iShares Gold Trust Micro Reports 11.26% NAV Increase Driven by Rising Gold Prices

The iShares Gold Trust Micro reported a significant increase in its financial performance for the fiscal year ending December 31, 2024. The Trust's net asset value (NAV) rose to $1,359,466,882, marking an 11.26% increase from $1,221,830,170 at the end of 2023. This growth was primarily driven by a 26.59% increase in the price of gold, which rose from $2,062.40 to $2,610.85 per ounce during the same period. However, the number of outstanding shares decreased from 59,350,000 to 52,200,000, reflecting the redemption of 21,300,000 shares (426 Baskets) against the creation of 14,150,000 shares (283 Baskets).

In comparison, the previous fiscal year saw an 8.33% increase in NAV, attributed to a 13.80% rise in gold prices. The Trust's operational metrics indicate a consistent trend of increasing gold prices impacting NAV, although the decrease in outstanding shares suggests a shift in investor sentiment or market conditions. The Sponsor's fees for the year amounted to $861,506, representing 0.07% of the Trust's average weighted assets, which slightly affected the NAV growth relative to the gold price increase.

The Trust's operational strategy remains focused on reflecting the performance of gold prices without engaging in active management or profit-seeking activities. The Trust's assets are primarily gold held by JPMorgan Chase Bank N.A. as custodian, with no direct employees or officers. The Trust's structure allows for the issuance and redemption of shares only in Baskets of 50,000 shares, facilitating liquidity and market access for investors. As of December 31, 2024, there were approximately 86 DTC participating shareholders of record, although the actual number of shareholders is likely higher due to institutional holdings.

Looking ahead, the Trust's performance will continue to be influenced by fluctuations in gold prices and market conditions. The Sponsor has voluntarily agreed to waive a portion of its fees, ensuring that the fee does not exceed 0.07% through June 30, 2027. The Trust's management remains cautious about potential market volatility and external factors that could impact gold prices, including geopolitical events and economic conditions. The Trust's passive investment approach means that it will not actively seek to mitigate losses from price declines, which could lead to increased volatility in the value of shares.