GraniteShares Gold Trust
For the period ended Jun 30, 2024. Filed Aug 15, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Aug 15, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Description of the Gold Industry
Introduction
This section provides a brief introduction to the gold industry by looking at some of the key participants, detailing the primary sources of demand and supply and outlining the role of the “official” sector (i.e., central banks) in the market.
Market Participants
The participants in the world gold industry may be classified in the following sectors: the mining and producer sector, the banking sector, the official sector, the investment sector, and the manufacturing sector. A brief description of each follows.
The Mining and Producer Sector
This group includes mining companies that specialize in gold and silver production; mining companies that produce gold as a by-product of other production (such as a copper or silver producer); scrap merchants and recyclers.
The Banking Sector
Bullion banks provide a variety of services to the gold market and its participants, thereby facilitating interactions between other parties. Services provided by the bullion banking community include traditional banking products as well as mine financing, physical gold purchases and sales, hedging and risk management, inventory management for industrial users and consumers, and gold deposit and loan instruments.
The Official Sector
The official sector encompasses the activities of the various central banking operations of gold-holding countries. Having been a source of gold supply for many years, the official sector became a source of net demand in 2010. The prominence given by market commentators to this activity coupled with the total amount of gold held by the official sector has resulted in this area being a significant shift in the gold market.
The Investment Sector
This sector includes the investment and trading activities of both professional and private investors and speculators. These participants range from large hedge and mutual funds to day-traders on futures exchanges and retail-level coin collectors.
The Manufacturing Sector
The fabrication and manufacturing sector represents all the commercial and industrial users of gold for whom gold is a daily part of their business. The jewelry industry is a large user of gold. Other industrial users of gold include the electronics and dental industries.
World Gold Supply and Demand (2013-2023)
The following table sets forth a summary of the world gold supply and demand from 2013 to 2023:
| In tonnes(1) | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Supply | |||||||||||
| Mine production | 3,166.8 | 3,270.5 | 3,361.3 | 3,515.2 | 3,575.3 | 3,665.9 | 3,596.4 | 3,482.0 | 3,576.5 | 3,624.8 | 3,636.2 |
| Net producer hedging | -27.9 | 104.9 | 12.9 | 37.6 | -25.5 | -11.6 | 6.2 | -39.1 | -5.4 | -13.1 | 55.3 |
| Recycled gold | 1,195.3 | 1,129.6 | 1,067.1 | 1,232.1 | 1,112.4 | 1,131.7 | 1,275.7 | 1,293.1 | 1,136.2 | 1,140 | 1,238.9 |
| Total supply | 4,334.1 | 4,505.0 | 4,441.3 | 4,785.0 | 4,662.6 | 4,775.9 | 4,878.2 | 4,736.0 | 4,707.3 | 4,759.5 | 4,930.4 |
| Demand | |||||||||||
| Fabrication | |||||||||||
| Jewellery1 | 2,735.3 | 2,544.4 | 2,479.2 | 2,018.8 | 2,257.5 | 2,290.0 | 2,152.1 | 1,324.0 | 2,230.3 | 2,195.9 | 2,192.2 |
| Technology | 355.8 | 348.4 | 331.7 | 323.0 | 332.6 | 334.8 | 326.0 | 302.8 | 330.2 | 308.8 | 297.8 |
| Investment | 800.7 | 904.8 | 967.4 | 1,615.9 | 1,315.0 | 1,161.3 | 1,272.8 | 1,795.4 | 992.1 | 1,112.8 | 940.7 |
| Central bank & other inst. | 629.5 | 601.1 | 579.6 | 394.9 | 378.6 | 656.2 | 605.4 | 254.9 | 450.1 | 1,081.9 | 1,037.1 |
| Gold demand | 4,521.2 | 4,398.7 | 4,357.9 | 4,352.5 | 4,283.6 | 4,442.4 | 4,356.2 | 3,677.1 | 4,002.7 | 4,699.4 | 4,467.9 |
| OTC and other | -187.1 | 106.3 | 83.4 | 432.5 | 379.0 | 333.6 | 522.0 | 1,058.9 | 704.6 | 60.0 | 462.5 |
| Total demand | 4,334.1 | 4,505.0 | 4,441.3 | 4,785.0 | 4,662.6 | 4,775.9 | 4,878.2 | 4,736.0 | 4,707.3 | 4,75.5 | 4,930.4 |
| LBMA Gold Price (US$/oz) | 1,411.2 | 1,266.4 | 1,160.06 | 1,250.8 | 1,257.1 | 1,268.4 | 1,392.6 | 1,769.5 | 1798.6 | 1,800.0 | 1,940.54 |
| Note: | Totals may not add due to independent rounding. Net producer hedging is the change in the physical market impact of mining companies’ gold loans, forwards and options positions. |
| (1) | “Tonne” refers to one metric ton. This is equivalent to 1,000 kilograms or 32,150.7465 troy ounces. |
Source:Gold Demand Trends 2023 Statistics, World Gold Council
Historical Chart of the Price of Gold
The price of gold is volatile, and its fluctuations are expected to have a direct impact on the value of the Shares. However, movements in the price of gold in the past, and any past or present trends, are not a reliable indicator of future movements. Movements may be influenced by various factors, including announcements from central banks regarding a country’s reserve gold holdings, agreements among central banks, fluctuations in the value of the U.S. dollar, political uncertainties around the world, and economic concerns.
The following chart illustrates the changes in the gold spot prices from July 2012 through June 2024:
Source: Bloomberg and GraniteShares
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.