Investor Alert

New York Markets Open in:

May 8, 2020, 5:51 p.m. EDT

10-Q: WORLD GOLD TRUST

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

or Cancel Already have a watchlist? Log In

(EDGAR Online via COMTEX) -- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This information should be read in conjunction with the financial statements and notes included in Item 1 of Part I of this Quarterly Report. This Quarterly Report, including the exhibits hereto and the information incorporated by reference herein, contains "forward-looking statements" within the meaning of







        SM
        Trust ("GLDM") is operational as of March 31, 2020. GLDM commenced operations on
        June 26, 2018. GLDM's investment objective is for its shares (the "Shares") to
        reflect the performance of the price of gold, less its expenses.
        Gold is held by ICBC Standard Bank Plc (the "Custodian") on behalf of GLDM.
        Investing in the Shares does not insulate the investor from risks, including
        price volatility. The following chart illustrates the movement in the market
        price of the Shares and NAV of the Shares against the corresponding gold price
        (per 1/100 of an oz. of gold) since the day the Shares first began trading on
        the NYSE Arca:
        Share price & NAV v. gold price - June 26, 2018 to March 31, 2020
        [[Image Removed]]
        








        "COVID-19
        pandemic").
        Pandemics and other public health crises may cause a curtailment of business
        activities which may potentially impact the ability of the Sponsor and its
        service providers to operate. The
        COVID-19
        pandemic or a similar public health threat could adversely impact GLDM by
        causing operating delays and disruptions, market disruption and shutdowns
        (including as a result of government regulation and prevention measures). The
        COVID-19
        pandemic has had and will likely continue to have serious negative effects on
        social, economic and financial systems, including significant uncertainty and
        volatility in the financial markets.
        Governmental authorities and regulators throughout the world have, in the past,
        responded to major economic disruptions with a variety of fiscal and monetary
        policy changes, such as quantitative easing, new monetary programs and lower
        interest rates. An unexpected or quick reversal of these policies, or the
        ineffectiveness of these policies, is likely to increase volatility in the
        market generally, and could specifically increase volatility in the market for
        gold, which could adversely affect the price of the Shares. The outbreak could
        also cause the closure of futures exchanges, which could eliminate the ability
        of Authorized Participants to hedge purchases of Baskets, increasing trading
        costs of Shares and resulting in a sustained premium or discount in the Shares.
        The duration of the outbreak and its effects cannot be determined with any
        reasonable amount of certainty. A prolonged outbreak could result in an increase
        of the costs of GLDM, affect liquidity in the market for gold as well as the
        correlation between the price of the Shares and the net asset value of GLDM, any
        of which could adversely and materially affect the value of your Shares. The
        outbreak could impair information technology and other operational systems upon
        which GLDM's service providers, including the Sponsor, the Administrator and the
        Custodian, rely, and could otherwise disrupt the ability of employees of GLDM's
        service providers to perform essential tasks on behalf of GLDM. To date, the
        impact of
        COVID-19
        has not materially affected the operations of GLDM.
        Results of Operations
        In the three months ended March 31, 2020, 28,600,000 Shares (286 Creation Units)
        were created in exchange for 285,139.5 ounces of gold, 2,500,000 Shares (25
        Creation Units) were redeemed in exchange for 24,923.3 ounces of gold and 342.8
        ounces of gold were sold to pay Sponsor fees. For accounting purposes, GLDM
        reflects
        


Table of Contents







                                                                                                                                                    Last
                                                                                                                                  End of           Day of
        Period                                Average          High             Date             Low              Date            Period           Period
        Three months to June 30, 2018        $ 1,305.99     $ 1,351.45       Apr 18, 2018     $ 1,250.45       Jun 29, 2018     $ 1,250.45       Jun 29, 2018
        Three months to September 30, 2018   $ 1,213.19     $ 1,262.05        Jul 9, 2018     $ 1,178.40       Aug 17, 2018     $ 1,187.25       Sep 28, 2018
        Three months to December 31, 2018                                                                                                                     (1)
                                             $ 1,226.28     $ 1,279.00       Dec 28, 2018     $ 1,185.55        Oct 9, 2018     $ 1,281.65       Dec 31, 2018
        Three months to March 31, 2019       $ 1,303.79     $ 1,343.75       Feb 20, 2019     $ 1,279.55       Jan 21, 2019     $ 1,295.40       Mar 29, 2019
        Three months to June 30, 2019        $ 1,309.39     $ 1,431.40       Jun 25, 2019     $ 1,269.50       Apr 23, 2019     $ 1,409.00       Jun 28, 2019
        Three months to September 30, 2019   $ 1,472.47     $ 1,546.10        Sep 4, 2019     $ 1,388.65        Jul 5, 2019     $ 1,485.30       Sep 30, 2019
        Three months to December 31, 2019                                                                                                                     (1)
                                             $ 1,480.96     $ 1,517.10        Oct 3, 2019     $ 1,452.05       Nov 12, 2019     $ 1,523.00       Dec 31, 2019
        Three months to March 31, 2020       $ 1,582.80     $ 1,683.65        Mar 6, 2020     $ 1,474.25       Mar 19, 2020     $ 1,608.95       Mar 31, 2020
        Twelve months ended March 31, 2019   $ 1,262.09     $ 1,351.45       Apr 18, 2018     $ 1,178.40       Aug 17, 2018     $ 1,295.40       Mar 29, 2019
        Twelve months ended March 31, 2020   $ 1,463.10     $ 1,683.65        Mar 6, 2020     $ 1,269.50       Apr 23, 2019     $ 1,608.95       Mar 31, 2020
        


(1) There was no LBMA Gold Price PM on the last business day of December 2019 or 2018. The LBMA Gold Price AM on the last business day of December 2019 and 2018 was $1,523.00 and $1,281.65, respectively. The Net Asset Value of GLDM on December 31, 2019 and 2018 was calculated using the LBMA Gold Price AM.

May 08, 2020

Is there a problem with this press release? Contact the source provider Comtex at editorial@comtex.com . You can also contact MarketWatch Customer Service via our Customer Center .

(c) 1995-2020 Cybernet Data Systems, Inc. All Rights Reserved

This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.