10-K: GraniteShares Platinum Trust Sees Assets Double

GraniteShares Platinum Trust reported a near doubling of net assets and significant gains in platinum value for the fiscal year ended June 30, 2025, driven by increased shares and rising platinum prices.

Summary

• Net assets of GraniteShares Platinum Trust increased by 97.61% from $43,119,274 on June 30, 2024, to $85,206,010 on June 30, 2025.
• Outstanding Shares grew by 48.86%, from 4,400,000 to 6,550,000 during the fiscal year, with 3,150,000 shares created and 1,000,000 shares redeemed.
• The price of platinum increased by 33.40%, from $1,012 per ounce on June 30, 2024, to $1,350 per ounce on June 30, 2025.
• Net Asset Value (NAV) per Share increased by 32.76%, from $9.80 to $13.01.
• Total gain on platinum for the year ended June 30, 2025, was $20,328,000, a substantial increase from $4,956,000 in the prior year.
• The Trust operates as a passive investment vehicle, holding solely physical platinum bullion, and does not engage in activities to profit from or ameliorate losses caused by platinum price changes.
• The Sponsor's Fee for the year ended June 30, 2025, was $242,983, calculated at an annualized rate of 0.50% of the Trust's net asset value.

Sentiment

Score: 8

Explanation: The Trust demonstrated strong financial performance with significant increases in net assets, NAV per share, and total gains on platinum, driven by a substantial rise in platinum prices and increased investor participation. While inherent risks of commodity price volatility and the passive nature of the Trust remain, the recent results are very positive.

Positives

• Total assets significantly increased from $43,136,000 in 2024 to $88,487,000 in 2025.
• Total gain on platinum surged to $20,328,000 in 2025, up from $4,956,000 in 2024.
• Change in net assets from operations rose substantially to $20,085,000 in 2025, compared to $4,768,000 in 2024.
• Net increase in net assets per Share was $3.97 in 2025, a significant improvement from $1.15 in 2024.
• The Trust's NAV increased by 97.61% for the year ended June 30, 2025.
• The number of outstanding Shares increased by 48.86%, indicating strong investor interest and inflows.
• The price per ounce of platinum increased by 33.40%, directly benefiting the Trust's asset value.
• The Trust provides a cost-effective and simplified means for investors to gain exposure to platinum without the complexities of direct physical bullion investment.

Negatives

• The NAV per Share increased slightly less than the price per ounce of platinum on a percentage basis due to the Sponsors Fee and other Trust expenses.
• Shareholders may incur a tax liability without an associated distribution from the Trust due to its grantor trust status.

Risks

• The value of Shares directly relates to the volatile price of platinum, which can be affected by global supply/demand, inflation expectations, currency exchange rates, interest rates, investment activities of hedge/commodity funds, and geopolitical events.
• Shares may trade at a price above or below the Net Asset Value (NAV) per Share, and this discount or premium may widen due to non-concurrent trading hours between NYSE Arca and major platinum markets.
• A possible short squeeze due to a sudden increase in demand for Shares largely exceeding supply may lead to price volatility not directly correlated to platinum prices.
• Purchasing activity in the platinum market associated with the creation of Baskets may temporarily increase the price of platinum, which could then decline after Baskets are created.
• Unanticipated operational or trading problems could adversely affect an investment in the Shares.
• Discrepancies, disruptions, or unreliability of the LBMA Platinum Price, used for valuation, could impact the value of the Trust's platinum and the market price of Shares.
• The amount of platinum represented by each Share will decrease over the Trust's life due to sales of platinum necessary to pay the Sponsors Fee and other Trust expenses, requiring platinum price increases to maintain Share value.
• Crises may motivate large-scale sales of platinum, decreasing its price and adversely affecting Shares.
• Factors such as declining global automobile sales (impacting autocatalyst demand), increased platinum hedging, negative speculative/central bank attitudes, large redemptions from other platinum ETVs, and widening interest rate differentials could cause platinum prices to decline.
• As a passive investment vehicle, the Trust does not actively manage platinum or use hedging techniques, making it vulnerable to price decreases.
• The price received upon the sale of Shares may be less than the value of the platinum represented by them.
• The Trust may be forced to sell platinum earlier than anticipated if expenses are higher than expected, reducing NAV and Share value.
• The Trust is not a diversified investment, making it potentially more volatile than other investments.
• Liquidation of the Trust may occur at a time when platinum disposition results in losses to investors.
• Authorized Participants may be unable to redeem Baskets during trading suspensions or emergencies, leading to potential losses if platinum prices decline during delays.
• The liquidity of Shares may be adversely affected by the withdrawal of Authorized Participants.
• Holders of 75% of Shares have the power to terminate the Trust, potentially forcing investors to find alternative investment vehicles.
• Lack of an active trading market for Shares may adversely affect the sale price.
• Difficulties in the creation and redemption process could lead to the price of Shares diverging from NAV.
• Shareholders lack traditional corporate shareholder rights and protections afforded by the Investment Company Act or Commodity Exchange Act.
• Competition from other platinum investment methods could limit the market for Shares.
• The value of Shares will be adversely affected if platinum is lost or damaged under circumstances where the Trust cannot recover the loss, as the Custodian's liability is limited and the Trust does not insure its platinum.
• English law governing Custody Agreements may be difficult to interpret or enforce in U.S. courts.
• Shareholders and Authorized Participants lack direct rights to assert claims against the Custodian.
• Platinum held in unallocated accounts is not segregated from the Custodian's assets, posing a risk in case of Custodian insolvency.
• Subcustodians' obligations are not determined by contractual arrangements but by LPPM rules and London bullion market customs, potentially limiting recovery for losses.
• Neither the Trustee nor the Custodian oversees subcustodians, and subcustodians are not obligated to cooperate in reviews.
• Sudden termination of service providers could cause delays and additional expenses for the Trust.
• The Trust may be required to indemnify the Sponsor, Trustee, or Custodian, potentially reducing NAV.
• Service providers may not carry adequate insurance to cover claims against them by the Trust.
• Conflicts of interest may arise as the Sponsor and its affiliates manage other funds investing in precious metals.
• The Trust Agreement can be amended by the Sponsor and Trustee without Shareholder consent, including fee increases.
• The spread of illnesses (e.g., COVID-19) or other public health emergencies, and geopolitical events (e.g., Russia-Ukraine war), can negatively impact the global economy, markets, supply chains, and the Trust's operations and performance.

Future Outlook

The Trust is a passive investment vehicle whose objective is for the value of its Shares to reflect the value of its platinum assets less accrued expenses and liabilities. It does not engage in activities to profit from or ameliorate losses caused by changes in platinum prices. Forward-looking statements are inherently subject to uncertainties and known and unknown risks, and the Trust undertakes no obligation to publicly release revisions to these statements.

Management Comments

• The Chief Executive Officer and Chief Financial Officer of the Sponsor, William Rhind, certified that the report does not contain any untrue statement of a material fact or omit material facts, and that the financial statements fairly present the financial condition and results of operations.
• The Chief Accounting Officer of the Sponsor, Benoit Autier, certified that the report does not contain any untrue statement of a material fact or omit material facts, and that the financial statements fairly present the financial condition and results of operations.
• The CEO and CFO, along with the CAO, are responsible for establishing and maintaining effective disclosure controls and procedures and internal control over financial reporting, concluding they were effective as of June 30, 2025.

Industry Context

The platinum industry is dominated by autocatalyst and jewelry demand, with primary supply from mining (65% South Africa, 14% Russia) and recycling. The global trade occurs via OTC markets (Zurich, London) and futures exchanges (NYMEX, TOCOM). The LBMA Platinum Price is a key benchmark. Geopolitical events, such as the Russia-Ukraine war, can significantly impact platinum supply and prices due to Russia's role as a major producer.

Comparison to Industry Standards

• The Trust's Shares are designed as a simple and cost-effective alternative to direct investment in physical platinum bullion, which typically involves expensive and complicated arrangements for assay, transportation, and warehousing.
• Unlike many other financial products that gain precious metals exposure through derivatives, the Trust's Shares are backed primarily by allocated physical platinum, minimizing counterparty and credit risks.
• The Trust's performance is directly tied to the LBMA Platinum Price, a widely recognized benchmark in the global platinum market, providing transparency in valuation.
• The Trust competes with other financial vehicles, including traditional debt and equity securities issued by platinum industry companies, other platinum-backed securities, direct platinum investments, and similar exchange-traded vehicles (ETVs).
• The Trust's expense ratio (0.50% annualized Sponsors Fee) is a key factor in its cost-efficiency compared to direct physical holdings, where expenses are dispersed among all shareholders.

Corporate Governance

Related Party Transactions

• The Sponsor receives a fee (Sponsors Fee) of 0.50% annualized rate of the Trust's net asset value for assuming most administrative and marketing expenses.
• Affiliates of The Bank of New York Mellon (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: Directly impacted by the volatility of platinum prices, as the Trust's value mirrors its platinum holdings. They have limited voting rights and do not receive traditional corporate dividends.
• Shareholders: May incur tax liability without an associated distribution due to the Trust's grantor trust status.
• Authorized Participants: Engage in creation and redemption of Baskets, facilitating liquidity for the Trust's Shares. Their ability to redeem can be suspended under certain market conditions, impacting their operations.
• Sponsor (GraniteShares LLC): Benefits from the Sponsors Fee, which is tied to the Trust's net asset value, aligning its interests with the growth of the Trust's assets.
• Custodian (ICBC Standard Bank Plc): Responsible for holding the Trust's platinum, with limited liability for loss or damage, potentially impacting the Trust's assets if losses occur outside the scope of liability or insurance.

Next Steps

• The Trust will continue its passive investment strategy, reflecting the value of its platinum assets less expenses.
• The Sponsor will continue to oversee the Trustee and principal service providers, including the preparation of financial statements and SEC filings.
• Biannual inspections of platinum plates and ingots held by the Custodian will continue, with one audit at fiscal year-end (June 30) and another at a random date.

Key Dates

Recommendation

The Trust has demonstrated strong financial performance for the fiscal year ended June 30, 2025, with a near doubling of net assets and a significant increase in NAV per Share, primarily driven by a substantial rise in platinum prices. This indicates a positive trend for the underlying asset. While the Trust is a passive vehicle and subject to commodity price volatility and specific operational risks, its recent performance, coupled with increased investor interest (as evidenced by the growth in outstanding shares), suggests a favorable outlook for those seeking exposure to platinum. The cost-effective structure compared to direct physical investment also adds to its appeal.

Keywords

Platinum, PLTM, GraniteShares, Trust, ETF, Commodity, Precious Metals, Investment, SEC Filing, 10-K