Item 1A. Risk Factors
Item
1A. Risk Factors
You
should carefully consider the factors discussed under the caption “Risk Factors” beginning on page 19 of our Annual Report
on Form 10-K for the fiscal year ended January 31, 2022 (the “Annual Report”), filed with the Securities and Exchange Commission
on April 13, 2022, which could materially affect our business, financial condition or future results. There have been no material changes
in our risk factors from those disclosed in the Annual Report, except as set forth below:
Russia
launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions
and economic impacts are impossible to predict. These and any related events could cause volatility in precious metals prices and have
significant impact on Trust performance and the value of an investment in the Shares. Russia is a significant producer of gold. On March
7, 2022, in response to the Russian hostilities in the Ukraine, LBMA suspended six Russian refiners; as a result, new production by such
refiners were no longer be accepted as “Good Delivery” by the London Bullion market. The bars these refiners previously produced
will still be considered Good Delivery, consistent with past suspensions of refiners by the LBMA. However, fewer suppliers to the LBMA
may lead to a lower supply of Good Delivery gold and further volatility in the price of gold.
Following
an announcement at the G7 Summit to collectively ban the import of Russian gold, the UK passed regulations which prohibit the direct
or indirect (i) import of gold that originated in Russia, (ii) acquisition of gold that originated in Russia or is located in Russia
and (iii) supply or delivery of gold that originated in Russia, all after July 21, 2022. Similarly, U.S. regulations prohibit the import
of gold of Russian origin into the United States on or after June 28, 2022 and European Union regulations prohibit the direct or indirect
import, purchase or transfer of gold if it originates in Russia and has been exported from Russia after July 22, 2022. On August 3, 2022,
Switzerland announced sanctions that ban buying, importing or transporting gold and gold products from Russia, as well as services in
connection with said gold and gold products. Although it is not possible to predict the impact that these sanctions may have, such sanctions
could impact the operations of the Trust and its service providers and could significantly harm the value of the Trust’s Shares.
The
responses of countries and political bodies to Russia’s actions, the larger overarching tensions, and Ukraine’s military
response and the potential for wider conflict may increase financial market volatility generally, have adverse effects on regional and
global economic markets, and cause volatility in the price of gold and the price of the Shares. In addition, the conflict in Ukraine,
along with global political fallout and implications including sanctions, shipping disruptions, collateral war damage, and a potential
expansion of the conflict beyond Ukraine’s borders, could disturb the gold market.
The
risks described in our Annual Report on Form 10-K are not the only risks facing the Trust. Additional risks and uncertainties not currently
known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or
operating results.
19
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.