Company: GOLD
Filing Date: 2025-02-10
Form Type: 10-Q
Source: 0000950170-25-016909
Chunk: 362

Company: Gold.com, Inc.
Filing Date: 2025-02-10
Form: 10-Q
Item: Item 1
Chunk 362
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 related amounts due from or to counterparties reflected as derivative assets or liabilities. The Company adjusts the derivatives to fair value on a daily basis until the transactions are settled. When these contracts are net settled, the unrealized gains and losses are reversed and the realized gains and losses for forward contracts are recorded in revenue and cost of sales, respectively, and the net realized gains and losses for futures are recorded in cost of sales.

The Company’s net gains and losses on derivative instruments totaled gains of $10.8 million and losses of $57.3 million for the three months ended December 31, 2024 and 2023, respectively, and losses of $11.5 million and losses of $67.8 million, for the six months ended December 31, 2024 and 2023, respectively. These were substantially offset by the changes in fair market value of the underlying precious metals inventory and open sale and purchase commitments, which is also recorded in cost of sales in the consolidated statements of income.

77

The purpose of the Company's hedging policy is to substantially match the change in the value of the derivative financial instrument to the change in the value of the underlying hedged item. The following table summarizes the results of our hedging activities, showing the precious metal commodity inventory position, net of open sale and purchase commitments, which is subject to price risk, compared to change in the value of the derivative instruments (in thousands): 

    December 31, 2024

    June 30, 2024

    Inventories
     
    $
    1,194,196

    $
    1,097,144

    Precious metals held under financing arrangements

    19,420

    22,066

    1,213,616

    1,119,210

    Less unhedgeable inventories:

    Commemorative coin inventory, held at lower of cost or net realizable value

    (2,900
    )

    (3,236
    )

    Premium on metals position

    (33,337
    )

    (34,175
    )

    Precious metal value not hedged

    (36,237
    )

    (37,411
    )

    Commitments at market:

    Open inventory purchase commitments

    857,132

    817,900

    Open inventory sales commitments

    (400,861
    )

    (388,184
    )

    Margin sales commitments