- 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.

Certain statements and captions in the financial statements for the prior periods have been changed 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.

Fair value of the gold bullion held by the Trust is based on the price of gold determined in an electronic auction hosted by ICE Benchmark Administration Limited (“IBA”) that begins at

3:00

PM (London time), on each day that the London gold market is open for business, and published shortly thereafter (such price, the “LBMA Gold Price PM”). If there is

announced 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

AM (London time), unless the Trustee, in consultation with the Sponsor, determines that such price is inappropriate as a basis for evaluation. 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. (the “London PM Fix”). If there was

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.

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

The follow

ing tables summarize activity in gold bullion for the years ended

December 31, 2017,

2016

and

2015:

December 31, 2017	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		6,308,062		$	7,706,923,343		$	7,311,674,849		$	—
Gold bullion contributed		2,194,645			2,782,113,163			2,782,113,163			—
Gold bullion distributed		(657,409	)		(804,830,293	)		(826,600,408	)		21,770,115
Gold bullion sold to pay expenses		(16,833	)		(20,631,371	)		(21,077,170	)		445,799
Net realized gain		—			—			22,215,914			—
Net change in unrealized appreciation/depreciation		—			—			881,278,079			—
Ending balance		7,828,465		$	9,663,574,842		$	10,149,604,427		$	22,215,914

December 31, 2016	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		4,905,568		$	5,910,175,908		$	5,210,940,144		$	—
Gold bullion contributed		3,036,655			3,784,339,342			3,784,339,342			—
Gold bullion distributed		(1,618,237	)		(1,968,318,439	)		(1,992,755,088	)		24,436,649
Gold bullion sold to pay expenses		(15,924	)		(19,273,468	)		(19,905,623	)		632,155
Net realized gain		—			—			25,068,804			—
Net change in unrealized appreciation/depreciation		—			—			303,987,270			—
Ending balance		6,308,062		$	7,706,923,343		$	7,311,674,849		$	25,068,804

December 31, 2015	Ounces			Average Cost			Fair Value			Realized Gain (Loss)
Beginning balance		5,182,164		$	6,254,868,124		$	6,214,710,412		$	—
Gold bullion contributed		696,554			830,130,993			830,130,993			—
Gold bullion distributed		(959,873	)		(1,158,780,335	)		(1,071,599,347	)		(87,180,988	)
Gold bullion sold to pay expenses		(13,277	)		(16,042,874	)		(15,431,681	)		(611,193	)
Net realized loss		—			—			(87,792,181	)		—
Net change in unrealized appreciation/depreciation		—			—			(659,078,052	)		—
Ending balance		4,905,568		$	5,910,175,908		$	5,210,940,144		$	(87,792,181	)

C.	Calculati on 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.

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

Share activities for the years ended

December 31, 2017,

2016

and

2015

were as follows:

	December 31,
	2017						2016						2015
	Shares			Amount			Shares			Amount			Shares			Amount
Shares issued		228,250,000		$	2,782,113,163			314,850,000		$	3,784,339,342			72,050,000		$	830,130,993
Shares redeemed		(68,350,000	)		(826,600,408	)		(167,950,000	)		(1,992,755,088	)		(99,350,000	)		(1,071,599,347	)
Net increase (decrease)		159,900,000		$	1,955,512,755			146,900,000		$	1,791,584,254			(27,300,000	)	$	(241,468,354	)

E.	Federal Income Taxes

The Trust is treated as a grantor trust for federal income tax purposes and, therefore,

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

December 31, 2017

and has determined that

provision for income tax is required in the Trust’s financial statements.