10-Q: GraniteShares Gold Trust Reports Strong Q2 Growth

GraniteShares Gold Trust saw net assets surge 34.96% to $1.49 billion for the six months ended December 31, 2025, driven by a significant increase in gold prices and share creations.

Summary

• Net assets increased by 34.96% to $1.492 billion for the six months ended December 31, 2025, from $1.106 billion on June 30, 2025.
• The value of gold bullion held by the Trust increased to $1.492 billion (346,416.237 ounces) as of December 31, 2025, from $1.106 billion (336,351.098 ounces) on June 30, 2025.
• Net asset value per Share rose 30.9% to $42.45 as of December 31, 2025, from $32.42 on June 30, 2025.
• The price of gold increased by 31.0% from $3,287.45 on June 30, 2025, to $4,307.95 on December 31, 2025.
• Shares outstanding increased by 1,050,000 to 35,150,000 during the six-month period, a net result of 31 creation orders and 10 redemption orders.
• Net increase in net assets from operations for the six months was $342.19 million, primarily due to a $334.72 million unrealized gain on gold investment.
• Sponsor fees for the six months totaled $1.14 million, representing 0.088% of the Trust's average weighted net assets.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a very positive report, reflecting strong performance driven by a significant increase in gold prices and healthy investor demand for the Trust's shares. The effective tracking of gold prices and growth in net assets are key strengths.

Positives

• Significant increase in net assets by 34.96% for the six months ended December 31, 2025, reaching $1.492 billion.
• Strong performance in gold price, with a 31.0% increase from June 30, 2025, to December 31, 2025.
• Net asset value per Share increased by 30.9% to $42.45, reflecting the gold price appreciation.
• Positive net share creations, with 1,050,000 new shares issued during the six-month period, indicating investor interest.
• Substantial net increase in net assets resulting from operations of $342.19 million for the six months, driven by unrealized gains on gold.
• Disclosure controls and procedures were evaluated as effective.

Negatives

• The Trust's net asset value per share increased slightly less than the price of gold on a percentage basis due to Sponsor fees.
• Sponsor fees represent the only ordinary recurring expense, which, while low, still slightly erodes returns compared to direct gold ownership.
• The Trust's sole business activity is investment in gold bullion, concentrating all risk on gold price fluctuations.

Risks

• The value of Shares is directly affected by the price of gold, which can be volatile.
• Factors that could affect the price of gold include global gold supply and demand (influenced by forward selling, producer purchases, central bank activity, production costs), investor expectations regarding inflation, currency exchange rates, interest rates, investment and trading activities of hedge funds and commodity funds, and global or regional political, economic, or financial events and situations.
• There is no assurance that gold will maintain its long-term value in terms of purchasing power in the future.
• A decline in the price of gold is expected to cause a proportionate decline in the value of an investment in the Shares.
• The Trust is subject to indemnification obligations to the Trustee and Sponsor, with unknown maximum exposure.

Future Outlook

The Trust's investment objective is for the Shares to reflect the performance of the price of gold, less the Trust's expenses. The Sponsor believes that the Shares will represent a cost-effective investment relative to traditional means of investing in gold. Management is currently evaluating the impacts of new accounting pronouncements (ASU 2023-09) on the Trust's financial statements, effective for annual periods beginning after December 15, 2024.

Management Comments

• The Trust is not managed like a corporation or an active investment vehicle.
• The investment objective of the Trust is for the Shares to reflect the performance of the price of gold, less the Trusts 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 disclosure controls and procedures of the Trust were effective as of the end of the period covered by this report.
• There has been no change in the internal control over financial reporting that occurred during the fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trusts internal control over financial reporting.

Industry Context

StockSavvy.ai notes that the significant increase in GraniteShares Gold Trust's net assets and NAV per share directly correlates with the strong performance of gold prices during the period. This trend aligns with broader market observations of increased investor interest in safe-haven assets like gold, potentially driven by macroeconomic uncertainties or inflation expectations. The Trust's structure as a passive investment vehicle tracking gold prices positions it as a direct beneficiary of such market movements, contrasting with actively managed funds that might seek to outperform the commodity itself.

Comparison to Industry Standards

• The Trust's performance is directly tied to the LBMA PM Gold Price, serving as its primary benchmark. For the six months ended December 31, 2025, the Trust's NAV total return of 30.94% closely mirrored the 31.0% increase in the price of gold, indicating effective tracking of its underlying asset.
• This performance is comparable to other gold-backed ETFs such as SPDR Gold Shares (GLD) or iShares Gold Trust (IAU), which also aim to track the price of gold less expenses.
• The slight deviation is attributed to the Sponsor's fees, which at an annualized rate of 0.1749% are competitive within the gold ETF market, where expense ratios typically range from 0.15% to 0.40%.

Related Party Transactions

• A fee is paid to GraniteShares LLC (the Sponsor) as compensation for services, calculated at an annualized rate of 0.1749% of the Trust's Net Asset Value.
• Affiliates of The Bank of New York Mellon (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.

Stakeholder Impact

• Shareholders: Directly benefit from the appreciation in gold prices, as the Trust's NAV per share closely tracks gold performance. They bear the Sponsor's fees, which slightly reduce returns compared to direct gold ownership.
• Sponsor (GraniteShares LLC): Benefits from increased net assets through higher Sponsor fees, as the fee is a percentage of NAV.
• Trustee (The Bank of New York Mellon): Receives fees from the Sponsor for administrative services.
• Custodian (ICBC Standard Bank Plc): Receives fees from the Sponsor for gold vaulting services.
• Authorized Participants: Facilitate creation and redemption of shares, earning transaction fees and benefiting from arbitrage opportunities between the Trust's NAV and market price.

Next Steps

• Management is evaluating the impacts of ASU 2023-09 (Income Taxes) on the Trust's financial statements.
• The Trust will continue to issue and redeem Baskets of shares with Authorized Participants in exchange for gold.
• The Trustee will continue to value gold daily using the LBMA PM Gold Price.

Key Dates

Recommendation

The GraniteShares Gold Trust demonstrates strong performance, directly reflecting the significant appreciation in gold prices. The Trust's efficient tracking of its underlying asset, coupled with net share creations, indicates robust investor confidence and a favorable market for gold. For investors seeking direct exposure to gold price movements through a cost-effective and liquid vehicle, the current results and outlook make it an attractive 'buy' given the positive momentum in the gold market.

Keywords

Gold Trust, GraniteShares, Gold Bullion, Investment Company, SEC Filing, 10-Q, Financial Report, Precious Metals, Commodity ETF, BAR, NYSE Arca, Net Asset Value, Gold Price, Unrealized Gain