(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
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"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
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