What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-06-06 compared with 2022-12-08 · 309 added, 264 removed, 3 unchanged (99% of the section changed)

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

information should be read in conjunction with the unaudited financial statements and notes to the unaudited financial statements included

in Item 1 of Part 1 of this Form 10-Q.

The discussion and analysis that follows may contain forward-looking statements with respect to

the VanEck Merk Gold Trust’s financial conditions, operations, future performance and business.

These statements can be identified

by the use of the words “may , ” “should , ” “expect , ” “plan , ”

“anticipate , ” “believe , ” “estimate , ” “predict , ” “potential”

or similar words and phrases.

These statements are based upon certain assumptions and analyses Merk Investments LLC, the Sponsor, has

made based on its perception of historical trends, current conditions and expected future developments.

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 reflect a change

in management’s expectations or predictions.

VanEck Merk Gold Trust (the “Trust”), formerly known as the Merk Gold Trust prior to October 26, 2015 and then as the Van

Eck Merk Gold Trust prior to April 28, 2016, is an investment trust formed on May 6, 2014 under New York law pursuant to a depositary

trust agreement (as amended, the “Trust Agreement”).

The Trust is not managed like a corporation or an active investment

It does not have any officers, directors, or employees and is administered by The Bank of New York Mellon (the “Trustee”)

pursuant to the Trust Agreement.

The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended,

and is not required to register under such act.

It will 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’s primary objective is to provide investors with an opportunity to invest in gold through the shares and be able to take

delivery of physical gold bullion and gold coins (“physical gold”) in exchange for those shares.

The Trust’s secondary

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

represents a fractional undivided beneficial interest in the Trust’s net assets.

The Trust’s assets consist principally of

gold held on the Trust’s behalf in financial institutions for safekeeping.

Physical gold that the Trust will hold includes London

Bars and, for the limited purposes described herein, other gold bars and coins, without numismatic value, having a minimum fineness (or

purity) of 995 parts per 1,000 (99.5%) or, for American Gold Eagle gold coins, with a minimum fineness of 91.67%.

are issued by the Trust only in blocks of 50,000 shares called “Baskets” in exchange for gold from certain registered broker-dealers

or other securities market participants (“Authorized Participants”).

See “Creation and Redemption of Shares— Authorized

Participants ” in the notes to our financial statements for requirements to qualify as an Authorized Participant.

be redeemed by the Trust in exchange for the amount of gold corresponding to their redemption value.

The Trust issues and redeems Baskets

on an ongoing basis at net asset value to Authorized Participants who have entered into a contract with the Sponsor and the Trustee.

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

of Gold and Computation of Net Asset Value

each business day that the NYSE Arca is open for regular trading, as promptly as practicable after 4:00 PM (New York time) the Trustee

will value the gold held by the Trust and will determine the net asset value (“NAV”) of the Trust, as described below.

NAV of the Trust is the aggregate value of gold and other assets, if any, of the Trust (other than any amounts credited to the Trust’s

reserve account, if any) and cash, if any, less liabilities of the Trust, which include estimated accrued but unpaid fees, expenses and

other liabilities.

gold is valued based on its Fine Ounce content, calculated by multiplying the weight of gold by its purity;

the same methodology is applied

independent of the type of gold held by the Trust;

similarly, the value of up to 430 Fine Ounces of unallocated gold the Trust may hold

is calculated by multiplying the number of Fine Ounces with the price of gold determined by the Trustee as follows.

The Trustee values

the gold held by the Trust based on the afternoon session of the twice daily fix of the price of a Fine Ounce of gold which starts at

3:00 PM London, England time and is performed in London by the ICE Benchmark Administration as an independent third-party administrator

(the “LBMA PM Gold Price”).

The Trustee also determines the NAV per Share.

If on a day when the Trust’s NAV is being

calculated the LBMA PM Gold Price for that day is not available, the Trustee will value the gold held by the Trust based on that day’s

morning session of the twice daily fix of the price of a Fine Ounce of gold, which starts at 10:30 AM London, England time and is performed

in London by the ICE Benchmark Administration as an independent third-party administrator (the “LBMA AM Gold Price”).

no fix is available for the day, the Trustee will value the Trust’s gold based on the most recently announced LBMA AM Gold Price

Management’s Discussion and Analysis

of Financial Condition and Results of Operations

This information should be read in conjunction

with the unaudited financial statements and notes to the unaudited financial statements included in Item 1 of Part 1 of this Form 10-Q.

The discussion and analysis that follows may contain forward-looking statements with respect to the VanEck Merk Gold Trust’s financial

conditions, operations, future performance and business.

These statements can be identified by the use of the words “may , ”

“should , ” “expect , ” “plan , ” “anticipate , ” “believe , ”

“estimate , ” “predict , ” “potential” or similar words and phrases.

These statements are

based upon certain assumptions and analyses Merk Investments LLC, the Sponsor, has made based on its perception of historical trends,

current conditions and expected future developments.

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 reflect a change in management’s expectations or predictions.

The VanEck Merk Gold Trust (the “Trust”),

formerly known as the Merk Gold Trust prior to October 26, 2015 and then as the Van Eck Merk Gold Trust prior to April 28, 2016, is an

investment trust formed on May 6, 2014 under New York law pursuant to a depositary trust agreement (as amended, the “Trust Agreement”).

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 Bank of New York Mellon (the “Trustee”) pursuant to the Trust Agreement.

The Trust is not registered

as an investment company under the Investment Company Act of 1940, as amended, and is not required to register under such act.

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’s primary objective is to provide

investors with an opportunity to invest in gold through the shares and be able to take delivery of physical gold bullion and gold coins

(“physical gold”) in exchange for those shares.

The Trust’s secondary objective is for the shares to reflect the performance

of the price of gold less the expenses of the Trust’s operations.

Each share represents a fractional undivided beneficial interest

in the Trust’s net assets.

The Trust’s assets consist principally of gold held on the Trust’s behalf in financial institutions

for safekeeping.

Physical gold that the Trust will hold includes London Bars and, for the limited purposes described herein, other gold

bars and coins, without numismatic value, having a minimum fineness (or purity) of 995 parts per 1,000 (99.5%) or, for American Gold Eagle

gold coins, with a minimum fineness of 91.67%.

Shares are issued by the Trust only in blocks

of 50,000 shares called “Baskets” in exchange for gold from certain registered broker-dealers or other securities market participants

(“Authorized Participants”).

See “Creation and Redemption of Shares— Authorized Participants ” in the

notes to our financial statements for requirements to qualify as an Authorized Participant.

Baskets may be redeemed by the Trust in exchange

for the amount of gold corresponding to their redemption value.

The Trust issues and redeems Baskets on an ongoing basis at net asset

value to Authorized Participants who have entered into a contract with the Sponsor and the Trustee.

Shares of the Trust trade on the New York Stock

Exchange (the “NYSE”) Arca under the symbol “OUNZ”.

Valuation of Gold and Computation of Net Asset

On each business day that the NYSE Arca is open

for regular trading, as promptly as practicable after 4:00 PM (New York time) the Trustee will value the gold held by the Trust and will

determine the net asset value (“NAV”) of the Trust, as described below.

The NAV of the Trust is the aggregate value of

gold and other assets, if any, of the Trust (other than any amounts credited to the Trust’s reserve account, if any) and cash, if

any, less liabilities of the Trust, which include estimated accrued but unpaid fees, expenses and other liabilities.

All gold is valued based on its Fine Ounce content,

calculated by multiplying the weight of gold by its purity;

the same methodology is applied independent of the type of gold held by the

similarly, the value of up to 430 Fine Ounces of unallocated gold the Trust may hold is calculated by multiplying the number of

Fine Ounces with the price of gold determined by the Trustee as follows.

The Trustee values the gold held by the Trust based on the afternoon

session of the twice daily fix of the price of a Fine Ounce of gold which starts at 3:00 PM London, England time and is performed in London

by the ICE Benchmark Administration as an independent third-party administrator (the “LBMA PM Gold Price”).

The Trustee also

determines the NAV per Share.

If on a day when the Trust’s NAV is being calculated the LBMA PM Gold Price for that day is not available,

the Trustee will value the gold held by the Trust based on that day’s morning session of the twice daily fix of the price of a Fine

Ounce of gold, which starts at 10:30 AM London, England time and is performed in London by the ICE Benchmark Administration as an independent

third-party administrator (the “LBMA AM Gold Price,” and together with the LBMA PM Gold Price, the “LBMA Gold Price”).

If no fix is available for the day, the Trustee will value the Trust’s gold based on the most recently announced LBMA AM Gold Price

or LBMA PM Gold Price.

Prior to March 20, 2015, the Trustee utilized the daily fix of the price of a Fine Ounce of gold as performed

by the five members of the London gold fix, which has now been replaced by the ICE Benchmark Administration as an independent third-party

administrator.

If the Sponsor

determines that such price is inappropriate to use, it shall identify an alternate basis for evaluation to be employed by the Trustee.

The Sponsor may instruct the Trustee to use a different publicly available price which the Sponsor determines to fairly represent the

commercial value of the Trust’s gold.

October 22, 2015, the Sponsor and the Trustee entered into a First Amendment To Depositary Trust Agreement (the “First Trust Amendment”),

amending the Trust Agreement, dated as of May 6, 2014, to effectuate a change in the name of the Trust from “Merk Gold Trust”

to “Van Eck Merk Gold Trust,” effective as of October 26, 2015.

As a result of the name change, all references to “Merk

Gold Trust” in the Trust Agreement were amended to read “Van Eck Merk Gold Trust,” and the shares offered by the Trust

were known as the “Van Eck Merk Gold Shares” (“Shares”).

October 22, 2015, the Sponsor, for the benefit of the Trust, entered into a Marketing Agent Agreement (as amended to date, the “Marketing

Agreement”) with Van Eck Securities Corporation (“VanEck” or “Marketing Agent”).

Pursuant to the Marketing

Agreement, VanEck now provides assistance in the marketing of the Shares.

The obligations created by the Marketing Agreement are obligations

of the Sponsor of the Trust and any fees payable under the Marketing Agreement to VanEck are payable from the Sponsor’s fee (as

calculated and defined in the Trust Agreement).

The Trust will not incur additional financial or other performance obligations pursuant

to the Marketing Agreement.

Sponsor entered into the First Trust Amendment and effectuated the name change of the Trust in satisfaction of a term of the Marketing

The Marketing Agreement further grants VanEck the right to elect to replace Merk as the sponsor of the Trust under specific

qualifying circumstances, subject to the execution and consummation of definitive agreements addressing all regulatory requirements applicable

to such transaction and satisfaction of such requirements, and announcement and related reporting at such time.

Specifically, VanEck

has a right of first refusal for the purchase of the sponsorship of the Trust, and all rights attributable thereto, upon the earlier

of a commitment for a change of control of Merk or 15 years from the date of the Marketing Agreement.

Additionally, VanEck may elect

to replace Merk as the sponsor of the Trust upon the earlier of the average daily net assets of the Trust during a calendar quarter not

attributable to Shares held by Merk or its affiliates (“Third Party Assets”) equaling $500 million, or VanEck’s compensation

under the fee provisions of the Marketing Agreement reaching in aggregate 10% of the gross proceeds from sale of the Shares (the “Maximum

further agreed that if the Third Party Assets equal or exceed $500 million, for such period as Merk remains sponsor of the Trust, VanEck

may propose the rate of the Sponsor’s fee to Merk, which Merk shall not unreasonably reject and shall timely adopt if reasonable,

provided, VanEck acknowledges that only the formal named sponsor of the Trust shall have the right to set the Sponsor’s fee at

April 28, 2016, the Sponsor and the Trustee entered into a Second Amendment to Depositary Trust Agreement (the “Second Trust Amendment”),

amending the Trust Agreement to effectuate a second change in the name of the Trust from “Van Eck Merk Gold Trust” to “VanEck

Merk Gold Trust,” at the request of the Marketing Agent to reflect its rebranding as “VanEck”.

As a result of the name

change, all references to “Van Eck Merk Gold Trust” in the Trust Agreement were amended to read “VanEck Merk Gold Trust,”

and the Shares offered by the Trust are now known as the “VanEck Merk Gold Shares”.

Except for the name change effected pursuant

to the Second Trust Amendment, the Trust Agreement remains in full force and effect on its existing terms.

July 24, 2020, the Sponsor exercised its rights under the Trust Agreement to adjust the Sponsor’s fee upon written notice to the

Trustee and publication of the proposed change on its website.

Prior to July 24, 2020, the Sponsor’s fee accrued at an annualized

rate of 0.40% of the Trust’s NAV.

Effective July 24, 2020, the Sponsor’s fee is payable at an annualized rate of 0.25% of

the Trust’s NAV, accrued on a daily basis computed on the prior Business Day’s NAV and paid monthly in arrears.

in Settlement Cycle and Amendment to Authorized Participant Agreements

March 22, 2017, the Securities and Exchange Commission adopted an amendment to reduce by one business day the standard settlement cycle

for most broker-dealer securities transactions.

Prior to the implementation of the shorter settlement cycle, the standard settlement

cycle for such transactions was three business days, known as T+3.

The amended rule shortens the settlement cycle to two business days,

This change in the settlement cycle affects both the creation and redemption procedures for Baskets and trading in the Shares.

Compliance with the new settlement cycle went into effect on September 5, 2017.

fact that the aforementioned creation and redemption procedures are addressed in the Authorized Participant Agreements by among the Authorized

Participants, the Trustee and the Sponsor, the Trustee and the Sponsor exercised their rights to amend each such agreement to address

the new T+2 settlement cycle and executed First Amendments to each of the Authorized Participant Agreements, effective as of September

5, 2017, and provided timely notice of such amendment to the Authorized Participants.

Except for the foregoing amendments, the Authorized

Participant Agreements remain in full force and effect on their existing terms.

from Operations

Trust is a trust formed on May 6, 2014 under New York law pursuant to the Trust Agreement.

After consideration of Financial Accounting

Standards Topic 946, however, the Sponsor has concluded that for financial statement reporting purposes the Trust meets the fundamental

characteristics of an investment company.

In addition, while the Trust does not currently possess all of the typical characteristics

of an investment company, the Sponsor believes the Trust’s activities are consistent with those of an investment company and will

therefore apply the guidance in Financial Accounting Standards Topic 946, including disclosure of the financial support contractually

required to be provided by an investment company to any of its investees.

The Sponsor is responsible for, among other things, overseeing

the performance of 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.

Months Ended October 31, 2022 Compared to the Three Months Ended October 31, 2021

Trust’s NAV decreased from $623,229,731 at July 31, 2022 to $529,960,054 at October 31, 2022, a 15% decrease, compared to an 12.6

% increase from $502,216,306 at July 31, 2021 to $565,682,896 at October 31, 2021.

The decrease in the Trust’s NAV in the quarter

ended October 31, 2022 resulted from a decrease in the value of investments in gold bullion as compared to the prior period.

of outstanding Shares decreased from 36,617,439 Shares at July 31, 2022 to 33,332,198 Shares at October 31, 2022 due to the redemption

of Shares by Authorized Participants and offset slightly by the creation of 23,418 Shares in the quarter for Sponsor’s fees, as

compared to 19,092 Shares for such purpose in the quarter ended October 31, 2021.

The number of outstanding Shares on October 31, 2021

was 32,878,894.

Effective July 24, 2020, the Sponsor’s fees are payable at an annualized rate of 0.25% of the Trust’s NAV,

accrued on a daily basis computed on the prior Business Day’s NAV and paid monthly in arrears.

Prior to July 24, 2020, the Sponsor’s

fees accrued at an annualized rate of 0.40% of the Trust’s NAV.

Due to the daily accrual but monthly payment, the number of Sponsor’s

fee Shares issued can vary and possibly decrease, even as the number of Shares outstanding increases slightly.

Trust’s NAV per Share decreased 6.6% during the quarter ended October 31, 2022, starting at $17.02 per Share and ending at $15.90

per Share, compared to a decrease of 3.2%, from $17.77 to $17.21 during the quarter ended October 31, 2021.

The Trust’s NAV per

share decreased slightly more than the price per ounce of gold on a percentage basis due to the Sponsor’s fees, which were 23,418

Shares in total for the quarter ended October 31, 2022, compared with 19,092 Shares paid as Sponsor’s fees in the quarter ended

October 31, 2021.

The NAV per share of $17.44 on August 11, 2022 was the highest during the quarter, compared with a low of $15.83 on

October 19, 2022.

change in net assets from operations for the quarter ended October 31, 2022 was $(40,580,678), resulting from the Sponsor’s fees

of $(380,901), a net realized loss from gold bullion distributed for redemptions of $(141,249) and a net change in unrealized depreciation

Prospective Change in Pricing Index

The Sponsor intends to change the pricing

index it uses in relation to the Shares issued by the Trust to reference the Solactive Gold Spot Index (the “Solactive

Index”) in lieu of the LBMA Gold Price.

The change is expected to become effective July 11, 2023 or as soon as practicable

thereafter (“Index Change Date”).

Following the Index Change Date, in determining

the Trust’s NAV, the Trustee will value the gold held by the Trust based on the Solactive Index.

Solactive AG (“Solactive”)

will own, calculate, and disseminate the Solactive Index.

The Solactive Index is a U.S.

Dollar denominated index that aims to provide

a price fixing for the gold spot price quoted as U.S.

Dollars per Troy Ounce (“XAU”) and determined for the close of trading

on the New York Stock Exchange (“NYSE”).

The Solactive Index calculates gold bullion fixing prices by taking Time Weighted

Average Prices (“TWAP”) of XAU trading prices provided via ICE Data Services (“IDS”) data feed.

Specifically, the Solactive Index uses a TWAP

calculation to determine an average price that is time-weighted, using tick values of actual transactions (“Trade Ticks”)

for two specified time periods around the scheduled close of trading on the NYSE (generally, 4:00 PM Eastern Time).

The TWAP is derived

for (1) the period ahead of the fixing (“Time Period 1”), which consists of the five minutes before the close of trading,

and (2) the period directly after the fixing (“Time Period 2”), which consists of the six seconds after the close of trading.

The TWAPs for Time Period 1 and Time Period 2 are then aggregated, with 90% weighting given to Time Period 1 and 10% weighting given to

Time Period 2, to calculate the Solactive Index.

For any calculation day t , the Solactive

Index ( Index t ), is determined in accordance with the following formula:

The Solactive Index is calculated and published

by Solactive no later than 30 minutes following the close of trading on the NYSE, disseminated to major financial data providers, and

made publicly available via the Trust’s website.

The Solactive Index calculation is based on XAU

market data from IDS, which is a major provider of financial market data.

The data is available through IDS’s data streaming service,

which covers 2,700 spot rates and over 7,500 forwards and non-deliverable forwards, with an average of over 130 million updates per day

IDS compiles data from over 100 sources, including market makers, execution venues, banks and brokers from across the globe,

and every updating Trade Tick of spot streaming data is available via IDS’s Integrated Data Viewer service in a file-based format.

It is unlikely that, on any given trading day

for the Shares, there would be no Trade Ticks recorded for XAU in either Time Period 1 or Time Period 2, such that the Solactive Index

calculation could not be performed on such day.

Trade Ticks representing XAU are the closing prices for specific gold bullion transactions

posted in a 24-hour, global, over-the-counter gold bullion market, which is not subject to trading suspensions, trading halts, or market

However, in the unlikely event that IDS is unable to publish pricing information for XAU, for whatever reason, during either

Time Period 1 or Time Period 2 on a given trading day, the last available Solactive Index calculation will be used in accordance with

Solactive’s published and publicly available disruption policy.

If the Sponsor determines that such price is inappropriate

to use, it shall identify an alternate basis for evaluation to be employed by the Trustee.

The Sponsor may instruct the Trustee to use

a different publicly available price which the Sponsor determines to fairly represent the commercial value of the Trust’s gold.

The Sponsor has given 60 day notice of the Index

Change Date by issuing a press release and filing an 8-K.

Material Events

On October 22, 2015, the Sponsor and the Trustee

entered into a First Amendment To Depositary Trust Agreement (the “First Trust Amendment”), amending the Trust Agreement,

dated as of May 6, 2014, to effectuate a change in the name of the Trust from “Merk Gold Trust” to “Van Eck Merk Gold

Trust,” effective as of October 26, 2015.

As a result of the name change, all references to “Merk Gold Trust” in the

Trust Agreement were amended to read “Van Eck Merk Gold Trust,” and the shares offered by the Trust were known as the “Van

Eck Merk Gold Shares” (“Shares”).

On October 22, 2015, the Sponsor, for the benefit

of the Trust, entered into a Marketing Agent Agreement (as amended to date, the “Marketing Agreement”) with Van Eck Securities

Corporation (“VanEck” or “Marketing Agent”).

Pursuant to the Marketing Agreement, VanEck now provides assistance

in the marketing of the Shares.

The obligations created by the Marketing Agreement are obligations of the Sponsor of the Trust and any

fees payable under the Marketing Agreement to VanEck are payable from the Sponsor’s fee (as calculated and defined in the Trust

The Trust will not incur additional financial or other performance obligations pursuant to the Marketing Agreement.

The Sponsor entered into the First Trust Amendment

and effectuated the name change of the Trust in satisfaction of a term of the Marketing Agreement.

The Marketing Agreement further grants

VanEck the right to elect to replace Merk as the sponsor of the Trust under specific qualifying circumstances, subject to the execution

and consummation of definitive agreements addressing all regulatory requirements applicable to such transaction and satisfaction of such

requirements, and announcement and related reporting at such time.

Specifically, VanEck has a right of first refusal for the purchase

of the sponsorship of the Trust, and all rights attributable thereto, upon the earlier of a commitment for a change of control of Merk

or 15 years from the date of the Marketing Agreement.

Additionally, VanEck may elect to replace Merk as the sponsor of the Trust upon

the earlier of the average daily net assets of the Trust during a calendar quarter not attributable to Shares held by Merk or its affiliates

(“Third Party Assets”) equaling $500 million, or VanEck’s compensation under the fee provisions of the Marketing Agreement

reaching in aggregate 10% of the gross proceeds from sale of the Shares (the “Maximum Fee”).

Merk further agreed that if the Third Party Assets

equal or exceed $500 million, for such period as Merk remains sponsor of the Trust, VanEck may propose the rate of the Sponsor’s

fee to Merk, which Merk shall not unreasonably reject and shall timely adopt if reasonable, provided, VanEck acknowledges that only the

formal named sponsor of the Trust shall have the right to set the Sponsor’s fee at any time.

On April 28, 2016, the Sponsor and the Trustee

entered into a Second Amendment to Depositary Trust Agreement (the “Second Trust Amendment”), amending the Trust Agreement

to effectuate a second change in the name of the Trust from “Van Eck Merk Gold Trust” to “VanEck Merk Gold Trust,”

at the request of the Marketing Agent to reflect its rebranding as “VanEck”.

As a result of the name change, all references

to “Van Eck Merk Gold Trust” in the Trust Agreement were amended to read “VanEck Merk Gold Trust,” and the Shares

offered by the Trust are now known as the “VanEck Merk Gold Shares”.

Except for the name change effected pursuant to the Second

Trust Amendment, the Trust Agreement remains in full force and effect on its existing terms.

Effective July 24, 2020, the Sponsor exercised

its rights under the Trust Agreement to adjust the Sponsor’s fee upon written notice to the Trustee and publication of the proposed

change on its website.

Prior to July 24, 2020, the Sponsor’s fee accrued at an annualized rate of 0.40% of the Trust’s NAV.

Effective July 24, 2020, the Sponsor’s fee is payable at an annualized rate of 0.25% of the Trust’s NAV, accrued on a daily

basis computed on the prior Business Day’s NAV and paid monthly in arrears.

On the Index Change Date, the Sponsor

intends to change the pricing index it uses in relation to the Shares issued by the Trust intends to change to reference the

Solactive Index in lieu of the LBMA Gold Price.

Following the Index Change Date, in determining the Trust’s NAV, the Trustee will value the gold held by the

Trust based on the Solactive Index.

Change in Settlement Cycle and Amendment to

Authorized Participant Agreements

On March 22, 2017, the Securities and Exchange

Commission adopted an amendment to reduce by one business day the standard settlement cycle for most broker-dealer securities transactions.

Prior to the implementation of the shorter settlement cycle, the standard settlement cycle for such transactions was three business days,

known as T+3.

The amended rule shortens the settlement cycle to two business days, or T+2.

This change in the settlement cycle affects

both the creation and redemption procedures for Baskets and trading in the Shares.

Compliance with the new settlement cycle went into

effect on September 5, 2017.

Due to the fact that the aforementioned creation

and redemption procedures are addressed in the Authorized Participant Agreements by among the Authorized Participants, the Trustee and

the Sponsor, the Trustee and the Sponsor exercised their rights to amend each such agreement to address the new T+2 settlement cycle and

executed First Amendments to each of the Authorized Participant Agreements, effective as of September 5, 2017, and provided timely notice

of such amendment to the Authorized Participants.

Except for the foregoing amendments, the Authorized Participant Agreements remain in

full force and effect on their existing terms.

Results from Operations

The Trust is a trust formed on May 6, 2014 under

New York law pursuant to the Trust Agreement.

After consideration of Financial Accounting Standards Topic 946, however, the Sponsor has

concluded that for financial statement reporting purposes the Trust meets the fundamental characteristics of an investment company.

addition, while the Trust does not currently possess all of the typical characteristics of an investment company, the Sponsor believes

the Trust’s activities are consistent with those of an investment company and will therefore apply the guidance in Financial Accounting

Standards Topic 946, including disclosure of the financial support contractually required to be provided by an investment company to any

of its investees.

The Sponsor is responsible for, among other things, overseeing the performance of 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 Three Months Ended April 30, 2023 Compared

to the Three Months Ended April 30, 2022

The Trust’s NAV increased from $656,592,798

on January 31, 2023 to $712,154,665 on April 30, 2023, an 8.46% increase, compared to a 15.43% increase from $586,245,772 on January 31,

2022 to $676,703,604 on April 30, 2022.

The increase in the Trust’s NAV in the quarter ended April 30, 2023 resulted from an increase

in the value of investments in gold bullion as compared to the prior period.

The number of outstanding Shares increased from 35,203,259

Shares on January 31, 2023 to 37,075,156 Shares on April 30, 2023 due to the creation of Shares by Authorized Participants and the creation

of 21,897 Shares in the quarter for Sponsor’s fees, as compared to 21,240 Shares for such purpose in the quarter ended April 30,

The number of outstanding Shares on April 30, 2022 was 36,451,520.

The Sponsor’s fees are payable at an annualized rate of

0.25% of the Trust’s NAV, accrued on a daily basis computed on the prior Business Day’s NAV and paid monthly in arrears.

to July 24, 2020, the Sponsor’s fees accrued at an annualized rate of .40% of the Trust’s NAV.

Due to the daily accrual but

monthly payment, the number of Sponsor’s fee Shares issued can vary and possibly decrease, even as the number of Shares outstanding

increases slightly.

The Trust’s NAV per Share increased 3.00%

during the quarter ended April 30, 2023, starting at $18.65 per Share and ending at $19.21 per Share, compared to an increase of 6.36%,

from $17.45 to $18.56 during the quarter ended April 30, 2022.

The Trust’s NAV per share increased slightly less than the price

per ounce of gold on a percentage basis due to the Sponsor’s fees, which were 21,897 Shares in total for the quarter ended April

30, 2023, compared with 21,240 Shares paid as Sponsor’s fees in the quarter ended April 30, 2022.

The NAV per share of $19.85 on

April 13, 2023 was the highest during the quarter, compared with a low of $17.55 on February 24, 2023.

The change in net assets from operations for the

quarter ended April 30, 2023 was $20,060,387, resulting from the Sponsor’s fees of $(409,800), a net realized gain of $609,442 from

gold bullion distributed for redemptions, and a net change in unrealized appreciation on investment in gold bullion of $19,860,745.

comparison, change in net assets from operations for the quarter ended April 30, 2022 was $36,392,542, resulting from the Sponsor’s

fees of $(396,568), a net realized gain of $54,381 from gold bullion distributed for redemptions, and a net change in unrealized appreciation

on investment in gold bullion of $36,734,729.

In comparison, the change in net assets from operations for the quarter ended October

31, 2021 was $(15,768,959), resulting from the Sponsor’s fees of $(329,573), a net realized gain from gold bullion distributed

for redemptions of $11,912, offset by a net change in unrealized depreciation on investment in gold bullion of $(15,451,298).

than the Sponsor’s fee, the Trust had no expenses during the quarter ended October 31, 2022 or the quarter ended October 31, 2021.

Months Ended October 31, 2022 Compared to the Nine Months Ended October 31, 2021

Trust’s NAV decreased from $586,245,772 at January 31, 2022 to $529,960,054 at October 31, 2022, a 9.6% decrease, compared to a

27.8% increase from $442,483,105 at January 31, 2021 to $565,682,896 at October 31, 2021.

The decrease in the Trust’s NAV in the

nine months ended October 31, 2022 resulted from a decrease in the value of investments in gold bullion as compared to the prior period.

The number of outstanding Shares decreased from 33,599,843 Shares at January 31, 2022 to 33,332,198 Shares at October 31, 2022 due to

the redemption of Shares by Authorized Participants and offset slightly by the creation of 67,892 Shares for Sponsor’s fees, as

compared to 52,076 Shares for such purpose in the nine months ended October 31, 2021.

The number of outstanding Shares at October 31,

2021 was 32,878,894.

Effective July 24, 2020, the Sponsor’s fees are payable at an annualized rate of 0.25% of the Trust’s

NAV, accrued on a daily basis computed on the prior Business Day’s NAV and paid monthly in arrears.

Prior to July 24, 2020, the

Sponsor’s fees accrued at an annualized rate of 0.40% of the Trust’s NAV.

Due to the daily accrual but monthly payment, the

number of Sponsor’s fee Shares issued can vary and possibly decrease, even as the number of Shares outstanding increases slightly.

Trust’s NAV per Share decreased 8.9% during the nine months ended October 31, 2022, starting at $17.45 per Share and ending at

$15.90 per Share, compared to a decrease of 5.2%, from $18.16 to $17.21 during the nine months ended October 31, 2021.

NAV per share decreased slightly more than the price per ounce of gold on a percentage basis due to the Sponsor’s fees, which were

67,892 Shares in total for the nine months ended October 31, 2022, compared with 52,076 Shares paid as Sponsor’s fees in the nine

months ended October 31, 2021.

The NAV per share of $19.81 on March 8, 2022 was the highest during the nine months ended October 31,

2022, compared with a low of $15.83 on October 19, 2022.

change in net assets from operations for the nine months ended October 31, 2022 was $(61,487,062), resulting from the Sponsor’s

fees of $(1,184,211), a net realized gain from gold bullion distributed for redemptions of $1,178,406 and a net change in unrealized

depreciation on investment in gold bullion of $(61,481,257).

In comparison, the change in net assets from operations for the nine months

ended October 31, 2021 was $(25,719,122), resulting from the Sponsor’s fees of $(901,813), a net realized gain from gold bullion

distributed for redemptions of $921,833 and a net change in unrealized depreciation on investment in gold bullion of $(25,739,142).

than the Sponsor’s fee, the Trust had no expenses during the nine months ended October 31, 2022 or the nine months ended October

the calendar quarter ended September 30, 2022, the Marketing Agent earned a fee of $80,229 which was paid by the Sponsor on November

since the initiation of the Marketing Agent’s efforts on behalf of the Trust on October 22, 2015, a total of $658,895

in Fees has been paid, representing 0.90% of the Maximum Fee potentially payable to the Marketing Agent pursuant to the Marketing Agent

Effective July 24, 2020, the Sponsor and the Marketing Agent amended the fee structure under the Marketing Agent Agreement,

however the financial obligations created thereunder remain the obligations of the Sponsor of the Trust, any fees payable thereunder

remain payable from the Sponsor’s fee and the cap on the fees payable to the Marketing Agent remains unchanged.

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 in Shares in lieu of cash.

At October 31, 2022 and October 31, 2021, the Trust did not have any cash balances.

Sheet Arrangements

Trust has no off-balance sheet arrangements.

Accounting Policies

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

United States of America.

The preparation of these unaudited 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

In addition, please refer to Note 2 to the unaudited financial statements for further discussion of accounting policies.

May 6, 2014, the Trust has adopted the provisions of Financial Accounting Standards Topic 946, Investment Companies, and follows specialized

by Certain Retirement Plans

408(m) of the Internal Revenue Code, as amended (the “Code”), provides that the purchase of a “collectible” as

an investment for an individual retirement account (an “IRA”), or for a participant-directed account maintained under any

plan that is tax-qualified under Code section 401(a) (“Tax-Qualified Account”), is treated as a taxable distribution from

the account to the owner of the IRA, or to the participant for whom the Tax-Qualified Account is maintained, of an amount equal to the

cost to the account of acquiring the collectible.

The Trust, through the Sponsor, has received a private letter ruling from the Internal

Revenue Service that provides that (1) the acquisition of Shares by an IRA or a Tax-Qualified Account will not constitute the acquisition

of a collectible and (2) an IRA or such an account’s owning Shares will not be treated as having made a distribution to the IRA

owner or plan participant under Code section 408(m) solely by virtue of owning those Shares.

If a redemption of Shares results in the

delivery of gold to an IRA or Tax-Qualified Account, however, that exchange would constitute the acquisition of a collectible to the

extent provided under that section.

See also “ERISA and Related Considerations.”

who are considering exchanging their Shares for gold coins or gold bullion should consult with their tax advisors regarding the tax implications

thereof before doing so.

Other than the Sponsor’s fee, the Trust

had no expenses during the quarter ended April 30, 2023 or the quarter ended April 30, 2022.

For the calendar quarter ended April 30, 2023,

the Marketing Agent earned a fee of $54,701 which was paid by the Sponsor on May 22, 2023;

since the initiation of the Marketing Agent’s

efforts on behalf of the Trust on October 22, 2015, a total of $792,258 in Fees has been paid, representing 0.9994% of the Maximum Fee

potentially payable to the Marketing Agent pursuant to the Marketing Agent Agreement.

Effective July 24, 2020, the Sponsor and the

Marketing Agent amended the fee structure under the Marketing Agent Agreement, however the financial obligations created thereunder remain

the obligations of the Sponsor of the Trust, any fees payable thereunder remain payable from the Sponsor’s fee and the cap on the

fees payable to the Marketing Agent remains unchanged.

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 in Shares in lieu of cash.

30, 2023 and April 30, 2022, the Trust did not have any cash balances.

Off-Balance Sheet Arrangements

The Trust has no off-balance sheet arrangements.

Critical Accounting Policies

The unaudited financial statements and accompanying

notes are prepared in accordance with accounting principles generally accepted in the United States of America.

The preparation of these

unaudited 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.

In addition, please refer to Note 2 to the

unaudited financial statements for further discussion of accounting policies.

Effective May 6, 2014, the Trust has adopted the

provisions of Financial Accounting Standards Topic 946, Investment Companies, and follows specialized accounting.

Investment by Certain Retirement Plans

Section 408(m) of the Internal Revenue Code, as

amended (the “Code”), provides that the purchase of a “collectible” as an investment for an individual retirement

account (an “IRA”), or for a participant-directed account maintained under any plan that is tax-qualified under Code section

401(a) (“Tax-Qualified Account”), is treated as a taxable distribution from the account to the owner of the IRA, or to the

participant for whom the Tax-Qualified Account is maintained, of an amount equal to the cost to the account of acquiring the collectible.

The Trust, through the Sponsor, has received a private letter ruling from the Internal Revenue Service that provides that (1) the

acquisition of Shares by an IRA or a Tax-Qualified Account will not constitute the acquisition of a collectible and (2) an IRA or such

an account’s owning Shares will not be treated as having made a distribution to the IRA owner or plan participant under Code section

408(m) solely by virtue of owning those Shares.

If a redemption of Shares results in the delivery of gold to an IRA or Tax-Qualified Account,

however, that exchange would constitute the acquisition of a collectible to the extent provided under that section.

What changed 10-Q

Item 2. Management’s Discussion and Analysis