Note 2 - Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Accounting Policies [Abstract]

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 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.

Certain statements and captions in the financial statements for the prior year have been changed to conform to the current financial statement presentation. Certain amounts in the financial statements for the prior year have been reclassified to conform to the current financial statement presentation.

B. Gold Bullion

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

Gold bullion held by the Trust is valued at fair value, which is based on the price of gold determined in an auction hosted by ICE Benchmark Administration (the “IBA”) in the afternoon (London time), on each day that the London gold market is open for business, and announced by the London Bullion Market Association shortly thereafter (such price, the “LBMA Gold Price PM”). If there is no announced LBMA Gold Price PM on a business day, the Trustee is authorized to use the most recently announced price of gold determined in an auction hosted by the IBA in the morning (London time) of the day the valuation takes place (such price, the “LBMA Gold Price AM”). Prior to March 20, 2015, fair value of the gold bullion was based on the price of gold fixed in the afternoon of each working day (London time) by the London Gold Market Fixing Ltd. (such price, the “London PM Fix”). If there was no announced London PM Fix, the Trustee was authorized to use the most recently announced price fixed by the London Gold Market Fixing Ltd. in the morning (London time) of the day the valuation took place (such price, the “London AM Fix”).

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 three and nine months ended September 30, 2015 and 2014 (all balances in 000’s):

Three Months Ended September 30, 2015	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		5,394.6		$	6,521,548		$	6,317,125		$	—
Gold bullion contributed		88.9			101,982			101,982			—
Gold bullion distributed		(315.0	)		(380,733	)		(347,653	)		(33,080	)
Gold bullion sold to pay expenses		(3.4	)		(4,085	)		(3,829	)		(256	)
Net realized loss		—			—			(33,336	)		—
Net change in unrealized appreciation/depreciation		—			—			(280,316	)		—
Ending balance		5,165.1		$	6,238,712		$	5,753,973		$	(33,336	)

Three Months Ended September 30, 2014	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		5,297.3		$	6,387,552		$	6,965,884		$	—
Gold bullion contributed		69.8			91,225			91,225			—
Gold bullion distributed		(141.4	)		(170,668	)		(176,498	)		5,830
Gold bullion sold to pay expenses		(3.4	)		(4,028	)		(4,321	)		293
Net realized gain		—			—			6,123			—
Net change in unrealized appreciation/depreciation		—			—			(529,525	)		—
Ending balance		5,222.3		$	6,304,081		$	6,352,888		$	6,123

Nine Months Ended September 30, 2015	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		5,182.2		$	6,254,868		$	6,214,710		$	—
Gold bullion contributed		516.5			628,701			628,701			—
Gold bullion distributed		(523.5	)		(632,764	)		(599,348	)		(33,416	)
Gold bullion sold to pay expenses		(10.1	)		(12,093	)		(11,810	)		(283	)
Net realized loss		—			—			(33,699	)		—
Net change in unrealized appreciation/depreciation		—			—			(444,581	)		—
Ending balance		5,165.1		$	6,238,712		$	5,753,973		$	(33,699	)

Nine Months Ended September 30, 2014	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		5,220.5		$	6,272,422		$	6,272,422		$	—
Gold bullion contributed		298.6			389,402			389,402			—
Gold bullion distributed		(286.8	)		(345,740	)		(360,752	)		15,012
Gold bullion sold to pay expenses		(10.0	)		(12,003	)		(12,752	)		749
Net realized gain		—			—			15,761			—
Net change in unrealized appreciation/depreciation		—			—			48,807			—
Ending balance		5,222.3		$	6,304,081		$	6,352,888		$	15,761

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 held by the Trust and other assets of 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 Trust 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 is calculated daily by the Trustee, using the LBMA Gold Price PM to calculate the gold amount in respect of any liabilities for which covering gold sales have not yet been made, and represents the per Share amount of gold held by the Trust, after giving effect to its liabilities, sales to cover expenses and liabilities and any losses that may have occurred. If there is no announced LBMA Gold Price PM on a business day, the Trustee is authorized to use the most recently announced LBMA Gold Price AM. Prior to March 20, 2015, the Trustee used the London PM Fix price to calculate the gold amount in respect of any liabilities for which covering gold sales had not yet been made. If there was no announced London PM Fix on a business day, the Trustee was authorized to use the most recently announced London AM Fix.

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

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 reviewed the tax positions as of September 30, 2015 and has determined that no provision for income tax is required in the Trust’s financial statements.