10-Q: SPDR Gold Trust Q3 2025: Net Assets Soar on Gold Gains

SPDR Gold Trust reported significant growth in net assets and strong investment gains for the quarter ended June 30, 2025, driven by a surge in gold prices.

Summary

• Net assets increased to $100.64 billion as of June 30, 2025, up from $73.70 billion at September 30, 2024.
• The fair value of gold investments reached $100.92 billion as of June 30, 2025, compared to $73.73 billion at September 30, 2024.
• The Trust held 30.70 million ounces of gold as of June 30, 2025, an increase from 28.03 million ounces at September 30, 2024.
• Net income for the nine months ended June 30, 2025, was $18.72 billion, significantly higher than $12.21 billion for the same period in 2024.
• Net income per share for the nine months ended June 30, 2025, was $59.62, up from $41.46 in the prior year period.
• The Trust experienced net creations of 29.0 million shares (valued at $8.22 billion) for the nine months ended June 30, 2025, a reversal from net redemptions of 14.6 million shares (valued at $(2.62) billion) in the prior year period.
• The LBMA Gold Price PM increased to $3,287.45 per ounce on June 30, 2025, from $2,629.95 per ounce on September 30, 2024.

Sentiment

Score: 9

Explanation: The Trust reported substantial growth in net assets and strong financial performance, driven by a significant increase in gold prices. The positive net share creations indicate robust investor demand. While expenses lead to a net investment loss, the overall realized and unrealized gains on gold investments resulted in high net income and total returns, reflecting the Trust's effective tracking of gold's performance.

Positives

• Substantial increase in net assets, reaching over $100 billion, reflecting strong gold price appreciation.
• Significant net income growth for both the three and nine months ended June 30, 2025, driven by realized and unrealized gains on gold investments.
• Positive net share creations for the nine-month period, indicating increased investor interest and inflows into the Trust.
• Strong total returns at both Net Asset Value (24.63%) and Market Value (25.41%) for the nine months ended June 30, 2025.
• The Trust's investment objective to reflect the performance of gold bullion is being met, with the gold price showing a robust upward trend.

Negatives

• The Trust incurred a net investment loss of $98.83 million for the three months and $254.89 million for the nine months ended June 30, 2025, due to Sponsor fees.
• Liabilities increased significantly to $275.67 million at June 30, 2025, primarily due to a $242.30 million gold payable.

Risks

• The value of Shares is directly affected by fluctuations in the price of gold bullion.
• Various factors can affect gold prices, including global supply and demand, inflation expectations, currency exchange rates, interest rates, investment and trading activities of hedge funds and commodity funds, other economic variables, and global or regional political, economic, or financial events.
• There is no assurance that gold will maintain its long-term value in terms of purchasing power in the future.
• The Trustee does not actively manage the gold held by the Trust, meaning it does not sell gold at high prices or acquire at low prices, nor does it use hedging techniques, which could lead to losses from price decreases.
• Past movements in the gold price are not indicators of future movements.

Future Outlook

The Trust expects to maintain a zero cash balance at the end of each reporting period, as gold is sold as needed to cover expenses. The Trust is currently evaluating the impact of the new FASB ASU 2023-07 on its financial statements, which introduces new segment reporting disclosure requirements.

Management Comments

• This report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
• The financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report.
• 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 our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trusts internal control over financial reporting.

Industry Context

The SPDR Gold Trust's performance is directly tied to the price of gold bullion. The significant increase in net assets and investment gains reflects a strong bull market for gold during the reported period, with the LBMA Gold Price PM rising substantially. This trend suggests increased investor demand for safe-haven assets or inflation hedges, aligning with broader macroeconomic uncertainties or inflationary pressures that typically drive gold prices higher. The Trust's structure as a passive investment vehicle means its results are a direct reflection of the underlying commodity's market performance, less its fixed expense ratio.

Comparison to Industry Standards

• The Trust's investment objective is to reflect the performance of the price of gold bullion, less expenses. The reported total return at NAV of 24.63% for the nine months ended June 30, 2025, closely tracks the increase in the LBMA Gold Price PM from $2,629.95 on September 30, 2024, to $3,287.45 on June 30, 2025, which represents a 24.92% increase. This indicates the Trust is effectively meeting its objective, with the difference primarily attributable to the 0.40% annualized Sponsor fee.
• Compared to other gold ETFs or physically-backed gold products, the SPDR Gold Trust (GLD) maintains a competitive expense ratio of 0.40% annually. For example, iShares Gold Trust (IAU) has an expense ratio of 0.25%, while Aberdeen Standard Physical Gold Shares ETF (SGOL) is 0.17%. While GLD's expense ratio is higher than some competitors, its large size and liquidity often make it a preferred choice for institutional investors.
• The Trust's operational efficiency is demonstrated by its consistent zero cash balance, as gold is sold directly to cover expenses, minimizing non-gold asset holdings.

Related Party Transactions

• The Sponsor's fee is the Trust's only recurring fixed expense, accruing daily at an annual rate of 0.40% of the daily Net Asset Value.
• Affiliates of The Bank of New York Mellon (the Trustee) may act as Authorized Participants or purchase/sell gold or Shares for their own account, as agent for 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 shares are designed to reflect gold performance less expenses. The significant increase in net asset value per share and total returns indicates a positive impact.
• Sponsor (World Gold Trust Services, LLC): Benefits from increased assets under management, as its fees are calculated as a percentage of the daily Net Asset Value, leading to higher fee income.
• Authorized Participants: Engage in creation and redemption activities, benefiting from the liquidity and arbitrage opportunities provided by the Trust's structure.
• Custodians (HSBC Bank plc, JPMorgan Chase Bank, N.A.): Continue to provide gold custody services, earning fees from the Trust.

Next Steps

• The Trust is evaluating the impact of the new FASB ASU 2023-07 on its financial statements, with new disclosure requirements effective for interim periods within fiscal years beginning after December 15, 2024.
• The annual full count of the Trust's gold bullion by Bureau Veritas will coincide with the fiscal year end at September 30th.
• The Sponsor generally visits the vaults of the Custodians twice a year as part of its due diligence procedures.

Key Dates

Recommendation

The SPDR Gold Trust (GLD) provides direct exposure to gold bullion, and the filing indicates strong performance driven by a significant increase in gold prices. The substantial growth in net assets, net income, and positive share creations suggest robust investor demand for gold. Given the current macroeconomic environment, gold continues to serve as a valuable hedge against inflation and geopolitical uncertainty. While the Trust is passive and subject to gold price volatility, its efficient structure and the positive trend in gold prices make it an attractive investment for those seeking gold exposure. The consistent tracking of gold prices, despite the expense ratio, reinforces its utility as a core gold holding.

Keywords

Gold, ETF, SPDR Gold Trust, GLD, Precious Metals, Commodity, Investment Trust, Gold Bullion, SEC Filing, 10-Q, Financial Report, Asset Management, World Gold Trust Services