World Gold Trust (GLDM) risk factors, FY2025 10-K

RISKS RELATED TO GOLD

1. 01The sale of GLDM’s gold bullion to pay expenses at a time of low gold prices could adversely affect the value of the Shares
2. 02An adverse development may lead to a decrease in gold bullion trading prices
3. 03Substantial sales of gold by the official sector could adversely affect an investment in the Shares
4. 04Crises may motivate large-scale sales of gold, which could decrease the price of gold and adversely affect an investment in the Shares
5. 05Purchasing activity in the gold market associated with the delivery of gold bullion to GLDM in exchange for Creation Units may cause a temporary increase in the price of gold, which may adversely affect an investment in the Shares
6. 06The price of gold may be affected by the sale of gold by exchange-traded funds (“ETFs”) or other exchange-traded vehicles tracking gold markets
7. 07Because GLDM invests only in gold, an investment in GLDM may be more volatile than an investment in a more broadly diversified portfolio

RISKS RELATED TO THE CUSTODY OF GOLD

1. 08GLDM relies on the Custodians for the safekeeping of its gold bullion. Failure by the Custodians to exercise due care in the safekeeping of GLDM’s gold bullion could result in a loss to GLDM
2. 09Failure by a subcustodian to exercise due care in the safekeeping of GLDM’s gold bullion bars could result in a loss to GLDM
3. 10The ability of the Trust and the Custodians to take legal action against subcustodians may be limited, which increases the possibility that GLDM may suffer a loss if a subcustodian does not use due care in the safekeeping of GLDM’s gold bullion bars
4. 11The gold bullion custody operations of the Custodians are not subject to specific governmental regulatory supervision

GENERAL RISKS

1. 12GLDM is exposed to various operational risks
2. 13Geopolitical events, including ongoing and escalating conflicts in the Middle East, the continuation of the war in Ukraine, and other global hostilities, could disrupt and potentially impact the business activities of the Sponsor and its service providers and have an adverse effect on GLDM87% rewritten
3. 14GLDM as well as the Sponsor and its service providers are vulnerable to the effects of public health crises, such as the coronavirus pandemic (the “COVID-19 pandemic”)
4. 15The service providers engaged by GLDM may not carry adequate insurance to cover claims against them by GLDM, which could adversely affect the value of net assets of GLDM
5. 16The Trust's and GLDM's obligation to indemnify certain of its service providers could adversely affect an investment in the Shares
6. 17Potential conflicts of interest may arise among the Sponsor or its affiliates and GLDM

RISKS RELATED TO THE SHARES

1. 18GLDM is a passive investment vehicle and is not actively managed
2. 19The costs inherent in buying or selling Shares may detract significantly from investment results
3. 20The lack of an active trading market or a halt in trading of the Shares may result in losses on investment at the time of disposition of the Shares
4. 21The Shares may trade at a price that is at, above or below the NAV per Share and any discount or premium in the trading price relative to the NAV per Share may widen as a result of non-concurrent trading hours between the COMEX and NYSE Arca
5. 22If the process of creation and redemption of Creation Units encounters any unanticipated difficulties, the possibility for arbitrage transactions intended to keep the price of the Shares closely linked to the price of gold may not exist and, as a result, the price of the Shares may fall
6. 23The value of the Shares could decline if unanticipated operational or trading problems arise
7. 24The amount of gold represented by the Shares will continue to be reduced during the life of GLDM due to the sales of gold bullion necessary to pay expenses irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of gold
8. 25An investment in the Shares may be adversely affected by competition from other methods of investing in gold
9. 26GLDM may be required to terminate and liquidate at a time that is disadvantageous to shareholders
10. 27Redemption orders may be subject to rejection, suspension or postponement
11. 28Loss of intellectual property rights related to GLDM, or competing claims over ownership of those rights, could adversely affect GLDM and an investment in the Shares
12. 29The liquidity of the Shares may be affected by the withdrawal of Authorized Participants and substantial redemptions by Authorized Participants
13. 30Shareholders do not have the rights enjoyed by investors in certain other vehicles
14. 31The Trust is not registered as an investment company under the Investment Company Act of 1940, as amended, and is not required to register under such act. Consequently, shareholders do not have the regulatory protections provided to investors in registered investment companies