10-K: GraniteShares Platinum Trust Reports Increased Net Asset Value in Fiscal Year 2024

GraniteShares Platinum Trust saw its net asset value increase to $43.1 million in fiscal year 2024, driven by a rise in both platinum prices and outstanding shares.

Summary

• The GraniteShares Platinum Trust's primary objective is to mirror the performance of platinum bullion, less the trust's expenses.
• The trust's net asset value increased from $34.9 million on June 30, 2023, to $43.1 million on June 30, 2024.
• This increase was primarily due to a rise in the number of outstanding shares from 4 million to 4.4 million, and an increase in the price of platinum.
• The trust's shares are backed by physical platinum held by a custodian.
• The trust does not engage in active management or trading strategies.
• The trust's main expense is the sponsor's fee, which is 0.50% of the net asset value annually.
• The trust issues and redeems shares only in baskets of 50,000 shares with authorized participants.
• The trust is not registered as an investment company and does not hold commodity futures contracts.

Sentiment

Score: 7

Explanation: The document presents a positive outlook with a significant increase in net asset value and share price, but also acknowledges the inherent risks associated with platinum investments and the passive nature of the trust.

Positives

• The trust's net asset value saw a significant increase of 23.48% during the fiscal year 2024.
• The number of outstanding shares increased, indicating growing investor interest.
• The price of platinum, which directly impacts the trust's value, increased by 12.82% during the fiscal year 2024.
• The trust's shares are backed by physical platinum, minimizing credit risk.
• The trust provides a cost-efficient way for investors to participate in the platinum market.

Negatives

• The trust's value is directly tied to the price of platinum, which can be volatile.
• The amount of platinum represented by each share decreases over time due to the sponsor's fee and other expenses.
• The trust is a passive investment vehicle and does not actively manage its assets.
• The trust may be forced to sell platinum earlier than anticipated if expenses are higher than expected.
• The trust is not a diversified investment and may be more volatile than other investments.

Risks

• The value of the shares is directly related to the price of platinum, which is subject to fluctuations.
• The amount of platinum represented by each share will decrease over time due to the sponsor's fee and other expenses.
• The trust is a passive investment vehicle and does not actively manage its assets.
• The trust may be forced to sell platinum earlier than anticipated if expenses are higher than expected.
• The trust is not a diversified investment and may be more volatile than other investments.
• The trust may be terminated if certain events occur, potentially at a time when platinum prices are low.
• There may be situations where an authorized participant is unable to redeem a basket of shares.
• The liquidity of the shares may be affected by the withdrawal of authorized participants.
• The trust is an emerging growth company and may take advantage of reduced disclosure requirements.
• The trust may be negatively impacted by the effects of the spread of illnesses or other public health emergencies on the global economy and the markets and service providers relevant to the performance of the Trust.
• The conflict in Ukraine, along with global political fallout and implications including sanctions, shipping disruptions, collateral war damage, and a potential expansion of the conflict beyond Ukraine's borders, could disturb the platinum market.

Future Outlook

The trust's objective is to reflect the price of platinum, less expenses, and it does not engage in active management or trading strategies. The trust's future performance will depend on the price of platinum and the trust's expenses.

Management Comments

• The trust's objective is for the value of each share to approximately reflect the price of platinum bullion owned by the trust, less the trust's liabilities.
• The trust does not engage in any activities designed to obtain a profit from, or ameliorate losses caused by, changes in the price of platinum.
• The trust issues and redeems shares only in exchange for platinum, only in aggregations of 50,000 or integral multiples thereof.

Industry Context

The trust operates within the platinum market, which is influenced by factors such as supply, demand, and investor sentiment. The trust's performance is directly tied to the price of platinum, which is affected by global economic and political events.

Comparison to Industry Standards

• The GraniteShares Platinum Trust is similar to other exchange-traded funds (ETFs) that track the price of precious metals.
• The trust's expense ratio of 0.50% is comparable to other physically-backed platinum ETFs.
• The trust's reliance on the LBMA Platinum Price PM for valuation is standard practice in the industry.
• The trust's use of authorized participants for creation and redemption of shares is a common mechanism for ETFs.
• The trust's custody arrangements with ICBC Standard Bank Plc are similar to those used by other physically-backed precious metal ETFs.

Related Party Transactions

• The sponsor receives a fee of 0.50% of the trust's net asset value annually.
• The sponsor has agreed to assume certain administrative and marketing expenses of the trust.

Stakeholder Impact

• Shareholders will benefit from the increase in the trust's net asset value and share price.
• Authorized participants will continue to be able to create and redeem shares in baskets of 50,000.
• The trust's service providers, including the trustee and custodian, will continue to provide services to the trust.

Next Steps

• The trust will continue to operate as a passive investment vehicle, aiming to reflect the price of platinum less expenses.
• The trustee will continue to sell platinum as needed to cover expenses not assumed by the sponsor.
• The sponsor will continue to monitor the performance of the trust and its service providers.

Key Dates

Keywords

platinum, GraniteShares Platinum Trust, physical platinum, net asset value, PLTM, authorized participants, platinum bullion, LBMA Platinum Price PM, sponsor's fee, custodian