iShares Gold Trust Ends Share Creation Suspension

iShares Delaware Trust Sponsor, a subsidiary of BlackRock Inc. (NYSE: BLK) and the sponsor of the iShares Gold Trust (NYSEMKT: IAU), announced Monday morning that it has registered new shares with the U.S. Securities and Exchange Commission (SEC) and that new share creation was once again possible.

According to the SEC filing, iShares Gold Shares has registered 300 million shares, which it issues in “baskets” of 50,000 and exchanges for physical gold. Authorized participants, who may purchase or redeem baskets, were not affected by Friday’s suspension, according to Monday’s press release, and although the ability to redeem shares continued throughout the day, no such requests were made.

On Friday the trust was unable to create new shares because it had exhausted the number of shares it had formally registered with the SEC. Because the iShares Gold Trust holds gold as a physical asset, there could have been a mismatch between the price of a share and the price of gold. Each share of IAU is equal to one one-hundredth (0.01) ounce of gold, excluding expenses and liabilities.

The iShares Gold Trust closed at $12.17 on Thursday and Friday, and the afternoon fixing in London was $1,277.50. The iShares Gold Trust traded up about 0.7% at $12.25 in premarket action Monday morning.

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