10-Q: GraniteShares Gold Trust Reports Increase in Net Asset Value for Quarter Ended March 31, 2024

GraniteShares Gold Trust's net asset value increased by 4.47% during the quarter ended March 31, 2024, primarily driven by a rise in gold prices.

Summary

• GraniteShares Gold Trust's net asset value increased from $960.48 million on December 31, 2023, to $1,003.45 million on March 31, 2024, representing a 4.47% increase.
• The increase was primarily due to a 7.37% rise in the price of gold, from $2,062.40 to $2,214.35 during the quarter.
• The number of shares outstanding decreased from 47,100,000 to 45,850,000 due to 25 redemption orders.
• The net asset value per share increased by 7.36% from $20.39 to $21.89.
• Sponsor fees for the quarter were $412,810, representing 0.043% of the Trust's average weighted net assets.
• For the nine months ended March 31, 2024, the Trust's net asset value increased by 7.23% from $935.81 million to $1,003.45 million.
• This increase was mainly due to a 15.80% increase in the price of gold from $1,912.25 to $2,214.35.
• The number of shares outstanding decreased from 49,450,000 to 45,850,000 during the nine-month period, a 7.28% decrease.
• The net asset value per share increased by 15.70% from $18.92 to $21.89.
• Sponsor fees for the nine-month period were $1,228,120, representing 0.131% of the Trust's average weighted net assets.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive. The Trust's net asset value increased, driven by rising gold prices. However, the decrease in shares outstanding due to redemptions and the ongoing sponsor fees temper the overall positive outlook.

Positives

• The Trust's net asset value and net asset value per share increased significantly due to the rising price of gold.
• The Trust maintains a simple and cost-effective means of investing in gold.
• The Trust's disclosure controls and procedures were effective as of the end of the period covered by the report.
• The Trust had no expenses other than the Sponsor's fees.

Negatives

• The number of shares outstanding decreased due to redemption orders, which could indicate decreased investor confidence or a shift in investment strategy.
• The Sponsor's fees reduce the overall return for investors.

Risks

• The price of gold is subject to various factors, including global supply and demand, inflation expectations, currency exchange rates, and political and economic events.
• A decline in the price of gold would proportionately decrease the value of the Shares.
• The Trust's sole business activity is the investment in gold bullion, making it highly susceptible to fluctuations in the gold market.

Future Outlook

The Trust's objective is for the value of the Shares to reflect the performance of the price of gold, less the Trust's expenses.

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.

Industry Context

This announcement reflects the performance of a gold-backed ETF, which is directly tied to the price of gold and investor activity in creating or redeeming shares. The performance is influenced by broader market trends affecting gold prices, such as inflation, interest rates, and geopolitical events.

Comparison to Industry Standards

• Comparable gold trusts and ETFs include iShares Gold Trust (IAU) and SPDR Gold Trust (GLD).
• These trusts also aim to reflect the price of gold, less expenses.
• Performance is generally benchmarked against the LBMA Gold Price PM.
• Expense ratios are a key factor in comparing these products; GraniteShares Gold Trust has a sponsor fee of 0.1749%.

Related Party Transactions

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

Stakeholder Impact

• Shareholders benefit from the increase in net asset value driven by rising gold prices.
• Authorized Participants are involved in the creation and redemption of Shares.
• The Sponsor receives fees for managing the Trust.

Key Dates

Keywords

GraniteShares Gold Trust, gold, net asset value, financial results, gold bullion, shares, sponsor fees, redemption, creation, LBMA Gold Price