10-Q: GraniteShares Platinum Trust Sees Net Asset Value Surge Amid Rising Platinum Prices in Q2 2024

GraniteShares Platinum Trust reports an increase in net asset value driven by rising platinum prices during the quarter ended December 31, 2023.

Summary

• GraniteShares Platinum Trust is a New York-based investment trust focused on providing investors with exposure to platinum.
• The Trust's net asset value increased by 8.86% during the quarter ended December 31, 2023, reaching $39.55 million.
• This increase was primarily driven by an 8.99% rise in the price of platinum, from $923.00 to $1,006.00 per ounce.
• The Trust's net asset value per share increased by 8.92% to $9.77.
• For the six months ended December 31, 2023, the Trust's net asset value increased by 13.27% to $39.55 million.
• This increase was mainly due to a 12.15% increase in the price of platinum from $897.00 to $1,006.00 per ounce.
• The number of shares outstanding increased from 4,000,000 to 4,050,000 during the six-month period.
• The Trust's only recurring expense is the Sponsor's fee, which is 0.50% of the adjusted daily net asset value.
• The Trust had no cash balances at September 30, 2023.
• The Trust issues and redeems shares in blocks of 50,000 to Authorized Participants.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the increase in net asset value driven by rising platinum prices. However, the dependence on a single commodity and the presence of fees temper the overall positive outlook.

Positives

• The Trust's net asset value increased significantly due to the rising price of platinum.
• The number of shares outstanding increased, indicating investor interest.
• The Trust's disclosure controls and procedures were effective as of the end of the period covered by the report.
• The Trust had an unrealized gain on investment in platinum bullion of $3,352,432 for the quarter and $4,839,362 for the six-month period.

Negatives

• The Trust incurs a Sponsor's fee of 0.50% of the adjusted daily net asset value, which reduces overall returns.
• The Trust had a loss of $49,527 on metal sold to cover redemption orders and Sponsor's fees for the quarter and $223,586 for the six-month period.

Risks

• The Trust's performance is heavily 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 events can all impact platinum prices.
• There is no assurance that platinum will maintain its long-term value.
• The Trust's sole business activity is the investment in platinum, creating a concentration of risk.

Future Outlook

The Trust's performance is expected to continue to be closely tied to the price of platinum.

Industry Context

This announcement reflects the performance of a specific platinum-backed ETF, which is influenced by the broader trends in the platinum market, including supply, demand, and investor sentiment. Competitors would include other platinum-backed ETFs and physical platinum investments.

Comparison to Industry Standards

• Comparable platinum-backed ETFs include iShares Platinum Trust (PLPT) and Aberdeen Standard Physical Platinum Shares ETF (PPLT).
• The Sponsor's fee of 0.50% is within the typical range for similar commodity-backed ETFs.
• The Trust's performance is directly correlated to the LBMA Platinum Price PM, which is a global benchmark for platinum pricing.

Related Party Transactions

• The Sponsor receives a fee for services performed under the Trust Agreement.
• Affiliates of the Trustee may act as Authorized Participants or purchase/sell platinum or Shares.

Stakeholder Impact

• Shareholders benefit from the increased net asset value due to rising platinum prices.
• Authorized Participants are involved in the creation and redemption of shares.
• The Sponsor receives fees for managing the Trust.

Key Dates

Keywords

platinum, GraniteShares Platinum Trust, net asset value, PLTM, investment trust, platinum bullion, Authorized Participants, LBMA Platinum Price, financial statements