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Note 2 - Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Significant Accounting Policies [Text Block]

2 - Significant Accounting Policies

A.	Basis of Accounting

The following significant accounting policies are consistently followed by the Trust in the preparation of its financial statements in conformity with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

B.

Gold Bullion

JPMorgan Chase Bank N.A., London branch (the “Custodian”), is responsible for the safekeeping of gold bullion owned by the Trust.

Fair value of the gold bullion held by the Trust is based on that day’s London Bullion Market Association (“LBMA”) Gold Price PM. “LBMA Gold Price PM” is the price per fine troy ounce of gold, stated in U.S. dollars, determined by ICE Benchmark Administration (“IBA”) following an electronic auction consisting of one or more 30-second rounds starting at 3:00 p.m. (London time), on each day that the London gold market is open for business and published shortly thereafter. If there is no LBMA Gold Price PM on any day, the Trustee is authorized to use the most recently announced price of gold determined in an electronic auction hosted by IBA that begins at 10:30 a.m. (London time) (“LBMA Gold Price AM”) unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate as a basis for evaluation.

Gain or loss on sales of gold bullion is calculated on a trade date basis using the average cost method.

The following tables summarize activity in gold bullion for the year ended December 31, 2022 and the period from June 15, 2021 (Date of Inception) to December 31, 2021:

Year Ended December 31, 2022	Ounces			Cost			Fair Value			Realized Gain (Loss)
Beginning balance		479,334		$	858,638,067		$	872,434,117		$	—
Gold bullion contributed		312,815			568,682,673			568,682,673			—
Gold bullion distributed		(169,380	)		(305,827,276	)		(315,644,715	)		9,817,439
Gold bullion sold to pay expenses		(422	)		(761,354	)		(758,873	)		(2,481	)
Net realized gain		—			—			9,814,958			—
Net change in unrealized appreciation/depreciation		—			—			(6,619,441	)		—
Ending balance		622,347		$	1,120,732,110		$	1,127,908,719		$	9,814,958

Period from June 15, 2021 (Date of Inception) to December 31, 2021:	Ounces			Cost			Fair Value			Realized Gain (Loss)
Beginning balance		5,000		$	9,325,500		$	9,325,500		$	—
Gold bullion contributed		494,428			885,306,489			885,306,489			—
Gold bullion distributed		(19,992	)		(35,810,420	)		(35,912,133	)		101,713
Gold bullion sold to pay expenses		(102	)		(183,502	)		(183,110	)		(392	)
Net realized gain		—			—			101,321			—
Net change in unrealized appreciation/depreciation		—			—			13,796,050			—
Ending balance		479,334		$	858,638,067		$	872,434,117		$	101,321

C.

Calculation of Net Asset Value

On each business day, as soon as practicable after 4:00 p.m. (New York time), the net asset value of the Trust is obtained by subtracting all accrued fees, expenses and other liabilities of the Trust from the fair value of the gold and other assets held by the Trust. The Trustee computes the net asset value per Share by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

D.

Offering of the Shares

Trust Shares are issued and redeemed continuously in aggregations of 50,000 Shares in exchange for gold bullion rather than cash. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. The Trust only transacts with registered broker-dealers that are eligible to settle securities transactions through the book-entry facilities of the Depository Trust Company and that have entered into a contractual arrangement with the Trustee and the Sponsor governing, among other matters, the creation and redemption of Shares (such broker-dealers, the “Authorized Participants”). Holders of Shares of the Trust may redeem their Shares at any time acting through an Authorized Participant and in the prescribed aggregations of 50,000 Shares; provided, that redemptions of Shares may be suspended during any period while regular trading on NYSE Arca, Inc. (“NYSE Arca”) is suspended or restricted, or in which an emergency exists as a result of which delivery, disposal or evaluation of gold is not reasonably practicable.

The per Share amount of gold exchanged for a purchase or redemption represents the per Share amount of gold held by the Trust, after giving effect to its liabilities.

When gold bullion is exchanged in settlement of a redemption, it is considered a sale of gold bullion for accounting purposes.

Share activities for the year ended December 31, 2022 and the period from June 15, 2021 (Date of Inception) to December 31, 2021:

	December 31,
	2022						2021(a)(b)
	Shares			Amount			Shares			Amount
Shares issued		31,300,000		$	568,682,673			49,450,000		$	885,306,489
Shares redeemed		(16,950,000	)		(315,644,715	)		(2,000,000	)		(35,912,133	)
Net increase		14,350,000		$	253,037,958			47,450,000		$	849,394,356

(a)	Period from June 15, 2021 (date of inception) to December 31, 2021.

(b)

BlackRock Financial Management, Inc. (the “Seed Capital Investor”), contributed 5,000 ounces of Gold in exchange for 500,000 shares (the “Seed Creation Baskets”) on June 15, 2021 for the benefit of BlackRock Financial Management, Inc. At contribution, the value of the gold deposited with the Trust was based on the price of an ounce of gold of $1,865.10. The Seed Capital Investor is an affiliate of the Sponsor. The Seed Capital Investor did not not receive from the Trust, the Sponsor or any of their affiliates any fee or other compensation in connection with the sale of the Seed Creation Baskets. At December 31, 2021, the Seed Capital Investor no longer owned any shares of the Trust.

E.

Federal Income Taxes

The Trust is treated as a grantor trust for federal income tax purposes and, therefore, no provision for federal income taxes is required. Any interest, expenses, gains and losses are passed through to the holders of Shares of the Trust.

The Sponsor has analyzed applicable tax laws and regulations and their application to the Trust as of December 31, 2022 and does not believe that there are any uncertain tax positions that require recognition of a tax liability.