StreetTRACKS Gold Trust (started in 2004) is an investment trust. The Trust holds gold and issues streetTRACKS Gold Shares in blocks of 100,000 Shares (Baskets) in exchange for deposits of gold and distributes gold in connection with redemptions of Baskets. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion. Originally, the details of buying, storing and insuring gold have made it difficult for most investors to enter the gold market on their own. StreetTRACKS Gold Trust solves this issue by creating securities that follow the gold market. The Trust is sponsored by World Gold Trust Services, LLC. HSBC Holdings (HBC) holds StreetTRACKS's gold.
The Trustee values the gold according to the most recent London PM Fix. The London Fix is a widely-recognized benchmark for gold and silver prices. It is announced twice each day: the AM fix occurs in New York City at 5am (10am in London), and the PM fix occurs in NYC at 10am (3pm in London). Once the gold has been accurately priced, the Trustee then subtracts all accrued but unpaid fees in order to arrive at an Adjusted Net Asset Value (ANAV). The Trustee then uses the ANAV to calculate GLD's fees (to the Trustee, the Sponsor, the Custodian and the Marketing Agent) to arrive at the Net Asset Value (NAV).
GLD's gain on gold and net gains have increased greatly since its inception on November 12, 2004. To date, GLD has received 23,391,238 ounces of gold. StreetTRACKS traded 4,724,800 ounces of gold in exchange for 476 baskets. Also, GLD sold 112,373 ounces of gold in order to pay expenses. It is important to note that GLD only sells gold to cover its costs, meaning the company always has zero cash balance--it does not have spare cash.
Gold prices have been on the rise since 1999.