UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, ~~2013~~2014

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file number: 001-34916

ETFS WHITE METALS BASKET TRUST~~(Exact name of registrant as specified in its charter)~~

(Exact name of registrant as specified in its charter)


New York	27-2780294
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

c/o ETF Securities USA LLC
48 Wall Street, 11th Floor
New York, NY	10005
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:
(212) 918-4954

Securities registered pursuant to Section 12(b) of the Act:

	Title of each class			Name of each exchange on which registered
ETFS Physical WM Basket Shares			NYSE Arca

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months

Yes ☒ No ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non accelerated filer ☒☐ Smaller reporting company ☐☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes ☐ No ☒

Aggregate market value of the registrant’s shares outstanding based upon the closing price of a share on June 30, ~~2013~~ 2014 as reported by the NYSE Arca, Inc. on that date: $2627,~~313~~170,000

As of February 26, ~~2014~~2015, ETFS White Metals Basket Trust has ~~700~~650,000 ETFS Physical White Metal Basket Shares outstanding.

DOCUMENTS INCORPORATED BY REFERENCE: None.

FORWARD LOOKING STATEMENTS

This Annual Report on Form 10-K contains various “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and within the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements usually include the verbs, “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “projects,” “understands” and other verbs suggesting uncertainty. We remind readers that forward-looking statements are merely predictions and therefore inherently subject to uncertainties and other factors and involve known and unknown risks that could cause the actual results, performance, levels of activity, or our achievements, or industry results, to be materially different from any future results, performance, levels of activity, or our achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Trust undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Additional significant uncertainties and other factors affecting forward-looking statements are presented in the Risk Factors section herein.

TABLE OF CONTENTS

9	demand
PART I	1
Item 1. Business	1
Trust Objective	21
Secondary Market Trading	2
Overview of the Bullion Industry	2
Overview of the Bullion Industry	3
Operation of the Bullion Market	11
Valuation of Bullion and Computation of Net Asset Value	15
Secondary Market Trading	17
Trust Expenses	16
Valuation of Bullion and Computation of Net Asset Value	17
Deposit of Bullion; Issuance of Shares	16
Trust Expenses	18
Withdrawal of Bullion; Redemption of Shares	17
Deposit of Bullion; Issuance of Shares	19
Creation and Redemption Transaction Fee	17
Withdrawal of Bullion; Redemption of Shares	20
The Sponsor	17
Creation and Redemption Transaction Fee	20
The Trustee	18
The Sponsor	20
The Custodian	18
The Trustee	21
Inspection of Bullion	19
The Custodian	21
Description of the Shares	19
Inspection of Bullion	22
Custody of the Trust’s Bullion	20
Description of the Shares	22
United States Federal Income Tax Consequences	21
Custody of the Trust’s Bullion	23
ERISA and Related Considerations	24
United States Federal Income Tax Consequences	24
Item 1A. Risk Factors	25
ERISA and Related Considerations	27
Item 1B. Unresolved Staff Comments	32
Item 1A. Risk Factors	28
Item 2. Properties	32
Item 1B. Unresolved Staff Comments	35
Item 3. Legal Proceedings	32
Item 2. Properties	35
Item 4. Mine Safety Disclosure	32
Item 3. Legal Proceedings	35
PART II	33
Item 4. Mine Safety Disclosure	35
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	33
PART II	36
Item 6. Selected Financial Data	35
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	36
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
Item 6. Selected Financial Data	38
Item 7A. Quantitative and Qualitative Disclosures about Market Risk	39
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
Item 8. Financial Statements and Supplementary Data	40
Item 7A. Quantitative and Qualitative Disclosures about Market Risk	42
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	41
Item 8. Financial Statements and Supplementary Data	43
Item 9A. Controls and Procedures	41
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	44
Item 9B. Other Information	41
Item 9A. Controls and Procedures	44
PART III	42
Item 9B. Other Information	44
Item 10. Directors, Executive Officers and Corporate Governance	42
PART III	45
Item 11. Executive Compensation	42
Item 10. Directors, Executive Officers and Corporate Governance	45
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	43
Item 11. Executive Compensation	45
Item 13. Certain Relationships and Related Transactions, and Director Independence	43
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	46
Item 14. Principal Accounting Fees and Services	43
Item 13. Certain Relationships and Related Transactions, and Director Independence	46
PART IV	44
Item 14. Principal Accounting Fees and Services	46
Item 15. Exhibits, Financial Statement Schedules	44
PART IV	47
Item 15. Exhibits, Financial Statement Schedules	47

PART I

Item 1. Business

The purpose of the ETFS White Metals Basket Trust (the “Trust”) is to own, in an agreed proportion, silver, platinum and palladium (collectively, “Bullion”) transferred to the Trust in exchange for shares issued by the Trust (“Shares”). Each share represents a fractional undivided beneficial interest in and ownership of the Trust. The assets of the Trust are anticipated to consist solely of Bullion. The Trust was formed on November 29, 2010 when an initial deposit of Bullion was made in exchange for the issuance of two Baskets (a “Basket” consists of 50,000 Shares).

The sponsor of the Trust is ETF Securities USA LLC (the “Sponsor”). The trustee of the Trust is The Bank of New York Mellon (the “Trustee”) and the custodian is JP Morgan Chase Bank N.A., London branch (the “Custodian”).

The Trust’s Shares at redeemable value decreased from $3726,~~605~~639,~~438~~308 at December 31, ~~2012~~2013 to $2621,~~639~~851,~~308~~984 at December 31, ~~2013~~2014, the Trust’s fiscal year end. Outstanding Shares in the Trust decreased from ~~750~~700,000 Shares at December 31, ~~2012~~2013 to ~~700~~650,000 Shares at December 31, ~~2013~~2014.

The Trust is not managed like a corporation or an active investment vehicle. The Trust has no directors, officers or employees. It does not engage in any activities designed to obtain a profit from or to improve the losses caused by changes in the price of silver, platinum and palladium. The Bullion held by the Trust will only be delivered to pay the remuneration due to the Sponsor (the “Sponsor’s Fee”), distributed to Authorized Participants (defined below) in connection with the redemption of Baskets or sold (1) on an as-needed basis to pay Trust expenses not assumed by the Sponsor, (2) in the event the Trust terminates and liquidates its assets, or (3) as otherwise required by law or regulation. The Trust has no fixed termination date. The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. The Trust does not and will not hold or trade in commodities futures contracts regulated by the Commodity Exchange Act (the “CEA”), as administered by the Commodity Futures Trading Commission (the “CFTC”). The Trust is not a commodity pool for purposes of the CEA and neither the Sponsor nor the Trustee is subject to regulation as a commodity pool operator or a commodity trading advisor in connection with the Shares.

The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. The Trust does and will not hold or trade in commodities futures contracts regulated by the Commodity Exchange Act (the “CEA”), as administered by the Commodity Futures Trading Commission (the “CFTC”). The Trust is not a commodity pool for purposes of the CEA and neither the Sponsor nor the Trustee is subject to regulation as a commodity pool operator or a commodity trading advisor in connection with the Shares. The Trust has no fixed termination date.

The Sponsor of the registrant maintains an Internet website at www.etfsecurities.com, through which the registrant’s annual reports on Form 10-K, quarterly reports on Form 10-Q, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, are made available free of charge after they have been filed or furnished to the Securities and Exchange Commission (the “SEC”). Additional information regarding the Trust may also be found on the SEC’s EDGAR database at www.sec.gov.

Trust Objective

The investment objective of the Trust is for the Shares to reflect the performance of the price of physical silver, platinum and palladium in the proportions held by the Trust, less the expenses of the Trust’s operations. The Trust holds Bullion in a ratio such that, for every 1.0 ounce of silver, it holds 0.01 ounces of platinum and 0.008 ounces of palladium. The Shares are intended to constitute a simple and cost-effective means of making an investment similar to an investment in physical Bullion. An investment in physical Bullion requires expensive and sometimes complicated arrangements in connection with the assay, transportation, warehousing and insurance of the metal. Traditionally, such expense and complications have resulted in investments in physical Bullion being efficient only in amounts beyond the reach of many investors.

The Shares are intended to provide institutional and retail investors with a simple and cost-efficient means, with minimal credit risk, of gaining investment benefits similar to those of holding physical Bullion. The Shares offer an investment that:

•Is Easily Accessible. The Shares trade on the NYSE Arca and provide institutional and retail investors with indirect access to the Bullion market. The Shares are bought and sold on the NYSE Arca like any other exchange-listed securities. The close of the NYSE Arca trading session is 4:00 PM New York time.

•Is Relatively Cost Effective. The Sponsor expects that, for many investors, costs associated with buying and selling the Shares in the secondary market and the payment of the Trust’s ongoing expenses will be lower than the costs associated with buying and selling Bullion and storing and insuring Bullion in a traditional allocated Bullion account.

•Has Minimal Credit Risk. The Shares represent an interest in physical Bullion owned by the Trust (other than an amount held in unallocated form which is not sufficient to make up a whole bar or plate or ingot which is held temporarily to effect a creation or redemption of Shares). Physical Bullion of the Trust in the Custodian’s possession is not subject to borrowing arrangements with third parties. Other than the Bullion temporarily being held in an unallocated Bullion account with the Custodian, the physical Bullion of the Trust is not subject to counterparty or credit risks. See “Risk Factors—Bullion held in the Trust’s unallocated Bullion account and any Authorized Participant’s unallocated Bullion account is not segregated from the Custodian’s assets” This contrast with most other financial products that gain exposure to Bullion through the use of derivatives that are subject to counterparty and credit risks.

Investing in the Shares does not insulate the investor from certain risks, including price volatility. See “Risk Factors.”

~~Secondary Market Trading~~ 1

While the Trust’s investment objective is for the Shares to reflect the performance of prices of physical silver, platinum and palladium in the proportions held by the Trust, less the expenses of the Trust, the Shares may trade in the secondary market on the NYSE Arca at prices that are lower or higher relative to their net asset value (the value of the Trust’s assets less its liabilities (“NAV”)) per Share. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced by non-concurrent trading hours between the NYSE Arca and the Commodity Exchange, Inc., a subsidiary of New York Mercantile Exchange, Inc. (“COMEX”), and the London and Zurich Bullion markets. While the Shares trade on the NYSE Arca until 4:00 PM New York time, liquidity in the global Bullion markets is reduced after the close of the COMEX at 1:30 PM New York time. As a result, during this time, trading spreads, and the resulting premium or discount, on the Shares may widen.

Overview of the Bullion Industry

~~Silver~~This ~~Supply~~section provides a brief introduction to the silver, platinum and ~~Demand~~palladium industries by looking at some of the key participants, detailing the primary sources of demand and supply and, with respect to the silver industry, outlining the role of the “official” sector (i.e., central banks) in the markets.

~~World~~The Silver ~~Supply and Demand 2003-2012 (million ounces)~~ Industry

~~The~~Market following table sets forth a summary of the world silver supply and demand for the period from 2003 to 2012 and is based on information reported in the World Silver Survey 2013, the Silver Institute and GFMS Limited.Participants

Silver Supply and Demand
(millions of ounces)	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
Supply
Mine Production	597.2	613.6	637.2	641.3	666.1	683.0	713.6	752.7	757.0	787.0
Net Government Sales	88.7	61.9	65.9	78.5	42.5	30.5	15.6	44.2	12.0	7.4
Old Silver Scrap	196.0	198.7	202.7	206.2	203.0	200.8	199.8	228.8	258.1	253.9
Producer Hedging	-	-	45.9	-	-	-	-	50.4	12.2	-
Implied Net Disinvestment	7.8	-	-	-	1.4	-	-	-	-	-
Total Supply	889.8	874.1	951.7	926.0	913.0	914.3	929.1	1,076.2	1,039.4	1,048.3
Demand
Fabrication
Industrial Applications	368.4	389.7	430.3	453.0	486.2	490.9	403.6	500.7	487.8	465.9
Photography	192.9	178.8	160.3	142.2	117.6	101.3	79.3	72.1	66.1	57.8
Jewelry	186.8	187.6	188.4	176.5	183.8	179.1	178.7	192.8	186.5	185.6
Silverware	85.1	68.3	69.6	63.4	61.5	59.8	55.0	52.8	48.3	44.9
Coins & Medals	35.7	42.4	40.0	39.8	39.7	65.3	78.8	99.4	118.3	92.7
Total Fabrication	868.8	866.7	888.6	874.9	888.9	896.4	795.4	917.9	907.1	846.8
Producer De-Hedging	21.0	2.0	-	11.6	24.1	8.7	17.4	-	-	41.5
Implied Net Investment	-	5.4	63.1	39.5	-	9.3	116.3	158.3	132.3	160.0
Total Demand	889.8	874.1	951.7	926.0	913.0	914.3	929.1	1,076.2	1,039.4	1,048.3

The participants in the world silver market may be classified in the following sectors: the mining and producer sector, the banking sector, the official sector, the investment sector, and the manufacturing sector. A brief description of each follows.

Mining and Producer Sector.

This group includes mining companies that specialize in silver and silver production, mining companies that produce silver as a by-product of other production (such as a copper or gold producer), scrap merchants and recyclers.

Banking Sector.

Bullion banks provide a variety of services to the silver market and its participants, thereby facilitating interactions between other parties. Services provided by the bullion banking community include traditional banking products as well as mine financing, physical silver purchases and sales, hedging and risk management, inventory management for industrial users and consumers and silver leasing.

The Official Sector.

There are no official statistics published by the International Monetary Fund, Bank of International Settlements, or national banks on silver holdings by national governments. The main reason for this is that silver is generally not recognized as a reserve asset. Consequently, there are very limited silver stocks held by governments. According to GFMS Limited in World Silver Survey 2010, at the end of 2009, government held silver bullion stocks total 61 million ounces.

The Investment Sector.

This sector includes the investment and trading activities of both professional and private investors and speculators. These participants range from large hedge and mutual funds to day-traders on futures exchanges, and retail-level coin collectors.

The Manufacturing Sector.

The fabrication and manufacturing sector represents all the commercial and industrial users of silver. Industrial applications comprise the largest use of silver. The jewelry and silverware sector is the second largest, followed by the photographic industry (although the latter has been declining over the past several years as a result of the spread of digital photography).

World Silver Supply and Demand 2004-2013 (million ounces)

The following table sets forth a summary of the world silver supply and demand for the period from 2004 to 2013 and is based on information reported by Thomson Reuters GFMS Ltd, the World Silver Survey 2014 and the Silver Institute.



(millions of ounces)	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
Supply
Mine production	614	640	643	666	683	714	751	755	792	820
Net government sales	62	66	79	43	31	16	44	12	7	8
Old silver scrap	199	203	206	203	201	200	226	259	253	192
Net producer hedging	(2)	46	(12)	(24)	(9)	(17)	50	12	(47)	(41)
Total reported supply	873	955	916	888	906	913	1,071	1,038	1,005	979

Demand
Jewelry	187	188	176	183	178	177	191	183	181	199
Coins and bars	53	52	49	51	188	88	146	213	139	246
Silverware	68	69	63	61	60	54	53	48	45	50
Industrial fabrication	609	636	644	657	651	539	644	625	588	586
Electrical and electronics	192	211	223	240	246	203	273	261	237	234
Brazing alloys and solders	49	52	54	58	61	53	61	62	60	62
Photography	179	160	142	117	100	78	69	62	54	50
Other	189	213	225	242	244	205	241	240	237	240
ETP inventory build	-	-	158	55	101	154	133	(24)	55	2
Exchange inventory build	(20)	16	(9)	22	(7)	(15)	(7)	12	62	9
Total reported demand	897	961	1,081	1,029	1,171	997	1,160	1,057	1,070	1,092

Source: Thomson Reuters GFMS Ltd, World Silver Survey 2014, Silver Institute.

The following are some of the main characteristics of the silver market illustrated by the table:

Silver supply over the period shown, including mine production, net government sales, ~~old silver~~ scrap, ~~producer hedging~~ and ~~implied~~ net ~~disinvestment~~hedging supply averaged ~~956~~954 million ounces (Moz) per year. In ~~Mine~~2013 ~~production~~total ~~averages~~supply 72declined ~~percent~~2.6% to 979 Moz, marking the third consecutive year of annual total supply declines. Mine production averaged 74% of total silver supply between ~~2003~~2004-~~2012~~2013 and 84% n 2013 as mine production reached a new record and scrap supply declined on the back of lower silver prices.

During the period shown, ~~old~~ silver scrap was the second largest contributor to supply, averaging approximately ~~215~~ 214 Moz per year, which averages 22% ~~percent~~between ~~over~~2004-2013. In ~~the~~2013, 10silver ~~year~~scrap ~~period~~declined ~~2003-2012~~to 20% of total supply.

The biggest source of demand for silver is in industrial applications., ~~Industrial~~averaging ~~applications~~59% ~~increased~~between ~~to 466 Moz in~~ 2004-2013 ~~from 368 Moz in 2003~~. Silver is among the best electrical and thermal conductor of all metals and is therefore used in many electrical applications, particularly in conductors, switches, contacts, and fuses. Silver is also used in the manufacture of batteries, ~~featuring~~which use silver alloys as the cathode. Silver, a well-known bactericide, is used in a number of applications, including water purification systems, air-handling systems, and in a wide-range of textile and plastic consumer products. Silver is also used to join metals through brazing and soldering. In the period from ~~2003~~2004 to ~~2012~~2013, industrial applications consumed an average of ~~448~~618 Moz per year.

Silver is also used in the manufacturing of jewelry and silverware. These applications for silver consumed an average of ~~246~~ 241 Moz per year over the period shown.

Silver’s role in photography has been a regular component of silver demand, although photographic use has decreased each year since ~~2003~~2004. Silver use in photography averaged ~~117~~101 Moz per year over the period shown, but only 5850 Moz in ~~2012~~2013. Silver is also used in the fabrication of coins and medals. Silver was once widely used in coinage, and many nations were on a silver standard until the 19th century. Today silver is in limited use for circulating coinage, and is used in bullion coins issued by national governments typically for use by investors wishing to own physical silver in small quantities and in commemorative coins. Silver’s use in ~~coinage~~coins ~~has~~and ~~averaged~~bars ~~over~~has 65 averaged 123 Moz per year from ~~2003~~2004-~~2012~~2013, increasing 77% in 2013 to 246 Moz as investors reacted strongly to the price decline.

Historical Chart of the Price of Silver

The price of silver is volatile and fluctuations are expected to have a direct impact on the value of the Shares. However, movements in the price of silver in the past are not a reliable indicator of future movements. Movements may be influenced by various factors, including the level of silver stockpiles, agreements among central banks, political uncertainties around the world, and economic concerns. ~~The following chart illustrates the movements in the price of an ounce of silver in dollars from 2004 to January 2014 and is based on information provided by Bloomberg:~~

The following chart illustrates the movements in the price of an ounce of silver in dollars fromJanuary 2005 to January 2015 and is based on information provided by Bloomberg:

Source: Bloomberg

Between 2003 and 2011, the price of silver increased due to a number of factors. Among such factors are the decline in the US dollar against other currencies, a surge in investment demand in commodities as an asset class generally, strength in fabrication demand, and the low level of forward selling by mining companies. Since the global financial crisis that started in 2008, investors have increasingly been using silver as store of value to counter the effects of an increase in paper money by major reserve currency central banks. However, since 2011, when prices peaked at $48.44/oz, prices have trended downwards, albeit with multiple upwards rallies (that have often lasted several months). The rise in the value of the US dollar, sluggish industrial growth and a tame inflation environment (which has led some investors to revise their expectations of the effects of monetary expansion) are some of the drivers behind the fall in silver prices since 2011.

Platinum Group Metals ~~Supply and Demand~~

Platinum ~~Supply~~and palladium are the two best known metals of the six platinum group metals (PGMs). Platinum and ~~Demand~~palladium have the greatest economic importance and are found in the largest quantities. The other four—iridium, rhodium, ruthenium and osmium—are produced only as co-products of platinum and palladium.

~~Platinum and palladium are the two best known metals of the six platinum group metals (“~~PGMs~~”).~~ ~~Platinum and palladium have the greatest economic importance and~~ are found ~~in the largest quantities. The other four iridium, rhodium, ruthenium and osmium—are produced only as co-products of platinum and palladium. PGMs are found~~ primarily in South Africa and Russia. South Africa is the world’s leading platinum producer and the second largest palladium producer. Russia is the largest producer of palladium and most production is concentrated in the Norilsk region. All of South Africa’s production is sourced from the Bushveld Igneous Complex, which hosts the world’s largest resource of PGMs. Together, South Africa and Russia accounted for 86 85% of total platinum mine supply in ~~2012~~2013.

~~The following table displays the breakdown of supply and demand for the platinum market:~~Platinum

Platinum Supply and Demand
'000 oz	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
Supply
South Africa	4,630	5,010	5,115	5,295	5,070	4,515	4,635	4,635	4,860	4,090
Russia	1,050	845	890	920	915	805	785	825	835	800
North America	295	385	365	345	325	325	260	200	350	310
Zimbabwe	-	-	155	165	170	180	230	280	340	340
Others	225	250	115	105	120	115	115	110	100	110
Total Supply	6,200	6,490	6,640	6,830	6,600	5,940	6,025	6,050	6,485	5,650
Demand
Autocatalyst	3,270	3,490	3,795	3,905	4,145	3,655	2,185	3,075	3,185	3,190
Chemical	320	325	325	395	420	400	290	440	470	450
Electrical	260	300	360	360	255	230	190	230	230	165
Glass	210	290	360	405	470	315	10	385	515	160
Investment	15	45	15	(40)	170	555	660	655	460	455
Jewelry	2,510	2,160	2,465	2,195	2,110	2,060	2,810	2,420	2,475	2,780
Medical & Biomedical	-	-	250	250	230	245	250	230	230	235
Petroleum	120	150	170	180	205	240	210	170	210	205
Other	470	470	225	240	265	290	190	300	320	390
Total Gross Demand (LHS)	7,175	7,230	7,965	7,890	8,270	7,990	6,795	7,905	8,095	8,030
Total Supply with Recycling (LHS)	6,845	7,180	7,910	8,245	8,190	7,770	7,430	7,880	8,545	7,690
Balance (RHS)	(330)	(50)	(55)	355	(80)	(220)	635	(25)	450	(340)
Recycling
Autocatalyst	(645)	(690)	(770)	(860)	(935)	(1,130)	(830)	(1,085)	(1,240)	(1,130)
Electrical	-	-	-	-	-	(5)	(10)	(10)	(10)	(20)
Jewelry	-	-	(500)	(555)	(655)	(695)	(565)	(735)	(810)	(890)
Total Recycling	(645)	(690)	(1,270)	(1,415)	(1,590)	(1,830)	(1,405)	(1,830)	(2,060)	(2,040)
Total Net Demand	6,530	6,540	6,695	6,475	6,680	6,160	5,390	6,075	6,035	5,990
Movements in Stocks	(330)	(50)	(55)	355	(80)	(220)	635	(25)	450	(340)

Suppliers of Platinum

Platinum mine supply from ~~2003~~2004 to ~~2012~~2013 has averaged 6.2 million ounces. ~~There~~with isthe amajority 7%of ~~decrease~~production infrom ~~platinum~~South ~~supply~~Africa. ~~when~~Production ~~comparing~~from ~~the~~South ~~average~~Africa, ~~five-year~~on ~~periods~~average, ~~ended~~accounted ~~2007~~for ~~and~~approximately ~~2012,~~75% atof ~~6.6~~total ~~million~~mine ~~ounces~~production ~~and~~over ~~6.0~~that ~~million ounces, respectively~~period.

~~The~~There ~~main supplier of platinum~~ is ~~South~~a7% ~~Africa,~~decrease ~~providing~~in ~~approximately~~platinum ~~75%~~mine ~~of total~~ supply ~~over~~when comparing the ~~past~~average five-year ~~years.~~periods ~~Russia~~ended is2008 ~~the~~and ~~second largest supplier of platinum; however~~2013, ~~its share of world production has hovered~~ at ~~around 15% of total supply over the past ten years~~6.4 million ~~Recovery~~ounces ~~of platinum from autocatalysts is the other main source of supply~~ and ~~provided~~5.9 ~~around~~million ~~18%~~ounces, ~~of total supply in 2012~~respectively.

The main supplier of platinum is South Africa, providing approximately 84% of mine supply and 74% of total gross supply over the past five years. Russia is the second largest supplier of platinum, averaging 16% of mine supply over the past ten years. Recovery of platinum from autocatalysts and scrap jewelry (recycling) is the other main source of supply and provided around 34% of total supply in 2013.

Demand for Platinum

The ~~biggest~~Manufacturing source of demand for platinum output over the period shown has come from the autocatalyst sector which has accounted for an approximate average of 43% of total gross demand. Autocatalyst demand for platinum has remained fairly stable over the past five years and accounted for 37% of total gross demand in 2012. Global vehicle sales grew by 5% in 2012, driven by a rebound in the two biggest auto markets, China and the US. While the automotive sector in China and the US is showing signs of recovery, the European market remains lackluster. Reduced automotive industry sales in Europe may result in a decline in autocatalyst demand and may in turn impact the price of platinum and affect the price of the Shares. After a continuous decline in demand from 2003 to 2007, jewelry sector demand stabilized and has since become an increasingly important component of demand, accounting for 33% of worldwide demand in 2012.Sector

~~Historical~~The ~~Chart~~fabrication and manufacturing sector represents all the commercial and industrial users of platinum for whom platinum is a daily part of their business. The autocatalyst and jewelry industries are the ~~Price~~largest users of ~~Platinum~~platinum.

The ~~price~~biggest source of demand for platinum isoutput ~~volatile~~over ~~and~~the ~~fluctuations~~period ~~are~~shown ~~expected~~has tocome ~~have~~from athe ~~direct~~autocatalyst ~~impact~~sector onwhich ~~the~~has ~~value~~accounted for an approximate average of ~~the~~42% ~~Shares.~~of ~~However,~~total ~~movements~~gross indemand. ~~the~~Autocatalyst ~~price~~demand offor platinum inhas remained fairly stable over the past ~~are~~five ~~not~~years aand ~~reliable~~accounted ~~indicator~~for 36% of ~~future~~total ~~movements~~gross demand in 2013. ~~The~~Global ~~following~~vehicle ~~chart~~sales ~~illustrates~~grew ~~the~~by ~~movements~~5% in 2013, driven by a rebound in the ~~price~~two ofbiggest anauto ~~ounce~~markets, ofChina ~~platinum~~and the US. While the automotive sectors in China and the US ~~dollars~~have ~~from~~been ~~2004~~steadily recovering, the European market is just beginning to ~~January~~revive. ~~2014~~Increased automotive industry sales in Europe and pent-up demand may result in an increase in autocatalyst demand. Contrarily, a renewed downturn could reduce demand impacting the price of platinum

Jewelry demand for platinum has recovered from a low of 26% of total gross demand in 2006 to a peak of 41% of total demand in 2008. Jewelry demand has since stabilized accounting for 35% of total gross demand in 2013..

Industrial demand has averaged 21% of total demand over the past five years.

The Investment Sector

Retail investment demand has increased to 10% of total reported gross demand in 2013, returning to the previous peak of 10% in 2008. Between 2009 and 2012, investment demand averaged 6% of gross demand.

World Platinum Supply and Demand 2004-2013

The following table sets forth a summary of the world platinum supply and demand for the last ten years and is based on information reported from Johnson Matthey, Platinum 2014 Report.



(thousands of ounces)	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
Supply
South Africa	5,115	5,295	5,070	4,515	4,635	4,635	4,860	4,090	4,104	4,209
Russia	890	920	915	805	785	825	835	800	801	770
Others	635	615	615	620	605	590	790	760	762	850
Total Supply	6,640	6,830	6,600	5,940	6,025	6,050	6,485	5,650	5,667	5,829

Gross Demand
Autocatalyst	3,795	3,905	4,145	3,655	2,185	3,075	3,185	3,190	3,186	3,116
Jewelry	2,465	2,195	2,110	2,060	2,810	2,420	2,475	2,780	2,783	3,029
Industrial	1,690	1,830	1,845	1,720	1,140	1,755	1,975	1,605	1,624	1,758
Investment	15	(40)	170	555	660	655	460	455	450	871
Total Gross Demand	7,965	7,890	8,270	7,990	6,795	7,905	8,095	8,030	8,043	8,774

Recycling	(1,270)	(1,415)	(1,590)	(1,830)	(1,405)	(1,830)	(2,060)	(2,040)	(2,049)	(2,005)

Total Net Demand	6,695	6,475	6,680	6,160	5,390	6,075	6,035	5,990	5,994	6,769

Movements in Stocks	(55)	355	(80)	(220)	635	(25)	450	(340)	(327)	(940)

Source: Johnson Matthey, Platinum 2014 Report.

InHistorical ~~the~~Chart ~~second half~~ of ~~2008 platinum prices fell sharply (from a high of $2,276 per ounce in March to a low of $898 per ounce at~~ the ~~end~~Price of December) as industrial demand collapsed on the back of the global financial crisis. Prices remained weak in the first few months of 2009 as industrial activity continued to slow. As global manufacturing lead indicators started to turn up in early 2009, platinum prices began to rise. During this period, the prices of a wide range of commodities, equities and other cyclically-oriented assets also began to rebound strongly from the lows of late 2008/early 2009. As it became clear that auto sales in the US and China were rebounding on a sustainable basis, platinum and palladium continued to rise. By the end of 2009, platinum prices had risen to $1,416 per ounce, representing a 63% increase from the beginning of 2009 and 64% of the March 2008 high. The Japanese earthquake in early 2011, coupled with the unfolding of the European financial crisis with Portugal being bailed out, weighed on platinum performance in the second half of 2011. Platinum prices dropped by 26% in the six months to December 2011, from a high of $1,840 in June to a low of $1,369 in December 2011. Continued weakness in the European auto market weighed on platinum performance since then, with prices only partially recouping from 2011 lows. In 2012, platinum prices rose on the back of supply disruptions in South Africa, which accounts for over 70% of world’s supply of platinum. Given the geographical concentration of platinum supply, issues such as government intervention, geopolitical instability, unreliable infrastructure and social tensions in South Africa have the potential to substantially disrupt production for prolonged amounts of time, in turn significantly impacting prices. A strike at one of South Africa’s biggest platinum mines caused the price of platinum to rise from $1,387 to $1,709 per ounce in August 2012. At the beginning of 2013, Anglo American Platinum, the world’s biggest producer of the metal, announced its intention to close 4 mine shafts and it is looking to sell another mine complex as part of a radical overhaul of its South African operations. This statement prompted a strong reaction on platinum prices, which rose from $1,656 to $1,736 per ounce in the days following the announcement, on fears of a further tightening in platinum supply. Since then platinum prices have moved lower, returning to levels seen at the end of 2011, belying the increasingly tight underlying market

The price of platinum is volatile and fluctuations are expected to have a direct impact on the value of the Shares. However, movements in the price of platinum in the past are not a reliable indicator of future movements. The following chart illustrates the movements in the price of an ounce of platinum in US dollars from January 2005 to January 2015 and is based on information provided by Bloomberg:

In the second half of 2008 platinum prices fell sharply (from a high of $2,276 in March to a low of $898 per ounce at the end of December) as industrial demand collapsed on the back of the global financial crisis. Prices remained weak in the first few months of 2009 as industrial activity continued to slow. As global manufacturing lead indicators (such as European, US and Asian purchasing managers, indexes) started to turn up in early 2009, platinum prices began to rise. During this period, the prices of a wide range of commodities, equities and other cyclically-oriented assets also began to rebound strongly from the lows of late 2008/early 2009. As it became clear that auto sales in the US, Europe and China were rebounding on a sustainable basis, platinum and palladium continued to rise. By the end of 2009, platinum prices had risen to $1,416 per ounce, representing a 63% increase from the beginning of 2009 and 64% of the March 2008 high. The Japanese earthquake in early 2011, coupled with the unfolding of the European financial crisis with Portugal being bailed out, weighed on platinum performance in the second half of 2011. Platinum prices dropped by 26% in the six months to December 2011, from a high of $1,840 in June to a low of $1,369 in December 2011. Continued weakness in the European auto market weighed on platinum performance since then, with prices only partially recouping from 2011 lows. In 2012, platinum prices rose on the back of supply disruptions in South Africa, which accounts for over 80% of world’s supply of platinum. Given the geographical concentration of platinum supply, issues such as government intervention, geopolitical instability, unreliable infrastructure and social tensions in South Africa have the potential to substantially disrupt production for prolonged amounts of time, in turn significantly impacting prices. A strike at one of South Africa’s biggest platinum mines caused the price of platinum to rise from $1,387 to $1,709 per ounce in August 2012. At the beginning of 2013, Anglo American Platinum, the world’s biggest producer of the metal, announced its intention to close 4 mine shafts and it is

~~Palladium~~looking ~~Supply~~to sell another mine complex as part of a radical overhaul of its South African operations. This statement prompted a strong reaction on platinum prices, which rose from $1,656 to $1,736 per ounce in the days following the announcement, on fears of a further tightening in platinum supply. Since then platinum prices have moved lower, returning to levels seen at the end of 2011, belying the increasingly tight underlying market. In the first half of 2014, the longest strike in South Africa history supported the price of platinum above $1,500 per ounce but the resolution of the strike, recession fears in Europe and ~~Demand~~slow-down in much of the rest of world on the back of strength in the US dollar has pressured platinum prices to the lowest since 2009.

Platinum and palladium are the two best known metals of the six platinum group metals (PGMs). Platinum and palladium have the greatest economic importance and are found in the largest quantities. The other four iridium, rhodium, ruthenium and osmium—are produced only as co-products of platinum and palladium. PGMs are found primarily in South Africa and Russia. South Africa is the world’s leading platinum producer and the second largest palladium producer. Russia is the largest producer of palladium and most production is concentrated in the Norilsk region. All of South Africa’s production is sourced from the Bushveld Igneous Complex, which hosts the world’s largest resource of PGMs.

World Palladium Supply and Demand 2003-2012

The following table sets forth a summary of the world palladium supply and demand for the period from 2003 to 2012 and is based on information reported in the Johnson Matthey, Platinum 2013.

Palladium Supply and Demand
'000 oz	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
Supply
South Africa	2,320	2,480	2,605	2,775	2,765	2,430	2,370	2,640	2,560	2,320
Russia
Primary	2,950	4,800	3,135	3,220	3,050	2,700	2,675	2,720	2,705	2,630
Stock Sales	-	-	1,485	700	1,490	960	960	1,000	775	260
North America	935	1,035	910	985	990	910	755	590	900	895
Zimbabwe	-	-	125	135	135	140	180	220	265	265
Others	245	265	145	135	150	170	160	185	155	160
Total Supply	6,450	8,580	8,405	7,950	8,580	7,310	7,100	7,355	7,360	6,530
Demand by Application
Autocatalyst	3,450	3,790	3,865	4,015	4,545	4,465	4,050	5,580	6,155	6,705
Chemical	265	310	415	440	375	350	325	370	440	530
Dental	825	850	815	620	630	625	635	595	540	530
Electrical	900	920	1,275	1,495	1,550	1,370	1,370	1,410	1,375	1,190
Investment	30	200	220	50	260	420	625	1,095	(565)	470
Jewelry	260	930	1,490	1,140	950	985	775	595	505	445
Other	110	90	265	85	85	75	70	90	110	100
Total Gross Demand (LHS)	5,840	7,090	8,345	7,845	8,395	8,290	7,850	9,735	8,560	9,970
Total Supply with Recycling (LHS)	6,860	9,110	9,395	9,180	10,145	8,925	8,530	9,205	9,745	8,820
Balance (RHS)	1,020	2,020	1,050	1,335	1,750	635	680	(530)	1,185	(1,150)
Recycling
Autocatalyst	(410)	(530)	(625)	(805)	(1,015)	(1,140)	(965)	(1,310)	(1,695)	(1,670)
Electrical	-	-	(305)	(290)	(315)	(345)	(395)	(440)	(480)	(430)
Jewelry	-	-	(60)	(135)	(235)	(130)	(70)	(100)	(210)	(190)
Total Recycling	(410)	(530)	(990)	(1,230)	(1,565)	(1,615)	(1,430)	(1,850)	(2,385)	(2,290)
Total Net Demand	5,430	6,560	7,355	6,615	6,830	6,675	6,420	7,885	6,175	7,680
Movements in stocks	1,020	2,020	1,050	1,335	1,750	635	680	(530)	1,185	(1,150)

Palladium

World Palladium Supply and Demand

The following table sets forth a summary of the world palladium supply and demand for the period from 2004 to 2013 and is based on information reported from Johnson Matthey, Palladium 2014 Report.



(thousands of ounces)	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
Supply
South Africa	2,480	2,605	2,775	2,765	2,430	2,370	2,640	2,560	2,344	2,436
Russia	4,800	4,620	3,920	4,540	3,660	3,635	3,720	3,480	2,887	2,650
Others	1,300	1,180	1,255	1,275	1,220	1,095	995	1,320	1,328	1,446
Total Supply	8,580	8,405	7,950	8,580	7,310	7,100	7,355	7,360	6,559	6,532

Gross Demand
Autocatalyst	3,790	3,865	4,015	4,545	4,465	4,050	5,580	6,155	6,667	6,908
Jewelry	930	1,490	1,140	950	985	775	595	505	441	357
Industrial	2,170	2,770	2,640	2,640	2,420	2,400	2,465	2,465	2,318	2,181
Investment	200	220	50	260	420	625	1,095	(565)	467	(8)
Total Gross Demand	7,090	8,345	7,845	8,395	8,290	7,850	9,735	8,560	9,893	9,438

Recycling	(530)	(990)	(1,230)	(1,565)	(1,615)	(1,430)	(1,850)	(2,385)	(2,321)	(2,535)

Total Net Demand	6,560	7,355	6,615	6,830	6,675	6,420	7,885	6,175	7,572	6,903

Movements in stocks	2,020	1,050	1,335	1,750	635	680	(530)	1,185	(1,013)	(371)

Source: Johnson Matthey, Palladium 2014 Report.

Suppliers of Palladium

Palladium supply from ~~2003~~ 2004 to ~~2012~~ 2013 has averaged 7.6 million ounces with the majority of production from Russia. There was ana 1114% decrease in palladium mine supply when comparing the average five-year periods ended ~~2007~~2008 and ~~2012~~2013, at 8.02 million ounces and 7.10 million ounces, respectively. Supply from Russia, on average, accounted for approximately 50% of total supply over the ~~that~~10 year period.

As the main global supplier of palladium, Russia provided 4441% of total supply in ~~2012~~2013. ~~40%~~Virtually all of Russia’s total was supplied through newly mined palladium. AtSales ~~least since 2005 (when Johnson Matthey started to estimate this particular source~~ of ~~demand), the~~ Russian ~~government has been selling its stockpiled palladium. At its peak, the sales of Russian~~ stocks ~~contributed to 17% of total supply in 2007. Such sales~~ have dwindled down to 4%a small percentage of total mine supply, indicating a reduction in remaining stocks left to sell. South Africa is the second largest source of supply, accounting for 3637% of total supply in 2013. ~~North America contributes approximately 14% to supply while the recovery of palladium from autocatalysts has increased more than four-fold over the past ten years to account for 19% of supply in 2012.~~

North America contributes approximately 14% to mine supply while the recovery of palladium from autocatalysts has increased almost three-fold over the past ten years to account for 19% of supply in 2013.

Demand for Palladium

The biggest source of demand for palladium output over the period shown has come from the automotive industry which has accounted for an approximate average of 57 58% of all demand from ~~2003~~2004 to ~~2012~~2013. ~~However, in contribution terms (not absolute terms) autocatalyst demand has decreased from a 2011 peak of 72% to 67% by 2012.~~

Autocatalysts are the largest component of palladium demand, comprising 6773% of total demand as atof the end of ~~2012~~2013. Industrial demand (electronics, dentistry, and chemical) had fallen to a low of 23% of total demand in ~~2012~~2013 from 34% in ~~2003~~2006. Jewelry demand for palladium, which accounted for 5 4% of demand in ~~2012~~ 2013, fell from a peak of 18% of demand in 2005.

Historical Chart of the Price of Palladium

The price of palladium is volatile and fluctuations are expected to have a direct impact on the value of the Shares. However, movements in the price of palladium in the past are not a reliable indicator of future movements. The following chart illustrates the movements in the price of an ounce of palladium in US dollars from 2004 to January 2014 and is based on information provided by Bloomberg:

~~Palladium~~Historical ~~prices~~Chart ~~fell sharply during the first phase~~ of the ~~global financial crisis, when prices dropped from $579/oz in February 2008 to $173/oz in October 2008.~~ Price then rallied almost five-fold until February 2011 to $841/oz, in line with other precious metals that gained favor as investors sought to diversify their assets away from paper currencies that they felt were being debased. Adding to demand for palladium, a number of European countries had car scrappage programs, as part of their expenditure programs to counter the recession and to encourage people to replace their old vehicles with newer more environmentally-friendly ones. Demand for palladium which is used in diesel autocatalysts saw a lift from the temporary rise in European car sales. The rise in Chinese demand for cars and autocatalysts has also provided support for palladium demand. Palladium ~~prices have tempered since 2011, but concerns over supply shortages due to labor problems at mines in South Africa and dwindling Russian stocks have provided some price support since mid-2012.~~

The price of palladium is volatile and fluctuations are expected to have a direct impact on the value of the Shares. However, movements in the price of palladium in the past are not a reliable indicator of future movements. The following chart illustrates the movements in the price of an ounce of palladium in US dollars from January 2005 to January 2015 and is based on information provided by Bloomberg:

Palladium prices fell sharply during the first phase of the global financial crisis, when prices dropped from $579/oz in February 2008 to $173/oz in October 2008. Prices then rallied almost five-fold until February 2011 to $841/oz, in line with other precious metals that gained favor as investors sought to diversify their assets away from paper currencies that they felt were being debased. Adding to demand for palladium, a number of European countries had car scrappage programs, as part of their expenditure programs to counter the recession and to encourage people to replace their old vehicles with newer more environmentally-friendly ones. Demand for palladium which is used in diesel autocatalysts saw a lift from the temporary rise in European car sales. The rise in Chinese demand for cars and autocatalysts has also provided support for palladium demand. Palladium prices have tempered since 2011, but concerns over supply shortages due to labor problems at mines in South Africa and dwindling Russian stocks have provided some price support since mid-2012.

Operation of the Bullion Markets

The global trade in Bullion consists of Over-the-Counter (“OTC”) transactions in spot, forwards, and options and other derivatives, together with exchange-traded futures and options.

Global Over-The-Counter Market

The OTC market trades on a 24-hour per day continuous basis and accounts for most global Bullion trading. Market makers, as well as others in the OTC market, trade with each other and with their clients on a principal to-principal basis. All risks and issues of credit are between the parties directly involved in the transaction.

For silver, market makers include the market-making members of the London Bullion Market Association (“LBMA”), the trade association that acts as the coordinator for activities conducted on behalf of its members and other participants in the London bullion market. The ~~eleven~~fourteen market-making members of the LBMA are: Barclays Bank plc, Citibank, Credit Suisse, Deutsche Bank AG, HSBC Bank USA, N.A. (through its London branch), Goldman Sachs International, JPMorgan Chase Bank, The Bank of Nova Scotia - ScotiaMocatta, Société Générale, Merrill Lynch International Bank Limited, Mitsui & Co. Precious Metals Inc, Morgan Stanley & Co International plc, Standard Chartered Bank and UBS AG.

For platinum and palladium, ~~market~~initially ~~makers~~ten ~~include the~~ market-making members of the London Platinum and Palladium Market (“LPPM”), the trade association that acts as the coordinator for activities conducted on behalf of its members and other participants in the LPPM. ~~The~~are ~~four~~participating ~~market-making~~in ~~members of~~ the ~~LPPM~~London ~~are:~~Metal ~~BASF~~Exchange ~~Metals~~PM ~~Limited,~~Fix ~~Goldman~~(“LME ~~Sachs~~PM ~~International, HSBC Bank USA NA London Branch and Standard Bank PLC~~Fix”).

The OTC market provides a relatively flexible market in terms of quotes, price, size, destinations for delivery and other factors. Bullion dealers customize transactions to meet clients’ requirements. The OTC market has no formal structure and no open-outcry meeting place.

The main centers of the OTC market are London and New York for silver and London, New York, Hong Kong and Zurich for platinum and palladium. Mining companies, central banks, manufacturers of jewelry and industrial products, together with investors and speculators, tend to transact their business through one of these market centers. Centers such as Dubai and several cities in the Far East also transact substantial OTC market business, typically involving jewelry and bars of silver and small plates or ingots of platinum or palladium (1 kilogram or less) and will hedge their exposure by selling into one of these main OTC centers. Precious metals dealers have offices around the world and most of the world’s major bullion dealers are either members or associate members of the LBMA and/or the LPPM.

Of the ~~eleven~~fourteen market-making members of the LBMA, six offer clearing services for silver. Platinum and palladium are cleared loco Zurich by UBS AG and Credit Suisse AG. As of the date of this annual report, the six LBMA members offer loco London clearing services for platinum and palladium as well. In addition to the ~~eleven~~fourteen market making members there are a further 6062 full members, plus a number of associate members around the world. The number of LBMA market-making, clearing and full members reported in this annual report are provided as of the date of this annual report. These numbers may change from time to time as new members are added and existing members drop out.

In the OTC market for silver, the standard size of trades between market makers is 100,000 ounces.

In the OTC market for platinum and palladium, the standard size of trades between market makers is 1,000 ounces.

Liquidity in the OTC market can vary from time to time during the course of the 24-hour trading day. Fluctuations in liquidity are reflected in adjustments to dealing spreads—the differential between a dealer’s “buy” and “sell” prices. The period of greatest liquidity in the Bullion markets generally occurs at the time of day when trading in the European time zones overlaps with trading in the United States, which is when OTC market trading in London, New York, Zurich and other centers coincides with futures and options trading on the COMEX. This period lasts for approximately four hours each New York business day morning.

The Silver ~~Bullion~~ Market

The London Silver Bullion Market

Although the market for physical silver is distributed globally, most OTC market trades are cleared through London. In addition to coordinating market activities, the LBMA acts as the principal point of contact between the market and its regulators. A primary function of the LBMA is its involvement in the promotion of refining standards by maintenance of the “London Good Delivery Lists,” which are the lists of LBMA accredited melters and assayers of silver. The LBMA also coordinates market clearing and vaulting, promotes good trading practices and develops standard documentation.

The term “loco London” silver refers to silver physically held in London that meets the specifications for weight, dimensions, fineness (or purity), identifying marks (including the assay stamp of a LBMA acceptable refiner) and appearance set forth in “The Good Delivery Rules for Gold and Silver Bars” published by the LBMA. Silver bars meeting these requirements are described in this ~~annual~~prospectus ~~report~~ from time to time as “Good Delivery bars.” The unit of trade in London is the troy ounce, whose conversion between grams is: 1,000 grams equals 32.1507465 troy ounces and 1 troy ounce ~~equals 31~~ equals31.1034768 grams. A Good Delivery bar is acceptable for delivery in settlement of a transaction on the OTC market. A Good Delivery bar must contain between 750 ounces and 1,100 ounces of silver with a minimum fineness (or purity) of 999.0 parts per 1,000. A Good Delivery bar must also bear the stamp of one of the refiners who are on the LBMA-approved list. Unless otherwise specified, the silver spot price always refers to that of a Good Delivery bar. Business is generally conducted over the phone and through electronic dealing systems.

~~Once~~Since August 15, 2014, CME Group, Inc. (“CME Group”) conducts an “equilibrium auction” once daily during London trading hours ~~there~~among isLBMA-authorized aparticipating silver bullion ~~fix~~banks ~~which~~or ~~provides~~market makers (“silver participants”) that establishes a reference silver ~~prices~~price for that day’s trading, often referred to as the “London ~~Fix~~Silver Price” (RIC ~~for Silver~~Code: “LDNXAG”). Many long-term contracts will be priced on the basis of the London ~~Fix~~Silver Price, and market participants will usually refer to this price when looking for a basis for valuations. The London ~~Fix~~Silver Price, determined according to the methodologies of CME Group and disseminated by Thompson Reuters, is the ~~most~~silver valuation replacement selected by the LBMA for the London silver fix previously determined by the London Silver Market Fixing Ltd. that was discontinued on August 14, 2014. The London Silver Price has become a widely used benchmark for daily silver prices and is quoted by various financial information sources as the London silver fix was previously.

~~Three~~CME ~~market~~Group ~~making~~has ~~members~~established ofan electronic, over-the-counter, ~~LBMA~~auction ~~conduct~~market ~~the~~for silver ~~fixing~~participants ~~meeting~~that ~~under~~determines the ~~chairmanship~~London ofSilver ~~The~~Price ~~Bank~~over ofone ~~Nova~~or ~~Scotia–ScotiaMocatta~~more byauction ~~telephone~~rounds that begin at 12:00 noon London time each ~~working~~London business day. The ~~other~~London ~~two~~Silver ~~members~~Price is the result of an “equilibrium auction” because it establishes a price for a troy ounce of silver good delivery bars that will clear the maximum amount of bids and offers for silver ~~fixing~~entered by order-submitting silver participants each day. There are ~~Deutsche~~six ~~Bank~~silver AGparticipants ~~and~~who are authorized to submit orders on the CME Group electronic system: HSBC Bank USA, ~~National~~N.A. ~~Association~~(through its London branch), JPMorgan Chase Bank, The Bank of Nova Scotia-ScotiaMocatta, the Toronto Dominion Bank, Mitsui & Co Precious Metals Inc. and UBS AG. As the CME Group electronic silver auction market develops, CME Group expects to admit additional silver participants to the order submission process. Once the London Silver Price, which is calculated in US dollars, is established, Thompson Reuters disseminates that day’s London Silver Price to the markets and other market data providers such as Bloomberg via the Thompson Reuters Eikon and Elektron systems.

~~Orders~~The ~~are~~CME ~~placed~~Group ~~either~~auction ~~with~~process ~~one~~begins ~~of the three fixing members or~~ with ~~another bullion dealer who will then be in contact with~~ a ~~fixing~~notice ~~member~~of ~~during~~an ~~the~~auction ~~fixing.~~round ~~The~~issued ~~fixing~~to ~~members~~silver ~~net-off~~participants ~~all~~before ~~orders when communicating their net interest at~~ the ~~fixing.~~commencement ~~The~~of ~~fix begins with~~ the ~~fixing~~auction ~~chairman~~round ~~suggesting~~stating a ~~“trying~~silver price,” ~~reflecting~~in ~~the~~US ~~market~~dollars ~~price prevailing~~ at which the ~~opening~~auction ofround ~~the~~will ~~fix~~be conducted. ~~This~~An isauction ~~relayed~~round bylasts ~~the~~30 ~~fixing~~seconds. ~~members~~Silver toparticipants ~~their~~electronically ~~dealing~~place ~~rooms~~bid ~~which~~and ~~have~~offer ~~direct~~orders ~~communication~~at ~~with~~the ~~all~~round’s ~~interested~~stated ~~parties.~~price ~~Any~~and ~~market~~indicate ~~participant~~whether ~~may enter~~ the ~~fixing~~orders ~~process~~are atfor ~~any~~their ~~time,~~own account or ~~adjust~~for orthe ~~withdraw~~account ~~his~~of ~~order~~clients. ~~The~~All ~~silver~~auction ~~price~~round isorder ~~adjusted~~information upother orthan ~~down until all~~ the ~~buy~~identity ~~and~~of ~~sell~~those placing orders ~~are~~is ~~matched,~~displayed atelectronically ~~which~~in real time ~~the~~for ~~price~~all issilver ~~declared fixed~~participants. ~~All~~The ~~fixing~~CME ~~orders~~Group ~~are~~system ~~transacted~~administrator onwill ~~the~~observe ~~basis~~all ofauction ~~this~~round ~~fixed~~bid ~~price,~~and ~~which~~offer isorder ~~instantly~~information, ~~relayed~~including to the ~~market~~identity ~~through~~of ~~various~~those ~~media~~submitting orders. ~~The~~As ~~London~~long ~~Fix is widely viewed~~ as athe ~~full~~auction ~~and~~is ~~fair~~open, ~~representation~~silver ofparticipants ~~all~~may ~~market~~alter, ~~interest~~change ator ~~the~~withdraw ~~time~~their ~~of the fix~~orders.

At the end of the auction round, the CME Group system evaluates the equilibrium of the bid and offer orders submitted. If bid and offer orders indicate an imbalance outside of acceptable tolerances established for the CME Group system (e.g., too many purchase orders submitted compared to sell orders or vice versa), a CME Group system algorithm calculates a new auction round price principally based on the volume weighting of bid and offer orders submitted in the immediately completed auction round. For instance, if the order imbalance indicates that purchase orders (bids) outweigh sales orders (offers) then the new auction round price will be increased over that used in the prior auction round. Likewise, the new auction round price will be decreased from the prior round’s price if offers outweigh bids. To clear the imbalance, the CME Group system then issues another notice of auction round to silver participants at the newly calculated price. During this next 30 second auction round, silver participants again submit orders, and after it ends, the CME Group system evaluates for order imbalances. If order imbalances persist, an new auction price is calculated and a further auction round will occur. This auction round process continues until an equilibrium within specified tolerances is determined to exist. Once the CME Group system determines that orders are in equilibrium within system tolerances, the auction process ends and the equilibrium auction round price becomes the London Silver Price.

The London Silver Price and all bid and offer order information for all auction rounds become publicly available electronically via Thompson Reuters instantly after the conclusion of the equilibrium auction. The CME Group system also simultaneously matches bid and offer orders from the equilibrium auction for bilateral settlement among the silver participants. Orders reflecting any imbalance between bids and offers that are within the CME Group system tolerances are then allocated to the first tier participants for settlement.

The London Silver Price is viewed as a full and fair representation of all market interest at the conclusion of the equilibrium auction. The CME Group’s London Silver Price electronic auction methodology is similar to the non-electronic process previously used to establish the London silver fix where the London silver fix process adjusted the silver price up or down until all the buy and sell orders are matched, at which time the price was declared fixed. Nevertheless, the London Silver Price has several advantages over the previous London silver fix. The London Silver Price auction process is fully transparent in real time to the silver participants and, at the close of each equilibrium auction, to the general public. The London Silver Price auction process is also fully auditable by third parties since an audit trail exists from the time of each notice of an auction round. Moreover, the London Silver Price’s audit trail and active, real time surveillance of the auction process by the CME Group system administrator combined with silver participants’ agreement to abide by CME Group silver market rules and Thompson Reuters code of conduct add deterrents against manipulative and abusive conduct in establishing each day’s London Silver Price

With effect from August 15, 2014, the Sponsor determined that the London silver fix, which ceased to be published as of that date, would be an inappropriate basis for valuing silver bullion received upon purchase of the Trust’s Shares, delivered upon redemption of the Trust’s Shares and otherwise held by the Trust on a daily basis, and that the London Silver Price is an appropriate alternative for determining the value of the Trust’s silver each trading day. The Sponsor also determined that the London Silver Price will fairly represent the commercial value of silver bullion held by the Trust and that the “Benchmark Price” (as defined in Trust Agreement) as of any day will be the London Silver Price for such day.

Futures Exchanges

The most significant silver futures exchanges are the COMEX and the Tokyo Commodity Exchange (“TOCOM”). Future exchanges seek to provide a neutral, regulated marketplace for the trading of derivatives contracts for commodities. Future contracts are defined by the exchange for each commodity. For each commodity traded, this contract specifies the precise quality and quantity standards. The contract’s terms and conditions also define the location and timing of physical delivery.

An exchange does not buy or sell those contracts, but seeks to offer a transparent forum where members, on their own behalf or on the behalf of customers, can trade the contracts in a safe, efficient and orderly manner. During regular trading hours at the COMEX, the commodity contracts are traded through open outcry; a verbal auction in which all bids, offers and trades must be publicly announced to all members. Electronic trading is offered by the exchange after regular market hours. Except for brief breaks to switch between open outcry and electronic trading in the evening and the morning, silver futures trade almost 24 hours a day, five business days a week.

In addition to the public nature of the pricing, futures exchanges in the United States are regulated at two levels: internal and external governmental supervision. The internal ~~supervision~~ is performed through self-regulation and consists of regular monitoring of the following: the open-outcry process to ~~ensure~~insure that it is conducted in conformance with all exchange rules; the financial condition of all exchange member firms to ~~ensure~~insure that they continuously meet financial commitments; and the positions of commercial and non-commercial customers to ~~ensure~~insure that physical delivery and other commercial commitments can be met, and that pricing is not being improperly affected by the size of any particular customer positions. External governmental oversight is performed by the CFTC, which reviews all the rules and regulations of United States futures exchanges and monitors their enforcement.

The Platinum Market

The Zurich and London Platinum Bullion Market

Although the market for physical platinum is distributed globally, most platinum is stored and most OTC market trades are cleared through Zurich. As of September 1, 2009, London also serves as a center for the clearing of OTC trades in platinum. In addition to coordinating market activities, the LPPM acts as the principal point of contact between the market and its regulators. A primary function of the LPPM is its involvement in the promotion of refining standards by maintenance of the “London/Zurich Good Delivery Lists,” which are the lists of LPPM accredited melters and assayers of platinum. The LPPM also coordinates market clearing and vaulting, promotes good trading practices and develops standard documentation.

Platinum is traded generally on a “loco Zurich” basis, meaning the precious metal is physically held in vaults in Zurich or is transferred into accounts established in Zurich. As of September 1, 2009, platinum began trading on a “loco London” basis as well, meaning the precious metal is physically held in vaults in London or is transferred into accounts established in London. The basis for settlement and delivery of a loco Zurich spot trade is payment (generally in US dollars) two business days after the trade date against delivery. Delivery of the platinum can either be by physical delivery or through the clearing systems to an unallocated account.

The unit of trade in London and Zurich is the troy ounce, whose conversion between grams is: 1,000 grams equals 32.1507465 troy ounces, and one troy ounce equals 31.1034768 grams. A good delivery Platinum plate or ingot on the LPPM approved list is acceptable for delivery in settlement of a transaction on the OTC market (a “Good Delivery Plate or Ingot”). A Good Delivery Plate or Ingot must contain between 32 and 192 troy ounces of platinum with a minimum fineness (or purity) of 999.5 parts per 1,000 (99.95%), be of good appearance, and be easy to handle and stack. The platinum content of a platinum Good Delivery Plate or Ingot is calculated by multiplying the gross weight (expressed in units of 0.025 troy ounces) by the fineness of the plate or ingot. A Good Delivery Plate or Ingot must also bear the stamp of one of the melters and assayers who are on the LPPM approved list. Unless otherwise specified, the platinum spot price always refers to that of Good Delivery Standards set by the LPPM. Business is generally conducted over the phone and through electronic dealing systems. 13

~~Twice~~The ~~daily~~unit ~~during~~of ~~London~~trade ~~trading~~in ~~hours~~London ~~there~~and Zurich is athe ~~fix~~troy ~~which~~ounce, ~~provides~~whose ~~reference~~conversion ~~platinum~~between ~~prices~~grams ~~for~~is: ~~that~~1,000 ~~day’s~~grams is ~~trading~~equivalent to 32.1507465 troy ounces, ~~often~~and ~~referred~~one troy ounce is equivalent to as31.1034768 grams. A good delivery Platinum plate or ingot is acceptable for delivery in settlement of a transaction on the OTC market (a “~~London~~Good ~~Fix”~~Delivery ~~for~~Plate ~~platinum~~or Ingot”). A Good ~~Many~~Delivery ~~long-term~~plate ~~contracts~~or ~~will~~ingot bemust ~~priced~~contain onbetween ~~the~~32 ~~basis~~and 192 troy ounces of ~~either~~platinum ~~the~~with ~~morning~~a minimum fineness (AMor purity) orof ~~afternoon~~999.5 parts per 1,000 (PM99.95%), ~~London~~be ~~Fix~~of good appearance, and ~~market~~be ~~participants~~easy ~~will~~to ~~usually~~handle ~~refer~~and tostack. ~~one~~The platinum content of a platinum Good Delivery Plate or Ingot is calculated by multiplying the ~~other~~gross weight (expressed in units of ~~these~~0.025 ~~prices~~troy ~~when~~ounces) ~~looking~~by ~~for~~the afineness ~~basis~~of ~~for~~the ~~valuations~~plate or ingot. ~~The~~A ~~London~~Good ~~Fix~~Delivery Plate or Ingot must isalso bear the ~~most~~stamp ~~widely~~of ~~used~~one ~~benchmark~~of ~~for~~the ~~daily~~melters and assayers who are on the LPPM approved list. Unless otherwise specified, the platinum ~~prices~~spot ~~and~~price isalways ~~quoted~~refers to that of Good Delivery Standards set by ~~various~~the ~~financial~~LPPM. ~~information~~Business ~~sources~~is generally conducted over the phone and through electronic dealing systems.

~~Formal~~On December ~~participation~~1, in2014, the ~~London~~LME began ~~Fix~~administering isthe operation ~~traditionally~~of ~~limited~~electronic platinum tobullion ~~four~~price fixing ~~members,~~systems ~~each~~(LMEbullion) ofthat ~~which~~replicates iselectronically athe manual ~~bullion~~London platinum ~~dealer~~fix processes previously employed by the London Platinum and aPalladium ~~member~~Fixing ofCompany ~~the~~Ltd ~~LPPM.~~(“LPPFCL”) ~~The~~as ~~chairmanship~~well ~~now~~as ~~rotates~~providing electronic ~~annually~~market ~~among~~clearing processes for platinum bullion transactions at the ~~four~~fixed ~~member~~prices ~~firms.~~established by the LME pricing mechanism. The ~~morning~~LME’s ~~session~~electronic ofprice fixing processes, like the previous London platinum fix processes, ~~starts~~establishes and publishes fixed prices for troy ounces of platinum twice each London trading day during fixing sessions beginning at 9:45 AMa.m. London time ~~and~~ (the ~~afternoon~~LME ~~session~~AM ~~starts~~Fix) and at 2:00 PMp.m. London time (the LME PM Fix). In ~~The~~addition ~~members~~to ofutilizing the ~~LPPM~~same ~~fixing~~London platinum ~~are~~fix standards ~~currently:~~and ~~Goldman~~methods, ~~Sachs~~the ~~International,~~LME ~~BASF~~also ~~Metals~~supervises ~~Limited,~~the ~~HSBC~~platinum ~~Bank~~electronic ~~USA~~price ~~N.A.~~fixing ~~(London~~processes ~~branch),~~through ~~and~~its ~~Standard~~market ~~Bank~~operations, ~~PLC.~~compliance, ~~Any~~internal ~~other~~audit ~~market~~and ~~participant~~third-party ~~wishing~~complaint tohandling ~~participate~~capabilities in order to support the ~~trading~~integrity onof the ~~fix~~LME isPM ~~required~~Fix. The toLME, doin soadministering LMEbullion, uses a ~~through~~pricing ~~one~~methodology ofthat meets the ~~four~~administrative and regulatory needs of platinum ~~fixing~~market ~~members.~~participants, including the International Organization of Securities Commissions’ (IOSCO) Principles for Financial Benchmarks.

~~Orders~~Daily ~~are~~during ~~placed~~London ~~either~~trading ~~with one of~~ hours the ~~four~~LME ~~fixing~~AM ~~members~~Fix orand ~~with~~the ~~another~~LME ~~precious~~PM ~~metals~~Fix each provide ~~dealer~~reference ~~who~~platinum ~~will~~prices ~~then~~for bethat inday’s ~~contact with a fixing member during the fixing~~trading. ~~The~~Many ~~fixing members net~~long-~~off~~term ~~all~~contracts ~~orders~~are ~~when~~priced ~~communicating~~on ~~their~~the ~~net~~basis ~~interest~~of ateither the LME ~~fixing.~~AM ~~The~~Fix ~~fix~~or ~~begins with~~ the ~~fixing~~LME ~~chairman~~PM ~~suggesting a “trying price~~Fix,” ~~reflecting~~and ~~the~~ market ~~price~~participants ~~prevailing~~will atusually ~~the~~refer ~~opening of the fix. This is relayed by the fixing members~~ to ~~their~~one ~~dealing~~or ~~rooms which have direct communication with all interested parties. Any market participant may enter~~ the ~~fixing~~other ~~process~~of atthese ~~any~~prices ~~time,~~when orlooking ~~adjust~~for ora ~~withdraw~~basis ~~his~~for ~~order~~valuations. The LME ~~platinum~~AM ~~price~~Fix isand ~~adjusted up or down until all~~ the LME ~~buy~~PM ~~and sell orders~~ Fix are viewed ~~matched,~~as ata ~~which~~full ~~time~~and ~~the~~fair ~~price~~representation isof ~~declared~~all ~~fixed.~~market ~~All~~interest ~~fixing~~at ~~orders are transacted on~~ the ~~basis~~conclusion of ~~this~~the electronic ~~fixed~~ price, ~~which is instantly relayed to the market through various media~~fixing process. The ~~London~~Trust ~~Fix~~values isits ~~widely~~platinum on ~~viewed~~the asbasis ~~a full and fair representation~~ of ~~all market interest at~~ the ~~time~~LME ofPM ~~the fix~~Fix.

The LME PM Fix results from LMEbullion. Formal participation in the LME PM Fix is limited to participating LPPM members, each of which is a bullion dealer. Initially, ten LPPM members participated in establishing the LME PM Fix. Any other market participant wishing to participate in the trading on the LME PM Fix is required to do so through one of the participating LPPM members.

Orders are placed either with one of the participating LPPM members or with another precious metals dealer who will then be in contact with a participating LPPM member during the fixing. The fixing members net-off all orders when communicating their net interest at the fixing. The fix begins with the LMEbullion system suggesting a “trying price,” reflecting the market price prevailing at the opening of the fix. This is relayed by the fixing members to their dealing rooms which have direct communication with all interested parties. Any market participant may enter the fixing process at any time, or adjust or withdraw his order. The platinum price is adjusted up or down until all the buy and sell orders are electronically matched, at which time the price is declared fixed. All fixing orders are transacted on the basis of this fixed price, which is instantly relayed to the market through various media.

The LPPFCL, the LBMA and the LME have asserted that the LME’s electronic price fixing processes are similar to the non-electronic processes previously used to establish the applicable London platinum fix where the London platinum fix process adjusted the platinum price up or down until all the buy and sell orders entered by the participating LPPM members are matched, at which time the price was declared fixed. Nevertheless, the LME PM Fix has several advantages over the previous London platinum fix. The LME’s electronic price fixing processes are fully transparent. The LME asserts that its electronic price fixing processes also will be fully auditable by third parties since an audit trail exists from the beginning of each fixing session. The LME also asserts that the market operation, compliance, internal audit and third-party complaint handling capabilities of the LME will support the integrity of the LME PM Fix.

Commencing December 1, 2014, the Sponsor determined that that the London platinum fix, which has been revised based on the new LME method and is now known as the LME PM Fix, will be an appropriate basis for valuing platinum bullion received upon purchase of the Trust’s Shares, delivered upon redemption of the Trust’s Shares and for determining the value of the Trust’s platinum bullion each trading day. The “Benchmark Price” (as defined in the Trust Agreement) of the Trust’s platinum bullion as of any day will be the LME PM Fix for such day.

As of December 1, 2014, the LPPFCL transferred ownership of the historic and future intellectual property of the twice daily “fix” for platinum and palladium to a subsidiary company of the LBMA.

Futures Exchanges

The most significant platinum futures exchanges are the COMEX and the TOCOM. The COMEX is the largest exchange in the world for trading precious metals futures and options and launched Platinum futures in 1956, followed with options in 1990. The TOCOM has been trading platinum since 1984. Trading on these exchanges is based on fixed delivery dates and transaction sizes for the futures and options contracts traded. Trading costs are negotiable. As a matter of practice, only a small percentage of the futures market turnover ever comes to physical delivery of the platinum represented by the contracts traded. Both exchanges permit trading on margin. Margin trading can add to the speculative risk involved given the potential for margin calls if the price moves against the contract holder. The COMEX operates through a central clearance system. On June 6, 2003, the TOCOM adopted a similar clearance system. In each case, the exchange acts as a counterparty for each member for clearing purposes.

The Palladium Market

The Zurich and London Palladium Bullion Markets

Although the market for physical palladium is distributed globally, most palladium is stored and most OTC market trades are cleared through Zurich. As of September 1, 2009, London also serves as a center for the clearing of OTC trades in palladium. In addition to coordinating market activities, the LPPM acts as the principal point of contact between the market and its regulators. A primary function of the LPPM is its involvement in the promotion of refining standards by maintenance of the “London/Zurich Good Delivery Lists,” which are the lists of LPPM accredited melters and assayers of palladium. The LPPM also coordinates market clearing and vaulting, promotes good trading practices and develops standard documentation. Palladium is traded generally on a loco Zurich basis, meaning the precious metal is physically held in vaults in Zurich or is transferred into accounts established in Zurich. As of September 1, 2009, palladium began trading on a loco London basis as well, meaning the precious metal is physically held in vaults in London or is transferred into accounts established in London. The basis for settlement and delivery of a loco Zurich spot trade is payment (generally in US dollars) two business days after the trade date against delivery. Delivery of the palladium can either be by physical delivery or through the clearing systems to an unallocated account.

Palladium is traded generally on a loco Zurich basis, meaning the precious metal is physically held in vaults in Zurich or is transferred into accounts established in Zurich. As of September 1, 2009, palladium began trading on a loco London basis as well, meaning the precious metal is physically held in vaults in London or is transferred into accounts established in London. The basis for settlement and delivery of a loco Zurich spot trade is payment (generally in US dollars) two business days after the trade date against delivery. Delivery of the palladium can either be by physical delivery or through the clearing systems to an unallocated account.

The unit of trade in London and Zurich is the troy ounce, whose conversion between grams is: 1,000 grams equals 32.1507465 troy ounces, and one troy ounce equals 31.1034768 grams. A good delivery palladium plate or ingot on the LPPM-approved list is acceptable for delivery in settlement of a transaction on the OTC market (“a “Good Delivery Plate or Ingot”). A Good Delivery Plate or Ingot must contain between 32 and 192 troy ounces of palladium with a minimum fineness (or purity) of 999.5 parts per 1,000 (99.95%), be of good appearance, and be easy to handle and stack. The palladium content of a palladium Good Delivery Plate or Ingot is calculated by multiplying the gross weight (expressed in units of 0.025 troy ounces) by the fineness of the plate or ingot. A Good Delivery Plate or Ingot must also bear the stamp of one of the melters and assayers who are on the LPPM approved list. Unless otherwise specified, the palladium spot price always refers to that of Good Delivery Standards set by the LPPM. Business is generally conducted over the phone and through electronic dealing systems.

~~Twice~~On December ~~daily~~1, ~~during~~2014, ~~London~~the ~~trading~~LME began ~~hours~~administering ~~there~~LMEbullion isthat areplicatse electronically the manual London palladium fix processes ~~which~~previously ~~provides~~employed ~~reference~~by the LPPFCL as well as providing electronic market clearing processes for palladium bullion transactions at the fixed prices ~~for~~established ~~that~~by ~~day~~the LME pricing mechanism. The LME’s ~~trading~~electronic ~~often~~price ~~referred~~fixing toprocesses, aslike the “ previous London palladium ~~Fix”~~fix processes, establishes and publishes fixed prices for ~~Palladium.~~troy ~~Many~~ounces ~~long-term~~of palladium twice ~~contracts~~each ~~will~~London betrading ~~priced~~day onduring ~~the~~fixing ~~basis~~sessions ofbeginning ~~either~~at ~~the~~9:45 ~~morning~~a.m. London time (the LME AM Fix) and or2:00 ~~afternoon~~p.m. London time (the LME PM Fix). In addition to utilizing the same London palladium ~~Fix,~~fix standards and methods, the LME also supervises the palladium electronic price fixing processes through its market ~~participants~~operations, ~~will~~compliance, ~~usually~~internal ~~refer~~audit toand ~~one~~third-party orcomplaint handling capabilities in order to support the ~~other~~integrity of ~~these~~the ~~prices~~LME ~~when~~PM ~~looking~~Fix. The ~~for~~LME, ain ~~basis~~administering ~~for~~LMEbullion, ~~valuations.~~uses ~~The~~a ~~London~~pricing ~~Fix~~methodology isthat meets the ~~most~~administrative ~~widely~~and ~~used~~regulatory ~~benchmark~~needs ~~for~~of ~~daily~~ palladium ~~prices~~market ~~and~~participants, isincluding ~~quoted~~the byInternational ~~various~~Organization ~~financial~~of ~~information~~Securities ~~sources.~~Commissions’ (IOSCO) Principles for Financial Benchmarks.

~~Formal~~Daily ~~participation~~during ~~in the~~ London ~~Fix~~trading ishours the ~~traditionally~~LME ~~limited~~AM toFix ~~four~~and ~~fixing~~the ~~members,~~LME PM Fix each provide ofreference palladium prices ~~which~~for isthat aday’s ~~bullion dealer and a member of the LPPM~~trading. ~~The~~Many ~~chairmanship~~long-term ~~now~~contracts ~~rotates~~are ~~annually~~priced ~~among~~on the ~~four~~basis ~~member firms. The morning session~~ of either the LME ~~London~~AM Fix ~~starts~~or atthe ~~9:45~~LME AMPM ~~London~~Fix, ~~time~~ and ~~the~~market ~~afternoon~~participants ~~session~~usually ~~starts~~refer atto ~~2:00~~one PMor ~~London~~the ~~time.~~other ~~The~~of ~~members~~these ofprices ~~the~~when ~~LPPM~~looking ~~fixing~~for ~~are~~a ~~currently:~~basis ~~Goldman~~for ~~Sachs~~valuations. The LME ~~International,~~AM ~~BASF~~Fix ~~Metals~~and ~~Limited,~~the ~~HSBC~~LME ~~Bank~~PM ~~USA~~Fix are ~~N.A.~~viewed ~~(London~~as ~~branch),~~a full and ~~Standard~~fair ~~Bank~~representation ~~PLC.~~of ~~Any~~all ~~other~~ market ~~participant~~interest ~~wishing~~at tothe ~~participate~~conclusion inof the electronic ~~trading~~price onfixing ~~the~~process. The ~~fix~~Trust isvalues ~~required~~its topalladium doon sothe ~~through~~basis ~~one~~ of the ~~four~~LME ~~palladium~~PM ~~fixing members~~Fix.

~~Orders are placed either with one of the four fixing members or with another precious metals dealer who will then be in contact with a fixing member during the fixing.~~ The ~~fixing~~LME ~~members~~PM ~~net-off~~Fix ~~all~~results ~~orders when communicating their net interest at the fixing~~from LMEbullion. Formal ~~The~~participation ~~fix~~in ~~begins with~~ the LME ~~fixing~~PM Fix ~~chairman~~is ~~suggesting~~limited ato participating ~~“trying price~~LPPM members,” ~~reflecting~~each ~~the market price prevailing at the opening~~ of ~~the~~which ~~fix. This~~ is ~~relayed~~a bybullion ~~the~~dealer. Initially, ~~fixing~~ten LPPM members toparticipated ~~their~~in ~~dealing~~establishing ~~rooms~~the ~~which~~LME ~~have~~PM ~~direct communication with all interested parties~~Fix. Any other market participant ~~may~~wishing ~~enter~~to ~~the~~participate ~~fixing~~in ~~process at any time, or adjust or withdraw his order. The palladium price is adjusted up or down until all~~ the ~~buy~~trading ~~and sell orders are matched, at which time the price is declared fixed. All fixing orders are transacted~~ on the LME ~~basis~~PM ofFix ~~this fixed price, which~~ is ~~instantly~~required ~~relayed~~ to ~~the~~do ~~market~~so through ~~various~~one ~~media. The London Fix is widely viewed as a full and fair representation~~ of ~~all market interest at~~ the participating ~~time of the fix~~LPPM members.

Orders are placed either with one of the participating LPPM members or with another precious metals dealer who will then be in contact with a participating LPPM member during the fixing. The fixing members net-off all orders when communicating their net interest at the fixing. The fix begins with the LMEbullion system suggesting a “trying price,” reflecting the market price prevailing at the opening of the fix. This is relayed by the fixing members to their dealing rooms which have direct communication with all interested parties. Any market participant may enter the fixing process at any time, or adjust or withdraw his order. The palladium price is adjusted up or down until all the buy and sell orders are electronically matched, at which time the price is declared fixed. All fixing orders are transacted on the basis of this fixed price, which is instantly relayed to the market through various media.

The LPPFCL, LBMA and the LME have asserted that the LME’s electronic price fixing processes are similar to the non-electronic processes previously used to establish the applicable London palladium fix where the London palladium fix process adjusted the palladium price up or down until all the buy and sell orders entered by the participating LPPM members are matched, at which time the price was declared fixed. Nevertheless, the LME PM Fix has several advantages over the previous London palladium fix. The LME’s electronic price fixing processes are fully transparent. The LME asserts that its electronic price fixing processes also will be fully auditable by third parties since an audit trail exists from the beginning of each fixing session. The LME also asserts that the market operation, compliance, internal audit and third-party complaint handling capabilities of the LME will support the integrity of the LME PM Fix.

Commencing December 1, 2014, the Sponsor determined that that the London palladium fix, which has been revised based on the new LME method and is now known as the LME PM Fix, will be an appropriate basis for valuing palladium bullion received upon purchase of the Trust’s Shares, delivered upon redemption of the Trust’s Shares and for determining the value of the Trust’s palladium bullion each trading day. The “Benchmark Price” (as defined in the Trust Agreement) of the Trust’s palladium bullion as of any day will be the LME PM Fix for such day.

As of December 1, 2014, the LPPFCL transferred ownership of the historic and future intellectual property of the twice daily “fix” for platinum and palladium to a subsidiary company of the LBMA.

Futures Exchanges

The most significant palladium futures exchanges are the COMEX and the TOCOM. The COMEX is the largest exchange in the world for trading precious metals futures and options and launched palladium futures in 1968, followed by options in 2010. The TOCOM has been trading palladium since 1992. Trading on these exchanges is based on fixed delivery dates and transaction sizes for the futures and options contracts traded. Trading costs are negotiable. As a matter of practice, only a small percentage of the futures market turnover ever comes to physical delivery of the palladium represented by the contracts traded. Both exchanges permit trading on margin. Margin trading can add to the speculative risk involved given the potential for margin calls if the price moves against the contract holder. The COMEX operates through a central clearance system. On June 6, 2003, the TOCOM adopted a similar clearance system. In each case, the exchange acts as a counterparty for each member for clearing purposes.

Market Regulation

The global silver, platinum and palladium markets are overseen and regulated by both governmental and self-regulatory organizations. In addition, certain trade associations have established rules and protocols for market practices and participants. In the United Kingdom, responsibility for the regulation of the financial market participants, including the major participating members of the LBMA and the LPPM, falls under the authority of the Financial Conduct Authority (“FCA”) as provided by the Financial Services and Markets Act 2000 (“FSM Act”). Under this act, all UK-based banks, together with other investment firms, are subject to a range of requirements, including fitness and properness, capital adequacy, liquidity, and systems and controls.

The FCA is responsible for regulating investment products, including derivatives, and those who deal in investment products. Regulation of spot, commercial forwards, and deposits of Bullion not covered by the FSM Act is provided for by The London Code of Conduct for Non-Investment Products, which was established by market participants in conjunction with the Bank of England.

The TOCOM has authority to perform financial and operational surveillance on its members’ trading activities, scrutinize positions held by members and large-scale customers, and monitor the price movements of futures markets by comparing them with cash and other derivative markets’ prices. To act as a Futures Commission Merchant Broker on the TOCOM, a broker must obtain a license from Japan’s Ministry of Economy, Trade and Industry (“METI”), the regulatory authority that oversees the operations of the TOCOM.

Secondary Market Trading

Valuation of Bullion and Computation of Net Asset Value

On each ~~business~~ day that the NYSE Arca is open for regular trading, as promptly as practicable after 4:00 p.m., New York time, on such day (~~the~~ “Evaluation Time”), the Trustee ~~evaluates~~will evaluate the Bullion held by the Trust and ~~determines~~determine ~~the~~both ~~NAV of~~ the ~~Trust.~~ANAV ~~For~~and the ~~purposes~~NAV of ~~making~~the ~~these calculations, a business day means any day other than a day when NYSE Arca is closed for regular trading~~Trust.

At the Evaluation Time, the Trustee will value the Trust’s Bullion on the basis of that day’s “London Metal ~~Fix”~~ Price for such metal ~~(the applicable fix for each metal of the price of an ounce of such metal and is performed in London, England by fixing members of the LBMA~~ or ~~LPPM~~, asif ~~applicable). If~~ no London Metal ~~Fix~~ Price is made for a metal on such day or has not been announced by the Evaluation Time, the next most recent London Metal ~~Fix~~Price announced for such metal determined prior to the Evaluation Time will be used, unless the Sponsor determines that such price is inappropriate as a basis for evaluation. In the event the Sponsor determines that the applicable London Metal ~~Fix~~ Price or such other publicly available price as the Sponsor may deem fairly represents the commercial value of the Trust’s Bullion metal is not an appropriate basis for evaluation of the Trust’s Bullion metal, it shall identify an alternative basis for such evaluation to be employed by the Trustee. Neither the Trustee nor the Sponsor shall be liable to any person for the determination that the London Metal ~~Fix~~ Price or such other publicly available price is not appropriate as a basis for evaluation of the Trust’s Bullion or for any determination as to the alternative basis for such evaluation provided that such determination is made in good faith. See “Operation of the Bullion Markets” for a description of the London Metal Price for each Bullion metal.

~~Silver~~Once ~~held by~~ the ~~Trust~~value ~~will be valued on the basis~~ of the ~~price~~Bullion ofhas anbeen ~~ounce~~determined, ofthe ~~silver~~Trustee aswill ~~set~~subtract atall ~~approximately~~estimated ~~12:00~~accrued ~~noon~~but ~~London~~unpaid ~~time~~fees ~~and~~(other ~~performed~~than inthe ~~London~~fees byaccruing ~~three~~for ~~market~~such ~~making~~day ~~members~~on ofwhich the ~~LBMA.~~valuation ~~Platinum~~takes ~~held~~place computed by ~~the~~reference ~~Trust~~to ~~will be valued on~~ the ~~basis~~value of the ~~price~~Trust ofor anits ~~ounce~~assets), ofexpenses ~~platinum~~and asother ~~set~~liabilities byof the ~~afternoon~~Trust ~~session~~from of the ~~twice~~total ~~daily~~value ~~fix~~ of the ~~price~~Bullion ~~of an ounce of platinum which starts at 2:00 PM London, England time~~ and isall ~~performed~~other inassets ~~London by the four fixing members~~ of the ~~LPPM. Palladium held by the~~ Trust ~~will~~(other bethan ~~valued~~any onamounts ~~the~~credited ~~basis~~to of the ~~price~~Trust’s ofreserve anaccount, ~~ounce~~if ofestablished). ~~palladium~~The asresulting ~~set~~figure byis the ~~afternoon~~ANAV ~~session~~ of the ~~twice~~Trust. ~~daily~~The ~~fix~~ANAV of the ~~price~~Trust ~~of an ounce of palladium which starts at 2:00 PM London, England time and~~ is ~~performed~~used into ~~London~~compute by the ~~four~~Sponsor’s ~~fixing members of the LPPM~~Fee.

~~Once~~All fees accruing for the ~~value~~day ofon ~~Bullion~~which ~~has~~the ~~been~~valuation ~~determined,~~takes place computed by reference to the ~~Trustee~~value ~~will~~of ~~subtract~~the ~~all~~Trust ~~estimated~~or ~~accrued~~its ~~but~~assets ~~unpaid~~shall ~~fees~~be ~~(other~~calculated ~~than~~using the ~~fees~~ANAV ~~accruing~~calculated for such day on which the valuation takes place. ~~that~~The ~~are~~Trustee ~~computed~~shall bysubtract ~~reference~~from tothe ANAV the ~~value~~amount of ~~the~~accrued ~~Trust~~fees orso ~~its~~computed ~~assets),~~for ~~and~~such ~~other~~day ~~liabilities~~and of the ~~Trust~~resulting ~~from~~figure is the ~~total~~NAV ~~value~~ of the ~~Bullion~~Trust. ~~and~~The ~~all~~Trustee ~~other~~will ~~assets~~also ofdetermine the ~~Trust~~NAV ~~(other~~per ~~than~~Share ~~any~~by ~~amounts~~dividing ~~credited~~the toNAV of the Trust’s ~~reserve~~by ~~account,~~the ifnumber ~~established).~~of ~~The~~the ~~resulting~~Shares ~~figure~~outstanding isas of the ~~adjusted~~close ~~net~~of ~~asset~~trading ~~value~~on (the ~~“ANAV”)~~NYSE ofArca ~~the~~(which ~~Trust.~~includes ~~The~~the ~~ANAV~~net number of ~~the~~any ~~Trust~~Shares iscreated ~~used~~or toredeemed ~~compute~~on ~~the~~such ~~Sponsor’s~~evaluation ~~Fee~~day).

~~All fees accruing for the day on which the valuation takes place that are computed by reference to the value of the Trust or its assets shall be calculated using the ANAV calculated for such day.~~ The Trustee’s ~~shall~~estimation ~~subtract from the ANAV the amount~~ of accrued ~~fees~~but sounpaid ~~computed~~fees, ~~for~~expenses ~~such~~and ~~day~~liabilities ~~and~~will ~~the~~be ~~resulting~~conclusive ~~figure~~upon isall ~~the~~persons ~~NAV~~interested ofin the Trust. ~~The~~and ~~Trustee~~no ~~also~~revision ~~determines~~or ~~the~~correction ~~NAV~~in ~~per~~any ~~Share~~computation bymade ~~dividing~~under the ~~NAV of the~~ Trust byAgreement ~~the~~will ~~number~~be ofrequired ~~the~~by ~~Shares~~reason ~~outstanding as~~ of ~~the close of trading on the NYSE Arca (which includes the net number of~~ any ~~Shares~~difference ~~created~~in oramounts ~~redeemed~~estimated onfrom ~~such~~those ~~evaluation~~actually ~~day)~~paid.

The Sponsor and the Shareholders may rely on any evaluation furnished by the Trustee, and the Sponsor will have no responsibility for the evaluation’s ~~estimation~~accuracy. ofThe ~~accrued~~determinations ~~but~~the ~~unpaid~~Trustee ~~fees,~~makes ~~expenses~~will ~~and~~be ~~liabilities~~made isin ~~conclusive~~good faith upon ~~all~~the ~~persons~~basis ~~interested~~of, inand the ~~Trust~~Trustee ~~and~~will nonot ~~revision~~be orliable ~~correction~~for any errors contained in, ~~any~~information ~~computation~~reasonably ~~made~~available ~~under~~to ~~the~~it. ~~Trust~~The ~~Agreement~~Trustee will not be ~~required~~liable byto ~~reason~~the ofSponsor, DTC, Authorized Participants, the Shareholders or any ~~difference~~other person for errors in ~~amounts~~judgment. ~~estimated~~However, the preceding liability exclusion will not protect the Trustee against any liability resulting from ~~those~~bad ~~actually~~faith ~~paid~~or gross negligence in the performance of its duties.

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Trust Expenses

The Trust’s only ordinary recurring expense is the Sponsor’s Fee. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s monthly fee and out-of-pocket expenses, the Custodian’s fee and reimbursement of the Custodian’s expenses under the Custody Agreements (defined below), Exchange listing fees, SEC registration fees, printing and mailing costs, audit fees and up to $100,000 per annum in legal expenses. The Sponsor also paid the costs of the Trust’s organization and the initial sale of the Shares, including the applicable SEC registration fees.

The Sponsor’s Fee accrues daily at an annualized rate equal to 0.60% of the ANAV of the Trust and is payable monthly in arrears. The Sponsor’s Fee is paid by delivery of Bullion to an account maintained by the Custodian for the Sponsor on an unallocated basis.

The Trustee will, when directed by the Sponsor, and, in the absence of such direction, may, in its discretion, sell Bullion in such quantity and at such times as may be necessary to permit payment in cash of Trust expenses not assumed by the Sponsor. The Trustee is authorized to sell Bullion at such times and in the smallest amounts required to permit such payments as they become due, it being the intention to avoid or minimize the Trust’s holdings of assets other than Bullion. Accordingly, the amount of Bullion to be sold will vary from time to time depending on the level of the Trust’s expenses and the market price of silver, platinum and palladium. The Custodian is authorized to purchase from the Trust, at the request of the Trustee, Bullion needed to cover Trust expenses not assumed by the Sponsor at the price used by the Trustee to determine the value of the Bullion held by the Trust on the date of the sale.

The Sponsor’s Fee for the year ended December 31, ~~2013~~2014 was $~~198~~156,~~907~~284 (December 31, ~~2012~~2013: $~~239~~198,~~748~~907; period ended December 31, ~~2011~~2012: $~~354~~239,~~354~~748).

Deposit of Bullion; Issuance of Shares

The Trust creates and redeems Shares from time to time, but only in one or more Baskets of 50,000 Shares. Only registered broker-dealers who have entered into written agreements with the Sponsor and the Trustee (each an “Authorized Participant”) can deposit Bullion in the specified proportion of silver, platinum and palladium and receive Baskets of Shares in exchange. The creation and redemption of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of Bullion represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received.

All Bullion deposited with the Custodian or for the Custodian by the Zurich Sub-Custodian must conform to the rules, regulations practices and customs of the LBMA and LPPM, including the specifications for a London Good Delivery Bar and Plate or Ingot.

Creation and redemption orders are accepted on “business days” the NYSE Arca is open for regular trading. Settlements of such orders requiring receipt or delivery, or confirmation of receipt or delivery, of Bullion in the United Kingdom, Zurich or another jurisdiction will occur on “business days” when (1) banks in the United Kingdom, Zurich or such other jurisdiction and (2) the London or Zurich Bullion markets are regularly open for business. If such banks or the London or Zurich Bullion markets are not open for regular business for a full day, such a day will only be a “business day” for settlement purposes if the settlement procedures can be completed by the end of such day.

On any business day, an Authorized Participant may place an order with the Trustee to purchase one or more Baskets. Purchase orders must be placed no later than 3:59:59 p.m. on each business day the NYSE Arca is open for regular trading. A purchase order so received is effective on the date it is received in satisfactory form by the Trustee. By placing a purchase order, an Authorized Participant agrees to deposit Bullion with the Trust, as described below. Prior to the delivery of Baskets for a purchase order, the Authorized Participant must also have wired to the Trustee the non-refundable transaction fee due for the purchase order (as explained under “Creation and Redemption Transaction Fee” below).

An Authorized Participant who places a purchase order is responsible for crediting its Authorized Participant Unallocated Account, either loco London or loco Zurich, with the required Bullion deposit amount in the specified proportion of silver, platinum and palladium by the third business day in London or Zurich following the purchase order date. Upon receipt of the Bullion deposit amount, the Custodian, after receiving appropriate instructions from the Authorized Participant and the Trustee, will transfer on the third business day following the purchase order date the Bullion deposit amount from the Authorized Participant Unallocated Account to the unallocated Bullion account of the Trust established with the Custodian under the Unallocated Account Agreement between the Trustee and the Custodian (the “Trust Unallocated Account”) and the Trustee will direct the Depository Trust Company (the “DTC”) to credit the number of Baskets ordered to the Authorized Participant’s DTC account. Acting on standing instructions given by the Trustee, the Custodian will transfer the Bullion deposit amount from the Trust Unallocated Account to the allocated Bullion account of the Trust established with the Custodian under the Allocated Account Agreement between the Trustee and the Custodian (the “Trust Allocated Account”), by transferring specific Bullion bars and plates or ingots from its inventory or the inventory of the Zurich Sub-Custodian to the Trust Allocated Account. The Trust’s Unallocated Account Agreement and Allocated Account Agreement are referred to collectively as the “Custody Agreements.”

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of the Trust established with the Custodian under the Allocated Account Agreement between the Trustee and the Custodian (the “Trust Allocated Account”), by transferring specific Bullion bars and plates or ingots from its inventory or the inventory of the Zurich Sub-Custodian to the Trust Allocated Account. The Trust’s Unallocated Account Agreement and Allocated Account Agreement are referred to collectively as the “Custody Agreements.”

Withdrawal of Bullion; Redemption of Shares

The procedures by which an Authorized Participant can redeem one or more Baskets mirror the procedures for the creation of Baskets. On any business day, an Authorized Participant may place an order with the Trustee to redeem one or more Baskets. Redemption orders must be placed no later than 3:59:59 p.m. on each business day the NYSE Arca is open for regular trading. A redemption order so received is effective on the date it is received in satisfactory form by the Trustee. The redemption procedures allow Authorized Participants to redeem Baskets and do not entitle an individual owner of beneficial interests in the Shares (a “Shareholder”) to redeem any Shares in an amount less than a Basket, or to redeem Baskets other than through an Authorized Participant.

By placing a redemption order, an Authorized Participant agrees to deliver the Baskets to be redeemed through DTC’s book-entry system to the Trust not later than the third business day following the effective date of the redemption order. Prior to the delivery of the redemption distribution for a redemption order, the Authorized Participant must also have wired to the Trustee the non-refundable transaction fee due for the redemption order (as explained under “Creation and Redemption Transaction Fee” below).

The redemption distribution from the Trust consists of a credit to the redeeming Authorized Participant’s Authorized Participant Unallocated Account, either loco London or loco Zurich, representing the amount of the Bullion (in the specified proportion of silver, platinum and palladium) held by the Trust evidenced by the Shares being redeemed. Fractions of a fine ounce of Bullion included in the redemption distribution smaller than 0.001 of a fine ounce are disregarded. Redemption distributions are subject to the deduction of any applicable tax or other governmental charges which may be due.

Creation and Redemption Transaction Fee

To compensate the Trustee for services in processing the creation and redemption of Baskets, an Authorized Participant is required to pay a transaction fee to the Trustee of $500 per order to create or redeem Baskets. An order may include multiple Baskets. The transaction fee may be reduced, increased or otherwise changed by the Trustee with the consent of the Sponsor. The Trustee shall notify DTC of any agreement to change the transaction fee and will not implement any increase in the fee for the redemption of Baskets until 30 days after the date of the notice.

The Sponsor

The Sponsor is a Delaware limited liability company. The Sponsor’s office is located at Ordnance House, 31 Pier Road, St. Helier, Jersey JE4 8PW, Channel Islands. Under the Delaware Limited Liability Company Act and the governing documents of the Sponsor, the sole member of the Sponsor, ETF Securities Limited, is not responsible for the debts, obligations and liabilities of the Sponsor solely by reason of being the sole member of the Sponsor.

The Sponsor’s Role

The Sponsor arranged for the creation of the Trust, the registration of the Shares for their public offering in the United States and the listing of the Shares on the NYSE Arca. The Sponsor has agreed to assume the following administrative and marketing expenses incurred by the Trust: the Trustee’s monthly fee and out-of-pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses under the Custody Agreements, Exchange listing fees, SEC registration fees, printing and mailing costs, audit fees and up to $100,000 per annum in legal expenses. The Sponsor also paid the costs of the Trust’s organization and the initial sale of the Shares, including the applicable SEC registration fees.

The Sponsor does not exercise day-to-day oversight over the Trustee or the Custodian. The Sponsor may remove the Trustee and appoint a successor Trustee (i) if the Trustee ceases to meet certain objective requirements (including the requirement that it have capital, surplus and undivided profits of at least $150 million), (ii) if, having received written notice of a material breach of its obligations under the Trust Agreement, the Trustee has not cured the breach within 30 days, or (iii) if the Trustee refuses to consent to the implementation of an amendment to the Trust’s initial Internal Control Over Financial Reporting. The Sponsor also has the right to replace the Trustee during the 90 days following any merger, consolidation or conversion in which the Trustee is not the surviving entity or, in its discretion, on the fifth anniversary of the creation of the Trust or on any subsequent third anniversary thereafter. The Sponsor also has the right to approve any new or additional custodian that the Trustee may wish to appoint and any new or additional Zurich Sub-Custodian that the Custodian may wish to appoint.

The Sponsor or one of its affiliates or agents (1) develops a marketing plan for the Trust on an ongoing basis, (2) prepares marketing materials regarding the Shares, including the content of the Trust’s website and (3) executes the marketing plan for the Trust.

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The Trustee

The Bank of New York Mellon, a banking corporation organized under the laws of the State of New York with trust powers (“BNYM”), serves as the Trustee. BNYM has a trust office at 2 Hanson Place, Brooklyn, New York 11217. BNYM is subject to supervision by the New York State ~~Banking~~Financial Services Department and the Board of Governors of the Federal Reserve System. Information regarding creation and redemption Basket composition, NAV of the Trust, transaction fees and the names of the parties that have each executed an Authorized Participant Agreement may be obtained from BNYM. A copy of the Trust Agreement is available for inspection at BNYM’s trust office identified above. Under the Trust Agreement, the Trustee is required to ~~maintain~~have capital, surplus and undivided profits of at least $150 million.

The Trustee’s Role

The Trustee is generally responsible for the day-to-day administration of the Trust, including keeping the Trust’s operational records. The Trustee’s principal responsibilities include (1) transferring the Trust’s Bullion as needed to pay the Sponsor’s Fee in Bullion (Bullion transfers are expected to occur approximately monthly in the ordinary course), (2) valuing the Trust’s Bullion and calculating the NAV of the Trust and the NAV per Share, (3) receiving and processing orders from Authorized Participants to create and redeem Baskets and coordinating the processing of such orders with the Custodian and DTC, (4) selling the Trust’s Bullion as needed to pay any extraordinary Trust expenses that are not assumed by the Sponsor, (5) when appropriate, making distributions of cash or other property to Shareholders, and (6) receiving and reviewing reports from or on the Custodian’s custody of and transactions in the Trust’s Bullion. The Trustee shall, with respect to directing the Custodian, act in accordance with the instructions of the Sponsor. If the Custodian resigns, the Trustee shall appoint an additional or replacement Custodian selected by the Sponsor. The Trustee intends to regularly communicate with the Sponsor to monitor the overall performance of the Trust. The Trustee does not monitor the performance of the Custodian, the Zurich Sub-Custodians, or any other ~~subcustodian~~sub-custodian other than to review the reports provided by the Custodian pursuant to the Custody Agreements. The Trustee, along with the Sponsor, will liaise with the Trust’s legal, accounting and other professional service providers as needed. The Trustee will assist and support the Sponsor with the preparation of all periodic reports required to be filed with the SEC on behalf of the Trust.

The Trustee’s monthly fees and out-of-pocket expenses will be paid by the Sponsor.

Affiliates of the Trustee may from time to time act as Authorized Participants or purchase or sell Bullion or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

The Custodian

JPMorgan Chase Bank, N.A. ~~(“JPMorgan”)~~ serves as the Custodian of the Trust’s Bullion. JPMorgan Chase Bank, N.A. is a national banking association organized under the laws of the United States of America. JPMorgan is subject to supervision by the Federal Reserve Bank of New York and the Federal Deposit Insurance Corporation. JPMorgan’s London office is regulated by the FCA and is located at 25 Bank Street, London, ~~EC14~~E14 5JP, United Kingdom. JPMorgan Chase Bank, N.A. is a subsidiary of JPMorgan Chase & Co. While the ~~United~~UK ~~Kingdom~~ operations of the Custodian are regulated by the FCA, the custodial services provided by the Custodian and any sub-custodian, including the Zurich Sub-~~Custodian~~ Custodians under the Custody ~~Agreement,~~Agreements are presently not a regulated activity subject to the supervision and rules of the FCA.

The Custodian’s Role

The Custodian is responsible for safekeeping for the Trust Bullion deposited with it by Authorized Participants in connection with the creation of Baskets. The Custodian is also responsible for selecting the Zurich Sub-Custodians and its other ~~subcustodians~~ sub-custodians, if any. The Custodian facilitates the transfer of Bullion in and out of the Trust through the unallocated Bullion accounts it ~~will~~maintains ~~maintain~~ for each Authorized Participant and the unallocated and allocated Bullion accounts it ~~will~~maintains ~~maintain~~ for the Trust. The Custodian holds at its London, England vault premises that portion of the Trust’s allocated Bullion to be held in London. The Zurich Sub-Custodian holds at its Zurich, Switzerland vault premises that portion of the Trust’s allocated platinum and palladium to be held in Zurich on behalf of the Custodian. The Custodian is responsible for allocating specific bars of physical silver and specific plates or ingots of physical platinum and palladium to the Trust’s allocated Bullion account. The Custodian ~~will~~provides ~~provide~~ the Trustee with regular reports detailing the Bullion transfers in and out of the Trust’s unallocated and allocated Bullion accounts and identifying the silver bars and the platinum and palladium plates or ingots held in the Trust’s allocated Bullion account.

The Custodian’s fees and expenses under the Custody Agreements are paid by the Sponsor. The Custodian and its affiliates may from time to time act as Authorized Participants or purchase or sell Bullion or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

19The Custodian and its affiliates may from time to time act as Authorized Participants or purchase or sell Bullion or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

Inspection of Bullion

Under the Custody Agreements, the Trustee, the Sponsor and the Sponsor’s auditors and inspectors may, only up to twice a year, visit the premises of the Custodian ~~and the Zurich Sub-Custodians~~ for the purpose of examining the Trust’s Bullion and certain related records maintained by the Custodian. Under the Allocated Account Agreement, the Custodian agreed to procure similar inspection rights from the Zurich Sub-Custodian. Any such inspection rights with respect to the Zurich Sub-Custodian are expected to be granted in accordance with the normal course of dealing between the Custodian and the Zurich Sub-Custodian. Visits by auditors and inspectors to the Zurich Sub-Custodians’ facilities will be arranged through the Custodian. Other than with respect to the Zurich Sub-Custodians, the Trustee and the Sponsor have no right to visit the premises of any ~~subcustodian~~sub-custodian for the purposes of examining the Trust’s Bullion or any records maintained by the ~~subcustodian~~sub-custodian, and no ~~subcustodian~~sub-custodian is obligated to cooperate in any review the Trustee or the Sponsor may wish to conduct of the facilities, procedures, records or creditworthiness of such ~~subcustodian~~sub-custodian.

The Sponsor has exercised its right to visit the Custodian, in order to examine the Bullion and the records maintained by the Custodian. The most recent inspection was held by Inspectorate International Limited, a leading commodity inspection and testing company as of December 31, ~~2013~~2014. The Sponsor has not exercised its right to visit the premises of the Zurich Sub-Custodian for the purpose of examining the Trust’s Bullion and related records.

Description of the Shares

General

The Trustee is authorized under the Trust Agreement to create and issue an unlimited number of Shares. The Trustee creates Shares only in Baskets (a Basket equals a block of 50,000 Shares) and only upon the order of an Authorized Participant. The Shares represent units of fractional undivided beneficial interest in and ownership of the Trust and have no par value. Any creation and issuance of Shares above the amount registered on the Trust’s then-current and effective registration statement with the SEC will require the registration of such additional Shares.

Description of Limited Rights

The Shares do not represent a traditional investment and you should not view them as similar to “shares” of a corporation operating a business enterprise with management and a board of directors. Shareholders do not have the statutory rights normally associated with the ownership of shares of a corporation, including, for example, the right to bring “oppression” or “derivative” actions. All Shares are of the same class with equal rights and privileges. Each Share is transferable, is fully paid and non-assessable and entitles the holder to vote on the limited matters upon which Shareholders may vote under the Trust Agreement. The Shares do not entitle their holders to any conversion or pre-emptive rights, or, except as provided below, any redemption rights or rights to distributions.

Distributions

If the Trust is terminated and liquidated, the Trustee will distribute to the Shareholders any amounts remaining after the satisfaction of all outstanding liabilities of the Trust and the establishment of such reserves for applicable taxes, other governmental charges and contingent or future liabilities as the Trustee shall determine. Shareholders of record on the record date fixed by the Trustee for a distribution will be entitled to receive their pro rata portion of any distribution.

Voting and Approvals

Under the Trust Agreement, Shareholders have no voting rights, except in limited circumstances. The Trustee may terminate the Trust upon the agreement of Shareholders owning at least 75% of the outstanding Shares. In addition, certain amendments to the Trust Agreement require advance notice to the Shareholders before the effectiveness of such amendments, but no Shareholder vote or approval is required for any amendment to the Trust Agreement.

Redemption of the Shares

The Shares may only be redeemed by or through an Authorized Participant and only in Baskets.

Book-Entry Form

Individual certificates will not be issued for the Shares. Instead, one or more global certificates is deposited by the Trustee with DTC and registered in the name of Cede & Co., as nominee for DTC. The global certificates evidence all of the Shares outstanding at any time. Under the Trust Agreement, Shareholders are limited to (1) participants in DTC such as banks, brokers, dealers and trust companies (DTC Participants), (2) those who maintain, either directly or indirectly, a custodial relationship with a DTC Participant (Indirect Participants), and (3) those banks, brokers, dealers, trust companies and others who hold interests in the Shares through DTC Participants or Indirect Participants. The Shares are only transferable through the book-entry system of DTC. Shareholders who are not DTC Participants may transfer their Shares through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant or other entity through which their Shares are held) to transfer the Shares. Transfers will be made in accordance with standard securities industry practice.

2022

Custody of the Trust’s Bullion

Custody of the physical silver deposited with and held by the Trust is provided by the Custodian at its London, England vaults and by other ~~subcustodians~~sub-custodians on a temporary basis only in unallocated form. Custody of the physical platinum and palladium deposited with and held by the Trust is provided by the Custodian at its London, England vaults and by the Zurich Sub-Custodians selected by the Custodian in their Zurich, Switzerland vaults and by other ~~subcustodians~~sub-custodians on a temporary basis only in unallocated form. The Custodian is a market maker, clearer and approved weigher under the rules of the LBMA and the LPPM.

The Custodian is the custodian of the physical Bullion credited to the Trust Allocated Account in accordance with the Custody Agreements. The Custodian segregates the physical Bullion credited to the Trust Allocated Account from any other precious metal it holds or holds for others by entering appropriate entries in its books and records, and requires each Zurich Sub-Custodian to also segregate the physical platinum and palladium of the Trust that it holds from the other platinum and palladium held by it for other customers of the Custodian and such Zurich Sub-Custodian’s other customers. The Custodian requires each Zurich Sub-Custodian to identify in its books and records the Trust as having the rights to the physical platinum and palladium credited to its Trust Allocated Account. Under the Custody Agreements, the Trustee, the Sponsor and the Sponsor’s auditors and inspectors may inspect the vaults of the Custodian and the Zurich Sub-Custodian. See “Inspection of Bullion.”

The Custodian, as instructed by the Trustee, is authorized to accept, on behalf of the Trust, deposits of Bullion in unallocated form. Acting on standing instructions specified in the Custody Agreements, the Custodian allocates Bullion deposited in unallocated form with the Trust by selecting bars of silver or plates or ingots of physical platinum or palladium for deposit to the Trust Allocated Account or, with respect to platinum or palladium to be held in Zurich, requires the Zurich Sub-Custodians to allocate platinum or palladium deposited in unallocated form with the Trust by selecting plates or ingots of physical platinum or palladium for deposit for the benefit of the Trust Allocated Amount. All physical silver allocated to the Trust must conform to the rules, regulations, practices and customs of the LBMA. All physical platinum and palladium allocated to the Trust must conform to the rules, regulations, practices and customs of the LPPM.

The process of withdrawing Bullion from the Trust for a redemption of a Basket follows the same general procedure as for depositing Bullion with the Trust for a creation of a Basket, only in reverse. Each transfer of Bullion between the Trust Allocated Account and the Trust Unallocated Account connected with a creation or redemption of a Basket may result in a small amount of Bullion being held in the Trust Unallocated Account after the completion of the transfer. In making deposits and withdrawals between the Trust Allocated Account and the Trust Unallocated Account, the Custodian will use commercially reasonable efforts to minimize the amounts of silver, platinum and palladium held in the Trust Unallocated Account as of the close of each business day. See “Creation and Redemption of Shares.”

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United States Federal Income Tax Consequences

The following is a discussion of the material US federal income tax consequences that generally ~~applies~~apply to the purchase, ownership and disposition of Shares by a US Shareholder (as defined below), and certain US federal income tax consequences that may apply to an investment in Shares by a Non-US Shareholder (as defined below),. The discussion is based on the United States Internal Revenue Code of 1986, as amended (the “Code”),. The discussion below is based on the Code. United States Treasury Regulations (“Treasury Regulations”) promulgated under the Code and judicial and administrative interpretations of the Code, all as in effect on the date of this annual report and all of which are subject to change either prospectively or retroactively. The tax treatment of Shareholders may vary depending upon their own particular circumstances. Certain Shareholders (including broker-dealers, traders, banks and other financial institutions, insurance companies, real estate investment trusts, tax-exempt entities, Shareholders whose functional currency is not the US dollar or other investors with special circumstances) may be subject to special rules not discussed below. In addition, the following discussion applies only to investors who hold Shares as “capital assets” within the meaning of Code section 1221 and not as part of a straddle, hedging transaction or a conversion or constructive sale transaction. Moreover, the discussion below does not address the effect of any state, local or foreign tax law or any transfer tax on an owner of Shares. Purchasers of Shares are urged to consult their own tax advisors with respect to all federal, state, local and foreign tax law or any transfer tax considerations potentially applicable to their investment in Shares.

For purposes of this discussion, a “US Shareholder” is a Shareholder that is:

•An individual who is treated as a citizen or resident of the United States ~~for US federal income tax purposes~~;

•A corporation (or other entity treated as a corporation for US federal tax purposes) created or organized in or under the laws of the United States or any political subdivision thereof;

•An estate, the income of which is includible in gross income for US federal income tax purposes regardless of its source; or

•A trust, if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more US persons have the authority to control all substantial decisions of the trust.

A Shareholder that is not a US Shareholder as defined above (other than a partnership, or an entity treated as a partnership for US federal tax purposes) is generally considered a “Non-US Shareholder” for purposes of this discussion. For US federal income tax purposes, the treatment of any beneficial owner of an interest in a partnership, including any entity treated as a partnership for US federal income tax purposes, generally depends upon the status of the partner and upon the activities of the partnership. Partnerships and partners in partnerships should consult their tax advisors about the US federal income tax consequences of purchasing, owning and disposing of Shares.

Taxation of the Trust

The Trust is classified as a “grantor trust” for US federal income tax purposes. As a result, the Trust itself is not subject to US federal income tax. Instead, the Trust’s income and expenses “flow through” to the Shareholders, and the Trustee reports the Trust’s income, gains, losses and deductions to the Internal Revenue Service (“IRS”) on that basis.

Taxation of US Shareholders

Shareholders generally are treated, for US federal income tax purposes, as if they directly owned a pro rata share of the underlying assets held inby the Trust. Shareholders also are treated as if they directly received their respective pro rata shares of the Trust’s income, if any, and as if they directly incurred their respective pro rata shares of the Trust’s expenses. In the case of a Shareholder that purchases Shares for cash, its initial tax basis in its pro rata share of the assets held inby the Trust at the time it acquires its Shares is equal to its cost of acquiring the Shares. In the case of a Shareholder that acquires its Shares as part of a creation of a Basket, the delivery of Bullion to the Trust in exchange for ~~the underlying Bullion represented by the~~ Shares ~~will~~is not be a taxable event to the Shareholder, and the Shareholder’s tax basis and holding period for the ~~Shareholder’s~~Sharesare ~~pro rata share of~~ the ~~Bullion held in the Trust are the~~ same as its tax basis and holding period for the Bullion delivered in exchange therefore (except to the extent of any cash contributed for such Shares). For purposes of this discussion, it is assumed that all of a Shareholder’s Shares are acquired on the same date and at the same price per Share. Shareholders that hold multiple lots of Shares, or that are contemplating acquiring multiple lots of Shares, should consult their tax advisors ~~as to the determination of the tax basis and holding period for the underlying Bullion related to such Shares~~.

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When the Trust sells or transfers Bullion, for example to pay expenses, a Shareholder generally will recognize gain or loss in an amount equal to the difference between (1) the Shareholder’s pro rata share of the amount realized by the Trust upon the sale or transfer and (2) the Shareholder’s tax basis for its pro rata share of the Bullion that was sold or transferred,. Such ~~which~~ gain or loss will generally be long-term or short-term capital gain or loss, depending upon whether the Shareholder has a holding period in its Shares of longer than one year. A Shareholder’s tax basis for its share of any Bullion sold by the Trust generally will be determined by multiplying the Shareholder’s total basis for its ~~share~~Shares ~~of all of the Bullion held in the Trust~~ immediately prior to the sale, by a fraction the numerator of which is the amount of Bullion sold, and the denominator of which is the total amount of the Bullion held inby the Trust immediately prior to the sale. After any such sale, a Shareholder’s tax basis for its pro rata share of the Bullion remaining in the Trust will be equal to its tax basis for its ~~share~~Shares ~~of the total amount of the Bullion held in the Trust~~ immediately prior to the sale, less the portion of such basis allocable to its share of the Bullion that was sold.

Upon a Shareholder’s sale of some or all of its Shares, the Shareholder will be treated as having sold ~~the~~a ~~portion of its~~ pro rata share of the Bullion held in the Trust at the time of the sale ~~that is attributable to the Shares sold~~. Accordingly, the Shareholder generally will recognize gain or loss on the sale in an amount equal to the difference between (1) the amount realized pursuant to the sale of the Shares, and (2) the Shareholder’s tax basis for the ~~portion of its pro rata share of the Bullion held in the Trust at the time of sale that is attributable to the~~ Shares sold, as determined in the manner described in the preceding paragraph.

A redemption ~~Redemption~~ of some or all of a Shareholder’s Shares in exchange for the underlying Bullion represented by the Shares redeemed generally will not be a taxable event to the Shareholder. The Shareholder’s tax basis for the Bullion received in the redemption generally will be the same as the Shareholder’s tax basis for the ~~portion of its pro rata share of the Bullion held in the Trust immediately prior to the redemption that is attributable to the~~ Shares redeemed. The Shareholder’s holding period with respect to the Bullion received should include the period during which the Shareholder held the Shares redeemed. A subsequent sale of the Bullion received by the Shareholder will be a taxable event.

After any sale or redemption of less than all of a Shareholder’s Shares, the Shareholder’s tax basis for its pro rata share of the Bullion held in the Trust immediately after such sale or redemption generally will be equal to its tax basis for its share of the total amount of the Bullion held in the Trust immediately prior to the sale or redemption, less the portion of such basis which is taken into account in determining the amount of gain or loss recognized by the Shareholder upon such sale or, in the case of a redemption, which is treated as the basis of the Bullion received by the Shareholder in the redemption.

In addition, recent legislation generally applicable to high-income individuals and certain trusts and estates, imposes a new 3.8% Medicare contribution tax on net investment income and gain. Shareholders should consult their tax advisor regarding this tax.

An Authorized Participant and other investors may be able to re-invest, on a tax-deferred basis, in-kind redemption proceeds received from exchange-traded products that are substantially similar to the Trust in the Trust’s Shares. Authorized Participants and other investors should consult their tax advisors as to whether and under what circumstances the reinvestment in the Shares of proceeds from substantially similar exchange-traded products can be accomplished on a tax-deferred basis.

~~Maximum~~Under current law, gains recognized by individuals, estates or trusts from the sale of “collectibles,” including physical Bullion, held for more than one year are taxed at a maximum federal income tax rate of 28%, ~~Long~~rather than the 20% rate applicable to most other long-~~Term~~term ~~Capital~~capital ~~Gains~~gains. ~~Tax~~For ~~Rate~~these purposes, gain recognized upon the sale of Shares held for more than one year, or attributable to the Trust’s sale of any physical Bullion which the Shareholder is treated (through its ownership of Shares) as having held for more than one year, generally will be taxed at a maximum rate of 28%. The tax rates for capital gains recognized upon the sale of assets held by an individual US ~~Shareholders~~Shareholder ~~Who~~for ~~Are~~one ~~Individuals~~year or less or by a corporate taxpayer are generally the same as those at which ordinary income is taxed.

~~Under~~In ~~current law~~addition, ~~gains~~for ~~recognized~~high-income by individuals ~~from~~and ~~the~~certain ~~sale~~trusts ofand ~~“collectibles~~estates,” ~~including Bullion, held for more than one year are taxed at~~ a ~~maximum~~3.8% ~~federal~~Medicare ~~income~~contribution tax rate of 28%, rather than the 20% rate applicable to most other long-term capital gains. For these purposes, gain recognized by an individual upon the sale of an interest in a trust that holds collectibles is ~~treated~~imposed ~~as gain recognized~~ on ~~the~~net ~~sale~~investment ofincome ~~collectibles,~~and ~~to the extent that the~~ gain ~~is attributable to unrealized appreciation in value of the collectibles held by the trust~~. Shareholders ~~Therefore,~~should ~~any~~consult ~~gain~~their recognized by an individual US Shareholder attributable to a sale of Shares held for more than one year, or attributable to the Trust’s sale of any Bullion which the Shareholder is treated (through its ownership of Shares) as having held for more than one year, generally will be taxed at a maximum rate of 28%. The tax ~~rates~~advisor ~~for~~regarding ~~capital~~this ~~gains recognized upon the sale of assets held by an individual US Shareholder for one year or less or by a corporate taxpayer are generally the same as those at which ordinary income is taxed~~tax.

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Brokerage Fees and Trust Expenses

Any brokerage or other transaction ~~fees~~fee incurred by a Shareholder in purchasing ~~Share~~Shares is treated as part of the Shareholder’s tax basis in the ~~underlying assets of the Trust~~Shares. Similarly, any brokerage fee incurred by a Shareholder in selling Shares ~~will~~reduces ~~reduce~~ the amount realized by the Shareholder with respect to the sale.

Shareholders are required to recognize gain or loss ~~upon~~on a sale of Bullion by the Trust (as discussed above), even though some or all of the proceeds of such sale are used by the Trustee to pay Trust expenses. Shareholders may deduct their respective pro rata ~~share~~shares of each expense incurred by the Trust to the same extent as if they directly incurred the expense. Shareholders who are individuals, estates or trusts, however, may be required to treat some or all of the expenses of the Trust, to the extent that such expenses may be deducted, as miscellaneous itemized deductions. Individuals may deduct certain miscellaneous itemized deductions only to the extent they exceed 2% of adjusted gross income. In addition, such deductions ~~may~~are be subject to further limitations under applicable provisions of the Code, and ~~may~~are not be deductible at all for alternative minimum tax purposes.

Investment by Regulated Investment Companies

Mutual funds and other investment vehicles which are “regulated investment companies” within the meaning of Code section 851 should consult with their tax advisors concerning (1) the likelihood that an investment in Shares, although they are a “security” within the meaning of the Investment Company Act of 1940, may be considered an investment in the underlying Bullion for purposes of Code section 851(b), and (2) the extent to which an investment in Shares might nevertheless be consistent with preservation of their qualification under Code section 851.

United States Information Reporting and Backup Withholding for US and Non-US Shareholders

The Trustee or the appropriate broker ~~will~~files ~~file~~ certain information returns with the IRS, and provides certain tax-related information to Shareholders, in accordance with applicable Treasury Regulations. Each Shareholder will be provided with information regarding its allocable portion of the Trust’s annual income (if any) and expenses.

A US Shareholder may be subject to US backup withholding tax in certain circumstances unless it provides its taxpayer identification number and complies with certain certification procedures. Non-US Shareholders may have to comply with certification procedures to establish that they are not a US ~~person~~persons in order to avoid ~~the information reporting and~~ backup withholding tax ~~requirements~~.

The amount of any backup withholding is allowed as a credit against a Shareholder’s US federal income tax liability and may entitle such a Shareholder to a refund, provided that the required information is furnished to the IRS.

Income Taxation of Non-US Shareholders

The Trust does not expect to generate taxable income except for gain (if any) upon the sale of Bullion. A Non-US Shareholder generally is not subject to US federal income tax with respect to gain recognized upon the sale or other disposition of Shares, or upon the sale of Bullion by the Trust, unless (1) the Non-US Shareholder is an individual and is present in the United States for 183 days or more during the taxable year of the sale or other disposition, and the gain is treated as being from United States sources; or (2) the gain is effectively connected with the conduct by the Non-US Shareholder of a trade or business in the United States.

Taxation in Jurisdictions other than the United States

Prospective purchasers of Shares that are based in or acting out of a jurisdiction other than the United States are advised to consult their own tax advisers as to the tax consequences, under the laws of such jurisdiction (or any other jurisdiction not being the United States to which they are subject), of their purchase, holding, sale and redemption of or any other dealing in Shares and, in particular, as to whether any value added tax, other consumption tax or transfer tax is payable in relation to such purchase, holding, sale, redemption or other dealing.

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ERISA and Related Considerations

The Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and/or Code section 4975 impose certain requirements on certain employee benefit plans and certain other plans and arrangements, including individual retirement accounts and annuities, Keogh plans, and certain commingled investment vehicles or insurance company general or separate accounts in which such plans or arrangements are invested (collectively, “Plans”), and on persons who are fiduciaries with respect to the investment of “plan assets” of a Plan. Government plans and some church plans are not subject to the fiduciary responsibility provisions of ERISA or the provisions of section 4975 of the Code, but may be subject to substantially similar rules under other federal law, or under state or local law (“Other Law”).

In contemplating an investment of a portion of Plan assets in Shares, the Plan fiduciary responsible for making such investment should carefully consider, taking into account the facts and circumstances of the Plan and the “Risk Factors” discussed above and whether such investment is consistent with its fiduciary responsibilities under ERISA or Other Law, including, but not limited to: (1) whether the investment is permitted under the ~~plan~~Plan’s governing documents, (2) whether the fiduciary has the authority to make the investment, (3) whether the investment is consistent with the ~~plan~~Plan’s funding objectives, (4) the tax effects of the investment on the Plan, and (5) whether the investment is prudent considering the factors discussed in this report. In addition, ERISA and Code ~~section~~Section 4975 prohibit a broad range of transactions involving assets of a plan and persons who are “parties in interest” under ERISA or “disqualified persons” under ~~section~~Section 4975 of the Code. A violation of these rules may result in the imposition of significant excise taxes and other liabilities. Plans subject to Other Law may be subject to similar restrictions.

It is anticipated that the Shares will constitute “publicly-held offered securities” as defined in the Department of Labor “Plan Asset Regulations,” §2510.3-101 (b)(2) as modified by section 3(42) of ERISA. Accordingly, pursuant to the Plan Asset Regulations, Shares purchased by a Plan, and not an interest in the underlying assets held in the Trust, should be treated as ~~“plan~~ assets” of the Plan, for purposes of applying the “fiduciary responsibility” rules of ERISA and the “prohibited transaction” rules of ERISA and the Code. Fiduciaries of plans subject to Other Law should consult legal counsel to determine whether there would be a similar result under the Other Law.

Investment by Certain Retirement Plans

Code section 408(m) provides that the acquisition of a “collectible” by an individual retirement account (“IRA”) or a participant-directed account maintained under any plan that is tax-qualified under Code section 401(a) is treated as a taxable distribution from the account to the owner of the IRA, or to the participant for whom the plan account is maintained, of an amount equal to the cost to the account of acquiring the collectible. The term “collectible” is defined to include, with certain exceptions, “any metal or gem”. The IRS has issued several private letter rulings to the effect that a purchase ~~of shares in a trust holding precious metals~~ by an IRA, or by a participant-directed account under a Code section 401(a) plan, of publicly-traded Shares in a trust holding precious metals will not be treated as resulting in a taxable distribution to the IRA owner or plan participant under Code section 408(m). However the private letter rulings provide that, if any of the Shares so purchased are distributed from the IRA or plan account to the IRA owner or plan participant, or if any ~~Bullion~~precious metal is received by such IRA or plan account upon the redemption of any of the Shares purchased by it, the Shares or ~~Bullion~~precious metal so distributed will be subject to federal income tax in the year of distribution, to the extent provided under the applicable provisions of Code sections 408(d), 408(m) or 402.

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Item 1A. Risk Factors

You should consider carefully the risks described below before making an investment decision. You should also refer to the other information included in the prospectus and this report, including the Trust’s financial statements and the related notes.

The value of the Shares relates directly to the value of the Bullion held by the Trust and fluctuations in the price of silver, platinum or palladium could materially adversely affect an investment in the Shares.

The Shares are designed to mirror as closely as possible the performance of the price of physical silver, platinum orand palladium in the proportions held by the Trust, and the value of the Shares relates directly to the value of the Bullion held by the Trust, less the Trust’s liabilities (including estimated accrued but unpaid expenses). The prices of physical silver, platinum and palladium ~~has~~have fluctuated widely over the past several years. Several factors may affect the price of these metals, including:

• Investors’ expectations with respect to the rate of inflation; • Currency exchange rates; • Interest rates; • Investment and trading activities of hedge funds and commodity funds; • Global or regional political, economic or financial events and situations; and • Global Bullion supply and demand.

~~•Currency~~Global ~~exchange~~supply ~~rates;~~and demand for silver is influenced by general changes in economic conditions, such as a recession or other economic downturn, because of the wide use of silver in a range of industrial applications. Recycling, jewelry demand and investment demand are also important drivers of silver supply and demand. Global platinum supply is influenced by such factors as production and cost levels in major platinum-producing countries, such as South Africa, which accounted for 75% of the world’s platinum mine supply in 2013. Recycling, autocatalyst demand, industrial demand, jewelry demand and investment demand are also important drivers of platinum supply and demand. Global palladium supply is influenced by such factors as production and cost levels in major palladium-producing countries such as South Africa and Russia. Recycling, autocatalyst demand, industrial demand, jewelry demand and investment demand are also important drivers of palladium supply and demand. Sales of existing stockpiles of palladium have been a key source of supply in the past eight years and could potentially soon be exhausted, placing a higher burden on new mine supply.

~~•Interest~~In ~~rates;~~ addition, investors should be aware that there is no assurance that silver, platinum or palladium will maintain their long-term value in terms of purchasing power in the future. In the event that the price of any metal declines, the Sponsor expects the value of an investment in the Shares to decline proportionately.

~~•Investment~~The Shares may trade at a price which is at, above or below the NAV per Share and any discount or premium in the trading ~~activities~~price relative to the NAV per Share may widen as a result of ~~hedge~~non-concurrent ~~funds~~trading hours between the NYSE Arca and ~~commodity~~London, ~~funds;~~Zurich and Commodity Exchange, Inc., a subsidiary of New York Mercantile Exchange, Inc. (“COMEX”).

~~•Global~~The orShares ~~regional~~may ~~political~~trade at, ~~economic~~above or ~~financial~~below ~~events~~the NAV per Share. The NAV per Share fluctuates with changes in the market value of the Trust’s assets. The trading price of the Shares fluctuates in accordance with changes in the NAV per Share as well as market supply and ~~situations;~~demand. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced by non-concurrent trading hours between the NYSE Arca and the major Bullion markets. While the Shares trade on the NYSE Arca until 4:00 PM New York time, liquidity in the market for platinum and palladium is reduced after the close of the major world markets for platinum and palladium, including London, Zurich and the COMEX, and liquidity in the market for silver will be reduced after the close of the major world silver markets, including London and the COMEX. As a result, during this time, trading spreads and the resulting premium or discount on the Shares may widen.

•Global Bullion supply and demand.

Global supply and demand for silver is influenced by general changes in economic conditions, such as a recession or other economic downturn, because of the wide use of silver in a range of industrial applications. Recycling, jewelry demand and investment demand are also important drivers of silver supply and demand. Global platinum supply is influenced by such factors as production and cost levels in major platinum-producing countries, such as South Africa, which accounted for 72% of the world’s platinum supply in 2012. Recycling, autocatalyst demand, industrial demand, jewelry demand and investment demand are also important drivers of platinum supply and demand. Global palladium supply is influenced by such factors as production and cost levels in major palladium-producing countries such as South Africa and Russia. Recycling, autocatalyst demand, industrial demand, jewelry demand and investment demand are also important drivers of palladium supply and demand. Sales of existing stockpiles of palladium have been a key source of supply in the past eight years and could potentially soon be exhausted, placing a higher burden on new mine supply.

In addition, investors should be aware that there is no assurance that silver, platinum or palladium will maintain their long-term value in terms of purchasing power in the future. In the event that the price any metal declines, the Sponsor expects the value of an investment in the Shares to decline proportionately.

The Shares may trade at a price which is at, above or below the NAV per Share and any discount or premium in the trading price relative to the NAV per Share may widen as a result of non-concurrent trading hours between the NYSE Arca and London, Zurich and COMEX.

The Shares may trade at, above or below the NAV per Share. The NAV per Share fluctuates with changes in the market value of the Trust’s assets. The trading price of the Shares fluctuates in accordance with changes in the NAV per Share as well as market supply and demand. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced by non-concurrent trading hours between the NYSE Arca and the major Bullion markets. While the Shares trade on the NYSE Arca until 4:00 PM New York time, liquidity in the market for platinum and palladium is reduced after the close of the major world markets for platinum and palladium including London, Zurich and the COMEX and liquidity in the market for silver will be reduced after the close of the major world silver markets, including London and the COMEX. As a result, during this time, trading spreads, and the resulting premium or discount on the Shares, may widen.

A possible “short squeeze” due to a sudden increase in demand of Shares that largely exceeds supply may lead to price volatility in the Shares.

Investors may purchase Shares to hedge existing exposure to Bullion or to speculate on the price of Bullion. Speculation on the price of Bullion may involve long and short exposures. To the extent aggregate short exposure exceeds the number of Shares available for purchase (for example, in the event that large redemption requests by Authorized Participants dramatically affect Share liquidity), investors with short exposure may have to pay a premium to repurchase Shares for delivery to Share lenders. Those repurchases may in turn, dramatically increase the price of the Shares until additional Shares are created through the creation process. This is often referred to as a “short squeeze”. ” A short squeeze could lead to volatile price movements in Shares that are not directly correlated to the price of Bullion.

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Purchasing activity in the platinum and palladium markets associated with Basket creations or selling activity following Basket redemptions may affect the prices of platinum and palladium and Share trading prices. These price changes may adversely affect an investment in the ~~shares~~Shares.

Purchasing activity associated with acquiring the Bullion required for deposit into the Trust in connection with the creation of Baskets may increase the market prices of platinum and palladium, which will result in higher prices for the Shares. Increases in the market prices of platinum and palladium may also occur as a result of the purchasing activity of other market participants. Other market participants may attempt to benefit from an increase in the market prices of platinum and palladium that may result from increased purchasing activity of platinum and palladium connected with the issuance of Baskets. If the prices of platinum and palladium decline, the trading price of the Shares will also decline.

Selling activity associated with sales of platinum and palladium withdrawn from the Trust in connection with the redemption of Baskets may decrease the market price of platinum and palladium, which will result in lower prices for the Shares. Decreases in the market price of platinum and palladium may also occur as a result of the selling activity of other market participants. If the price of platinum and palladium declines, the trading price of the Shares will also decline.

Since there is no limit on the amount of platinum and palladium that the Trust may acquire, the Trust, as it grows, may have an impact on the supply and demand of platinum and palladium that ultimately may affect the price of the Shares in a manner unrelated to other factors affecting the global markets for platinum and palladium.

The Trust Agreement places no limit on the amount of platinum and palladium the Trust may hold. Moreover, the Trust may issue an unlimited number of Shares, subject to registration requirements, and thereby acquire an unlimited amount of platinum and palladium. The global market for platinum and palladium is characterized by supply and demand constraints that are generally not present in the markets for other precious metals such as gold and silver. Between ~~From~~2004 and ~~2003-2012,~~ 2013 world platinum mine supply averaged 6.2 3 million ounces and world palladium supply averaged 7.6.76 million ounces. In ~~2012~~2013, mine supply measured 5.65 9 million ounces of platinum and 6.53 4 million ounces of palladium. If the amount of platinum and palladium acquired by the Trust is large enough in relation to global platinum and palladium supply and demand, further in-kind creations and redemptions of Shares could have an impact on the supply and demand of platinum and palladium unrelated to other factors affecting the global markets for platinum and palladium. Such an impact could affect the prices for platinum and palladium that would directly affect the price at which Shares are traded on the Exchange or the price of future Baskets created or redeemed by the Trust.

The Shares and their value could decrease if unanticipated operational or trading problems arise.

There may be unanticipated problems or issues with respect to the mechanics of the Trust’s operations and the trading of the Shares that could have a material adverse effect on an investment in the Shares. In addition, although the Trust is not actively “managed” by traditional methods, to the extent that unanticipated operational or trading problems or issues arise, the Sponsor’s past experience and qualifications may not be suitable for solving these problems or issues.

IfThe ~~the~~London ~~process~~Silver ofPrice creation and redemption of Baskets encounters any unanticipated difficulties, the possibility for arbitrage transactions intended to keep the price of the Shares closely linked to the price of the underlying Bullion by allowing the market participants to profit from divergences, may ~~not~~prove ~~exist and, as a result, the price of the Shares may fall~~unreliable.

IfSince August ~~the~~15, ~~processes~~2014, ofthe Trust has utilized the ~~creation~~London ~~and~~Silver ~~redemption~~Price ofas ~~Shares~~the ~~(which~~benchmark ~~depend~~price onfor ~~timely~~valuing ~~transfers~~silver ofheld, ~~Bullion~~received toor ~~and~~delivered by the ~~Custodian)~~Trust. Prior ~~encounter~~to ~~any~~August ~~unanticipated~~15, ~~difficulties~~2014, ~~potential~~the ~~market~~Trust ~~participants~~utilized ~~who~~the ~~would~~London silver ~~otherwise~~fix beas ~~willing~~its tobenchmark ~~purchase~~for orvaluation ~~redeem~~purposes. The ~~Baskets~~London silver tofix, ~~take~~which ~~advantage~~London ofSilver ~~any~~Market ~~arbitrage~~Fixing ~~opportunity~~Ltd. ~~arising~~discontinued ~~from~~on ~~discrepancies~~August ~~between~~14, 2014, was the price of ~~the~~an ~~Shares~~ounce ~~and~~of ~~the~~silver ~~price~~as ofset ~~the~~by ~~underlying~~three ~~Bullion~~market ~~may~~members ~~not~~of ~~take~~ the ~~risk~~London ~~that,~~Bullion asMarket aAssociation ~~result~~at ofapproximately ~~those~~12:00 ~~difficulties~~noon, ~~they~~London ~~may~~time, ~~not~~on beeach ~~able~~working today ~~realize~~and ~~the~~was ~~profit~~widely ~~they~~accepted ~~expect.~~among Ifsilver ~~this~~market isparticipants. The ~~the~~London ~~case~~Silver Price, ~~the liquidity of Shares may decline~~ and the ~~price~~mechanism offor ~~the~~its ~~Shares~~establishment, ~~may~~have a ~~fluctuate~~limited operating ~~independently~~history ~~of the price the underlying Bullion~~ and may, ~~fall.~~among other things:



•	not behave over time like the London silver fix has historically;
•	be based on procedures and subject to regulation and oversight significantly different than those applicable to the London silver fix;
•	result in delays or errors in the determination of a daily benchmark price of silver;
•	not be as widely accepted as the London silver fix; or
•	otherwise prove unreliable.

If the London Silver Price is unreliable for any reason, the price of silver and the market price for the Shares may decline or be subject to greater volatility.

The LME PM Fix may prove unreliable.

Since December 1, 2014, the Trust has utilized the LME PM Fix as the benchmark price for valuing platinum and palladium held, received or delivered by the Trust. Prior to December 1, 2014, the Trust utilized the London afternoon platinum fix and the London afternoon palladium fix as its benchmarks for valuation purposes. The London afternoon fix for platinum and palladium was the price of an ounce of platinum or palladium as set by four fixing members of the LPPM at approximately 2:00 PM, London time, on each working day and was widely accepted among platinum and palladium market participants. As of the close of business on November 30, 2014, the LPPFCL transferred the ownership of the historic and future intellectual property of the twice daily “fix” for platinum and palladium to a subsidiary company of the LBMA and the administration of platinum and palladium price fixing mechanisms to the LME, which now results in, for the purposes of the Trust, the LME PM Fix. The LME has not operated this fixing process previously and the LME PM Fix may, among other things:



•	not behave over time like the London afternoon platinum fix and the London afternoon palladium fix have historically;
•	be based on procedures and subject to regulation and oversight significantly different than those applicable to the London afternoon platinum fix or the London afternoon palladium fix;
•	result in delays or errors in the determination of a daily benchmark price of platinum or palladium;
•	not be as widely accepted as the London afternoon platinum fix or the London afternoon palladium fix; or
•	otherwise prove unreliable.

If the LME PM Fix is unreliable for any reason, the price of platinum or palladium and the market price for the Shares may decline or be subject to greater volatility.

If the process of creation and redemption of Baskets encounters any unanticipated difficulties, the possibility for arbitrage transactions the effect of which is to keep the price of the Shares closely linked to the prices of the underlying Bullion, by allowing the market participants to profit from divergences, may not exist and, as a result, the price of the Shares may fall.

If the processes of creation and redemption of Shares (which depend on timely transfers of Bullion to and by the Custodian) encounter any unanticipated difficulties, including, but not limited to, the Trust’s inability in the future to obtain regulatory approvals for the offer and sale of additional Shares after the present offering is completed, potential market participants who would otherwise be willing to purchase or redeem Baskets to take advantage of any arbitrage opportunity arising from discrepancies between the price of the Shares and the prices of the underlying Bullion may not take the risk that, as a result of those difficulties, they may not be able to realize the profit they expect. If this is the case, the liquidity of Shares may decline and the price of the Shares may fluctuate independently of the prices of the underlying Bullion and may fall.

The liquidity of the Shares may be affected by the withdrawal from participation of one or more Authorized Participants.

In the event that one or more Authorized Participants having substantial interests in Shares or otherwise responsible for a significant portion of the Shares’ daily trading volume on the Exchange withdraw from participation, the liquidity of the Shares will likely decrease which could adversely affect the market price of the Shares and result in your incurring a loss on your investment.

Shareholders do not have the protections associated with ownership of shares in an investment company registered under the Investment Company Act of 1940 or the protections afforded by the Commodity Exchange Act (“CEA”).

The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. Consequently, Shareholders do not have the regulatory protections provided to investors in investment companies. The Trust does ~~and~~not and will not hold or trade in commodity futures contracts regulated by the CEA, as administered by the CFTC. Furthermore, the Trust is not a commodity pool for purposes of the CEA, and neither the Sponsor nor the Trustee is subject to regulation by the CFTC as a commodity pool operator or a commodity trading advisor in connection with the Shares, although the Sponsor registered as a commodity pool operator with the CFTC in 2011. Consequently, Shareholders do not have the regulatory protections provided to investors in CEA-regulated instruments or commodity pools.

The Trust may be required to terminate and liquidate at a time that is disadvantageous to Shareholders.

If the Trust is required to terminate and liquidate, such termination and liquidation could occur at a time which is disadvantageous to Shareholders, such as when Bullion prices are lower than the Bullion prices at the time when Shareholders purchased their Shares. In such a case, when the Trust’s Bullion is sold as part of the Trust’s liquidation, the resulting proceeds distributed to Shareholders will be less than if Bullion prices were higher at the time of sale.

~~The lack of an active trading market for the Shares may result in losses on investment at the time of disposition of the Shares.~~ 30

The lack of an active market for the Shares may result in losses on investment at the time of disposition of the Shares.

Although Shares are listed for trading on the NYSE Arca, it cannot be assumed that an active trading market for the Shares will develop or be maintained. If an investor needs to sell Shares at a time when no active market for Shares exists, such lack of an active market will most likely adversely affect the price the investor receives for the Shares (assuming the investor is able to sell them).

Shareholders do not have the rights enjoyed by investors in certain other vehicles.

As interests in an investment trust, the Shares have none of the statutory rights normally associated with the ownership of shares of a corporation (including, for example, the right to bring “oppression” or “derivative” actions). In addition, the Shares have limited voting and distribution rights (for example, Shareholders do not have the right to elect directors and do not receive dividends).

An investment in the Shares may be adversely affected by competition from other methods of investing in Bullion.

The Trust ~~competes~~will compete with other financial vehicles, including traditional debt and equity securities issued by companies in the silver, platinum and palladium industries and other securities backed by or linked to Bullion, direct investments in Bullion and investment vehicles similar to the Trust. Market and financial conditions, and other conditions beyond the Sponsor’s control, may make it more attractive to invest in other financial vehicles or to invest in Bullion directly, which could limit the market for the Shares and reduce the liquidity of the Shares.

The price of Bullion may be affected by the sale of ETVs tracking ~~Bullion~~the silver, platinum or palladium markets.

To the extent existing exchange traded vehicles (“ETVs”) tracking the silver, platinum or palladium markets represent a significant proportion of demand for physical Bullion, large redemptions of the securities of these ETVs could negatively affect physical Bullion prices and the price and NAV of the Shares.

Crises may motivate large-scale sales of silver, platinum or palladium which could decrease the price of such Bullion and adversely affect an investment in the Shares.

The possibility of large-scale distress sales of Bullion in times of crisis may have a short-term negative impact on the price of Bullion and adversely affect an investment in the Shares. For example, the 2008 financial credit crisis resulted in significantly depressed prices of silver, platinum and palladium largely due to forced sales and deleveraging from institutional investors ~~such as hedge funds and pension funds as expectations of economic growth slumped~~. Crises in the future may impair Bullion’s price performance which would, in turn, adversely affect an investment in the Shares.

Several factors may have the effect of causing a decline in the prices of Bullion and a corresponding decline in the price of Shares. Among them:

•A significant increase in Bullion hedging activity by Bullion producers. Should there be an increase in the level of hedge activity of Bullion producing companies, it could cause a decline in world Bullion prices, adversely affecting the price of the Shares.

•A significant change in the attitude of speculators and investors towards Bullion. Should the speculative community take a negative view towards any Bullion metals, it could cause a decline in world prices for such Bullion metals, negatively impacting the price of the Shares.

•A widening of interest rate differentials between the cost of money and the cost of Bullion could negatively affect the price of Bullion which, in turn, could negatively affect the price of the Shares.

•A combination of rising money interest rates and a continuation of the current low cost of borrowing Bullion could improve the economics of selling Bullion forward. This could result in an increase in hedging by Bullion mining companies and short selling by speculative interests, which would negatively affect the price of Bullion. Under such circumstances, the price of the Shares would be similarly affected.

~~A continued decline in the automobile industry may have the effect of causing a decline in the prices of platinum and palladium and a corresponding decline in the price of Shares. Among them:~~ 31

Autocatalysts, automobile components that use platinum and palladium, accounted for approximately 38% of the global demand in platinum and 67% of the global demand in palladium in 2012. The European automotive industry is currently experiencing declining demand and, in certain cases, solvency concerns. Reduced automotive industry sales may result in a decline in autocatalyst demand. A decline in the global automotive industry may impact the price of platinum and palladium and affect the price of the Shares.

The Trust’s Bullion may be subject to loss, damage, theft or restriction on access.

There is a risk that part or all of the Trust’s Bullion could be lost, damaged or stolen. Access to the Trust’s Bullion could also be restricted by natural events (such as an earthquake) or human actions (such as a terrorist attack). Any of these events may adversely affect the operations of the Trust and, consequently, an investment in the Shares.

The Trust’s lack of insurance protection and the Shareholders’ limited rights of legal recourse against the Trust, the Trustee, the Sponsor, the Custodian, ~~any~~the Zurich Sub-~~Custodian~~Custodians and any other sub-custodian exposes the Trust and its Shareholders to the risk of loss of the Trust’s Bullion for which no person is liable.

The Trust does not insure its Bullion. The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate in connection with its custodial obligations and is responsible for all costs, fees and expenses arising from the insurance policy or policies. The Trust is not a beneficiary of any such insurance and does not have the ability to dictate the existence, nature or amount of coverage. Therefore, Shareholders cannot be assured that the Custodian maintains adequate insurance or any insurance with respect to the Bullion held by the Custodian on behalf of the Trust. In addition, the Custodian and the Trustee do not require the Zurich Sub-~~Custodian~~Custodians or any other direct or indirect sub-custodians to be insured or bonded with respect to their custodial activities or in respect of the Bullion held by them on behalf of the Trust. Further, Shareholders’ recourse against the Trust, the Trustee and the Sponsor, under New York law, the Custodian, the Zurich Sub-~~Custodian~~Custodians and any other sub-custodian, under English law, and any other sub-~~custodians~~custodian under the law governing their custody operations is limited. Consequently, a loss may be suffered with respect to the Trust’s Bullion which is not covered by insurance and for which no person is liable in damages.

Consequently, a loss may be suffered with respect to the Trust’s Bullion which is not covered by insurance and for which no person is liable in damages.

The Custodian’s limited liability under the Custody Agreements and English law may impair the ability of the Trust to recover losses concerning its Bullion and any recovery may be limited, even in the event of fraud, to the market value of the Bullion at the time the fraud is discovered.

The liability of the Custodian is limited under the Custody Agreements. Under the ~~Custody~~agreements ~~Agreements~~ between the Trustee and the Custodian which establish the Trust’s unallocated Bullion account (“Unallocated Account Agreement”) and the Trust’s allocated Bullion account (“Allocated Account Agreement”), the Custodian is only liable for losses that are the direct result of its own negligence, fraud or willful default in the performance of its duties. Any such liability is further limited, in the case of the Allocated Account Agreement, to the market value of the Bullion held in the Trust’s allocated account (“Trust Allocated Account”) at the time such negligence, fraud or willful default is discovered by the Custodian and, in the case of the Unallocated Account Agreement, to the amount of Bullion credited to the Trust’s unallocated account (“Trust Unallocated Account”) at the time such negligence, fraud or willful default is discovered by the Custodian. Under each Authorized Participant Unallocated Bullion Account Agreement (between the Custodian ~~or other Bullion clearing bank~~ and an Authorized Participant ~~establishing an Authorized Participant Unallocated Account~~), the Custodian is not contractually or otherwise liable for any losses suffered by any Authorized Participant or Shareholder that are not the direct result of its own gross negligence, fraud or willful default in the performance of its duties under such agreement, and in no event will its liability exceed the market value of the balance in the Authorized Participant Unallocated Account at the time such gross negligence, fraud or willful default is discovered by the Custodian. For any Authorized Participant Unallocated Bullion Account Agreement between an Authorized Participant and another Bullion clearing bank, the liability of the Bullion clearing bank to the Authorized Participant may be greater or lesser than the Custodian’s liability to the Authorized Participant described in the preceding sentence, depending on the terms of the agreement. In addition, the Custodian will not be liable for any delay in performance or any non-performance of any of its obligations under the Allocated Account Agreement, the Unallocated Account Agreement or the Authorized Participant Unallocated Bullion Account Agreement by reason of any cause beyond its reasonable control, including acts of God, war or terrorism. As a result, the recourse of the Trustee or the investor, under English law, is limited. Furthermore, under English common law, the Custodian, ~~the~~any Zurich Sub-Custodian, or any ~~subcustodian~~other sub-custodian will not be liable for any delay in the performance or any non-performance of its custodial obligations by reason of any cause beyond its reasonable control.

The obligations of the Custodian, ~~the~~any Zurich Sub-Custodian and any other ~~subcustodians~~sub-custodians are governed by English law, which may frustrate the Trust in attempting to ~~receive~~seek legal redress against the Custodian, ~~the~~a Zurich Sub-Custodian or any ~~subcustodian~~other sub-custodian concerning its Bullion.

The obligations of the Custodian under the Custody Agreements are, and the Authorized Participant Unallocated Bullion Account Agreements may be, governed by English law. The Custodian ~~has~~will ~~entered~~enter into arrangements with ~~the~~any Zurich Sub-Custodian and may enter into arrangements with any other ~~subcustodians~~sub-custodians for ~~all~~the custody or atemporary ~~significant~~holding ~~portion~~ of the Trust’s Bullion, which arrangements may also be governed by English law. The Trust is a New York common law trust. Any United States, New York or other court situated in the United States may have difficulty interpreting English law (which, insofar as it relates to custody arrangements, is largely derived from court rulings rather than statute), LBMA or LPPM rules or the customs and practices in the London custody market. It may be difficult or impossible for the Trust to sue ~~the~~any Zurich Sub-Custodian or any other ~~subcustodian~~sub-custodian in a United States, New York or other court situated in the United States. In addition, it may be difficult, time consuming and/or expensive for the Trust to enforce in a foreign court a judgment rendered by a United States, New York or other court situated in the United States.

Although the relationship between the Custodian and the Zurich Sub-Custodian concerning the Trust’s allocated Bullion is expressly governed by English law, a court hearing any legal dispute concerning that arrangement may disregard that choice of law and apply Swiss law, in which case the ability of the Trust to seek legal redress against the Zurich Sub-Custodian may be frustrated. 32

~~The~~Although ~~obligations~~the ofrelationships between the ~~Zurich Sub-~~Custodian ~~under~~and ~~its arrangement with~~ the ~~Custodian~~Zurich ~~with~~Sub-Custodians ~~respect~~concerning to the Trust’s allocated Bullion isare expressly governed by English law~~. Nevertheless~~, a court inhearing ~~the~~any ~~United~~legal ~~States,~~dispute ~~England~~concerning ortheir ~~Switzerland~~arrangements may ~~determine~~disregard that ~~English~~choice of law ~~should not apply~~ and, ~~instead,~~ apply Swiss law ~~to that arrangement. Not only might it be difficult or impossible for a United States or English court to apply Swiss law to the Zurich Sub-Custodian’s arrangement~~, ~~but~~in ~~application~~which ofcase ~~Swiss law may, among other things, alter~~ the ~~relative rights and obligations of the Custodian and the Zurich Sub-Custodian to an extent that a loss to the Trust’s Bullion may not have adequate or any legal redress. Further, the~~ ability of the Trust to seek legal redress against ~~the~~any Zurich Sub-Custodian may be frustrated ~~by application of Swiss law~~.

30The obligations of the Zurich Sub-Custodians under their arrangements with the Custodian with respect to the Trust’s allocated Bullion are or will be expressly governed by English law. Nevertheless, a court in the United States, England or Switzerland may determine that English law should not apply and, instead, apply Swiss law to those arrangements. Not only might it be difficult or impossible for a United States or English court to apply Swiss law to the Zurich Sub-Custodians’ arrangements, but application of Swiss law may, among other things, alter the relative rights and obligations of the Custodian and the Zurich Sub-Custodians to the extent that a loss to the Trust’s Bullion may not have adequate or any legal redress. Further, the ability of the Trust to seek legal redress against a Zurich Sub-Custodian may be frustrated by application of Swiss law.

The Trust may not have adequate sources of recovery if its Bullion is lost, damaged, stolen or destroyed.

If the Trust’s Bullion is lost, damaged, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have the financial resources sufficient to satisfy the Trust’s claim. For example, as to a particular event of loss, the only source of recovery for the Trust might be limited to the Custodian, the Zurich Sub-~~Custodian~~Custodians or any other sub-custodian ~~custodians~~ or, to the extent identifiable, other responsible third parties (e.g., a thief or terrorist), any of which may not have the financial resources (including liability insurance coverage) to satisfy a valid claim of the Trust.

Shareholders and Authorized Participants lack the right under the Custody Agreements to assert claims directly against the Custodian, the Zurich Sub-~~Custodian~~Custodians, and any ~~subcustodian.~~other sub-custodian.

Neither the Shareholders nor any Authorized Participant have a right under the Custody Agreements to assert a claim of the Trustee against the Custodian, ~~the~~any Zurich Sub-Custodian or any ~~subcustodian~~other sub-custodian. Claims under the Custody Agreements may only be asserted by the Trustee on behalf of the Trust.

The Custodian ismay be reliant on the Zurich Sub-Custodians for the safekeeping of ~~all~~ the Trust’s platinum and palladium held in Zurich on an allocated basis. Furthermore, the Custodian has limited obligations to oversee or monitor the Zurich Sub-Custodians. As a result, failure by ~~any~~a Zurich Sub-Custodian to exercise due care in the safekeeping of the Trust’s platinum and palladium could result in a loss to the Trust.

While some trading occurs in London, platinum and palladium ~~generally~~ also trade on a loco Zurich basis, whereby the physical precious metal is held in vaults located in Zurich or is transferred into accounts established in Zurich. The Custodian does not have a vault in Zurich and iswill be reliant on ~~the~~one or more Zurich Sub-Custodians for the safekeeping of ~~all~~that ~~or a substantial~~ portion of the Trust’s allocated platinum and palladium that is held in Zurich. Other than obligations to (1) use reasonable care in appointing ~~the~~a Zurich Sub-Custodian, (2) require ~~any~~the Zurich Sub-Custodians to segregate the platinum and palladium held by it for the Trust from any other platinum and palladium held by it for the Custodian and any other customers of the Custodian by making appropriate entries in its books and records and (3) ensure that ~~the~~a Zurich Sub-Custodian ~~provide~~provides confirmation to the Trustee that it has undertaken to segregate the platinum and palladium held by it for the Trust, the Custodian is not liable for the acts or omissions of the Zurich Sub-~~Custodian~~Custodians. Other than as described above, the Custodian does not undertake to monitor the performance by the Zurich Sub-Custodians of their custody functions. The Trustee’s obligation to monitor the performance of the Custodian is limited to receiving and reviewing the reports of the Custodian. The Trustee does not monitor the performance of the Zurich Sub-Custodians or any other ~~subcustodian~~sub-custodian. In addition, the ability of the Trustee and the Sponsor to monitor the performance of the Custodian may be limited because, under the Custody Agreements, the Trustee and the Sponsor have only limited rights to visit the premises of the Custodian or ~~the~~a Zurich Sub-~~Custodians~~Custodian for the purpose of examining the Trust’s platinum ~~and~~or palladium and certain related records maintained by the Custodian or the Zurich Sub-Custodians.

As a result of the above, any failure by ~~any~~a Zurich Sub-Custodian to exercise due care in the safekeeping of the Trust’s platinum or palladium may not be detectable or controllable by the Custodian, the Sponsor or the Trustee and could result in a loss to the Trust.

3133

Because neither the Trustee nor the Custodian oversees or monitors the activities of ~~subcustodians~~sub-custodians who may hold the Trust’s Bullion, failure by the ~~subcustodians~~sub-custodians to exercise due care in the safekeeping of the Trust’s Bullion could result in a loss to the Trust.

Under the Allocated Account Agreement, the Custodian may appoint from time to time one or more ~~subcustodians~~sub-custodians to hold the Trust’s Bullion on a temporary basis pending delivery to the Custodian. The ~~subcustodians~~sub-custodians which the Custodian currently uses are (1) in London only for all Bullion, Barclays Bank plc, The Bank of Nova Scotia – ScotiaMocatta, HSBC Bank USA, N.A. and Deutsche Bank AGA.G., (2) in London and Zurich for all Bullion, Union Bank of Switzerland (UBS), Brink’s Global Services Inc., (3) in London for Silver only, Via Mat International and (34) in Zurich only for platinum and palladium only, Credit Suisse, and the ~~custodian~~Custodian may use other LBMA and LPPM market-making members that provide bullion vaulting and clearing services to third parties. The Custodian ~~has~~will ~~selected~~select the Zurich Sub-Custodians, and ~~the~~each Zurich Sub-~~Custodians~~Custodian ~~maintain~~will custody of that portion of the Trust’s allocated platinum and palladium to be held in Zurich for the Custodian. The Custodian is required under the Allocated Account Agreement to use reasonable care in appointing the Zurich Sub-Custodians and any other ~~subcustodians~~sub-custodian, making the Custodian liable only for negligence or bad faith in the selection of such ~~subcustodians~~sub-custodians, and has an obligation to use commercially reasonable efforts to obtain delivery of the Trust’s Bullion from any ~~subcustodians~~sub-custodians appointed by the Custodian. Otherwise, the Custodian is not liable for the acts or omissions of its ~~subcustodians~~sub-custodians. These ~~subcustodians~~sub-custodians may in turn appoint further ~~subcustodians~~sub-custodians, but the Custodian is not responsible for the appointment of these further ~~subcustodians~~sub-custodians. The Custodian does not undertake to monitor the performance by ~~subcustodians~~sub-custodians of their custody functions or their selection of further ~~subcustodians~~sub-custodians. The Trustee does not monitor the performance of the Custodian other than to review the reports provided by the Custodian pursuant to the Custody Agreements and does not undertake to monitor the performance of any ~~subcustodian~~sub-custodian. Furthermore, ~~except for~~ the ~~Zurich Sub-Custodian, the~~ Trustee may have no right to visit the premises of any ~~subcustodian~~sub-custodian for the purposes of examining the Trust’s Bullion or any records maintained by the ~~subcustodian~~sub-custodian, and no ~~subcustodian~~sub-custodian will be obligated to cooperate in any review the Trustee may wish to conduct of the facilities, procedures, records or creditworthiness of such ~~subcustodian~~sub-custodian. In addition, the ability of the Trustee to monitor the performance of the Custodian may be limited because under the Allocated Account Agreement and the Unallocated Account Agreement the Trustee has only limited rights to visit the premises of the Custodian ~~and the Zurich Sub-Custodian~~ for the purpose of examining the Trust’s Bullion and certain related records maintained by the Custodian ~~and the Zurich Sub-Custodian~~.

The obligations of any ~~subcustodian~~ sub-custodian of the Trust’s Bullion are not determined by contractual arrangements but by LBMA and LPPM rules and London or Zurich ~~bullion~~Bullion market customs and practices, which may prevent the Trust’s recovery of damages for losses on its Bullion custodied with ~~subcustodians~~ sub-custodians.

Except for the Custodian’s ~~arrangement~~arrangements with the Zurich Sub-Custodians, there are expected to be no written contractual arrangements between sub-custodians ~~subcustodians~~ that hold the Trust’s Bullion and the Trustee or the Custodian because traditionally such arrangements are based on the LBMA’s and the LPPM’s rules and on the customs and practices of the London or Zurich ~~bullion~~Bullion ~~market~~markets. In the event of a legal dispute with respect to or arising from such arrangements, it may be difficult to define such customs and practices. The LBMA’s and the LPPM’s rules may be subject to change outside the control of the Trust. Under English law, neither the Trustee nor the Custodian would have a supportable breach of contract claim against a ~~subcustodian~~ sub-custodian for losses relating to the safekeeping of Bullion. If the Trust’s Bullion is lost or damaged while in the custody of a ~~subcustodian~~ sub-custodian, the Trust may not be able to recover damages from the Custodian or the ~~subcustodian~~ sub-custodian. Whether a ~~subcustodian~~ sub-custodian will be liable for the failure of sub-custodians ~~subcustodians~~ appointed by it to exercise due care in the safekeeping of the Trust’s Bullion will depend on the facts and circumstances of the particular situation. Shareholders cannot be assured that the Trustee will be able to recover damages from sub-custodians ~~subcustodians~~ whether appointed by the Custodian or by another ~~subcustodian~~ sub-custodian for any losses relating to the safekeeping of Bullion by such ~~subcustodian~~ sub-custodians.

Physical Bullion allocated to the Trust in connection with the creation of a Basket may not meet the Good Delivery Standards and, if a Basket is issued against such Bullion, the Trust may suffer a loss.

Neither the Trustee nor the Custodian independently confirms the fineness of the physical silver, platinum or palladium allocated to the Trust in connection with the creation of a Basket. The Bullion allocated to the Trust by the Custodian may be different from the reported fineness or weight required by the LBMA’s standards for silver bars or the LPPM’s standards for platinum and palladium plates and ingots delivered in settlement of a Bullion trade (“Good Delivery Standards”), the standards required by the Trust. If the Trustee nevertheless issues a Basket against such Bullion, and if the Custodian fails to satisfy its obligation to credit the Trust the amount of any deficiency, the Trust may suffer a loss.

3234

Bullion held in the Trust’s unallocated Bullion account and any Authorized Participant’s unallocated Bullion account iswill not be segregated from the Custodian’s assets. If the Custodian becomes insolvent, its assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant. In addition, in the event of the Custodian’s insolvency, there may be a delay and costs incurred in identifying the silver bars and platinum and palladium plates orand ingots held in the Trust’s allocated Bullion account.

Bullion which is part of a deposit for a purchase order or part of a redemption distribution is held for a time in the Trust Unallocated Account and, previously or subsequently, in, the Authorized Participant Unallocated Account of the purchasing or redeeming Authorized Participant. During those times, the Trust and the Authorized Participant, as the case may be, have no proprietary rights to any specific bars of silver or plates or ingots of platinum or palladium held by the Custodian and ~~are~~ each is an unsecured creditor of the Custodian with respect to the amount of Bullion held in such unallocated accounts. In addition, if the Custodian fails to allocate the Trust’s Bullion in a timely manner, in the proper amounts or otherwise in accordance with the terms of the Unallocated Account Agreement, or if a ~~subcustodian~~ sub-custodian fails to so segregate Bullion held by it on behalf of the Trust, unallocated Bullion will not be segregated from the Custodian’s assets, and the Trust will be an unsecured creditor of the Custodian with respect to the amount so held in the event of the insolvency of the Custodian. In the event the Custodian becomes insolvent, the Custodian’s assets might not be adequate to satisfy a claim by the Trust or the Authorized Participant for the amount of Bullion held in their respective unallocated Bullion accounts.

In the case of the insolvency of the Custodian, a liquidator may seek to freeze access to the Bullion held in all of the accounts held by the Custodian, including the Trust Allocated Account. Although the Trust would be able to claim ownership of properly allocated Bullion, the Trust could incur expenses in connection with asserting such claims, and the assertion of such a claim by the liquidator could delay creations and redemptions of Baskets.

In issuing Baskets, the Trustee relies on certain information received from the Custodian which is subject to confirmation after the Trustee has relied on the information. If such information turns out to be incorrect, Baskets may be issued in exchange for an amount of Bullion which is more or less than the amount of Bullion which is required to be deposited with the Trust.

The Custodian’s definitive records are prepared after the close of its business day. However, when issuing Baskets, the Trustee relies on information reporting the amount of Bullion credited to the Trust’s accounts which it receives from the Custodian during the business day and which is subject to correction during the preparation of the Custodian’s definitive records after the close of business. If the information relied upon by the Trustee is incorrect, the amount of Bullion actually received by the Trust may be more or less than the amount required to be deposited for the issuance of Baskets.

The sale of the Trust’s Bullion to pay expenses not assumed by the Sponsor at a time of low Bullion prices could adversely affect the value of the Shares.

The Trustee ~~sells~~will sell Bullion held by the Trust to pay Trust expenses not assumed by the Sponsor on an as-needed basis irrespective of then-current silver, platinum and palladium prices. The Trust is not actively managed and no attempt will be made to buy or sell Bullion to protect against or to take advantage of fluctuations in the price of any Bullion metal. Consequently, the Trust’s Bullion may be sold at a time when the Bullion prices isare low, resulting in a negative effect on the value of the Shares.

The value of the Shares will be adversely affected if the Trust is required to indemnify the Sponsor or the Trustee under the Trust Agreement.

Under the Trust Agreement, each of the Sponsor and the Trustee has a right to be indemnified from the Trust for any liability or expense it incurs without gross negligence, bad faith or willful misconduct on its part. That means the Sponsor or the Trustee may require the assets of the Trust to be sold in order to cover losses or liability suffered by it. Any sale of that kind would reduce the ~~NAV~~net asset value of the Trust and the value of the Shares.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

Not applicable.

Item 3. Legal Proceedings

None.

Item 4. Mine Safety Disclosure

Not applicable.

3335

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

On December 3, 2010, the Trust’s Shares commenced trading on the NYSE Arca under the symbol WITE, and the Trust commenced operations, began accruing expenses and began the calculation of NAV. The following tables set out the range of high and low closing prices for the Shares as reported for NYSE Arca transactions for each of the quarters during the years ended December 31, ~~2013~~2014 and ~~2012~~2013:

Fiscal Year Ended December 31, 2014: Quarter Ended
	High		Low
March 31, 2014	$	41.75	$	37.87
June 30, 2014	$	41.80	$	38.83
September 30, 2014	$	42.56	$	35.32
December 31, 2014	$	35.82	$	32.61
Fiscal Year Ended December 31, 2013: Quarter Ended
	High		Low
March 31, 2013	$	54.63	$	49.17
June 30, 2013	$	49.52	$	36.03
September 30, 2013	$	44.98	$	36.93
December 31, 2013	$	42.56	$	37.31
Fiscal Year Ended December 31, 2012: Quarter Ended
	High		Low
March 31, 2012	$	59.55	$	47.45
June 30, 2012	$	54.41	$	44.32
September 30, 2012	$	56.67	$	44.89
December 31, 2012	$	56.96	$	50.15

The number of Shares of the Trust as of February 26, ~~2014~~2015 was ~~700~~650,000.

Monthly Share Price

The following table sets forth, for each if the most recent six months, the high and low closing prices of the Shares, as reported for NYSE Arca transactions.

Month	High		Low
August 2013	$	44.98	$	38.93
August 2014	$	40.94	$	39.75
September 2013	$	44.72	$	40.73
September 2014	$	39.43	$	35.32
October 2013	$	42.56	$	39.94
October 2014	$	35.82	$	34.07
November 2013	$	41.81	$	38.19
November 2014	$	34.46	$	32.61
December 2013	$	39.32	$	37.31
December 2014	$	35.26	$	33.05
January 2014	$	40.09	$	37.87
January 2015	$	36.53	$	33.29

3436

Issuer Purchase of Equity Securities

The Trust issues and redeems Shares only with Authorized Participants in exchange for bullion, only in aggregations of 50,000 or integral multiples thereof. A list of current Authorized Participants is available from the Sponsor or the Trustee and is included in item 7 of this annual report. Although the Trust does not purchase Shares directly from its shareholders in connection with the redemption of Baskets, the Trust redeemed as follows during the years ended December 31, ~~2013~~2014 and ~~2012~~2013:

	Total number of	Average ounces of Bullion per Share
Month	Shares redeemed	Silver	Platinum	Palladium
January 2014	-	-	-	-
February 2014	-	-	-	-
March 2014	-	-	-	-
April 2014	-	-	-	-
May 2014	-	-	-	-
June 2014	50,000	0.979	0.010	0.008
July 2014	-	-	-	-
August 2014	-	-	-	-
September 2014	-	-	-	-
October 2014	-	-	-	-
November 2014	-	-	-	-
December 2014	-	-	-	-
Total	50,000
	Total number of	Average ounces of Bullion per Share
Month	Shares redeemed	Silver	Platinum	Palladium
January 2013	-	-	-	-
February 2013	-	-	-	-
March 2013	-	-	-	-
April 2013	-	-	-	-
May 2013	150,000	0.986	0.010	0.008
June 2013	-	-	-	-
July 2013	-	-	-	-
August 2013	-	-	-	-
September 2013	-	-	-	-
October 2013	-	-	-	-
November 2013	-	-	-	-
December 2013	-	-	-	-
Total	150,000
Month	Total number of	Average ounces of Bullion per Share
	Shares redeemed	Silver	Platinum	Palladium
January 2012	-	-	-	-
February 2012	50,000	0.993	0.010	0.008
March 2012	-	-	-	-
April 2012	-	-	-	-
May 2012	50,000	0.991	0.010	0.008
June 2012	-	-	-	-
July 2012	-	-	-	-
August 2012	-	-	-	-
September 2012	-	-	-	-
October 2012	-	-	-	-
November 2012	-	-	-	-
December 2012	-	-	-	-
Total	100,000

3537

Item 6. Selected Financial Data

The following selected financial data for the reporting periods should be read in conjunction with the Trust’s financial statements and related notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

	December 31, 2013		December 31, 2012		December 31, 2011		December 31, 2010*
	December 31, 2014		December 31, 2013		December 31, 2012		December 31, 2011		December 31, 2010*
(Amounts in 000's of US$, except for Share and per Share data)
Total assets	$	2621,~~266~~863	$	3426,~~887~~266	$	3934,~~777~~887	$	3639,~~027~~777	$	36,027
Total (loss) / gain on Bullion	$	(62,~~924~~567)	$	~~581~~(6,924)	$	~~(4,904)~~581	$	-(4,904)	$	-
Net (loss) / gain from operations	$	(7,123)	$	342	$	(5,259)	$	(15)
Change in net assets from operations	$	(2,723)	$	(7,123)	$	342	$	(5,259)	$	(15)
Weighted average number of Shares		~~748~~674,~~493~~110		~~776~~748,~~503~~493		1776,~~003,425~~503		~~527~~1,~~273~~003,425		527,273
Net (loss) / gain per Share	$	(9.52)	$	0.44	$	(5.24)	$	(0.03)
Net (decrease) / increase in net assets per Share	$	(4.04)	$	(9.52)	$	0.44	$	(5.24)	$	(0.03)
Net cash provided by operating activities	$	-	$	-	$	-	$	-	$	-

*For the period from November 29, 2010 through December 31, 2010

3638

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This information should be read in conjunction with the financial statements and notes to the financial statements included with this report. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward-looking statements can be identified by terminology such as “may,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. Neither the Sponsor, nor any other person assumes responsibility for the accuracy or completeness of forward-looking statements. Neither the Trust nor the Sponsor is under a duty to update any of the forward-looking statements to conform such statements to actual results or to a change in the Sponsor’s expectations or predictions.

Introduction.

The ETFS White Metals Basket Trust (the “Trust”) is a trust formed under the laws of the State of New York. The Trust does not have any officers, directors, or employees, and is administered by The Bank of New York Mellon (the “Trustee”) acting as trustee pursuant to the Depositary Trust Agreement (the “Trust Agreement”) between the Trustee and ETF Securities USA LLC, the sponsor of the Trust (the “Sponsor”). The Trust issues shares (“Shares”) representing fractional undivided beneficial interests in its net assets. The assets of the Trust consist of silver, platinum and palladium bullion (“Bullion”) held by a custodian as an agent of the Trust and responsible only to the Trustee.

The Trust is a passive investment vehicle and the objective of the Trust is for the value of each Share to approximately reflect, at any given time, the price of the Bullion owned by the Trust, less the Trust’s liabilities (anticipated to be principally for accrued operating expenses), divided by the number of outstanding Shares. The Trust does not engage in any activities designed to obtain a profit from, or ameliorate losses caused by, changes in the price of Bullion.

The Trust issues and redeems Shares only in exchange for Bullion, only in aggregations of 50,000 or integral multiples thereof (each, a “Basket”), and only in transactions with registered broker-dealers that have previously entered into an agreement with the Trust governing the terms and conditions of such issuance (such dealers, the “Authorized Participants”). As of the date of this annual report the Authorized Participants that have signed an Authorized Participant Agreement with the Trust are Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., EWT, LLC, Goldman Sachs & Co., Goldman Sachs Execution & Clearing, L.P., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., Morgan Stanley & Co. ~~Incorporated~~Inc., Newedge USA, LLC, Scotia Capital (USA) Inc., UBS Securities LLC and Virtu Financial BD, LLC.

Shares of the Trust trade on the NYSE Arca under the symbol “WITE.”

Investing in the Shares does not insulate the investor from certain risks, including price volatility. The following table illustrates the movement in the ~~price of the Shares and~~ NAV of the Shares against the price per ounce of silver, platinum and palladium in the proportions held by the Trust (the “Proportionate Price”) since inception.

NAV per Share vs. Proportionate Price from November 29, 2010 (the Date of Inception) to December 31, ~~2013~~2014

The divergence of the NAV per Share from the Proportionate Price over time reflects the cumulative effect of the Trust expenses that arise if an investment had been held since inception.

3739

Critical Accounting Policy

The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on estimates and assumption that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. Below we describe the valuation of Bullion, a critical accounting policy that we believe is important to the understanding of our results of operations and financial position. In addition, please refer to Note 2 to the Financial Statements for further discussion of our accounting policies.

Valuation of Bullion

The Trust’s Bullion is ~~valued~~recorded, ~~for~~per ~~financial~~individual ~~statement~~metal ~~purposes~~type, at ~~the~~fair ~~lower of cost or market~~value. The cost of Bullion is determined according to the average cost method and the ~~market~~fair value is based on the relevant“ London ~~Fix~~Metal Price” for each metal held by the Trust. For ~~used~~platinum toand ~~determine~~palladium this is the ~~NAV~~LME PM Fix for platinum or palladium (as applicable) of the ~~Trust.~~price ~~Realized~~of ~~gains~~an ~~and~~ounce ~~losses~~of onsuch ~~transfers~~metal ofperformed ~~Bullion~~in toLondon, ~~pay~~England ~~the~~by ~~remuneration~~fixing ~~due~~members toof the ~~Sponsor~~London ~~(the~~Platinum ~~“Sponsor’s~~and ~~Fee~~Palladium Market (“LPPM”),. Realized gains and losses on transfers of Bullion, or Bullion distributed for the redemption of Shares, are calculated on a trade date basis using ~~average~~ cost.

~~Once~~Prior to August 15, 2014, the ~~value~~Trust ofutilized ~~Bullion~~the ~~has~~“London ~~been~~Fix” ~~determined~~for silver as its benchmark for silver valuation purposes. The London Fix for silver, which London Silver Market Fixing Ltd. discontinued on August 14, 2014, was the ~~NAV~~price isof ~~computed~~an ounce of silver as set by three market making members of the ~~Trustee~~LBMA byat ~~deducting~~approximately ~~all~~12:00 ~~accrued~~noon, ~~fees~~London time, on each London business day and ~~other~~was ~~liabilities~~widely ofaccepted ~~the~~among ~~Trust~~silver market participants. Effective from August 15, ~~including~~2014, CME Group, Inc. has been conducting an electronic, over-the-counter ~~Sponsor’s~~silver ~~Fee)~~bullion auction in London, ~~from~~England to establish a fixing price for an ounce of silver once each trading day, which is disseminated by Thomson Reuters (the ~~fair~~“London ~~value~~Silver Price”). As of the ~~Bullion~~date of filing, the London Silver Price is established by the five LBMA-authorized bullion banks and ~~all~~market ~~other~~makers ~~assets~~participating in the auction. The “London Metal Price” for silver held by the Trust. is the London Silver Price.

~~The~~Once ~~table~~the ~~below~~value ~~summarizes~~of Bullion has been determined, the ~~unrealized~~NAV ~~gains~~is orcomputed ~~realized~~by ~~losses~~the onTrustee by deducting all accrued fees and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s ~~Bullion~~Fee”), ~~holdings~~from asthe offair ~~December~~value ~~31,~~of ~~2013~~the Bullion and ~~2012:~~all other assets held by the Trust.

	December 31, 2013		December 31, 2012
	December 31, 2014		December 31, 2013		December 31, 2012
(Amounts in 000's of US$)
Investment in Bullion - average cost	$	32,688	$	34,887
Investment in Bullion - cost		24,243		26,266		34,887
Realized loss on investment in Bullion		(6,422)		-
Unrealized (loss) / gain on investment in Bullion		(2,380)		387		2,737
Investment in Bullion - lower of cost or market value		26,266		34,887
Investment in Bullion - fair value		21,863	$	26,653	$	37,624
Unrealized gain on investment in Bullion		387		2,737
Investment in Bullion - market value	$	26,653	$	37,624

Inspection of Bullion

Under the Custody Agreements, the Trustee, the Sponsor and the Sponsor’s auditors and inspectors may, only up to twice a year, visit the premises of the Custodian and the Zurich Sub-Custodians for the purpose of examining the Trust’s Bullion and certain related records maintained by the Custodian. Visits by auditors and inspectors to the Zurich Sub-Custodians’ facilities will be arranged through the Custodian. Other than with respect to the Zurich Sub-Custodians, the Trustee has no right to visit the premises of any ~~subcustodian~~sub-custodian for the purposes of examining the Trust’s Bullion or any records maintained by the ~~subcustodian~~sub-custodian, and no ~~subcustodian~~sub-custodian is obligated to cooperate in any review the Trustee may wish to conduct of the facilities, procedures, records or creditworthiness of such ~~subcustodian~~sub-custodian.

The Sponsor has exercised its right to visit the Custodian, and the Zurich Sub-Custodian in order to examine the Bullion and the records maintained by ~~the Custodian~~them. The ~~inspection~~most ~~held~~recent asinspection ~~of December 31, 2013~~ by Inspectorate International Limited, a leading commodity inspection and testing company, ~~confirmed~~retained ~~that~~by the ~~Custodian’s~~Sponsor, ~~records~~ of ~~Bullion held in~~ the ~~vault~~Custodian ~~were~~and ~~accurate. The Sponsor has not exercised its right to visit the premises of the~~ Zurich Sub-Custodian ~~for~~was ~~the~~conducted ~~purpose~~on ofDecember ~~examining~~31, ~~the Trust’s Bullion and related records~~2014.

Liquidity

The Trust is not aware of any trends, demands, conditions, events or uncertainties that are reasonably likely to result in material changes to its liquidity needs. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only expense of the Trust during the period covered by this report was the Sponsor’s Fee. The Trust’s only source of liquidity is its transfers and sales of Bullion.

The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s Bullion (only in the specified proportion of silver, platinum and palladium held by the Trust) as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell Bullion to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of Bullion to the Sponsor. At December 31, ~~2013~~2014 and ~~2012~~2013, the Trust did not have any cash balances.

3840

Review of Financial Results

Financial Highlights

	December 31, 2013		December 31, 2012		December 31, 2011
	December 31, 2014		December 31, 2013		December 31, 2012
(Amounts in 000's of US$)
Total (loss) / gain on Bullion	$	(62,~~924~~567)	$	~~581~~(6,924)	$	~~(4,904)~~581
Net (loss) / gain from operations	$	(7,123)	$	342	$	(5,259)
Net change in net assets from operations	$	(2,723)	$	(7,123)	$	342
Net cash provided by operating activities	$	-	$	-	$	-

The year ended December 31, 2014

The net asset value (“NAV”) of the Trust is obtained by subtracting the Trust’s expenses and liabilities on any day from the value of the Bullion owned by the Trust on that day; the NAV per Share is obtained by dividing the NAV of the Trust on a given day by the number of Shares outstanding on that day. In previous years amounts were reported under non-investment company accounting, and the NAV reflected redeemable Shares at redemption value to investors.

The Trust’s NAV decreased from $26,639,308 at December 31, 2013 to $21,851,984 at December 31, 2014, a 17.97% decrease for the year. The decrease in the Trust’s NAV resulted primarily from a decrease in the prices per ounce of silver, platinum and palladium in the proportions held by the Trust (the “Proportionate Price”), which fell 11.13% in the year and a decrease in outstanding Shares, which fell from 700,000 Shares at December 31, 2013 to 650,000 Shares at December 31, 2014, a result of 50,000 Shares (1 Basket) being redeemed during the year. No Shares were created during the year.

The NAV per Share decreased 11.67% from $38.06 at December 31, 2013 to $33.62 at December 31, 2014. The Trust’s NAV per Share fell slightly more than the Proportionate Price on a percentage basis due to Sponsor’s Fee, which was $156,284 for the year, or 0.60% of the Trust’s assets on an annualized basis.

The NAV per Share of $42.61 at July 10, 2014 was the highest during the year, compared with a low of $32.43 at November 14, 2014.

Change in net assets arising from the change in accounting principle (refer to Note 2.1 to the financial statements) as of January 1, 2014 was $386,941. The decrease in net assets from operations for the year ended December 31, 2014 was $2,723,493, resulting from a realized gain of $6,046 on the transfer of Bullion to pay expenses and a realized gain of $194,035 on Bullion distributed for the redemption of Shares, offset by a change in unrealized loss on investment in Bullion of $2,767,290 and Sponsor’s Fees of $156,284. Other than the Sponsor’s Fee, the Trust had no expenses during the year ended December 31, 2014.

The year ended December 31, 2013

The ~~net~~Trust’s ~~asset~~NAV decreased ~~value~~from ~~(“NAV”)~~$37,605,438 at ofDecember ~~the~~31, ~~Trust~~2012 to is$26,639,308 ~~obtained~~at byDecember ~~subtracting~~31, 2013, a 29.16% decrease for the year. The decrease in the Trust’s ~~expenses~~NAV ~~and~~resulted ~~liabilities~~primarily onfrom ~~any~~a ~~day~~decrease ~~from~~in the ~~value~~Proportionate ofPrice, ~~the~~which ~~Bullion~~fell ~~owned~~23.64% byin the ~~Trust~~year onand ~~that~~a ~~day;~~decrease ~~the~~in ~~NAV~~outstanding ~~per~~Shares, ~~Share~~which fell isfrom ~~obtained~~750,000 byShares ~~dividing~~at ~~the~~December ~~NAV~~31, of2012 ~~the~~to ~~Trust~~700,000 Shares onat December 31, 2013, a ~~given~~result ~~day~~of by100,000 Shares ~~the~~(2 ~~number~~Baskets) ofbeing created and 150,000 Shares ~~outstanding~~(3 onBaskets) ~~that~~being ~~day.~~redeemed during the year.

The ~~Trust’s~~ NAV ~~decreased~~per Share fell from $~~37,605,438~~50.14 at December 31, 2012 to $~~26,639,308~~38.06 at December 31, 2013~~, 29~~.~~16% decrease~~ ~~for the year.~~ The ~~decrease in the~~ Trust’s NAV ~~resulted primarily from a decrease in the prices~~ per ~~ounce~~Share fell slightly more than ~~of silver, platinum and palladium in~~ the ~~proportions held by the Trust (the “~~Proportionate Price~~”),which~~ ~~fell~~on ~~23.64%~~a inpercentage ~~the~~basis ~~year~~due ~~and~~to aSponsor’s ~~decrease in outstanding Shares~~Fee, which ~~fell~~was ~~from 750~~$198,~~000~~907 for ~~Shares~~the ~~at December 31~~year, ~~2012~~or to0.60% ~~700,000 Shares at December 31, 2013, a result~~ of ~~100,000~~the ~~Shares~~Trust’s (2assets ~~Baskets)~~on ~~being~~an ~~created~~annualized ~~and 150,000 Shares (3 Baskets) being redeemed during the year~~basis.

NAV per Share fell from $50.14 at December 31, 2012 to $38.06 at December 31, 2013. The Trust’s NAV per Share fell slightly more than the Proportionate Price on a percentage basis due to Sponsor’s Fee, which were $198,907 for the year, or 0.60% of the Trust’s assets on an annualized basis.

The NAV per Share of $54.51 at February 7, 2013 was the highest during the year, compared with a low of $36.37 at June 27, 2013.

~~Net~~The net loss from operations for the year ended December 31, 2013 was $7,122,970, resulting from a net loss of $7,549 on the transfer of Bullion to pay expenses and a net loss of $494,907 on Bullion distributed for the redemption of Shares, a realized loss of $6,421,607 on Bullion and Sponsor’s Fee of $198,907. Other than the Sponsor’s Fee, the Trust had no expenses during the year ended December 31, 2013.

The year ended December 31, 2012

The Trust’s NAV decreased from $39,757,253 at December 31, 2011 to $37,605,438 at December 31, 2012, a 5.41% decrease for the year. The decrease in the Trust’s NAV resulted primarily from a decrease in outstanding Shares, which fell from 850,000 Shares at December 31, 2011 to 750,000 Shares at December 31, 2012, a result of 0 Shares (0 Baskets) being created and 100,000 Shares (2 Baskets) being redeemed during the year.

The Proportionate Price, increased 7.85% induring the year.

The NAV per Share increased 7.21% from $46.77 at December 31, 2011 to $50.14 at December 31, 2012. The Trust’s NAV per Share rose slightly less than the Proportionate Price on a percentage basis due to Sponsor’s Fee, which ~~were~~was $239,748 for the year, or 0.60% of the Trust’s assets on an annualized basis.

The NAV per Share of $59.82 at February 29, 2012 was the highest during the year, compared with a low of $44.92 at July 12, 2012.

~~Net~~The net gain from operations for the year ended December 31, 2012 was $341,815, resulting from a net gain of $20,279 on the transfer of Bullion to pay expenses and a net gain of $561,284 on Bullion distributed for the redemption of Shares, offset by Sponsor’s Fee of $239,748. Other than the Sponsor’s Fee, the Trust had no expenses during the year ended December 31, 2012.

The year ended December 31, 2011

The Trust’s NAV increased from $37,969,441 at December 31, 2010 to $39,757,253 at December 31, 2011, a 4.71% increase for the year. The increase in the Trust’s NAV resulted primarily from an increase in outstanding Shares, which rose from 700,000 Shares at December 31, 2010 to 850,000 Shares at December 31, 2011, a result of 750,000 Shares (15 Baskets) being created and 600,000 Shares (12 Baskets) being redeemed during the year.

The Proportionate Price decreased 13.25% in the year.

NAV per Share decreased 13.77% from $54.24 at December 31, 2010 to $46.77 at December 31, 2011. The Trust’s NAV per Share fell slightly more than the Proportionate Price on a percentage basis due to Sponsor’s Fee, which were $354,354 for the year, or 0.60% of the Trust’s assets on an annualized basis.

The NAV per Share of $73.09 at April 28, 2011 was the highest during the year, compared with a low of $44.45 at December 29, 2011.

Net loss from operations for the year ended December 31, 2011 was $5,258,745, resulting from a net gain of $33,004 on the transfer of Bullion to pay expenses and a net gain of $1,994,809 on Bullion distributed for the redemption of Shares, offset by a realized loss on Bullion of $6,932,204 and Sponsor’s Fee of $354,354. Other than the Sponsor’s Fee, the Trust had no expenses during the year ended December 31, 2011.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

The Trust Agreement does not authorize the Trustee to borrow for payment of the Trust’s ordinary expenses. The Trust does not engage in transactions in foreign currencies which could expose the Trust or holders of Shares to any foreign currency related market risk. The Trust invests in no derivative financial instruments and has no foreign operations or long-term debt instruments.

4042

Item 8. Financial Statements and Supplementary Data

Quarterly Income Statements

Year ended December 31, 2014
	Three months ended								Year ended
(Amounts in 000's of US$, except for Share and per Share data)	March 31		June 30		September 30		December 31		December 31
EXPENSES
Sponsor's Fee	$	41	$	43	$	38	$	34	$	156
Total expenses		41		43		38		34		156
Net investment loss		(41)		(43)		(38)		(34)		(156)
REALIZED AND UNREALIZED GAINS / (LOSSES)
Realized gain / (loss) on Bullion transferred to pay expenses		2		3		3		(2)		6
Realized gain / (loss) on Bullion distributed for the redemption of Shares		-		-		194		-		194
Change in unrealized gain / (loss) on investment in Bullion		1,102		1,402		(4,097)		(1,174)		(2,767)
Total gain (loss) on Bullion		1,104		1,405		(3,900)		(1,176)		(2,567)
Change in net assets from operations	$	1,063	$	1,362	$	(3,938)	$	(1,210)	$	(2,723)
Net increase / (decrease) in net assets per Share	$	1.52	$	1.95	$	(6.06)	$	(1.86)	$	(4.04)
Weighted average number of Shares		700,000		697,253		650,000		650,000		674,110
Year ended December 31, 2013
	Three months ended								Year ended
(Amounts in 000's of US$, except for Share and per Share data)	March 31		June 30		September 30		December 31		December 31
Revenues
Value of Bullion transferred to pay expenses	$	62	$	56	$	43	$	44	$	205
Cost of Bullion transferred to pay expenses		(56)		(57)		(50)		(49)		(212)
Gain / (loss) on Bullion transferred to pay expenses		6		(1)		(7)		(5)		(7)
Loss on Bullion distributed for the redemption of Shares		-		(495)		-		-		(495)
Unrealized (loss) / gain on investment in Bullion		-		(7,165)		2,531		4,634		-
Realized loss on investment in Bullion		-		-		-		(6,422)		(6,422)
Total gain / (loss) on Bullion		6		(7,661)		2,524		(1,793)		(6,924)
Expenses
Sponsor's fee		64		47		44		44		199
Total expenses		64		47		44		44		199
Net (loss) / gain from operations	$	(58)	$	(7,708)	$	2,480	$	(1,837)	$	(7,123)
Net (loss) / gain per Share	$	(0.07)	$	(10.24)	$	3.54	$	(2.62)	$	(9.52)
Weighted average number of Shares		843,333		752,747		700,000		700,000		748,493
Year ended December 31, 2012
	Three months ended								Year ended
	March 31		June 30		September 30		December 31		December 31
Revenues
Value of Bullion transferred to pay expenses	$	65	$	62	$	53	$	61	$	241
Cost of Bullion transferred to pay expenses		(59)		(56)		(53)		(53)		(221)
Gain on Bullion transferred to pay expenses		6		6		-		8		20
Gain on Bullion distributed for the redemption of Shares		523		38		-		-		561
Unrealized (loss) / gain on investment in Bullion		-		(1,162)		1,162		-		-
Total gain / (loss) on Bullion		529		(1,118)		1,162		8		581
Expenses
Sponsor's fee		66		57		57		59		239
Total expenses		66		57		57		59		239
Net gain / (loss) from operations	$	463	$	(1,175)	$	1,105	$	(51)	$	342
Net gain / loss per Share	$	0.56	$	(1.51)	$	1.47	$	(0.07)	$	0.44
Weighted average number of Shares		829,121		777,473		750,000		750,000		776,503

Note: Quarterly balances may not add to totals due to independent rounding.

The financial statements required by Regulation S-X, together with the report of the Trust’s independent registered public accounting firm appear on pages F-1 to F-1217 of this filing.

4143

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

There have been no changes in accountants and no disagreements with accountants on any matter of accounting principles or practices or financial statement disclosures during the year ended December 31, ~~2013~~2014.

Item 9A. Controls and Procedures

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to the Chief Executive Officer and Chief Financial Officer of the Sponsor, and to the audit committee, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer of the Sponsor, the Sponsor conducted an evaluation of the Trust’s disclosure controls and procedures, as defined under Exchange Act Rule 13a-15(e). Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer of the Sponsor concluded that, as of December 31, ~~2013~~2014, the Trust’s disclosure controls and procedures were effective.

There have been no changes in the Trust’s or Sponsor’s internal control over financial reporting that occurred during the Trust’s recently completed fiscal quarter ended December 31, ~~2013~~2014 that have materially affected, or are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial reporting.

~~This Annual Report does not include a report of management~~Management’s ~~assessment~~Report ~~regarding~~on ~~internal~~Internal ~~control~~Control over ~~financial~~Financial ~~reporting~~Reporting or an attestation report of the Trust’s registered public accounting firm as the Trust is neither an accelerated filer nor a large accelerated filer as defined by Rule 12b-2 under the Securities Exchange Act of 1934.

The Sponsor’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined under Exchange Act Rules 13a-15(f) and 15d-15(f). The Trust’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. Internal control over financial reporting includes those policies and procedures that:

(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Trust’s assets;

(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that the Trust’s receipts and expenditures are being made only in accordance with appropriate authorizations; and

(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Trust’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become ineffective because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Chief Executive Officer and Chief Financial Officer of the Sponsor assessed the effectiveness of the Trust’s internal control over financial reporting as of December 31, 2014. In making this assessment, they used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework (2013). Their assessment included an evaluation of the design of the Trust’s internal control over financial reporting and testing of the operational effectiveness of its internal control over financial reporting. Based on their assessment and those criteria, the Chief Executive Officer and Chief Financial Officer of the Sponsor concluded that the Trust maintained effective internal control over financial reporting as of December 31, 2014.

Item 9B. Other Information

~~Not~~As ~~applicable~~a result of Christopher Foulds’s temporary incapacity as the Sponsor’s Chief Financial Officer and Treasurer, due to illness, Joseph Roxburgh served as the Sponsor’s principal financial and accounting officer in the role of Chief Financial Officer and Treasurer from November 4, 2014 to February 26, 2015. On February 26, 2015 Mr. Foulds resumed his duties as the Sponsor’s Chief Financial Officer and Treasurer.

4244

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The Trust has no directors or executive officers. The biographies of the President and Chief Executive Officer of the Sponsor and the Chief Financial Officer and Treasurer of the Sponsor are set out below:

Graham Tuckwell – President and Chief Executive Officer

Mr. Tuckwell is the President and Chief Executive Officer of ETF Securities USA LLC. He is also the founder and chairman of the following companies incorporated in Jersey, Channel Islands: ETF Securities Limited, ETFS Management Company (Jersey) Limited and ETFS Holdings (Jersey) Limited. He is the founder and chairman of eleven other companies issuing exchange-traded products: Gold Bullion Securities Limited in Jersey, ETFS Metal Securities Australia Limited in Australia (which two companies obtained the world’s first listings of an exchange traded commodity on a stock exchange), ETFS Hedged Commodity Securities Limited, ETFS Commodity Securities Limited, ETFS Metal Securities Limited, ETFS Hedged Metal Securities Limited, ETFS Oil Securities Limited, ETFS Foreign Exchange Limited, ETFS Industrial Metal Securities Limited, ETFS Commodity Securities Australia Limited and Swiss Commodity Securities Limited. He is also a director of ~~ETFX~~GO ~~Fund~~UCITS ~~Company~~ETF ~~Public~~Solutions ~~Limited~~plc ~~Company~~ and of its manager ~~ETFX~~GO ETF Management ~~Company~~Ltd ~~Limited~~ in Ireland., a trustee of ETFS Trust in the US. Assets under management in those companies are in excess of US$18 15 billion. Previously, Mr. Tuckwell was the founder and managing director of Investor Resources Limited, a boutique corporate advisory firm which specialized in providing financial, technical and strategic advice to the resources industry. He has more than 20 years of corporate and investment banking experience. Prior to the above activities, Mr. Tuckwell was Head of Mining Asia/Pacific at Salomon Brothers, Group Executive Director at Normandy Mining responsible for Strategy and Acquisitions and Head of Mergers and Acquisitions at Credit Suisse First Boston in Australia. He holds a Bachelor of Economics (Honours) and a Bachelor of Laws degree from the Australian National University.

Christopher Foulds – Chief Financial Officer and Treasurer

Mr. Foulds ishas been the Vice President, Chief Financial Officer, Treasurer and Secretary of ETF Securities USA LLC since September 12, 2012, except for an absence due to illness from November 4, 2014 to February 26, 2015. He is also responsible for Financial Reporting and Compliance at ETF Securities Limited, the parent company of the Sponsor and is the Chief Financial Officer of ETF Securities Advisors LLC. Mr. Foulds is a Chartered Accountant and member of the ICAEW, having previously worked for and trained with Deloitte, Jersey. He has over ten years of finance experience and previously held a senior management position with Active Services (Jersey) Limited, providing start-up management and support services to the funds sector. He holds a BSc in Mathematics with Financial Management from the University of Portsmouth, England.

Joseph Roxburgh – Chief Financial Officer and Treasurer

As a result of the temporary incapacity of the Sponsor’s Chief Financial Officer and Treasurer, Christopher Foulds, due to illness, Joseph Roxburgh was appointed on November 4, 2014 and he served as the Sponsor’s principal financial and accounting officer in the role of Chief Financial Officer and Treasurer until February 26, 2015 when Mr. Foulds resumed his duties. Since 2012, Mr. Roxburgh has served as the Chief Financial Officer of ETF Securities Limited, the Sponsor’s parent company that is based in Jersey, Channel Islands. Prior to acting as Chief Financial Officer of ETF Securities Limited, from 2006 to 2012, Mr. Roxburgh was Group Finance Director for a Jersey-based individual managing a global portfolio of commercial and financial investments. From 2004 to 2006, he was Group Finance Director and Company Secretary for Brand Advantage Group and held various roles at KPMG between 1993 and 2004. Mr Roxburgh is a Chartered Accountant (FCA) and a member of the Association of Corporate Treasurers (AMCT). He holds an Executive MBA from University of Bristol / Ecole Nationale des Ponts et Chausses and a BSc in Physics from the University of Manchester.

Item 11. Executive Compensation

The Trust has no directors or executive officers. The only ordinary expense paid by the Trust is the Sponsor’s Fee.

4345

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners

The following table sets forth as of December 31, ~~2013~~2014, information with respect to each person known by the Trust to own directly or indirectly beneficially more than 5% of the outstanding Shares of the Trust.

	Amount and
	Nature
	of Beneficial		Percent of
Name and Address	Ownership		Class
JPMorgan Chase & Co.270 Park AvenueNew York, NY 10017		100,000		1415.2938	%
Hightower Advisors LLC200 West Madison StreetChicago, IL 60606		49,000		7.00%
Virtu Financial LLC645 Madison AvenueNew York, NY 10022		32,568		5.01%

Shares indicated as owned were reported on Schedule 13F returns filed by the Companies listed above. The Trust is unable to determine whether these Companies are the ultimate beneficial owners of such shares, and if they are not the ultimate beneficial owners, who such beneficial owners are.

Security Ownership of Management

~~The~~Not ~~Trustee does not beneficially own any of the Trust Shares~~applicable.

Change in Control

Neither the Sponsor nor the Trustee knows of any arrangements which may subsequently result in a change in control of the Trust.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The Trust has no directors or executive officers.

Item 14. Principal Accounting Fees and Services

Fees for services performed by Deloitte & Touche LLP for the years ended December 31, ~~2013~~2014 and ~~2012~~2013 were as follows:

	December 31, 2013		December 31, 2012
	December 31, 2014		December 31, 2013
Audit fees	$	5659,~~250~~663	$	5356,~~000~~250
Audit related fees		1542,~~000~~500		-15,000
	$	71102,~~250~~163	$	5371,~~000~~250

Pre-Approved Policies and Procedures

As referenced in Item 10 above, the Trust has no board of directors, and as a result, has no pre-approval policies or procedures with respect to fees paid to Deloitte & Touche LLP. Such determinations are made by the Sponsor.

None of the hours expended by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, the “Deloitte Entities”) for the years ended December 31, 2013 and 2012 were attributable to work performed by persons other than the principal accountant’s full time, permanent employees.46

PART IV

Item 15. Exhibits, Financial Statement Schedules

1. Financial Statements

See Index to Financial Statements on Page F-1 for a list of the financial statements being filed herein.

2. Financial Statement Schedules

Schedules have been omitted since they are either not required, not applicable, or the information has otherwise been included.

3. Exhibits

Exhibit No. Description


Exhibit No.	Description
4.1	Depositary Trust Agreement, incorporated by reference to Exhibit 4.1 filed with Registration Statement No. 333-167166 on November 30, 2010
4.2	Form of Authorized Participant Agreement, incorporated by reference to Exhibit 4.2 filed with the Trust’s Annual Report on Form 10K for the fiscal year ended December 31, 2011.
4.3	Global Certificate, incorporated by reference to Exhibit 4.3 filed with Registration Statement No. 333-167166 on November 30, 2010
10.1	Allocated Account Agreement, incorporated by reference to Exhibit 10.1 filed with Registration Statement No. 333-167166 on November 30, 2010
10.2	Unallocated Account Agreement, incorporated by reference to Exhibit 10.2 filed with Registration Statement No. 333-167166 on November 30, 2010
10.3	Depository Agreement, incorporated by reference to Exhibit 10.3 filed with Registration Statement No. 333-167166 on November 30, 2010
10.4	Marketing Agent Agreement, incorporated by reference to Exhibit 10.4 filed with Registration Statement No. 333-167166 on November 30, 2010
31.1	Chief Executive Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Chief Financial Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Chief Executive Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Chief Financial Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema Document*
101.CAL	XBRL Taxonomy Extension Calculation Document*
101.DEF	XBRL Taxonomy Extension Definitions Document*
101.LAB	XBRL Taxonomy Extension Labels Document*
101.PRE	XBRL Taxonomy Extension Presentation Document*
4.1	Depositary Trust Agreement, incorporated by reference to Exhibit 4.1 filed with Registration Statement No. 333-167166 on November 30, 2010

4.1 Depositary Trust Agreement, incorporated by reference to Exhibit 4.1 filed with Registration Statement No. 333-167166 on November 30, 2010

4.2 Form of Authorized Participant Agreement, incorporated by reference to Exhibit 4.2 filed with the Trust’s Annual Report on Form 10K for the fiscal year ended December 31, 2011.

4.3 Global Certificate, incorporated by reference to Exhibit 4.3 filed with Registration Statement No. 333-167166 on November 30, 2010

10.1 Allocated Account Agreement, incorporated by reference to Exhibit 10.1 filed with Registration Statement No. 333-167166 on November 30, 2010

10.2 Unallocated Account Agreement, incorporated by reference to Exhibit 10.2 filed with Registration Statement No. 333-167166 on November 30, 2010

10.3 Depository Agreement, incorporated by reference to Exhibit 10.3 filed with Registration Statement No. 333-167166 on November 30, 2010

10.4 Marketing Agent Agreement, incorporated by reference to Exhibit 10.4 filed with Registration Statement No. 333-167166 on November 30, 2010

31.1 Chief Executive Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2 Chief Financial Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1 Chief Executive Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2 Chief Financial Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS XBRL Instance Document*

101.SCH XBRL Taxonomy Extension Schema Document*

101.CAL XBRL Taxonomy Extension Calculation Document*

101.DEF XBRL Taxonomy Extension Definitions Document*

101.LAB XBRL Taxonomy Extension Labels Document*

101.PRE XBRL Taxonomy Extension Presentation Document*

* In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Annual Report on Form 10-K shall be deemed to be “furnished” and not “filed.”

4547

ETFS WHITE METALS BASKET TRUST

FINANCIAL STATEMENTS AS OF DECEMBER 31, ~~2013~~2014

INDEX

		Page
Report of Independent Registered Public Accounting Firm		F-2
Statements of Financial Condition at December 31, 2013 and 2012		F-3
Statements of Assets and Liabilities at December 31, 2014 and 2013		F-3
Statements of Operations for the years ended December 31, 2013, 2012 and 2011		F-4
Schedules of Investments at December 31, 2014 and 2013		F-4
Statements of Cash Flows for the year ended December 31, 2013, 2012 and 2011		F-5
Statements of Operations for the years ended December 31, 2014, 2013 and 2012		F-5
Statements of Changes in Shareholders’ Deficit for the years ended December 31, 2012, 2013 and 2011		F-6
Statements of Cash Flows for the years ended December 31, 2013 and 2012		F-6
Notes to the Financial Statements		F-7
Statement of Changes in Net Assets for the year ended December 31, 2014		F-7
Statements of Changes in Shareholders’ Deficit for the years ended December 31, 2013 and 2012		F-8
Financial Highlights for the year ended December 31, 2014		F-9
Notes to the Financial Statements		F-10

F-1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Sponsor, Trustee and the Shareholders of ETFS White Metals Basket Trust

New York, New York

We have audited the accompanying statements of ~~financial~~assets ~~condition~~and liabilities of ETFS White Metals Basket Trust (the "Trust"), including the schedules of investments, as of December 31, ~~2013~~2014 and ~~2012~~2013, and the related statements of operations for each of the three years in the period ended December 31, 2014, the statement of changes in net assets and the financial highlights for the year ended December 31, 2014, and the statements of changes in shareholders’ deficit, and the statements of cash flows for each of the ~~three~~two years in the period ended December 31, 2013. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements and financial highlights present fairly, in all material respects, the financial position of ETFS White Metals Basket Trust as of December 31, ~~2013~~2014 and ~~2012~~2013, ~~and~~ the results of its operations for the each of the three years in the period ended December 31, 2014, the changes in its net assets and the financial highlights for the year ended December 31, 2014, and changes in its shareholder’s deficit and its cash flows and for the each of the ~~three~~two years in the period ended December 31, 2013, in conformity with accounting principles generally accepted in the United States of America.

Effective January 1, 2014, the Trust adopted the provisions of Financial Accounting Standards Board Accounting Standards Update ASU 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements, and as a result of the adoption determined that, as of that date, the Trust meets the characteristics of an investment company as defined in Topic 946. Accordingly, as discussed in Note 2.1 to the financial statements, the Trust has changed its method of accounting for investment in bullion and changed the presentation of its financial statements.

/s/ DELOITTE & TOUCHE LLP

New York, New York ~~February 27, 2014~~

March 2, 2015

F-2

ETFS WHITE METALS BASKET TRUST

Statements of Assets ~~Financial~~and ~~Condition At~~LiabilitiesAt December 31, ~~2013~~2014 and ~~2012~~2013

	December 31, 2013			December 31, 2012
		December 31, 2014 (1)			December 31, 2013 (4)
(Amounts in 000's of US$, except for Share data)
(Amounts in 000's of US$, except for Share and per Share data)
ASSETS
Investment in Bullion (1)
Investment in Bullion (2)
Silver	$	13,406		$	20,883
Silver (cost: December 31, 2014: $12,374; December 31, 2013: $13,406)		$	10,134		$	13,406
Platinum		9,336			10,234
Platinum (cost: December 31, 2014: $8,617; December 31, 2013: $9,336)			7,678			9,336
Palladium		3,524			3,770
Palladium (cost: December 31, 2014: $3,252; December 31, 2013: $3,524)			4,051			3,524
Total assets	$	26,266		$	34,887
Total investment in Bullion			21,863			26,266
LIABILITIES
Total assets			21,863			26,266
Fees payable to Sponsor	$	14		$	19
LIABILITIES
Total liabilities		14			19
Fees payable to Sponsor			11			14
REDEEMABLE SHARES AND SHAREHOLDERS' DEFICIT
Total Liabilities			11			14
Shares at redemption value to investors (2)		26,639			37,605
NET ASSETS		$	21,852		$	26,252
Shareholders' deficit		(387)			(2,737)
ANALYSIS OF NET ASSETS
Total liabilities, redeemable Shares & shareholders' deficit	$	26,266		$	34,887
Redeemable Shares at redemption value to investors (3)			21,852			26,639
Shareholders' deficit			-			(387)
Total net assets (3)		$	21,852		$	26,252

(1)~~The~~Effective ~~investment~~January in1, ~~Bullion~~2014, isthe ~~valued~~Trust athas adopted the ~~lower~~provisions of ~~cost~~Topic or946, ~~market~~Investment ~~value~~Companies, and follows specialized accounting. Refer to ~~note~~Note 2.1 for aadditional ~~breakdown of cost and market value of the investment in Bullion~~information.

(2)~~Authorized~~At ~~share~~December ~~capital~~31, is2014, ~~unlimited~~the ~~and~~investment noin ~~par~~Bullion ~~value~~is ~~per~~valued ~~Share.~~at ~~Shares~~fair ~~issued~~value. ~~and~~At ~~outstanding at~~ December 31, 2013 ~~were~~the ~~700,000~~investment ~~and~~in Bullion was valued at ~~December~~the ~~31,~~lower ~~2012~~of ~~were~~cost ~~750,000~~or market value. Refer to note 2.1 for a breakdown of cost and fair value of the investment in Bullion.

(3)Authorized share capital is unlimited and no par value per share. Shares issued and outstanding at December 31, 2014 were 650,000 and at December 31, 2013 were 700,000. Net asset value per Share at December 31, 2014 was $33.62 and at December 31, 2013 was $38.06.

(4)Derived from audited Statement of Financial Condition as of December 31, 2013. The amounts are those previously reported under non-investment company accounting. Refer to Note 2.1 for additional information.

See Notes to the Financial Statements.

F-3

ETFS WHITE METALS BASKET TRUST

~~Statements~~Schedules of ~~Operations For~~InvestmentsAt ~~the years ended~~ December 31, ~~2013,~~2014 ~~2012~~ and ~~2011~~2013

	Year		Year		Year
		December 31, 2014
	Ended		Ended		Ended
Description		oz	Cost		Fair Value		% of Net Assets (1)
	December 31, 2013		December 31, 2012		December 31, 2011
Investment in Bullion (in 000's of US$, except for oz and percentage data)
(Amounts in 000's of US$, except for Share and per Share data)
Silver		634,560.7	$	12,374	$	10,134	46.38%
REVENUES
Platinum		6,345.7		8,617		7,678	35.14%
Value of Bullion transferred to pay expenses	$	205	$	241	$	349
Palladium		5,076.5		3,252		4,051	18.54%
Cost of Bullion transferred to pay expenses		(212)		(221)		(316)
Total investment in Bullion			$	24,243	$	21,863	100.05%
(Loss) / gain on Bullion transferred to pay expenses		(7)		20		33
		December 31, 2013
(Loss) / gain on Bullion distributed for the redemption of Shares		(495)		561		1,995
Description		oz	Cost		Fair Value		% of Net Assets (2)
Realized loss on Bullion		(6,422)		-		(6,932)
Investment in Bullion (in 000's of US$, except for oz and percentage data)
Total (loss) / gain on Bullion		(6,924)		581		(4,904)
Silver		687,498.1	$	13,406	$	13,406	51.07%
EXPENSES
Platinum		6,875.1		9,336		9,336	35.56%
Sponsor's Fee		199		239		355
Palladium		5,500.0		3,524		3,911	13.42%
Total expenses		199		239		355
Total investment in Bullion			$	26,266	$	26,653	100.05%
Net (loss) / gain from operations	$	(7,123)	$	342	$	(5,259)
Net (loss) / gain per Share	$	(9.52)	$	0.44	$	(5.24)
Weighted average number of Shares		748,493		776,503		1,003,425

(1)Calculated as investment in Bullion at fair value divided by net assets, as at December 31, 2014, investment in Bullion is recorded at fair value. Refer to Note 2.1 for additional information.

(2)Calculated as investment in Bullion at cost divided by net assets, as at December 31, 2013, investment in Bullion was recorded at the lower of cost or market value. Refer to Note 2.1 for additional information.

See Notes to the Financial Statements.

F-4

ETFS WHITE METALS BASKET TRUST

Statements of ~~Cash Flows~~Operations For the years ended December 31, 2014, 2013 and 2012

For the years ended December 31, 2013, 2012 and 2011



		Year		Year		Year
		Ended		Ended		Ended
	December 31, 2014 (1)		December 31, 2013 (2)		December 31, 2012 (2)
(Amounts in 000's of US$, except for Share and per Share data)
EXPENSES
Sponsor's Fee	$	156	$	199	$	239
Total expenses		156		199		239

Net investment loss		(156)		(199)		(239)

REALIZED AND UNREALIZED GAINS / (LOSSES)
Realized gain / (loss) on Bullion transferred to pay expenses		6		(7)		20
Realized gain / (loss) on Bullion distributed for the redemption of Shares		194		(495)		561
Change in unrealized loss on investment in Bullion		(2,767)		(6,422)		-
Total (loss) / gain on Bullion		(2,567)		(6,924)		581

Change in net assets from operations	$	(2,723)	$	(7,123)	$	342

Net (decrease) / increase in net assets per Share	$	(4.04)	$	(9.52)	$	0.44

Weighted average number of Shares		674,110		748,493		776,503

	Year		Year		Year
	Ended		Ended		Ended
	December 31, 2013		December 31, 2012		December 31, 2011
(Amounts in 000's of US$)
INCREASE IN CASH FROM OPERATIONS:
Cash proceeds received from transfer of Bullion	$	-	$	-	$	-
Cash expenses paid		-		-		-
Increase in cash resulting from operations		-		-		-
Cash and cash equivalents at beginning of year		-		-		-
Cash and cash equivalents at end of year	$	-	$	-	$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Value of Bullion received for creation of Shares	$	5,041	$	-	$	43,600
Value of Bullion distributed for redemption of Shares - at average cost	$	7,028	$	4,669	$	32,601
RECONCILIATION OF NET (LOSS) / GAIN TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Net (loss) / gain from operations	$	(7,123)	$	342	$	(5,259)
Adjustments to reconcile net (loss) / gain to net cash provided by operating activities:
Decrease / (increase) in investment in Bullion		8,621		4,890		(3,750)
(Decrease) / increase in amounts payable to Sponsor		(5)		(1)		5
Increase / (decrease) in redeemable Shares:
Creations		5,041		-		43,600
Redemptions		(6,534)		(5,231)		(34,596)
Net cash provided by operating activities	$	-	$	-	$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Value of Bullion transferred to pay expenses	$	205	$	241	$	349

(1)Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.

(2)Amounts are those previously reported under non-investment company accounting. Refer to Note 2.1 for additional information.

See Notes to the Financial Statements.

F-5

ETFS WHITE METALS BASKET TRUST

Statements of ~~Changes~~Cash inFlows For ~~Shareholders’~~the ~~Deficit~~ years ended December 31, 2013 and 2012

For the years ended December 31, 2013, 2012 and 2011



	Year		Year
	Ended		Ended
	December 31, 2013 (1)		December 31, 2012 (1)
(Amounts in 000's of US$)
INCREASE IN CASH FROM OPERATIONS:
Cash proceeds received from transfer of Bullion	$	-	$	-
Cash expenses paid		-		-
Increase in cash resulting from operations		-		-

Cash and cash equivalents at beginning of year		-		-
Cash and cash equivalents at end of year	$	-	$	-

SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Value of Bullion received for creation of Shares	$	5,041	$	-

Value of Bullion distributed for redemption of Shares - at cost	$	7,028	$	4,669

RECONCILIATION OF CHANGE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Change in net assets from operations	$	(7,123)	$	342
Adjustments to reconcile change in net assets from operations to net cash provided by operating activities:
Decrease in investment in Bullion		8,621		4,890
Decrease in fees payable to Sponsor		(5)		(1)
Increase / (decrease) in redeemable Shares:
Creations		5,041		-
Redemptions		(6,534)		(5,231)
Net cash provided by operating activities	$	-	$	-

SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Value of Bullion transferred to pay expenses	$	205	$	241

	Year		Year		Year
	Ended		Ended		Ended
	December 31, 2013		December 31, 2012		December 31, 2011
(Amounts in 000's of US$)
Shareholders' deficit - opening balance		(2,737)		-	$	(1,957)
Net (loss) / gain from operations		(7,123)		342		(5,259)
Adjustment of redeemable Shares to redemption value		9,473		(3,079)		7,216
Shareholders' deficit - closing balance	$	(387)	$	(2,737)	$	-

(1)

In accordance with Topic 946, Investment Companies, the Trust meets the exemption criteria to exclude a statement of cash flows. Thus one has not been presented for the year ended December 31, 2014. Refer to Note 2.1 for additional information.

See Notes to the Financial Statements.

F-6

ETFS WHITE METALS BASKET TRUST

Statement of Changes in Net Assets

For the year ended December 31, 2014



	Year ended December 31, 2014 (1)
(Amounts in 000's of US$, except for Share data)	Shares	Amount
Opening balance at January 1, 2014	700,000	$	26,252
Effect of adoption of new accounting principle (see Note 2.1)			387
Net investment loss			(156)
Realized gain on investment in Bullion			200
Change in unrealized loss on investment in Bullion			(2,767)
Creations	-		-
Redemptions	(50,000)		(2,064)
Closing balance at December 31, 2014	650,000	$	21,852

(1)

Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.

See Notes to the Financial Statements

F-7

ETFS WHITE METALS BASKET TRUST

Statements of Changes in Shareholders’ Deficit

For the years ended December 31, 2013 and 2012



	Year		Year
	Ended		Ended
	December 31, 2013 (1)		December 31, 2012 (1)
(Amounts in 000's of US$)
Shareholder's deficit - opening balance	$	(2,737)	$	-
Net (loss) / gain from operations		(7,123)		342
Adjustment of redeemable Shares to redemption value		9,473		(3,079)
Shareholders' deficit - closing balance	$	(387)	$	(2,737)

(1)

Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.

See Notes to the Financial Statements

F-8

ETFS WHITE METALS BASKET TRUST

Financial Highlights

For the year ended December 31, 2014



	Year
	Ended
	December 31, 2014 (1)
Per Share Performance (for a Share outstanding throughout the entire period)

Net asset value per Share at beginning of year	$	38.06
Income from investment operations:
Net investment loss		(0.23)
Total realized and unrealized gains or losses on investment in Bullion		(4.21)
Change in net assets from operations		(4.44)

Net asset value per Share at end of year	$	33.62

Weighted average number of Shares		674,110

Expense Ratio
Sponsor's Fee per Share		0.60%

Net Investment Loss Ratio
Net investment loss ratio		(0.60)%

Total Return		(11.67)%

(1)

Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.

See Notes to the Financial Statements

F-9

ETFS WHITE METALS BASKET TRUST

Notes to the Financial Statements

1. Organization

The ETFS White Metals Basket Trust (the “Trust”) is an investment trust formed on November 29, 2010, under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by ETF Securities USA LLC (the “Sponsor”) and the Bank of New York Mellon (the “Trustee”) at the time of the Trust’s organization. The Trust holds silver, platinum and palladium in set ratios (together, “Bullion”) and issues shares (“Shares”) (in minimum blocks of 50,000 Shares, referred to as “Baskets”) in exchange for deposits of Bullion and distributes Bullion in connection with the redemption of Baskets. Shares represent units of fractional undivided beneficial interest in and ownership of the Trust which are issued by the Trust. The Sponsor is a Delaware limited liability company and a wholly-owned subsidiary of ETF Securities Limited, a Jersey, Channel Islands’ based company. The Trust is governed by the Trust Agreement.

The investment objective of the Trust is for the Shares to reflect the performance of the price of silver, platinum and palladium, less the Trust’s expenses and liabilities. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the silver, platinum and palladium market through an investment in securities.

F-10

ETFS WHITE METALS BASKET TRUST

Notes to the Financial Statements

2. Significant Accounting Policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires those responsible for preparing financial statements to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust.

~~F-7~~2.1. Basis of Accounting

Since the Trust’s inception, the Sponsor determined that the Trust was not an investment company within the scope of Financial Accounting Standards Board (“FASB”) Codification of Accounting Standards, Topic 946, Financial Services—Investment Companies (“Topic 946”). Consequently, the Trust did not prepare its financial statements applying standards applicable to investment companies in accordance with Topic 946, including recording its investment in Bullion at “fair value” as defined in Topic 946. Instead, the Trust recorded its investment in Bullion at the lower of cost or fair value in accordance with ASC 330, Inventory and ASC 270, Interim Reporting.

Following the release of FASB Accounting Standards Update ASU 2013-08, Financial Services—Investments Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements, the Sponsor has re-evaluated whether the Trust falls within scope and has concluded that for reporting purposes, the Trust is classified as an investment company effective January 1, 2014. The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act.

As a result of the change in the evaluation of investment company status, the Trust must, from January 1, 2014, present its Bullion assets at “fair value” as defined in Topic 946.

The adoption of Topic 946 accounting changed the presentation of the Trust’s financial statements prospectively from January 1, 2014 (the date of the adoption), the most significant aspects of which are as follows:

	1.	Presentation of prior year information has been conformed to the current year accounting standards in the Statement of Assets and Liabilities and Statement of Operations. A Condensed Statement of Changes in Net Assets is required and has been presented for the year ended December 31, 2014.
	2.	A Schedule of Investments is required as of December 31, 2014. The Schedule has also been included as of December 31, 2013, for comparative presentation.
	3.	Financial Highlights are required for the year ended December , 2014.
	4.	As the Trust meets the exemption criteria under Topic 946, a cash flow statement is not required for the year ended December 31, 2014. Since the adoption of the new accounting principle is prospective, the prior years’ statements of cash flows are still presented.
	5.	Required disclosures under Topic 820, Fair Value Measurements, have been included in the footnotes to the financial statements as of December 31, 2014. December 31, 2013 disclosures have also been included for comparative purposes.

The quantitative effect of the adoption of investment company accounting is presented below:



	Value at				Gain / (loss)
	December 31, 2013		Value at		as a result of
	at lower of cost		January 1, 2014		change in
(Amounts in 000's of US$)	or market value		at fair value		accounting principle
Bullion
Silver	$	13,406	$	13,406	$	-
Platinum	$	9,336	$	9,336	$	-
Palladium	$	3,524	$	3,911	$	387
	$	26,266	$	26,653	$	387

F-11

ETFS WHITE METALS BASKET TRUST

Notes to the Financial Statements

2. Significant Accounting Policies (Continued)

2.12. Valuation of Bullion

~~Bullion~~The isTrust ~~held~~follows ~~by JPMorgan Chase Bank, N.A. (~~the ~~“Custodian”),~~provisions ~~on behalf~~ of ~~the~~ASC ~~Trust~~820, atFair ~~its~~Value ~~London,~~Measurements ~~England vaulting premises on a segregated basis. The allocated platinum~~ and ~~palladium~~Disclosures ~~is held by UBS AG~~ (~~the~~"ASC ~~“Zurich Sub-Custodian”~~820") ~~at its Zurich, Switzerland vaulting premises on a segregated basis~~. ~~The~~ASC ~~Trust’s~~820 ~~Bullion~~provides isguidance ~~valued,~~for ~~per~~determining ~~individual~~fair ~~metal~~value ~~type,~~and ~~for~~requires disclosure ~~financial~~regarding ~~statement purposes,~~ the ~~lower~~inputs ofto ~~cost~~valuation ortechniques ~~market.~~used ~~The cost of Bullion is determined according~~ to ~~the~~measure ~~average~~fair ~~cost~~value. ~~method~~ASC ~~and~~820 ~~the~~defines ~~market~~fair value isas ~~based on~~ the ~~London~~price ~~Fix~~that ~~for~~would ~~each~~be ~~metal~~received ~~held by the Trust used~~ to ~~determine~~sell ~~the~~an ~~NAV~~asset ofor ~~the~~paid ~~Trust.~~to ~~Realized~~transfer ~~gains~~a ~~and~~liability ~~losses~~in onan ~~transfers~~orderly oftransaction ~~Bullion,~~between ormarket ~~Bullion~~participants ~~distributed~~at ~~for~~ the ~~redemption~~measurement ~~of Shares, are calculated on a trade~~ date ~~basis using average cost~~.

~~Once~~Bullion is held by JPMorgan Chase Bank, N.A. (the ~~value~~“Custodian”), on behalf of ~~Bullion~~the ~~has~~Trust, ~~been~~at ~~determined~~its London, ~~the~~England ~~NAV~~vaulting ispremises ~~computed~~on bya ~~the~~segregated ~~Trustee~~basis. byThe ~~deducting~~allocated ~~all~~platinum ~~accrued~~and ~~fees~~palladium may also be held by UBS A.G., ~~expenses~~or ~~and~~any other ~~liabilities~~firm ofselected by the Custodian to hold the Trust,’s ~~including~~platinum and palladium in the Trust’s allocated account in the firm’s Zurich vault premises on a segregated basis and whose appointment has been approved by the Sponsor, (the “Zurich Sub-Custodian”) at its Zurich, Switzerland vaulting premises on a segregated basis. The Trust’s ~~Fee~~Bullion is recorded, ~~from~~per ~~the~~individual metal type, at fair value. The cost of Bullion is determined according to the ~~Bullion~~average cost method and ~~all~~the ~~other~~fair ~~assets~~value is based on the relevant “London Metal Price” for each metal held by the Trust.

~~The~~Prior ~~table~~to ~~below~~August ~~summarizes~~15, 2014, the ~~unrealized~~Trust ~~gains~~utilized orthe ~~realized~~“London ~~losses~~Fix” for silver as its benchmark for silver valuation purposes. The London Fix for silver, which London Silver Market Fixing Ltd. discontinued on August 14, 2014, was the ~~Trust’s~~price ~~Bullion~~of ~~holdings~~an ounce of silver as set by three market making members of ~~December~~the 31LBMA at approximately 12:00 noon, ~~2013~~London time, on each London business day and ~~2012:~~was widely accepted among silver market participants. Effective from August 15, 2014, CME Group, Inc. has been conducting an electronic, over-the-counter silver bullion auction in London, England to establish a fixing price for an ounce of silver once each trading day, which is disseminated by Thomson Reuters (the “London Silver Price”). As of the date of filing, the London Silver Price is established by the five LBMA-authorized bullion banks and market makers participating in the auction. The “London Metal Price” for silver held by the Trust is the London Silver Price.

	December 31, 2013
		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - average cost	$	19,532	$	9,632	$	3,524	$	32,688
Realized loss on investment in Bullion		(6,126)		(296)		-		(6,422)
Investment in Bullion - lower of cost or market value		13,406		9,336		3,524		26,266
Unrealized gain on investment in Bullion		-		-		387		387
Investment in Bullion - market value	$	13,406	$	9,336	$	3,911	$	26,653
	December 31, 2012
		Silver		Platinum		Palladium		Total
Investment in Bullion - average cost	$	20,883	$	10,234	$	3,770	$	34,887
Unrealized gain on investment in Bullion		1,311		1,052		374		2,737
Investment in Bullion - market value	$	22,194	$	11,286	$	4,144	$	37,624

Prior to December 1, 2014 the Trust utilized the “London Fix” for platinum or palladium (as applicable) of the price of an ounce of such metal performed in London, England by fixing members of the London Platinum and Palladium Market (“LPPM”). Effective December 1, 2014, the London Metal Exchange (“LME”) began administering the operation of electronic platinum and palladium bullion price fixing systems (“LMEbullion”) that replicates electronically the previous manual London platinum and palladium fix processes. The “London Metal Price” for platinum and palladium held by the Trust is the afternoon fix of LMEbullion (the “LME PM Fix”).

~~The~~Realized ~~Trust~~gains ~~recognizes~~and ~~the~~losses ~~diminution~~on intransfers ~~value~~ of ~~the~~Bullion, ~~investment~~or in Bullion ~~which~~distributed ~~arises~~for ~~from market declines on an interim basis. Increases in~~ the ~~value~~redemption of ~~the~~Shares, ~~investment in Bullion through market price recoveries in later interim periods of the same fiscal year~~ are ~~recognized~~calculated ~~in the later interim period. Increases in value recognized~~ on ~~an interim basis may not exceed the previously recognized diminution in value. The market value of silver and platinum had fallen below the average cost at December 31, 2013, therefore~~ a ~~loss~~trade ~~was~~date ~~realized~~basis onusing ~~the investment in silver and platinum of $6,125,997and $295,611, respectively~~cost.

F-12

ETFS WHITE METALS BASKET TRUST

Notes to the Financial Statements

2. Significant Accounting Policies (Continued)

2.2. Valuation of Bullion (continued)

Once the value of Bullion has been determined, the NAV is computed by the Trustee by deducting all accrued fees and other liabilities of the Trust, including the Sponsor’s Fee, from the fair value of the Bullion and all other assets held by the Trust. The table below summarizes the unrealized gains or realized losses on the Trust’s Bullion holdings as of December 31, 2014 and 2013:



	December 31, 2014
(Amounts in 000's of US$)		Silver		Platinum		Palladium	Total
Investment in Bullion - cost	$	12,374	$	8,617	$	3,252	$	24,243
Unrealized (loss) / gain on investment in Bullion		(2,240)		(939)		799		(2,380)
Investment in Bullion - fair value	$	10,134	$	7,678	$	4,051	$	21,863

	December 31, 2013
(Amounts in 000's of US$)		Silver		Platinum		Palladium	Total
Investment in Bullion - cost	$	13,406	$	9,336	$	3,524	$	26,266
Unrealized gain on investment in Bullion		-		-		387		387
Investment in Bullion - fair value	$	13,406	$	9,336	$	3,911	$	26,653

Effective January 1, 2014, the Trust records its investment in Bullion at fair value and recognizes changes in fair value of the investment in Bullion as change in unrealized gain / loss on investment in Bullion in the Statement of Operations.

Prior to 2014, the Trust recognized the movements in value of the investment in Bullion arising from market declines on an interim basis. Increases in the value of the investment in Bullion through market price recoveries in later interim periods of the same fiscal year were recognized in the later interim period. Increases in value recognized on an interim basis were not permitted to exceed the previously recognized diminution in value. Unrealized losses at December 31, 2013 were crystallized as realized losses, and the average cost of silver and platinum was written down to market value.

The per share amount of Bullion exchanged for a purchase or redemption is calculated daily by the Trustee, using the London Fix for each metal held by the Trust to calculate the Bullion amount in respect of any liabilities for which covering Bullion sales have not yet been made, and represents the per-share amount of Bullion held by the Trust, after giving effect to its liabilities, to cover expenses and liabilities and any losses that may have occurred.

~~2.2.~~The per Share amount of Bullion ~~Receivable~~exchanged for a purchase or redemption is calculated daily by the Trustee, using the London Metal Price for each metal held by the Trust to calculate the Bullion amount in respect of any liabilities for which covering Bullion sales have not yet been made, and ~~Payable~~represents the per Share amount of Bullion held by the Trust, after giving effect to its liabilities, to cover expenses and liabilities and any losses that may have occurred.

Bullion receivable or payable represents the quantity of Bullion covered by contractually binding orders for the creation or redemption of Shares respectively, where the Bullion has not yet been transferred to or from the Trust’s account. Generally, ownership of the Bullion is transferred within three days of the trade date. There was no Bullion receivable or payable at December 31, 2013 and 2012F-13

F-8

ETFS WHITE METALS BASKET TRUST

Notes to the Financial Statements

2. Significant Accounting Policies (Continued)

2.32. Valuation ~~Creations and Redemptions~~ of ~~Shares~~Bullion (continued)

Fair Value Hierarchy

Inputs

Generally accepted accounting principles establish a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:

–	Level 1.	Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.
–	Level 2.	Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments and similar data.
–	Level 3.	Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The investment in Bullion is classified as a level 2 asset, as the Trust’s investment in Bullion is calculated using third party pricing sources supported by observable, verifiable inputs.

The categorization of the Trust’s assets is as shown below:

There were no re-allocations or transfers between levels during the period.

2.3. Bullion Receivable and Payable

F-14

ETFS WHITE METALS BASKET TRUST

Notes to the Financial Statements

2. Significant Accounting Policies (Continued)

2.4. Creations and Redemptions of Shares

The Trust expects to create and redeem Shares from time to time, but only in one or more Baskets (a Basket equals a block of 50,000 Shares). The Trust issues Shares in Baskets to Authorized Participants on an ongoing basis. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. An Authorized Participant is a person who (1) is a registered broker-dealer or other securities market participant such as a bank or other financial institution which is not required to register as a broker-dealer to engage in securities transactions, (2) is a participant in The Depositary Trust Company, (3) has entered into an Authorized Participant Agreement with the Trustee, and (4) has established an Authorized Participant Unallocated Account with the Trust’s Custodian. An Authorized Participant Agreement is an agreement entered by each Authorized Participant, the Sponsor and the Trustee which provides the procedures for the creation and redemption of Baskets and for the delivery of the Bullion required for such creations and redemptions. An Authorized Participant Unallocated Account is an unallocated Bullion account, either loco London or loco Zurich, established with the Custodian or a Bullion clearing bank by an Authorized Participant.

The creation and redemption of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of Bullion and any cash represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received.

The amount of ~~bullion~~Bullion represented by the Baskets created or redeemed can only be settled to the nearest 1/1000th of an ounce. As a result, the value attributed to the creation or redemption of Shares may differ from the value of ~~bullion~~Bullion to be delivered or distributed by the Trust. In order to ensure that the correct metal is available at all times to back the Shares, the Sponsor accepts an adjustment to its management fees in the event of any shortfall or excess. For each transaction, this amount is not more than 1/1000th of an ounce.

Authorized Participants may, on any business day, place an order with the Trustee to create or redeem one or more Baskets. The typical settlement period for Shares is three business days. In the event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded. When Bullion is exchanged in settlement of redemption, it is considered a sale of Bullion for financial statement purposes.

~~The~~As the Shares of the Trust are subject to redemption at the option of Authorized Participants, the Trust has classified the outstanding Shares as “Redeemable Capital Shares” ~~for~~as ~~financial~~of ~~statement~~December ~~purposes~~31, ~~since~~2013 ~~they~~and ~~are~~2012 ~~subject~~and toas ~~redemption~~Net atAssets ~~the~~as ~~option~~ of ~~Authorized~~December ~~Participants~~31, 2014. The ~~Outstanding~~Trust ~~Shares~~records ~~are~~the ~~reflected at~~ redemption value, which represents the maximum obligation (based on NAV per Share), with the difference from historical cost recorded as an offsetting amount to ~~retained~~Shareholders’ ~~earnings~~Equity.

Changes in the Shares for the years ended December 31, 2013, ~~2012~~ and ~~2011~~2012 are set out below:

	~~Year~~	Year	~~Year~~	Year	~~Year~~
	~~Ended~~	Ended	~~Ended~~	Ended	~~Ended~~
	December 31, 2013		December 31, 2012		December 31, 2011
(Amounts in 000's of US$, except for Share and per Share data)		December 31, 2013		December 31, 2012
(Amounts in 000's of US$, except for Share and per Share data)
Number of Redeemable Shares
Number of redeemable Shares
Opening balance		750,000		850,000
Opening balance		750,000		850,000		700,000
Creations		100,000		-
Creations		100,000		-		750,000
Redemptions		(150,000)		(100,000)
Redemptions		(150,000)		(100,000)		(600,000)
Closing balance		700,000		750,000
Closing balance		700,000		750,000		850,000
Redeemable Shares
Redeemable Shares
Opening balance	$	37,605	$	39,757
Opening balance	$	37,605	$	39,757	$	37,969
Creations		5,041		-
Creations		5,041		-		43,600
Redemptions		(6,534)		(5,231)
Redemptions		(6,534)		(5,231)		(34,596)
Adjustment to redemption value		(9,473)		3,079
Adjustments to redemption value		(9,473)		3,079		(7,216)
Closing balance	$	26,639	$	37,605
Closing balance	$	26,639	$	37,605	$	39,757
Redemption value per Share at period end	$	38.06	$	50.14
Redemption value per Share at period end	$	38.06	$	50.14	$	46.77

F-915

ETFS WHITE METALS BASKET TRUST

Notes to the Financial Statements

2. Significant Accounting Policies (Continued)

2.45. Realized ~~Revenue~~Gains ~~Recognition~~/ ~~Policy~~ Losses

Revenues consist of realized gains / losses resulting from the transfer of Bullion for Share redemptions and / or to pay expenses. Realized gains /losses are recognized on a trade date basis.

The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of Bullion to the Sponsor. With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s Bullion as necessary to pay these expenses. When selling Bullion to pay expenses, the Trustee will endeavor to sell the smallest amounts of Bullion needed to pay these expenses in order to minimize the Trust’s holdings of assets other than Bullion.

Unless otherwise directed by the Sponsor, when selling Bullion the Trustee will endeavor to sell at the price established by the London Fix for each metal held by the Trust. The Trustee will place orders with dealers (which may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. The Custodian may be the purchaser of such Bullion only if the sale transaction is made at the London Fix for each metal held by the Trust used by the Trustee to value the Trust’s Bullion. A gain or loss is recognized based on the difference between the selling price and the average cost of the Bullion sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale.

2.56. Income Taxes

The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis.

The Trust has adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740-10, Income Taxes. The Sponsor has evaluated the application of ASC 740 to the Trust, to determine whether or not there are uncertain tax positions in its major jurisdictions that require financial statement recognition. Based on this evaluation, the Sponsor has determined nothe ~~reserves~~Trust’s ~~for~~major ~~uncertain~~jurisdictions ~~tax~~to ~~positions~~be ~~are~~where ~~required~~it tois beorganized ~~recorded~~and aswhere abullion ~~result~~is ofheld. No ~~the~~uncertain ~~application~~tax ofpositions ~~ASC~~have ~~740~~been identified. As a result, no income tax liability or expense has been recorded in the accompanying financial statements.

F-1016

ETFS WHITE METALS BASKET TRUST

Notes to the Financial Statements

2. Significant Accounting Policies (Continued)

2.67. Investment in Bullion

The following represents the changes in ounces of Bullion and the respective values for the years ended December 31, ~~2013~~2014 and ~~2012~~2013 is set out below:

	December 31, 2013
(Amounts in 000's of US$, except for ounces data)		Year Ended December 31, 2014
(Amounts in 000's of US$, except for ounces data)		Silver			Platinum			Palladium			Total
Ounces of Bullion		Silver			Platinum			Palladium			Total
Ounces of Bullion:
Opening balance			687,498.1			6,875.1			5,500.0			699,873.2
Opening balance		741,050.4			7,410.5			5,928.4			754,389.3
Redemptions			(48,938.9)			(489.4)			(391.5)			(49,819.8)
Creations		98,745.0			987.5			790.0			100,522.5
Transfers of Bullion to pay expenses			(3,998.5)			(40.0)			(32.0)			(4,070.5)
Redemptions		(147,834.5)			(1,478.3)			(1,182.7)			(150,495.5)
Closing balance			634,560.7			6,345.7			5,076.5			645,982.9
Transfers of Bullion to pay expenses		(4,462.8)			(44.6)			(35.7)			(4,543.1)
Investment in Bullion
Closing balance		687,498.1			6,875.1			5,500.0			699,873.2
Opening balance		$	13,406		$	9,336		$	3,911		$	26,653
Investment in Bullion (lower of cost or market):
Redemptions			(1,019)			(718)			(327)			(2,064)
Opening balance	$	20,883		$	10,234		$	3,770		$	34,887
Realized gain on Bullion distributed for the redemption of Shares			65			53			76			194
Creations		2,976			1,531			534			5,041
Transfers of Bullion to pay expenses			(77)			(56)			(26)			(159)
Redemptions		(4,200)			(2,071)			(757)			(7,028)
Realized (loss) / gain on Bullion transferred to pay expenses			(1)			2			5			6
Transfers of Bullion to pay expenses		(127)			(62)			(23)			(212)
Unrealized (loss) / gain on investment in Bullion			(2,240)			(939)			412			(2,767)
Realized loss on Bullion		(6,126)			(296)			-			(6,422)
Closing balance		$	10,134		$	7,678		$	4,051		$	21,863
Closing balance	$	13,406		$	9,336		$	3,524		$	26,266
(Amounts in 000's of US$, except for ounces data)		Year Ended December 31, 2013
	December 31, 2012
Ounces of Bullion		Silver			Platinum			Palladium			Total
		Silver			Platinum			Palladium			Total
Opening balance			741,050.4			7,410.5			5,928.4			754,389.3
Ounces of Bullion:
Creations			98,745.0			987.5			790.0			100,522.5
Opening balance		844,927.9			8,449.3			6,759.4			860,136.6
Redemptions			(147,834.5)			(1,478.3)			(1,182.7)			(150,495.5)
Redemptions		(99,192.6)			(991.9)			(793.5)			(100,978.0)
Transfers of Bullion to pay expenses			(4,462.8)			(44.6)			(35.7)			(4,543.1)
Transfers of Bullion to pay expenses		(4,684.9)			(46.9)			(37.5)			(4,769.3)
Closing balance			687,498.1			6,875.1			5,500.0			699,873.2
Closing balance		741,050.4			7,410.5			5,928.4			754,389.3
Investment in Bullion
Investment in Bullion (lower of cost or market):
Opening balance		$	20,883		$	10,234		$	3,770		$	34,887
Opening balance	$	23,810		$	11,668		$	4,299		$	39,777
Creations			2,976			1,531			534			5,041
Redemptions		~~(2,795)~~	(3,533)		~~(1,369)~~	(2,190)		~~(505)~~	(810)		~~(4,669)~~	(6,533)
Transfers of Bullion to pay expenses		(132)			(65)			(24)			(221)
Realized (loss) / gain on Bullion distributed for the redemption of Shares			(667)			119			53			(495)
Closing balance	$	20,883		$	10,234		$	3,770		$	34,887
Transfers of Bullion to pay expenses			(112)			(67)			(26)			(205)
Realized (loss) /gain on Bullion transferred to pay expenses			(15)			5			3			(7)
Realized loss on investment in Bullion			(6,126)			(296)			-			(6,422)
Closing balance		$	13,406		$	9,336		$	3,524		$	26,266

F-1117

ETFS WHITE METALS BASKET TRUST

Notes to the Financial Statements

2. Significant Accounting Policies (Continued)

2.78. Expenses

The Trust will transfer Bullion to the Sponsor to pay the Sponsor’s Fee that will accrue daily at an annualized rate equal to 0.60% of the adjusted daily net asset value of the Trust, paid monthly in arrears.

The Sponsor has agreed to assume administrative and marketing expenses incurred by the Trust, including the Trustee’s monthly fee and out of pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses, exchange listing fees, United States Securities and Exchange Commission (the “SEC”) registration fees, printing and mailing costs, audit fees and certain legal expenses.

For the year ended December 31, ~~2013~~2014 the Sponsor’s Fee was $~~198~~156,~~907~~ 284 (December 31, ~~2012~~2013: $~~239~~198,~~748~~907; December 31, ~~2011: $354,354). As of December 31, 2013, $13,619 was payable to the Sponsor (December 31,~~ 2012: $19239,~~173~~748).

~~2.8.~~As ~~Recent~~of ~~Accounting~~December ~~Pronouncements~~31, 2014, $11,172 was payable to the Sponsor (December 31, 2013: $13,619).

In June 2013, the Financial Accounting Standards Board issued ASU 2013-08, Financial Services –Investments Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements. ASU 2013-08 changes the approach to the investment company assessment, requires non-controlling ownership interests in other investment companies to be measured at fair value, and requires additional disclosures about the investment company's status as an investment company. The amendments are effective for interim and annual reporting periods beginning after December 15, 2013. The Trust is currently evaluating the impact, if any, this pronouncement will have on the financial statements.

2.9. Subsequent Events

In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events, the Trust’s management has evaluated the possibility of subsequent events existing in the Trust’s financial statements through the issuance. Management has determined that there were no material events that would require adjustment to or disclosure in the Trust’s financial statements through this date.

3. Related Parties

The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee’s and Custodian’s fees are paid by the Sponsor and are not separate expenses of the Trust. The Custodian and its affiliates may from time to time act as Authorized Participants or purchase or sell Bullion or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

4. Concentration of Risk

The Trust’s sole business activity is the investment in Bullion, and substantially all the Trust’s assets are holdings of Bullion which creates a concentration risk associated with fluctuations in the price of Bullion. Several factors could affect the price of Bullion, including: (i) global Bullion supply and demand, which is influenced by factors such as production and cost levels in major Bullion-producing countries. Recycling, autocatalyst demand, industrial demand, jewelry demand and investment demand are also important drivers in Bullion supply and demand; (ii) investors’ expectations with respect to the rate of inflation; (iii) currency exchange rates; (iv) interest rates; (v) investment and trading activities of hedge funds and commodity funds; and (vi) global or regional political, economic or financial events and situations. In addition, there is no assurance that Bullion will maintain its long-term value in terms of purchasing power in the future. In the event that the price of Bullion declines, the Sponsor expects the value of an investment in the Shares to decline proportionately. Each of these events could have a material effect on the Trust’s financial position and results of operations.

5. Indemnification

Under the Trust’s organizational documents, each of the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees, and affiliates) is indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith or willful misconduct on its part and without reckless disregard on its part of its obligations and duties under the Trust’s organizational documents.

The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.

F-1218

Click here to enter text.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities* indicated thereunto duly authorized.

	ETF SECURITIES USA LLC
	Sponsor of the ETFS White Metals Basket Trust
	(Registrant)
	/s/ Graham Tuckwell
Date: March 2, 2015	/s/ Graham Tuckwell
	Graham Tuckwell
	President and Chief Executive Officer
	(Principal Executive Officer)
Date: February 28, 2014
Date: March 2, 2015	/s/ Christopher Foulds
	/s/ Christopher Foulds
	Christopher
	Chief Financial Officer and Treasurer
	(Principal Financial Officer and Principal Accounting Officer)

Date: February 28, 2014

* The Registrant is a trust and the persons are signing in their capacities as officers of ETF Securities USA LLC, the Sponsor of the Registrant.

(Amounts in 000's of US$)

December 31, 2014

December 31, 2013

Investment in Bullion

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