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Item 2. Management’s Discussion and Analysis

2024-02-02 compared with 2023-11-03 · 115 added, 78 removed, 4 unchanged (98% 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 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 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 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.

of the Trust trade on the New York Stock Exchange (the “NYSE”) Arca under the symbol “BAR”.

Management’s Discussion and Analysis

of Financial Condition and Results of Operations

This 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.

The 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.

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.

The 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.

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 expenses.

The Sponsor believes that, for many investors, the Shares will

represent a cost-effective investment relative to traditional means of investing in gold.

The 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.

Shares of the Trust trade on the New York Stock Exchange

(the “NYSE”) Arca under the symbol “BAR”.

Valuation of Gold;

Computation of Net Asset Value

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.

On each business day, as soon as practicable after

(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.

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.

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

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 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.

Liquidity and Capital Resources

The 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 Fee.

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

On September 30, 2023 the Trust did not have any cash balances.

Sheet Arrangements

Trust has no off-balance sheet arrangements.

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 September 30, 2023

Trust’s net asset value decreased from $935,811,456 on June 30, 2023 to $883,519,519 on September 30, 2023, a 5.6% decrease.

decrease in the Trust’s net asset value was due to a decrease in the number of shares outstanding from 49,450,000 to 47,750,000

over this period.

The net 1,700,000 shares decrease was a result of 5 creation orders and 39 redemption orders (50,000 shares per creation

and redemption).

The Trust’s net asset value was also negatively impacted by the change in the price of gold, which decreased 2.18%

from $1,912.25 on June 30, 2023 to $1,870.50 on September 30, 2023.

2.22% decrease in the Trust’s net asset value per share, from $18.92 on June 30, 2023 to $18.50 on September 30, 2023 is directly

related to the 2.18% 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 $409,157 for the quarter, or 0.044% of the Trust’s average weighted net assets of $930,094,066 during the quarter.

The net asset value per share of $19.55 on July 20, 2023, was the highest during the quarter, compared with a low during the quarter

of $18.50 on September 30, 2023.

decrease in net assets resulting from operations for the quarter ended September 30, 2023 was $20,388,392, resulting primarily from an

unrealized loss on investment in gold bullion of $24,285,145, reduced by a gain of $4,305,910 on metal sold to cover redemption orders

and Sponsor’s fees but increased by the Sponsor’s fees of $409,157.

Other than the Sponsor’s fees the Trust had no

expenses during the quarter.

Quantitative and Qualitative Disclosures About Market Risk

Off-Balance Sheet Arrangements

The Trust has no off-balance sheet arrangements.

Critical Accounting Policies

The 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 policies.

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.

addition, please refer to Note 2 to the financial statements included in this report for further discussion of the Trust’s accounting

Results of Operations

The Quarter Ended December 31, 2023

The Trust’s net asset value increased from $883,519,519

on September 30 to $960,483,199 on December 31, 2023, a 8.71% increase.

The increase in the Trust’s net asset value was due to a

10.26% increase of gold price from $1,870.50 on September 30, 2023 to $2,062.40 on December 31, 2023.

The gold price increase was negatively

affected by a decrease in the number of shares outstanding from 47,750,000 to 47,100,000 over this period.

The net 650,000 shares decrease

was a result of 11 creation orders and 24 redemption orders (50,000 shares per creation and redemption).

The 10.22% increase in the Trust’s net asset

value per share, from $18.50 on September 30, 2023 to $20.39 on December 31, 2023 is directly related to the 10.26% increase in the price

The 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 $406,153 for the quarter, or 0.044%

of the Trust’s average weighted net assets of $923,656,201 during the quarter.

The net asset value per share of $20.55 on December

28, 2023, was the highest during the quarter, compared with a low during the quarter of $17.99 on October 4, 2023.

Net increase in net assets resulting from operations

for the quarter ended December 31, 2023 was $89,567,431, resulting primarily from an unrealized gain on investment in gold bullion of

$84,042,332, increased by a gain of $5,931,252 on metal sold to cover redemption orders and Sponsor’s fees but reduced by the Sponsor’s

fees of $406,153.

Other than the Sponsor’s fees the Trust had no expenses during the quarter.

Six Months Ended December 31, 2023

The Trust’s net asset value increased from $935,811,456

on June 30, 2023 to $960,483,199 on December 31, 2023, a 2.64% increase.

The increase in the Trust’s net asset value over this period

was affected by a reduction in the number of shares outstanding from 49,450,000 to 47,100,000, a 4.75% decrease.

The 2,350,000 shares

decrease was the net result of 16 creation orders and 63 redemption orders (50,000 shares per creation and redemption order).

of the net redemption activity on the Trust’s net asset value was reduced by the positive change in the price of gold, which increased

by 7.85% from $1,912.25 on June 30, 2023 to $2,062.40 on December 31, 2023.

The 7.77% increase in the Trust’s net asset

value per share, from $18.92 at June 30, 2023 to $20.39 at December 31, 2023 is directly related to the 7.85% increase in the price of

The 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 $815,309 for the period, or 0.088%

of the Trust’s average weighted net assets of $926,875,134 during the six-month period.

The net asset value per share of $20.55

on December 28, 2023, was the highest during the period, compared with a low during the quarter of $17.99 on October 4, 2023.

Net increase in net assets resulting from operations

for the 6 months period ending December 31, 2023, was $69,179,039, resulting from an unrealized gain on investment in gold bullion of

$59,757,186, increased by a gain of $10,237,162 on metal sold to cover the redemption orders and the Sponsor’s fees but reduced

by the Sponsor’s fees of $815,309.

Other than the Sponsor’s fees the Trust had no expenses during the quarter.

Quantitative and Qualitative Disclosures

About Market Risk

Not applicable.

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