10-Q: GraniteShares Gold Trust Reports Net Asset Value Increase Despite Share Redemptions in Q2 2025

GraniteShares Gold Trust saw a net asset value increase of 7.0% over the six months ending December 31, 2024, driven by a rise in gold prices, despite a decrease in outstanding shares due to redemptions.

Summary

• GraniteShares Gold Trust reported its financial results for the quarter and six months ended December 31, 2024.
• The Trust's net asset value increased by 7.0% over the six-month period, rising from $790.99 million to $846.56 million.
• This increase was primarily due to a 12.0% rise in the price of gold, from $2,330.90 to $2,610.85 per ounce.
• However, the number of outstanding shares decreased by 4.4%, from 34.35 million to 32.85 million, due to net redemptions.
• The net asset value per share increased by 11.9%, from $23.03 to $25.77 over the six-month period.
• For the three-month period, the net asset value decreased by 3.7%, from $879.11 million to $846.56 million, due to a slight decrease in the price of gold and share redemptions.
• The Trust's expenses are primarily the Sponsor's fee, which is 0.1749% of the daily net asset value, and there were no other expenses during the reported periods.
• The Trust's investment is solely in gold bullion, with 324,296.844 ounces held at the end of December 2024.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the increase in net asset value driven by gold price appreciation, but tempered by the decrease in outstanding shares and the inherent risks associated with gold investments.

Positives

• The Trust experienced a significant increase in net asset value due to the rise in gold prices.
• The net asset value per share increased by 11.9% over the six-month period.
• The Trust's investment in gold bullion is fully allocated and held by a reputable custodian.
• The Trust has a simple and cost-effective structure for investing in gold.

Negatives

• The number of outstanding shares decreased due to redemptions, indicating some investors are exiting the fund.
• The net asset value decreased by 3.7% during the three-month period ending December 31, 2024.
• The Trust's performance is directly tied to the price of gold, making it vulnerable to price fluctuations.
• The Sponsor's fee reduces the overall return for investors.

Risks

• The Trust's performance is highly dependent on the price of gold, which can be volatile.
• Global gold supply and demand, inflation expectations, currency exchange rates, and political events can all impact the price of gold.
• There is no guarantee that gold will maintain its long-term value.
• The Trust is subject to the risk of redemptions, which can reduce the number of outstanding shares.

Future Outlook

The Trust's performance is expected to continue to be closely tied to the price of gold. The Sponsor does not intend to waive any part of its fee.

Management Comments

• The Sponsor believes that, for many investors, the Shares will represent a cost-effective investment relative to traditional means of investing in gold.
• The duly authorized officers of the Sponsor have concluded that the disclosure controls and procedures of the Trust were effective as of the end of the period covered by this report.

Industry Context

This report reflects the performance of a gold-backed investment trust, which is a common way for investors to gain exposure to gold prices without directly owning physical gold. The performance is in line with the general trend of gold prices during the period.

Comparison to Industry Standards

• The GraniteShares Gold Trust's performance is directly comparable to other gold-backed ETFs and trusts, such as the SPDR Gold Shares (GLD) and iShares Gold Trust (IAU).
• The expense ratio of 0.1749% is competitive with other similar products.
• The Trust's holdings are fully allocated, which is a standard practice for physical gold-backed ETFs.
• The Trust's performance closely tracks the LBMA PM Gold Price, which is the industry benchmark for gold pricing.

Related Party Transactions

• A fee is paid to the Sponsor as compensation for services performed under the Trust Agreement.
• Affiliates of the Trustee may from time-to-time act as Authorized Participants or purchase or sell gold or Shares for their own account.

Stakeholder Impact

• Shareholders are impacted by the changes in the price of gold and the Trust's net asset value.
• Authorized Participants are impacted by the procedures for the creation and redemption of Baskets.
• The Sponsor is impacted by the fees it receives for managing the Trust.

Key Dates

Keywords

Gold, Gold Bullion, GraniteShares Gold Trust, Net Asset Value, NAV, Gold Price, Investment Trust, Exchange Traded Fund, ETF, Shares, Redemptions, Sponsor Fees