# GraniteShares Gold Trust: Form 10-Q for the period ended Dec 31, 2022

- Company: [GraniteShares Gold Trust](/companies/bar.md) (CIK 1690437)
- Form: 10-Q
- Filed: 2023-02-03
- Accepted by EDGAR: Feb 3, 2023, 14:34 ET
- Period: 2022-12-31
- Accession: 0001493152-23-003508
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1690437/000149315223003508/form10-q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1690437/000149315223003508/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2022-12-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Net income | 3 months, 2022-10-01 to 2022-12-31 | $69.8m | us-gaap:NetIncomeLoss |
| Net income | 6 months, 2022-07-01 to 2022-12-31 | −$7.4m | us-gaap:NetIncomeLoss |
| Basic EPS | 3 months, 2022-10-01 to 2022-12-31 | $1.39 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months, 2022-07-01 to 2022-12-31 | −$0.14 | us-gaap:EarningsPerShareBasic |
| Total assets | at 2022-12-31 | $886.9m | us-gaap:Assets |
| Total liabilities | at 2022-12-31 | $131.0k | us-gaap:Liabilities |

## Management's discussion and analysis

As filed, 8,473 characters.

*This information should be read in conjunction with the financial statements and notes to financial statements included in Item 1 of Part I of this Form 10-Q. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward-looking statements can be identified by terminology such as “may,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. Except as required by applicable disclosure laws, neither the Sponsor, nor any other person assumes responsibility for the accuracy or completeness of any forward-looking statements. Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions.*

### Introduction

The Trust is a common law trust, formed under the laws of the state of New York on August 24, 2017. The Trust is not managed like a corporation or an active investment vehicle. It does not have any officers, directors, or employees and is administered by the Trustee pursuant to the Trust Agreement. The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. It does not hold or trade in commodity futures contracts, nor is it a commodity pool, or subject to regulation as a commodity pool operator or a commodity trading adviser in connection with issuing Shares.

The Trust holds gold and is expected to issue Baskets in exchange for deposits of gold, and to distribute gold in connection with redemptions of Baskets. Shares issued by the Trust represent units of undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold, less the Trust’s expenses. The Sponsor believes that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in gold.

The Trust issues and redeems Shares only with Authorized Participants in exchange for gold and only in aggregations of 50,000 Shares or integral multiples thereof. A list of current Authorized Participants is available from the Sponsor or the Trustee.

Shares of the Trust trade on the New York Stock Exchange (the “NYSE”) Arca under the symbol “BAR”.

### Valuation of Gold; Computation of Net Asset Value

On each business day, as soon as practicable after 4:00 p.m. (New York time), the Trustee evaluates the gold held by the Trust and determines the net asset value of the Trust and the NAV. The Trustee values the gold held by the Trust using that day’s LBMA Gold Price PM. If there is no announced LBMA Gold Price PM on a business day, the Trustee is authorized to use that day’s LBMA Gold Price AM. Having valued the gold held by the Trust, the Trustee then subtracts all accrued fees, expenses and other liabilities of the Trust from the value of the gold and other assets of the Trust. The result is the net asset value of the Trust. The Trustee computes the NAV by dividing the net asset value of the Trust by the number of Shares outstanding on the date the computation is made.

### Liquidity and Capital Resources

The Trust is not aware of any trends, demands, commitments, events or uncertainties that are reasonably likely to result in material changes to its liquidity needs. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s Fee.

The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s gold as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell gold to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of gold to the Sponsor. At March 31, 2020 the Trust did not have any cash balances.

### Off-Balance Sheet Arrangements

The Trust has no off-balance sheet arrangements.

### Critical Accounting Policies

The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. Below, the Trust describes the valuation of gold bullion, a critical accounting policy that the Trust believes is important to understanding its results of operations and financial position. In addition, please refer to Note 2 to the financial statements included in this report for further discussion of the Trust’s accounting policies.

### Results of Operations

#### The Quarter Ended December 31, 2022

The Trust’s net asset value increased from $831,600,612 on September 30, 2022 to $886,788,722 on December 31, 2022, a 6.6% increase. The increase in the Trust’s net asset value over this period was due to the change in gold price, which increase by 8.41%, from from $1,671.75 on September 30, 2022 to $1,812.35 on December 30, 2022. The positive impact of the gold price on the Trust’s net asset value was reduced by the change in the number of shares outstanding from 50,200,000 to 49,400,000, a 1.6% decrease. The 800,000 shares decrease was the net result of 32 creation orders and 48 redemption orders (50,000 shares per creation and redemption order).

The 8.33% increase in the Trust’s net asset value per share, from $16.57 on September 30, 2022 to $17.95 on December 31, 2022 is directly related to the 8.41% increase in the price of gold.

The Trust’s net asset value per share increased slightly less than the price of gold on a percentage basis due to the Sponsor’s fees, which were $378,312 for the quarter, or 0.044% of the Trust’s average weighted net assets of $858,786,696 during the quarter. The net asset value per share of $18.06 on December 13, 2022 was the highest during the quarter, compared with a low during the quarter of $16.14 on November 03, 2022.

Net increase in net assets resulting from operations for the quarter ended December 31, 2022 was $69,780,777, resulting from an unrealized gain on investment in gold bullion of $66,572,091, a gain of $3,586,998 on metal sold to cover the redemption orders and the Sponsor’s fees but reduced by the Sponsor’s fees of $378,312. Other than the Sponsor’s fees the Trust had no expenses during the quarter.

#### Six Months Ended December 31, 2022

The Trust’s net asset value decreased from $996,127,089 on June 30, 2022 to $886,788,722 on December 31, 2022, a 11.0% decrease. The decrease in the Trust’s net asset value over this period was due to a reduction in the number of shares outstanding from 55,300,000 to 49,400,000, a 10.7% decrease. The 5,900,000 shares decrease was the net result of 32 creation orders and 150 redemption orders (50,000 shares per creation and redemption order). The impact of the net redemption activity on the Trust’s net asset value was increased by the negative change in the price of gold, which decerased by 0.26% from $1,817.00 on June 30, 2022 to $1,812.35 on December 31, 2022.

The 0.33% decrease in the Trust’s net asset value per share, from $18.01 at June 30, 2022 to $17.95 at December 31, 2022 is directly related to the 0.26% decrease in the price of gold.

The Trust’s net asset value per share decreased slightly more than the price of gold on a percentage basis due to the Sponsor’s fees, which were $773,925 for the period, or 0.088% of the Trust’s average weighted net assets of $877,147,639 during the six-month period. The net asset value per share of $18.06 on December 13, 2022 was the highest during the period, compared with a low during the quarter of $16.14 on November 03, 2022.

Net decrease in net assets resulting from operations for the 6 months period ending December 31, 2022 was $7,383,056, resulting from an unrealized loss on investment in gold bullion of $17,354,977, reduced by a gain of $10,745,846 on metal sold to cover the redemption orders and the Sponsor’s fees but reduced by the Sponsor’s fees of $773,925. Other than the Sponsor’s fees the Trust had no expenses during the quarter.

## Controls and procedures

As filed, 1,488 characters.

#### Disclosure Controls and Procedures

The duly authorized officers of the Sponsor, performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, have evaluated the effectiveness of the Trust’s disclosure controls and procedures, and have concluded that the disclosure controls and procedures of the Trust were effective as of the end of the period covered by this report. Such disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in the reports that the Trust files or submits under the Securities Exchange Act of 1934, as amended, are recorded, processed, summarized and reported, within the time period specified in the applicable rules and forms, and that such information is accumulated and communicated to the duly authorized officers of the Sponsor performing functions equivalent to those a principal executive officer and principal financial officer of the Trust would perform if the Trust had any officers, and to Audit Committee of the Sponsor, as appropriate, to allow timely decisions regarding required disclosure.

#### Internal Control over Financial Reporting

There has been no change in the internal control over financial reporting that occurred during the fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

## Risk factors

As filed, 641 characters.

You should carefully consider the factors discussed in Part I, Page 10 “Risk Factors” in our prospectus dated April 02, 2019, filed pursuant to Rule 424(b)(3) under the Securities Act of 1933, as amended, with the U.S. Securities and Exchange Commission, file number 333-230462, which could materially affect our business, financial condition or future results. The risks described in the prospectus are not the only risks facing the Trust. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Filed Feb 3, 2023.
Source: SEC EDGAR, the filing index for accession 0001493152-23-003508. Last ingested by Listed: Oct 24, 2026, 15:07 ET. No prices; not investment advice.