Prices will reflect current spot market values. iShares Gold Trust (IAU) comes from the BlackRock ETF family. As global investment managers and trustees for our clients, our purpose at BlackRock is to help everyone enjoy financial well-being. Since 1999, we have been a leading provider of financial technology and our customers look to us for the solutions they need when planning their most important objectives.
After-tax returns are calculated using the highest historical individual marginal federal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their shares in funds through tax-deferred arrangements, such as 401 (k) plans or individual retirement accounts. The distribution yield and the final return of 12 million may have volatility from one period to the next due to factors such as the treatment of passive foreign investment corporations (PFIC), the treatment of non-performing bonds or special tax requirements; exceptional corporate actions; the seasonality of dividends of underlying equity; significant fluctuations in outstanding fund stocks; or profit distributions of fund capital.
Trust units redeemed for physical gold ingots will be entitled to an exchange price equal to 100% of the net asset value of the trust units redeemed on the last day of the month in which NYSE Arca is open for trading during the month in which the exchange request is processed. This means that it may be cheaper to have physical gold stored in a private vault compared to the fees of owning a gold ETF. The gold's custodian is HSBC Bank plc and physical gold is stored in the depositary's vault in London. Like GLDM, the gold's custodian is ICBC Standard Bank Plc, and physical gold is stored in the custodian's vault in London.
Obviously, both the GLD and the IAU are not structured so that the average shareholder receives gold ingots. Even an institutional investor runs the risk of being prevented from physical delivery at any time and for a variety of reasons. In short, you can exchange units for physical gold and have it sent to a location of your choice using an armored transport service (yes, written in Canadian style in the prospectus). Just multiply that by the current price per ounce of gold and you'll quickly discover that the “physical repayment option” is only meaningful for those of us who are fortunate enough to have, well, an enviable amount of assets.
Subject to the terms of the trust agreement, trust units can be exchanged, at the holder's choice, for physical gold bars in any month. The gold's custodian is ICBC Standard Bank Plc, and physical gold is stored in the custodian's vault in London. GLD gold is held by the depositary HSBC Bank in its London vault, while IAU custodians have facilities in New York, London and Toronto. On March 4, BlackRock, the sponsor of the iShares Gold Trust (IAU) gold ETF, announced that it had temporarily suspended the issuance of new shares in the fund.