10-Q: GraniteShares Platinum Trust Reports Net Asset Value Decrease in Q1 2025 Due to Platinum Price Decline

GraniteShares Platinum Trust's net asset value decreased in the first quarter of 2025, primarily due to a decline in the price of platinum.

Summary

• GraniteShares Platinum Trust reported a decrease in net asset value from $43.119 million on June 30, 2024, to $41.915 million on September 30, 2024, representing a 2.79% decrease.
• The decrease is primarily attributed to a 2.67% decline in the price of platinum, from $1,012.00 to $985.00 during the quarter.
• The number of shares outstanding remained constant at 4,400,000.
• The net asset value per share decreased by 2.76% from $9.80 to $9.53.
• The Trust's expenses, consisting of Sponsor fees, amounted to $51,796 for the quarter, equivalent to 0.5% of the average weighted net assets.
• The net decrease in net assets resulting from operations for the quarter was $1,204,433, driven by an unrealized loss on investment in platinum bullion of $1,149,099, a loss of $3,538 on metal sold to cover redemption orders and Sponsor fees, and the Sponsor fees of $51,796.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the decrease in net asset value and the reliance on a single commodity. However, the Trust maintains effective controls and procedures.

Positives

• The Trust maintains a simple and cost-effective means of investing in platinum.
• The Sponsor assumes most of the expenses incurred by the Trust, limiting the Trust's ordinary expenses to the Sponsor's Fee.
• The Trust has effective disclosure controls and procedures.
• There were no changes in internal control over financial reporting that materially affected the Trust's internal control over financial reporting.

Negatives

• The Trust experienced a decrease in net asset value due to the decline in platinum prices.
• The Trust reported a net decrease in net assets resulting from operations of $1,204,433 for the quarter.
• The Trust is subject to the risks associated with fluctuations in the price of platinum.

Risks

• The Trust's performance is highly dependent on the price of platinum, which is subject to various market factors.
• Global platinum supply and demand, investor expectations, currency exchange rates, and political/economic events can all impact platinum prices.
• A decline in the price of platinum will proportionately decrease the value of an investment in the Shares.
• The Trust's sole business activity is the investment in platinum, making it vulnerable to concentration risk.

Future Outlook

The Trust's future performance is tied to the price of platinum, which is subject to various market factors and global economic conditions.

Industry Context

This report reflects the performance of a platinum-backed exchange-traded fund (ETF), which is directly influenced by the price movements of platinum in the global market. The performance is comparable to other platinum ETFs.

Comparison to Industry Standards

• The GraniteShares Platinum Trust's performance is directly tied to the LBMA Platinum Price PM, similar to other platinum-backed ETFs like the Aberdeen Standard Physical Platinum Shares ETF (PPLT).
• The expense ratio of 0.50% is a key factor in comparing the cost-effectiveness of this Trust to other similar investment vehicles.
• The Trust's holdings of platinum in good delivery bars held by ICBC Standard Bank Plc is a common practice among platinum ETFs to ensure the physical backing of the shares.

Related Party Transactions

• A fee is paid to the Sponsor as compensation for services performed under the Trust Agreement.
• Affiliates of the Trustee may from time to time act as Authorized Participants or purchase or sell platinum or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

Stakeholder Impact

• Shareholders are directly impacted by the fluctuations in the price of platinum, which affects the net asset value of their shares.
• Authorized Participants are affected by the procedures for the creation and redemption of Baskets.

Key Dates

Keywords

platinum, GraniteShares, Trust, net asset value, PLTM, ETF, investment, bullion