCAOB ID: 00 445 ) F-2 Statements of Assets and Liabilities at June 30, 2022 and 2021 F-4 Schedules of Investments at June 30, 2022 and 2021 F-5 Statements of Operations for the fiscal period ended June 30, 2022, 2021 and 2020 F-6 Statements of Changes in Net Assets for the fiscal period ended June 30, 2022, 2021 and 2020 F-7 Financial Highlights for the years ended June 30, 2022, 2021 and 2020 F-8 Notes to the Financial Statements F-9 F- 1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To Management of the Trust’s Sponsor and Shareholders of GraniteShares Gold Trust Opinion on the Financial Statements We have audited the accompanying statement of assets and liabilities of GraniteShares Gold Trust (the “Trust”), including the schedules of investments, as of June 30, 2022 and 2021, the related statements of operations, the statements of changes in net assets, and the financial highlights for each of the years in the three-year period ended June 30, 2022 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Trust as of June 30, 2022 and 2021, and the results of its operations, the changes in its net assets, and the financial highlights for each of the years in the three-year period ended June 30, 2022, in conformity with accounting principles generally accepted in the United States of America. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Trust’s internal control over financial reporting as of June 30, 2022, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated August 12, 2022, expressed an unqualified opinion. Basis for Opinion These financial statements are the responsibility of the management of the Trust’s sponsor. Our responsibility is to express an opinion on the Trust’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We have served as the auditor of one or more GraniteShares LLC investment companies since 2019. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to management of the Trust’s Sponsor and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgements. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Evaluation of the evidence pertaining to the existence of the gold holdings As disclosed in the schedule of investments, as of June 30, 2022, the Trust’s market value of gold holdings was $996,270,946 representing 100% of the Trust’s total assets. All of the gold holdings, which were 548,305 ounces of gold as of June 30, 2022, were held by a third-party custodian (the “Custodian”). We identified the evaluation of the evidence pertaining to the existence of the gold holdings as a critical audit matter. Given the nature and volume of gold holdings, subjective auditor judgement was required to evaluate the extent and nature of evidence obtained to assess the quantity of gold held by the Custodian as of June 30, 2022. The following are the primary procedures we performed to address the critical audit matter. We obtained a schedule directly from the Custodian of the Trust’s gold holdings held by the Custodian as of June 30, 2022. We compared the total ounces on such schedule to the Trust’s record of gold holdings. We also obtained the results of the physical count and brand purity of the Trust’s gold holdings performed at the Custodian’s location by a third party directly from such third party and reconciled the results to the Trust’s and Custodian’s record of holdings. TAIT, WELLER & BAKER LLP Philadelphia, Pennsylvania August 12, 2022 F- 2 GRANITESHARES GOLD TRUST Statements of Assets and Liabilities At June 30, 2022 and 2021 Amounts in 000’s of US$, except share and per share data June 30, 2022 June 30, 2021 Assets Investment in gold bullion, at fair value (1) $ 996,271 $ 1,009,604 Total Assets $ 996,271 $ 1,009,604 Liabilities Fees payable to Sponsor $ 144 $ 154 Total Liabilities 144 154 Net Assets $ 996,127 $ 1,009,450 Shares issued and outstanding, unlimited authorized Shares with par value of $ 0.00 per Share (2) 55,300,000 57,650,000 Net asset value per Share $ 18.01 $ 17.51 (1) Cost of investment in gold bullion: $ 870,362 and $$ 878,799 , respectively. (2) No par value, Unlimited amount authorized. See Notes to the Financial Statements F- 3 GRANITESHARES GOLD TRUST Schedules of Investments At June 30, 2022 and 2021 Amounts in 000’s of US$, except for ounces and percentages June 30, 2022 Ounces of gold Cost Value % of Net Assets Gold bullion 548,305.419 $ 870,362 $ 996,271 100.01 % Total investment $ 870,362 $ 996,271 100.01 % Liabilities in excess of other assets $ ( 144 ) ( 0.01 )% Net assets $ 996,127 100.00 % June 30, 2021 Ounces of gold Cost Value % of Net Assets Gold bullion 572,613.665 $ 878,799 $ 1,009,604 100.02 % Total investment $ 878,799 $ 1,009,604 100.02 % Liabilities in excess of other assets $ ( 154 ) ( 0.02 )% Net assets $ 1,009,450 100.00 % See Notes to the Financial Statements F- 4 GRANITESHARES GOLD TRUST Statements of Operations For the years ended June 30, 2022, 2021 and 2020 Amounts in 000’s of US$, except per share data Year Ended June 30, 2022 Year Ended June 30, 2021 Year Ended June 30, 2020 Expenses Sponsor fees $ 1,727 $ 2,012 $ 1,193 Total expenses 1,727 2,012 1,193 Net investment loss ( 1,727 ) ( 2,012 ) ( 1,193 ) Net realized and unrealized gains (losses) Net realized gain (loss) from: Gold bullion sold to pay expenses 255 377 171 Gold bullion distributed for the redemption of Shares 25,988 60,315 6,731 Net realized gain (loss) 26,243 60,692 6,902 Net change in unrealized appreciation (depreciation) ( 4,896 ) ( 70,689 ) 152,903 Net realized and unrealized gain (loss) 21,347 ( 9,997 ) 159,805 Net increase (decrease) in net assets resulting from operations $ 19,620 $ ( 12,009 ) $ 158,612 Net increase (decrease) in net assets per share $ 0.36 $ ( 0.19 ) $ 3.64 Weighted average number of shares (in 000’s) 54,305 62,495 43,630 See Notes to the Financial Statements F- 5 GRANITESHARES GOLD TRUST Statements of Changes in Net Assets For the years ended June 30, 2022, 2021 and 2020 Amounts in 000’s of US$ Year Ended June 30, 2022 Year Ended June 30, 2021 Year Ended June 30, 2020 Net Assets – beginning of year $ 1,009,450 $ 1,041,316 $ 545,511 Creations of 9,150,000 , 16,600,000 and 23,500,000 shares respectively 169,861 314,030 384,945 Redemptions of ( 11,500,000 ), ( 18,150,000 ) and ( 3,150,000 ) respectively ( 202,804 ) ( 333,887 ) ( 47,752 ) Net investment (loss) ( 1,727 ) ( 2,012 ) ( 1,193 ) Net realized gain from gold bullion sold to pay expenses 255 377 171 Net realized gain from gold bullion distributed for redemptions 25,988 60,315 6,731 Net change in unrealized gain (loss) on investment in gold bullion ( 4,896 ) ( 70,689 ) 152,903 Net Assets – end of year $ 996,127 $ 1,009,450 $ 1,041,316 See Notes to the Financial Statements F- 6 GRANITESHARES GOLD TRUST Financial Highlights For the years ended June 30, 2022, 2021 and 2020 Per Share Performance (for a Share outstanding throughout each year) Year Ended June 30, 2022 Year Ended June 30, 2021 Year Ended June 30, 2020 Net asset value per Share, beginning of year $ 17.51 $ 17.59 $ 14.04 Net investment income (loss) (1) ( 0.03 ) ( 0.03 ) ( 0.03 ) Net realized and unrealized gain (loss) on investment in gold bullion 0.53 ( 0.05 ) 3.58 Net change in net assets from operations 0.50 ( 0.08 ) 3.55 Net asset value per Share, end of year $ 18.01 $ 17.51 $ 17.59 Total return ratio, at net asset value 2.86 % ( 0.45 )% 25.28 % Net assets ($000’s) $ 996,127 $ 1,009,450 $ 1,041,316 Ratio to average net assets Net investment loss ( 0.17 )% ( 0.17 )% ( 0.17 )% Expenses 0.17 % 0.17 % 0.17 % (1) Calculated using the average shares outstanding method. See Notes to the Financial Statements F- 7 Notes to the Financial Statements for the year ended June 30, 2022 1. Organization GraniteShares Gold Trust (the “Trust”) is an investment trust formed on August 24, 2017 under New York law pursuant to a trust indenture. The Sponsor of the Trust, GraniteShares LLC (the “Sponsor”), is responsible for, among other things, overseeing the performance of The Bank of New York Mellon (the “Trustee”) and the Trust’s principal service providers, including the preparation of financial statements. The Trustee is responsible for the day-to-day administration of the Trust. The objective of the Trust is for the value of the Shares to reflect, at any given time, the value of the assets owned by the Trust at that time less the Trust’s accrued expenses and liabilities as of that time. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in gold. The fiscal year end for the Trust is June 30. Undefined capitalized terms shall have the meaning as set forth in the Trust’s registration statement. 2. Significant accounting policies 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 for reporting purposes, the Trust is classified as an Investment Company. 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. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires those responsible for preparing financial statements to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust. 2.1 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. Gold is held by ICBC Standard Bank Plc (the “Custodian”), on behalf of the Trust, at the Custodian’s London, United Kingdom vaulting premises. The cost of gold is determined according to the average cost method and the fair value is based on the London Bullion Market Association (“LBMA”) PM Gold Price. If there is no LBMA Gold Price PM on any day, the Trustee is authorized to use the most recently announced LBMA Gold Price AM unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate as a basis for evaluation. The LBMA PM Gold Price is set using the afternoon session of the ICE Benchmark Administration equilibrium auction, an electronic, tradable and auditable over-the-counter auction market with the ability to participate in US Dollars, Euros or British Pounds for LBMA authorized participating gold bullion banks or market makers that establishes a reference gold price for that day’s trading. The per Share amount of gold exchanged for a purchase or redemption is calculated daily by the Trustee, using the LBMA PM Gold Price to calculate the gold amount in respect of any liabilities for which covering gold sales have not yet been made, and represents the per Share amount of gold held by the Trust, after giving effect to its liabilities, to cover expenses and liabilities and any losses that may have occurred. F- 8 ASC 820 establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that the Trust has the ability to access. Level 2: Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments and similar data. Level 3: Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Trust’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available. The Trustee categorizes the Trust’s investment in gold as a level 1 asset within the ASC 820 hierarchy. 2.2 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 0.1749 % of the adjusted daily net asset value of the Trust, paid monthly in arrears. The Sponsor has agreed to assume administrative and marketing expenses incurred by the Trust, including the Trustee’s monthly fee and out of pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses, exchange listing fees, United States Securities and Exchange Commission (the “SEC”) registration fees, printing and mailing costs, audit fees and certain legal expenses. As of June 30, 2022, the fees payable to the Sponsor were $ 143,857 . As of June 30, 2021, the fees payable to the Sponsor were $ 153,517 . The Sponsor’s fee, for the year ended June 30, 2022 was $1,726,901 or 0.17% of the Trust’s assets on an annualized basis , $2,012,108 for the year ended June 30, 2021, or 0.17% of the Trust’s assets on an annualized basis and $1,193,277 for the year ended June 30, 2020 or 0.17% of the Trust’s assets on an annualized basis. With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s gold as necessary to pay these expenses. When selling gold to pay expenses, the Trustee will endeavor to sell the smallest amounts of gold needed to pay these expenses in order to minimize the Trust’s holdings of assets other than gold. Other than the Sponsor’s Fee, the Trust had no expenses during the years ended June 30, 2022, 2021 and 2020. Unless otherwise directed by the Sponsor, when selling gold the Trustee will endeavor to sell at the price established by the LBMA PM Gold Price. The Trustee will place orders with dealers (which may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. The Custodian may be the purchaser of such gold only if the sale transaction is made at the next LBMA PM Gold Price or such other publicly available price that the Sponsor deems fair, in each case as set following the sale order. A gain or loss is recognized based on the difference between the selling price and the cost of the gold sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale. Realized gains and losses result from the transfer of gold for Share redemptions and / or to pay expenses and are recognized on a trade date basis as the difference between the fair value and cost of gold transferred. Gain or loss on sales of gold bullion is calculated on a trade date basis using the average cost method. F- 9 2.3. Gold Receivable and Payable Gold receivable or payable represents the quantity of gold covered by contractually binding orders for the creation or redemption of Shares respectively, where the gold has not yet been transferred to or from the Trust’s account. Generally, ownership of the gold is transferred within two business days of the trade date. 2.4. Creations and Redemptions of Shares The Trust issues and redeems in one or more blocks of 50,000 Shares (a block of 50,000 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 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 effect any sale or resale of shares. 2.5. Income Taxes The Trust is classified as a “grantor trust” for United States federal income tax purposes. As a result, the Trust itself will not be subject to United States federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report 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 June 30, 2022 and June 30, 2021. The Sponsor evaluates tax positions taken or expected to be taken in the course of preparing the Trust’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax positions not deemed to meet that threshold would be recorded as an expense in the current year. The Trust is required to analyze all open tax years. Open tax years are those years that are open for examination by the relevant income taxing authority. As of June 30, 2022, the 2022, 2021, 2020 and 2019 tax years remain open for examination. There were no examinations in progress at year end. F- 10 3. Investment in gold Changes in ounces of gold and their respective values for the year ended June 30, 2022. Schedule of Investment in Gold Amounts in 000’s of US$, except for ounces data Ounces Fair Value Opening balance as of June 30, 2021 572,613.665 $ 1,009,604 Gold bullion contributed 90,785.069 169,861 Gold bullion distributed ( 115,093.315 ) ( 178,298 ) Change in unrealized appreciation (depreciation) - ( 4,896 ) Ending balance as of June 30, 2022 548,305.419 $ 996,271 Changes in ounces of gold and their respective values for the year ended June 30, 2021. Amounts in 000’s of US$, except for ounces data Ounces Fair Value Opening balance as of June 30, 2020 589,025.927 $ 1,041,457 Gold bullion contributed 165,070.756 314,030 Gold bullion distributed ( 181,483.018 ) ( 275,194 ) Change in unrealized appreciation (depreciation) - ( 70,689 ) Ending balance as of June 30, 2021 572,613.665 $ 1,009,604 4. Related parties – Sponsor and Trustee A fee is paid to the Sponsor as compensation for services performed under the Trust Agreement. In exchange for the Sponsor’s fee, the Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s fee and out-of-pocket expenses, the custodian’s fee and reimbursement of the custodian expenses, NYSE Arca listing fees, SEC registration fees, printing and mailing costs, audit fees and expenses, and up to $ 100,000 per annum in legal fees and expenses. The Sponsor’s fee is payable at an annualized rate of 0.1749 % 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, from time to time, may temporarily waive all or a portion of the Sponsor’s Fee at its discretion for a stated period of time. Presently, the Sponsor does not intend to waive any part of its fee. Affiliates of the Trustee may from time to time act as Authorized Participants or purchase or sell gold or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. 5. Concentration of risk In accordance with Statement of Position No. 94-6, Disclosure of Certain Significant Risks and Uncertainties, 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 effect on the Trust’s financial position and results of operations. 6. Indemnification Under the Trust’s organizational documents, each of the Trustee (and its directors, officers, employees, shareholders, agents and affiliates) and the Sponsor (and its members, managers, directors, officers, employees, agents and affiliates) is indemnified against any liability, loss or expense it incurs without (i) gross negligence, bad faith, willful misconduct or willful misfeasance on its part 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 and (ii) reckless disregard on its part of its obligations and duties under the Trust Agreement or any such other agreement. Such indemnity shall also include payment from the Trust of the reasonable costs and expenses incurred by the indemnified party in investigating or defending itself against any such loss, liability or expense or any claim therefore. In addition, 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 Sponsor 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. 7. 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. F- 11