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UNITED
STATES SECURITIES AND EXCHANGE COMMISSION










Washington,
D.C. 20549










Form


10-K


























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








For
the fiscal year ended


December 31, 2020











or
























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








For
the Transition Period from


to











Commission
File Number:


001-34917


























ABERDEEN STANDARD PRECIOUS METALS BASKET ETF TRUST







(Exact
name of registrant as specified in its charter)






















New York












27-2780046








(State
or other jurisdiction of incorporation or






organization)









(I.R.S.
Employer Identification No.)



















c/o
Aberdeen Standard Investments ETFs Sponsor LLC














712 Fifth Avenue


,


49

th

Floor










New York


,


NY








(Address
of principal executive offices)












10019








(Zip
Code)









(


844


)


383-7289








(Registrant’s
telephone number, including area code)









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
























Title
of each class








Trading
Symbol(s)








Name
of each exchange on which registered






Aberdeen
Standard Physical Precious Metals Basket Shares ETF










GLTR










NYSE Arca








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 every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit such files).


Yes


☒   No ☐








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






























Large
Accelerated Filer












Accelerated Filer









Non-Accelerated
Filer










Smaller
Reporting Company




















Emerging
Growth Company














If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐








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


No










Aggregate
market value of the registrant’s shares outstanding based upon the closing price of a share on June 30, 2020 as reported
by the NYSE Arca, Inc. on that date: $


563,827,493


.








As
of February 24, 2021, Aberdeen Standard Precious Metals Basket ETF Trust had


9,250,000


Aberdeen Standard Physical Precious
Metals Basket Shares ETF 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 words, “anticipates,”
“believes,” “estimates,” “expects,” “intends,” “plans,” “projects,”
“understands” and other words 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
































































































































































































PART I




3




Item 1. Business




3



Trust Objective



3



Overview of the Bullion Industry



4



Operation of the Bullion Markets



10




Secondary Market Trading




19




Valuation
of Bullion and Computation of Net Asset Value




20




Trust Expenses




20




Deposit of Bullion; Issuance of Shares




21




Withdrawal of Bullion; Redemption of Shares




22




Creation and Redemption Transaction Fee




22




The Sponsor




23




The Trustee




24




The Custodian




24




Inspection of Bullion




25




Description of Shares




25




Custody of the Trust’s Bullion




26




United States Federal Income Tax Consequences




27




ERISA and Related Considerations




30




Item 1A. Risk Factors




31




Item 1B. Unresolved Staff Comments




41




Item 2. Properties




41




Item 3. Legal Proceedings




41




Item 4. Mine Safety Disclosure




41






41




PART II




41





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





41




Item 6. Selected Financial Data




44




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




44




Item 7A. Quantitative and Qualitative Disclosures about Market Risk




48




Item 8. Financial Statements and Supplementary Data




48




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




49




Item 9A. Controls and Procedures




49




Item 9B. Other Information




52










PART III




53




Item 10. Directors, Executive Officers and Corporate Governance




53




Item 11. Executive Compensation




53




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




53




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




53




Item 14. Principal Accounting Fees and Services




55










PART IV




56




Item 15. Exhibits, Financial Statement Schedules




56




Item 16. Form 10K Summary




58









2















PART
I












Item
1. Business









The
purpose of the Aberdeen Standard Precious Metals Basket ETF Trust (the “Trust”) is to own, in an agreed
proportion, gold, 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 consist solely of Bullion. The Trust was formed on October 18,
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 Aberdeen Standard Investments ETFs Sponsor LLC (the “Sponsor”). The trustee of the Trust is
The Bank of New York Mellon (the “Trustee”) and the custodian is JPMorgan Chase Bank N.A., London Branch (the “Custodian”).








The
Trust’s Shares at redeemable value increased from $499,077,573 at December 31, 2019 to $841,868,238 at December 31, 2020,
the Trust’s fiscal year end. Outstanding Shares in the Trust increased from 6,550,000 Shares at December 31, 2019 to 8,600,000
Shares at December 31, 2020.








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 gold,
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 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, “commodity interests” or
any other instruments regulated by the Commodity Exchange Act (the “CEA”), as administered by the Commodity Futures
Trading Commission (the “CFTC”) and the National Futures Association (“NFA”). The Trust is not a commodity
pool for purposes of the CEA and the Shares are not “commodity interests,” 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.aberdeenstandardetfs.us 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 as soon as
reasonably practicable 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 gold, 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 0.03 ounces of gold, it holds 1.1 ounces of silver, 0.004 ounces of platinum and 0.006 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:














3
















Is
Easily Accessible

. The Shares trade on the NYSE Arca and provide institutional and retail investors with indirect access to
the Bullion markets. 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 p.m. 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 ignot or 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 contrasts 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.”











Overview
of the Bullion


Industry









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










In
this annual report, the term “ounces” refers to fine troy ounces (with respect to gold only) and troy ounces (with
respect to silver, platinum and palladium).









The
Gold Industry










Market
Participants









The
participants in the world gold 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 gold and silver production, mining companies that produce gold as a by-product
of other production (such as a copper or silver producer), scrap merchants and recyclers.









Banking
Sector









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














4















The
Official Sector









The
official sector encompasses the activities of the various central banking operations of gold-holding countries. According to statistics
released by the World Gold Council, central banks are estimated to hold approximately 35,000 tonnes (when used in this annual
report “tonne” refers to one metric tonne, which is equivalent to 1,000 kilograms or 32,151 troy ounces) of gold reserves,
or approximately 20% of existing above-ground stocks. From 2009 to 2019, the European Central Bank and other central banks of
Europe operated under a series of four Central Bank Gold Agreements (“CBGA”).  The CBGA limited the amount
of gold that these banks were allowed to sell for the duration of each agreement, helping to stabilize the gold market.  The
CBGA had the desired effect, and the gold market has become more balanced, eliminating the need for a formal agreement going forward.









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 gold for whom gold is a daily part
of their business. The jewelry industry is a large user of gold. Other industrial users of gold include the electronics and dental
industries.









World
Gold Supply and Demand 2010-2019 (in tonnes)









The
following table sets forth a summary of the world gold supply and demand for the period from 2010 to 2019 and is based on information
reported by the World Gold Council.


























































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































(tonnes)


2010


2011


2012


2013


2014


2015


2016


2017


2018


2019

Supply









































Mine production



2,771




2,868




2,882




3,076




3,180




3,222




3,251




3,247




3,332




3,530


Scrap



1,743




1,698




1,700




1,303




1,159




1,180




1,306




1,210




1,178




1,281


Net Hedging Supply



(106

)



18




(40

)



(39

)



108




21




32




(41

)



8




(0.7

)

Total Supply



4,408




4,584




4,542




4,340




4,447




4,423




4,589




4,416




4,518




4,810











































Demand









































Jewelry Fabrication



2,083




2,099




2,066




2,726




2,559




2,464




1,953




2,214




2,129




2,122


Industrial Fabrication



480




470




432




428




411




376




366




380




391




326


Electronics



346




342




310




306




297




267




264




277




288




262


Dental & Medical



48




43




39




36




34




32




30




29




29




13.9


Other Industrial



86




85




84




85




80




76




71




73




74




49.8


Net Official Sector



77




457




544




409




466




443




269




366




536




668


Retail Investment



1,263




1,617




1,407




1,871




1,162




1,160




1,043




1,028




1,097




871


Bars



946




1,248




1,057




1,444




886




875




786




780




800




579.6


Coins



317




369




350




426




276




284




257




248




297




292


Physical Demand



3,903




4,643




4,449




5,434




4,598




4,443




3,631




3,988




4,153




3,987











































Physical Surplus/Deficit



505




(59

)



93




(1,094

)



(151

)



(20

)



958




428




365




823











































ETF Inventory Build



384




189




279




(879

)



(155

)



(117

)



539




177




59




398


Exchange Inventory Build



54




(6

)



(10

)



(98

)



1




(48

)



86




—




(21

)



—


Net Balance



67




(242

)



(176

)



(117

)



3




145




333




251




327




425













Source:
World Gold Council Gold Survey 2020









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








One
factor which separates gold from other precious metals is that there are large above-ground stocks which can be quickly mobilized.
As a result of gold’s liquidity, gold often acts more like a currency than a commodity.








Over
the past ten years, (new) mine production of gold has experienced a modest rise of an average of 2.75% per annum. Of the three
sources of supply, mine production accounts for 73% in 2019. Recycled gold volumes have ranged from 1,159 tonnes to 1,743 tonnes
over the past 10 years.








On
the demand side, jewelry is clearly the greatest source of demand. Industrial demand has fluctuated between 8% and 14% of total
demand over the past 10 years. Exchange traded product inventory build had seen strong growth through 2012, followed by outflows
in 2013, 2014 and 2015 as the price of gold fell by a cumulative 30% between 2013 and 2015. Exchange traded product inventory
build has been positive each year from 2016 to 2019. During the 2013 price crash, retail coin and bar demand rose to a 10-year
high as retail investors, especially from China, were enticed by the falling prices. Retail coin and bar demand has since tapered
off. Investor inflows into ETFs returned in 2016 amid heightened market uncertainty and continued to see 398 tonnes of inflows
in 2019.









Historical
Chart of the Price of Gold









The
price of gold is volatile and fluctuations are expected to have a direct impact on the value of the Shares. However, movements
in the price of gold in the past are not a reliable indicator of future movements. Movements may be influenced by various factors,
including announcements from central banks regarding a country’s reserve gold holdings, agreements among central banks,
political uncertainties around the world, and economic concerns.














5














The
following chart illustrates the movements in the price of an ounce of gold in U.S. Dollars from December 31, 2010 to December
31, 2020:







(image)








The
gold price tends to rise during periods of low real interest rates and high monetary expansion, as they are often associated with
currency debasement and systemic financial failures. The gold price peaked at US$2,067 per ounce in August 2020 as the uncertainties
regarding the pandemic, and U.S. presidential election drove prices higher. 2020 proved to be a stellar year for gold rising 18.0%.
Additionally, the trends of 3 years of investor outflows in global ETFs and net negative investor sentiment in gold futures positioning
reversed in 2016 and continued through 2020. Low real interest rates, tepid economic growth, and concerns regarding the recovery
of the pandemic were key tailwinds for gold that sparked a return of investor interest.









The
Silver Industry










Market
Participants









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 The Silver Institute World Silver Survey
2020, at the end of 2019, government-held silver bullion stocks total 89.1 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.












6













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 a number of years as a result of the spread of digital photography).









World
Silver Supply and Demand 2010-2019









The
following table sets forth a summary of the world silver supply and demand for the period from 2010 to 2019 and is based
on information reported by the World Silver Survey 2020, published by The Silver Institute.


























































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































(in millions of ounces)


2010


2011


2012


2013


2014


2015


2016


2017


2018


2019

Supply









































Mine Production



753.0




758.3




791.7




823.3




867.8




895.1




888.6




852.1




855.7




836.5


Net Government Sales



44.2




12.0




7.4




7.9




—




—




—




—




—




—


Scrap



227.2




261.2




253.8




191.0




165.4




141.1




139.7




138.1




151.3




169.9


Net Hedging Supply



50.4




12.2




(47.1

)



(34.8

)



16.8




7.8




(18.9

)



1.4




(2.8

)



15.7


Total Supply



1,074.8




1,043.8




1,005.8




987.4




1,050.0




1,044.0




1,009.4




991.6




1,004.2




1,022.1











































Demand









































Jewelry



190.0




191.5




187.4




220.6




226.4




226.7




205.0




209.1




212.5




201.3


Coins & Bars



150.3




212.7




159.7




241.1




234.1




292.1




207.8




151.1




181.2




186.1


Silverware



51.9




47.5




43.8




59.3




61.2




63.2




52.4




58.4




61.1




59.8


Industrial Fabrication



633.8




661.5




600.1




604.6




596.3




583.2




576.8




599.0




578.6




510.9


Electrical & Electronics



301.2




290.8




266.7




266.0




263.9




246.0




233.9




242.9




248.5




230.0


Brazing Alloys & Solders



61.2




63.2




61.1




63.7




66.7




61.5




55.3




57.5




58.0




50.0


Photography



67.5




61.2




54.2




50.5




48.5




46.6




45.2




44.0




39.3




33.7


Photovoltaic



—




75.8




58.2




55.9




51.8




59.2




79.3




94.1




80.5




98.7


Ethylene Oxide



8.7




6.2




4.7




7.7




5.0




10.2




10.2




6.9




5.4




4.0


Other Industrial



195.2




164.2




155.1




160.8




160.6




159.8




152.9




153.7




146.9




94.5


ETP Inventory Build



129.5




(24.0

)



55.3




2.5




1.4




(17.8

)



49.8




2.4




(20.3

)



81.7


Exchange Inventory Build



(7.4

)



12.2




62.2




8.8




(5.3

)



12.6




79.8




6.8




71.2




10.0


Total Demand



1,148.1




1,101.4




1,108.5




1,136.9




1,114.1




1,160.0




1,171.6




1,026.8




1,084.3




1,049.8











































Net Balance



(73.2

)



(57.5

)



(102.6

)



(149.5

)



(64.0

)



(116.1

)



(162.1

)



(35.2

)



(80.1

)



(27.8

)








Source:
The Silver Institute - World Silver Survey 2020









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








Like
gold, silver has also been used as a currency in the past. However, the main difference between gold and silver is that while
approximately half of gold demand is used for jewelry, approximately half of silver fabrication demand is used for industrial
applications.








New
mine production accounts for approximately 82% of total silver supply. Recycled silver accounts for around 17% of total supply.
The total of producer hedging, government sales and implied “net disinvestment” has been in decline but together account
for the balance of total supply.








Industrial
applications and jewelry demand accounted for over 68% of total demand in 2019. Photography has been taking a lower share of overall
silver demand falling from 6% in 2010 to 3% in 2019, while photovoltaic demand has risen in recent years accounting for 9%
in 2019. Investment in coins and bars has amounted to 18% of demand in 2019.









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 announcements from central banks regarding a country’s reserve silver holdings, 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 December 31, 2010 to December 31, 2020 and is based on information provided by Bloomberg:







(image)








Starting
in early 2011, when prices peaked at $48.44 per ounce, silver prices began a downward trend, albeit with multiple
upwards rallies (that have often lasted several months). The rise in the value of the U.S. Dollar, sluggish industrial growth
and a tame inflation environment (which led some investors to revise their expectations of the effects of monetary expansion)
were some of the drivers behind the fall in silver prices from 2011 to 2019. Silver reversed course in 2020, as prices rose
46.75%, closing at $26.49 per ounce, making it the top performer of the four metals (gold, silver, platinum, palladium). The
global pandemic caused by COVID-19 contributed to the large returns, as increased stimulus and uncertainty, coupled with a
low US dollar and interest rates, increased the appeal of silver.









Platinum
Group Metals









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.












7












PGMs
are found primarily in South Africa and Russia. South Africa is the world’s leading platinum producer and one of the largest
palladium producers. 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 over 84% of platinum supply in 2019 and 79% of palladium supply
in 2019.









Platinum










World
Platinum Supply and Demand 2010-2019









The
following table sets forth a summary of the world platinum supply and demand from 2010 to 2019 and is based on information reported
by Johnson Matthey, PGM Market Report – May 2020.











































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































(thousands of
ounces)






2010






2011






2012






2013






2014






2015






2016






2017









2018






2019






Supply





































































South Africa









4,635









4,860









4,110









4,208









3,547









4,572









4,392









4,459












4,467









4,402






Russia









825









835









801









736









700









670









717









692












687









716






Others









590









790









769









891









896









865









988









961












959









979






Total Supply









6,050









6,485









5,680









5,835









5,143









6,107









6,097









6,112












6,113









6,097









































































































Demand by Application



































































































Autocatalyst









3,075









3,185









3,158









3,000









3,103









3,228









3,330









3,292












3,051









2,885






Chemical









440









470









452









528









523









502









475









504












540









698






Electrical









230









230









176









218









225









228









230









234












266









145






Glass









385









515









153









100









212









227









246









364












478









224






Investment









655









460









450









871









277









451









620









356












67









1,253






Jewelry









2,420









2,475









2,783









3,028









2,897









2,746









2,412









2,296












2,269









2,100






Medical & Biomedical









230









230









223









214









214









215









218









220












221









249






Petroleum









170









210









112









159









165









140









176









220












372









219






Other









300









320









395









433









438









441









458









476












582









577






Total Gross Demand









7,905









8,095









7,902









8,551









8,054









8,178









8,165









7,962












7,846









8,350









































































































Recycling



































































































Autocatalyst









-1,085









-1,240









-1,120









-1,206









-1,272









-1,112









-1,159









-1,279












-1,338









-1,630






Jewelry









-735









-810









-895









-790









-762









-574









-738









-638












-36









-477






Other









-10









-10









-22









-24









-27









-29









-32









-34












-731









-58






Total Recycling









-1,830









-2,060









-2,037









-2,020









-2,061









-1,715









-1,929









-1,951












-2,105









-2,165









































































































Total Net Demand









6,075









6,035









5,865









6,531









5,993









6,463









6,236









6,011












5,741









6,185









































































































Movements in Stocks









-25









450









-185









-696









-850









-356









-139









101












372









-88














Source:
Johnson Matthey PGM Market Report - May 2020









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








The
main supplier of platinum is South Africa, providing over 72% of total mine supply in 2019. Russia is the second largest supplier
of platinum. Its share of world mine production has averaged around 12.4% of total mine supply over the past ten years. Scrap
supply from recycling of autocatalyst and other sources have accounted for about 34% from 2015 to 2019, on average.








Over
the past decade, jewelry demand for platinum peaked at 36% of total demand in 2014. Jewelry demand has since declined to 25% of
total demand in 2019, consistent with the year prior. Autocatalyst demand for platinum accounted for around 35% of total demand
at the end of 2019. Investment demand soared to 15% of total demand in 2019, far above the 1% of total demand in 2018.









Historical
Chart of the Price of Platinum









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 U.S. Dollars from December 31, 2010 to December 31, 2020 and is based on information
provided by Bloomberg:







(image)








Platinum
prices had been on the rise until 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 per troy ounce in June to a low of $1,369 per troy ounce in December
2011. Continued weakness in the European auto market weighed on platinum performance since then, with prices only partially recovering
from 2011 lows. In 2012, platinum prices rose on the back of supply disruptions in South Africa, which accounts for over 80% of
the world’s supply of platinum. 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 four mine shafts and its consideration of selling 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. However,
platinum’s correlation to gold weighed on platinum prices in 2013 overall. Prolonged strikes at South African mines in 2014 led
to the deepest supply deficit in platinum since 1975 (the earliest date we have supply and demand data). However, that failed
to arrest the price slide which saw prices fall 11% in 2014, highlighting the extent of negative sentiment towards industrially-exposed
precious metals. Despite autocatalyst demand for platinum increasing in 2015, tightening nitrogen oxide emission standards have
led to pessimism about the future demand for platinum-heavy diesel autocatalysts relative to palladium-heavy gasoline autocatalysts.
Further pessimistic outlook for South Africa’s economy and its currency the South African Rand weighed on platinum prices throughout
2017, and platinum continued to fall in 2018 driven by lackluster investor sentiment, a stronger US dollar, weaker diesel demand
and rising mine supply. Platinum prices bounced back, rising 19.9% to $952 per ounce at the end of 2019. After seeing the price
fall as low as $593 per ounce on March 19, 2020, platinum rebounded from pandemic lows and finished the year at $1,068 per ounce.
The steep climb in palladium price has led some investors to conclude that platinum appears under-valued, in view of its potential
to substitute for palladium in automotive applications in the future. Additionally, the outlook for mining in South Africa is
increasingly uncertain, with producers facing steep increases in electricity prices, periodic disruption to power supplies and
a risk of industrial action during forthcoming wage negotiations.














8















Palladium










World
Palladium Supply and Demand 2010-2019









The
following table sets forth a summary of the world palladium supply and demand for the period from 2010 to 2019 and is
based on information reported by Johnson Matthey, PGM Market Report – May 2020.










































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































































(thousands of
ounces)






2010









2011









2012









2013









2014









2015









2016









2017









2018









2019






Supply





























































































South Africa









2,640












2,560












2,359












2,465












2,125












2,684












2,570












2,554












2,543












2,648






Russia









3,720












3,480












2,887












2,628












2,589












2,434












2,773












2,407












2,976












2,802






Others









995












1,320












1,239












1,305












1,389












1,337












1,417












1,410












1,458












1,444






Total Supply









7,355












7,360












6,485












6,398












6,103












6,455












6,760












6,371












6,977












6,894

































































































































Demand by Application



























































































































Autocatalyst









5,580












6,155












6,673












7,061












7,512












7,622












7,941












8,391












8,721












9,677






Chemical









370












440












524












440












358












451












414












529












565












511






Dental









595












540












510












457












468












468












430












398












364












323






Electrical









1,410












1,375












1,190












1,070












1,014












903












871












840












807












728






Investment









1,095












-565












467












-8












943












-659












-646












-386












-574












-57






Jewelry









595












505












442












354












272












222












191












173












157












140






Other









90












110












104












109












111












134












151












134












182












180






Total Gross Demand









9,735












8,560












9,910












9,483












10,678












9,141












9,352












10,079












10,222












11,502

































































































































Recycling



























































































































Autocatalyst









-1,310












-1,695












-1,675












-1,905












-2,158












-1,897












-2,001












-2,404












-2,633












-2,932






Other









-540












-690












-637












-620












-563












-521












-502












-503












-491












-484






Total Recycling









-1,850












-2,385












-2,312












-2,525












-2,721












-2,418












-2,503












-2,907












-3,124












-3,416

































































































































Total Net Demand









7,885












6,175












7,598












6,958












7,957












6,723












6,849












7,172












7,098












8,086

































































































































Movements in stocks









-530












1,185












-1,113












-560












-1,854












-268












-89












-801












-121












-1,192














Source:
Johnson Matthey PGM Market Report - May 2020









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








Russia
has traditionally been the largest producer of palladium, providing on average 43% of supply over the past 10 years.  South
Africa has, on average, supplied approximately 37% of production over the past 10 years. In 2019, Russia provided 41% of mine
supplies, while South Africa produced 38%. North America contributes approximately 14% of mine supply in 2019. Autocatalysts continue
to be the largest component of palladium demand, representing more than 84% of total demand in 2019, down slightly from 85% of
total demand in 2018. Retail investors returned nearly 57,000 ounces of palladium to the market in 2019, as high prices stimulated
profit taking in virtually all palladium ETF products. Jewelry demand for palladium contributed 1.0% of total demand in 2019,
down from 1.5% in 2018. Other industrial demand (chemical, dental and electrical) has fallen from 24% of total demand in 2010
to 14% of total demand in 2019.









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 U.S. Dollars from December 31, 2010 to December 31, 2020 and is based on information
provided by Bloomberg:







(image)








Rising
palladium prices tempered in 2011, but concerns over supply shortages due to labor problems at mines in South Africa and
dwindling Russian stocks provided some price support into mid-2012. Palladium rose to a 13 year high of $907 per ounce in
September 2014, a 27% increase from the start of the year. The rally was driven by supply side concerns following the longest
strike in South African mining history and escalating tensions between Russia and Ukraine. The strong rally in 2014 was completely
unwound in 2015, when South African mine supply resumed back to pre-strike levels and pessimism about industrial demand in China
overwhelmed the true tightness in the market. Palladium was then the top performer of the precious metals complex for 3 consecutive
years from 2017 to 2019, where it rose nearly 182% from $676 per troy ounce on December 31, 2016 to $1,905 per troy ounce on December
31, 2019. The price of palladium reached an all-time high of $2,781/oz on February 19, 2020, before closing out the year at a
price of $2,342/oz on December 31, 2020. The deficit in the palladium market looks set to widen dramatically, with stricter emissions
legislation forecast to trigger a steep change in demand from Chinese automakers.














9

















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
gold and 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 twelve market-making members of the LBMA are: BNP Paribas, Citibank N.A., HSBC, Goldman Sachs International,
ICBC Standard Bank Plc, JPMorgan Chase Bank, The Bank of Nova Scotia, Merrill Lynch International, Morgan Stanley & Co. International
Ltd., Standard Chartered Bank, Toronto-Dominion Bank and UBS AG.








For
platinum and palladium, five member participants 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, are currently
participating in the London Metal Exchange Fix (“LME 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, Zurich and New York for gold and 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 small bars of gold or 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.








In
the OTC market for gold, the standard size of trades between market makers ranges between 5,000 and 10,000 ounces. Bid-offer spreads
are typically 50 US cents per ounce. Certain dealers are willing to offer clients competitive prices for much larger volumes,
including trades over 100,000 ounces, although this will vary according to the dealer, the client and market conditions, as transaction
costs in the OTC market are negotiable between the parties and therefore vary widely. Cost indicators can be obtained from various
information service providers as well as dealers.








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 Commodity Exchange, Inc. (“COMEX”), a designated contract market
within the CME Group. This period lasts for approximately four hours each New York business day morning.














10















The
Gold Market










The
London Gold Bullion Market









Although
the market for physical gold 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 “Good Delivery List,” which
is a list of LBMA accredited refiners of gold. The LBMA also coordinates market clearing and vaulting, promotes good trading practices
and develops standard documentation.








The
terms “loco London” gold and “loco Zurich” gold refer to gold physically held in London and Zurich, respectively,
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. Gold bars meeting these requirements are described in this annual report from time to time as “London Good
Delivery Bars.” The unit of trade in London is the troy ounce, whose gram conversion is: 1,000 grams equals 32.1507465 troy
ounces and 1 troy ounce equals 31.1034768 grams. A London Good Delivery Bar is acceptable for delivery in settlement of a transaction
on the OTC market. Typically referred to as 400-ounce bars, a London Good Delivery Bar must contain between 350 and 430 fine troy
ounces of gold, with a minimum fineness (or purity) of 995 parts per 1,000 (99.5%), be of good appearance and be easy to handle
and stack. The fine gold content of a gold bar is calculated by multiplying the gross weight of the bar (expressed in units of
0.025 troy ounces) by the fineness of the bar. A London Good Delivery Bar must also bear the stamp of one of the refiners who
are on the LBMA approved list. Unless otherwise specified, the gold spot price always refers to that of a London Good Delivery
Bar. Business is generally conducted over the phone and through electronic dealing systems.








On
March 20, 2015, ICE Benchmark Administration (“IBA”) began administering the operation of an “equilibrium auction,”
which is an electronic, tradable and auditable, over-the-counter auction market with the ability to settle trades in US Dollars
(“USD”), Euros or British Pounds for LBMA-authorized participating gold bullion banks or market makers (“gold
participants”) that establishes a reference gold price for that day’s trading. IBA’s equilibrium auction is
the gold valuation replacement selected by the LBMA for the London gold fix previously determined by the London Gold Market Fixing
Ltd. that was discontinued on March 19, 2015. IBA’s equilibrium auction, like the previous gold fixing process, establishes
and publishes fixed prices for troy ounces of gold twice each London trading day during fixing sessions beginning at 10:30 a.m.
London time (the “LBMA AM Gold Price”) and 3:00 p.m. London time (the “LBMA PM Gold Price”).








Daily
during London trading hours the LBMA AM Gold Price and the LBMA PM Gold Price each provide reference gold prices for that day’s
trading. Many long-term contracts will be priced on either the basis of the LBMA AM Gold Price or the LBMA PM Gold Price, and
market participants will usually refer to one or the other of these prices when looking for a basis for valuations. The LBMA AM
Gold Price and the LBMA PM Gold Price, determined according to the methodologies of IBA and disseminated electronically by IBA
to selected major market data vendors, such as Refinitiv and Bloomberg, are widely used benchmarks for daily gold prices
and are quoted by various financial information sources as the London gold fix was previously. The Trust values its gold on the
basis of the LBMA PM Gold Price.








The
LBMA PM Gold Price is the result of an “equilibrium auction” because it establishes a price for a troy ounce of gold
that clears the maximum amount of bids and offers for gold entered by order-submitting gold participants each day. The opening
bid and subsequent bid prices are generated by an algorithm based method, and each auction is actively supervised by IBA staff.
There are currently 15 direct gold participants (Bank of China, Bank of Communications, Citibank N.A., Coins ‘N Things,
Goldman Sachs, HSBC Bank USA NA, Industrial and Commercial Bank of China (ICBC), StoneX Financial Ltd., Jane Street Global Trading,
LLC, JPMorgan Chase Bank, N.A. London Branch, Koch Supply and Trading LP, Marex Financial Limited, Morgan Stanley, Standard Chartered
Bank and Toronto-Dominion Bank), and IBA uses ICE’s front-end system, WebICE, as the technology platform that allows direct
participants as well as sponsored clients to manage their orders in the auction in real time via their own screens.














11














The
IBA auction process begins with a notice of an auction round issued to gold participants before the commencement of the auction
round stating a gold price in U.S. Dollars, at which the auction round will be conducted. An auction round lasts 30 seconds. Gold
participants electronically place bid and offer orders at the round’s stated price and indicate whether the orders are for
their own account or for the account of clients. Aggregate bid and offer volume will be shown live on WebICE, providing a level
playing field for all participants.








At
the end of the auction round, the IBA 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 IBA system (normally 10,000 oz) (e.g., too many
purchase orders submitted compared to sell orders or vice versa), the auction chairman 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 a new auction round price will be issued
that 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 IBA system then issues another notice of auction
round to gold participants at the newly calculated price. During this next 30 second auction round, gold participants again submit
orders, and after it ends, the IBA system evaluates for order imbalances. If order imbalances persist, a 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 IBA system determines that orders are in equilibrium within system tolerances, the
auction process ends and the equilibrium auction round price becomes the LBMA PM Gold Price.








The
LBMA PM Gold Price and all bid and offer order information for all auction rounds become publicly available electronically via
IBA instantly after the conclusion of the equilibrium auction. Since April 1, 2015, the LBMA Gold Price has been regulated by
the Financial Conduct Authority (“FCA”) in the United Kingdom (“UK”). IBA also has an Oversight Committee,
made up of market participants, industry bodies, direct participant representatives, infrastructure providers and IBA. The Oversight
Committee allows the LBMA to continue to have significant involvement in the oversight of the auction process, including, among
other matters, changes to the methodology and accreditation of direct participants. Additionally, IBA watches over the price discovery
process for the LBMA Gold Price and ensures that it meets the International Organization of Securities Commission’s (IOSCO)
Principles for Financial Benchmarks.








The
LBMA PM Gold Price is widely viewed as a full and fair representation of all or material market interest at the conclusion of
the equilibrium auction. IBA’s LBMA PM Gold Price electronic auction methodology is similar to the non-electronic process
previously used to establish the London gold fix where the London gold fix process adjusted the gold price up or down until all
the buy and sell orders are matched, at which time the price was declared fixed. Nevertheless, the LBMA PM Gold Price has several
advantages over the previous London gold fix. The LBMA PM Gold Price auction process is fully transparent in real time to the
gold participants and, at the close of each equilibrium auction, to the general public.








The
LBMA PM Gold 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 LBMA PM Gold Price’s audit trail and active, real time surveillance of the auction
process by IBA as well as FCA’s oversight of IBA, deters manipulative and abusive conduct in establishing each day’s
LBMA PM Gold Price.








Since
March 20, 2015, the Sponsor determined that the London gold fix, which ceased to be published as of March 19, 2015, could no longer
serve as a basis for valuing gold 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 LBMA PM Gold Price is an appropriate alternative
for determining the value of the Trust’s gold each trading day. The Sponsor also determined that the LBMA PM Gold Price
fairly represents the commercial value of gold bullion held by the Trust and the “Benchmark Price” (as defined in
Trust Agreement) as of any day is the LBMA PM Gold Price for such day.












12













The
Zurich Bullion Market













After
London, the second principal center for spot or physical gold trading is Zurich. For eight hours a day, trading occurs simultaneously
in London and Zurich—with Zurich normally opening and closing an hour earlier than London. During these hours, Zurich closely
rivals London in its influence over the spot price because of the importance of the three major Swiss banks—Credit Suisse,
Swiss Bank Corporation, and Union Bank of Switzerland (UBS)—in the physical gold market. Each of these banks has long maintained
its own refinery, often taking physical delivery of gold and processing it for other regional markets. The loco Zurich bullion
specification is the same as for the London bullion market, which allows for gold physically located in Zurich to be quoted loco
London and vice versa.









Futures
Exchanges









The
most significant gold futures exchanges are the COMEX, a designated contract market within the CME Group, and the Tokyo Commodity Exchange (“TOCOM”). The COMEX is the
largest exchange in the world for trading precious metals futures and options and has been trading gold since 1974. The TOCOM
has been trading gold since 1982. 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 gold 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 trades gold futures almost continuously (with one short break in the evening) through its CME Globex electronic
trading system and clears through its central clearing system. On June 6, 2003, TOCOM adopted a similar clearing system. In each
case, the exchange acts as a counterparty for each member for clearing purposes.









Other
Exchanges









There
are other gold exchange markets, such as the Istanbul Gold Exchange (trading gold since 1995), the Shanghai Gold Exchange (trading
gold since 2002), the Hong Kong Chinese Gold & Silver Exchange Society (trading gold since 1918) and the Singapore Mercantile
Exchange (trading gold since 2010).









The
Silver 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 “Good Delivery List,” which
is a list of LBMA accredited refiners 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 prospectus from time to time as “Silver 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 31.1034768 grams. A Silver
Good Delivery Bar is acceptable for delivery in settlement of a transaction on the OTC market. A Silver Good Delivery Bar must
contain between 750 troy ounces and 1,100 troy ounces of silver with a minimum fineness (or purity) of 999.0 parts per 1,000.
A Silver 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 Silver Good Delivery Bar. Business is generally conducted over the
phone and through electronic dealing systems.












13












On
July 14, 2017, the LBMA announced that ICE Benchmark Administration (“IBA”) had been selected to be the third-party
administrator for the “LBMA Silver Price”. Effective from October 2, 2017, IBA is providing the auction platform and
methodology as well as the overall administration and governance for the LBMA Silver Price benchmark. IBA operates an “equilibrium
auction”, which is an electronic, tradable and auditable, over-the-counter auction for LBMA-authorized participating silver
bullion banks or market makers and sponsored clients of direct participants (“silver participants”) that establishes
a reference silver price for that day’s trading, often referred to as the “LBMA Silver Price”. The LBMA Silver
Price equilibrium auction operated by CME Group Inc. and Refinitiv prior to October 2, 2017 was selected by the LBMA as
the silver valuation replacement for the London silver fix previously determined by the London Silver Market Fixing Ltd. that
was discontinued on August 14, 2014. The LBMA 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.








The
LBMA Silver Price is the result of an “equilibrium auction” because it establishes a price for a troy ounce of Silver
Good Delivery Bars that clears the maximum amount of bids and offers for silver entered by order-submitting silver participants
each day. IBA uses ICE’s front-end system, WebICE, as the technology platform that allows direct participants, as well as
sponsored clients of direct participants, to manage their orders in the auction in real time via their own desktops. As the IBA
electronic silver auction market develops, IBA expects to admit additional silver participants to the order submission process.
The benchmark is published when the auction finishes, typically a few minutes after 12:00 noon (London time).








At
the opening of each auction, IBA in the role of auction chairman (“Chairman”) announces an opening price (in U.S.
Dollars), that takes into account current market conditions and begins auction rounds, with an expected duration of at least 30
seconds each. During each auction round, participants may enter the volume they wish to buy or sell at that price, and such orders
will be part of the price formation. Aggregate bid and offer volume is shown live on WebICE. At the end of each auction round,
the total net volume is calculated. If this “imbalance” is larger than the imbalance tolerance (normally 500,000 oz.)
then the Chairman sets a new price (based on the current market conditions, and the direction and magnitude of the imbalance in
the round) and begins a new auction round. If the imbalance is less than the tolerance, then the auction is complete with all
volume tradeable at that price. The price is then set in U.S. Dollars and also converted into other currencies, including Australian
Dollars, British Pounds, Canadian Dollars, Euros, Onshore and Offshore Yuan, Indian Rupees, Japanese Yen, Malaysian Ringgit, Russian
Rubles, Singapore Dollars, South African Rand, Swiss Francs, New Taiwan Dollars, Thai Baht and Turkish Lira. The auction is run
at 12:00 noon (London time).








During
the auction, the price at the start of each round, and the volumes at the end of each round are available through major market
data vendors. As soon as the auction finishes, the final prices and volumes are available through major market data vendors. IBA
also publishes transparency reports, detailing the prices, volumes and times for each round of the auction. These transparency
reports are available through major market data vendors and IBA when the auction finishes. The process can also be observed real-time
through a WebICE screen. The auction mechanism provides a complete audit trail.








There
are currently twelve direct participants who have been accredited to contribute to the LBMA Silver Price: Citibank N.A. London
Branch, Coin ‘N Things Inc., Goldman Sachs International plc, HSBC Bank USA NA, INTL FC Stone, Jane Street Global Trading LLC,
JP Morgan Chase Bank N.A London Branch, Koch Supply and Trading LP, Marex Financial Limited, Morgan Stanley, Standard Chartered
Bank and The Toronto Dominion Bank.








Since
April 1, 2015, the LBMA Silver Price has been regulated by the FCA in the UK. IBA is authorized as a regulated benchmark administrator by the FCA. Under the UK benchmark regulation, the
governance structure for a regulated benchmark must include an Oversight Committee, made up of market participants, industry bodies,
direct participant representatives, infrastructure providers and the administrator (i.e., IBA). Through the Oversight Committee
the LBMA continues to have significant involvement in the oversight of the auction process, including, among other matters, changes
to the methodology and accreditation of direct participants. The price discovery process for the LBMA Silver Price is subject
to surveillance by IBA. IBA has been formally assessed against the IOSCO Principles for Financial Benchmarks (the “IOSCO
Principles”). In order to meet the IOSCO Principles, the price discovery used for the LBMA Silver Price benchmark is auditable
and transparent.














14














The
LBMA Silver Price is viewed as a full and fair representation of all market interest at the conclusion of the auction. IBA’s
auction process is similar to CME Group’s auction process, which in turn was 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 LBMA Silver Price has several advantages
over the previous London silver fix. IBA’s auction process is fully transparent in real-time to direct participants and
sponsored clients and, at the close of each auction, to the general public. IBA’s auction process is also fully auditable
since an audit trail exists for every change made in the process. Moreover, the audit trail and active surveillance of the auction
process by IBA, as well as the FCA’s oversight of IBA, deters manipulative and abusive conduct in establishing each day’s
LBMA Silver Price.








Since
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 LBMA Silver Price is an appropriate alternative
for determining the value of the Trust’s silver each trading day. The Sponsor also determined that the LBMA Silver Price
fairly represents the commercial value of silver bullion held by the Trust and that the “Benchmark Price” (as defined
in the Trust Agreement) as of any day is the LBMA Silver Price for such day.









Futures
Exchanges









The
most significant silver futures exchanges are the COMEX, a designated contract market within the CME Group, and the Tokyo Commodity Exchange (“TOCOM”).
Futures exchanges seek to provide a neutral, regulated marketplace for the trading of derivatives contracts for commodities. Futures
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 on CME Globex system, an electronic auction in which all bids, offers and trades
must be publicly announced to all members and, upon execution, centrally cleared. Electronic trading is offered by the exchange
almost 24 hours a day (except for a short break in the evening), six 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 is performed through self-regulation and consists of regular monitoring of the
following: the central algorithmic matching process to ensure that it is conducted in conformance with all exchange rules; the
orderly trading and settlement of futures and options; the financial condition of all exchange member firms to ensure that they
continuously meet financial commitments; and the volume positions of commercial and non-commercial customers to ensure 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 clearing houses 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 refiners of platinum. The LPPM also coordinates market clearing and vaulting, promotes
good trading practices and develops standard documentation.












15












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 U.S. 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 is equivalent to 32.1507465
troy ounces, and one troy ounce is equivalent to 31.1034768 grams. A good delivery platinum plate or ingot is acceptable for delivery
in settlement of a transaction on the OTC market (a “Good Delivery Platinum Plate or Ingot”). A Good Delivery Platinum
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 Platinum
Plate or Ingot is calculated by multiplying the gross weight by the fineness of the plate or ingot. A Good Delivery Platinum Plate
or Ingot must also bear the stamp of one of the refiners who are on the LPPM approved list. Unless otherwise specified, the platinum
spot price always refers to the “Good Delivery Standards” set by the LPPM. Business is generally conducted over the
phone and through electronic dealing systems.








Since
December 1, 2014, the LME has been administering the operation of an electronic platinum bullion price fixing systems (“LMEbullion”)
that replicates electronically the manual London platinum fix processes previously employed by the London Platinum and Palladium
Fixing Company Ltd (“LPPFCL”), as well as providing electronic market clearing processes for platinum bullion transactions
at the fixed prices established by the LME pricing mechanism. The LME’s electronic price fixing processes, like the previous
London platinum fix processes, establishes and publishes fixed prices for troy ounces of platinum twice each London trading day
during fixing sessions beginning at 9:45 a.m. London time (the “LME AM Fix”) and 2:00 p.m. London time (the “LME
PM Fix”). In addition to utilizing the same London platinum fix standards and methods, the LME also supervises the platinum
electronic price fixing processes through its market operations, compliance, internal audit and third-party complaint handling
capabilities in order to support the integrity of the LME PM Fix. The LME, in administering LMEbullion, uses a pricing methodology
that meets the administrative and regulatory needs of platinum market participants, including the International Organization of
Securities Commissions’ (IOSCO) Principles for Financial Benchmarks.








Daily
during London trading hours the LME AM Fix and the LME PM Fix each provide reference platinum prices for that day’s trading.
Many long-term contracts are priced on the basis of either the LME AM Fix or the LME PM Fix, and market participants will usually
refer to one or the other of these prices when looking for a basis for valuations. The Trust values its platinum on the basis
of the LME PM Fix.








The
LME PM Fix results from LMEbullion. Formal participation in the LME PM Fix is limited to participating LPPM members. Five LPPM
member participants are currently participating in establishing the LME PM Fix (Goldman Sachs International, HSBC Bank USA NA,
ICBC Standard Bank plc, Johnson Matthey plc and BASF Metals Ltd.). 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 member participants or with another precious metals dealer who will then
be in contact with a participating LPPM member during the fixing. The fix begins with the chair of the pricing function submitting
an opening price into the administration screen in LMEbullion, reflecting the market price and other data, prevailing at the opening
of the fix. This is relayed by the LPPM member participants to their dealing rooms which have direct communication with all interested
parties. Any member 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 orders are transacted on the basis of this fixed price, which is instantly relayed to the market through various media.








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 intended to be transparent. The LME asserts that its electronic price fixing processes are 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.














16














Since
December 1, 2014, the Sponsor determined that the London platinum fix, which has been revised based on the new LME method and
is now known as the LBMA Platinum Price (PM), which we refer to herein as the LME PM Fix, is 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 is the LME PM Fix for such day.








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









Futures
Exchanges









The
most significant platinum futures exchanges are the COMEX, a designated contract market within the CME Group, 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 trades platinum futures almost continuously (with one short
break in the evening) through its CME Globex electronic trading system and clears through its central clearing system. On June
6, 2003, the TOCOM adopted a similar clearing 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 Market









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 refiners 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
that 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 U.S. 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 plate or ingot is calculated
by multiplying the gross weight by the fineness of the plate or ingot. A Good Delivery Plate or Ingot must also bear the stamp
of one of the refiners 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.














17














Since
December 1, 2014, the LME has been administering the operation of electronic palladium bullion price fixing systems (“LMEbullion”)
that replicate electronically the manual London palladium fix processes previously employed by the London Platinum and Palladium
Fixing Company Ltd (“LPPFCL”) as well as providing electronic market clearing processes for palladium bullion transactions
at the fixed prices established by the LME pricing mechanism. The LME’s electronic price fixing processes, like the previous
London palladium fix processes, establishes and publishes fixed prices for troy ounces of palladium twice each London trading
day during fixing sessions beginning at 9:45 a.m. London time (the LME AM Fix) and 2:00 p.m. London time (the LME PM Fix). In
addition to utilizing the same London palladium fix standards and methods, the LME also supervises the palladium electronic price
fixing processes through its market operations, compliance, internal audit and third-party complaint handling capabilities in
order to support the integrity of the LME PM Fix. The LME, in administering LMEbullion, uses a pricing methodology that meets
the administrative and regulatory needs of palladium market participants, including the International Organization of Securities
Commission’s (IOSCO) Principles for Financial Benchmarks.








Daily
during London trading hours the LME AM Fix and the LME PM Fix each provide reference palladium prices for that day’s trading.
Many long-term contracts will be priced on the basis of either the LME AM Fix or the LME PM Fix, and market participants will
usually refer to one or the other of these prices when looking for a basis for valuations. The Trust values its palladium on the
basis of the LME PM Fix.








Formal
participation in the LME PM Fix is limited to participating LPPM members. Five LPPM members are currently participating in establishing
the LME PM Fix (Goldman Sachs International, HSBC Bank USA NA, ICBC Standard Bank plc, Johnson Matthey plc and BASF Metals Ltd.).
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 member participants or with another precious metals dealer who will then
be in contact with a participating LPPM member during the fixing. The fix begins with the chair reflecting the market price and
other data, prevailing at the opening of the fix. This is relayed by the LPPM member participants to their dealing rooms which
have direct communication with all interested parties. Any market member 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
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 intended to be transparent. The LME asserts that its electronic price fixing processes are
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.








Since
December 1, 2014, the Sponsor determined that the London palladium fix, which has been revised based on the new LME method and
is now known as the LME PM Fix, is 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 Sponsor also has determined that the LME PM Fix will fairly represent the commercial value of palladium
bullion held by the Trust and, the “Benchmark Price” (as defined in the Trust Agreement) of the Trust’s palladium
bullion as of any day is the LME PM Fix for such day.














18














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 bullion to a subsidiary company of the LBMA.









Futures
Exchanges









The
most significant palladium futures exchanges are the COMEX, a designated contract market within the CME Group, 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
with 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 trades palladium futures almost continuously (with one
short break in the evening) through its CME Globex electronic trading system and clears through its central clearing system. On
June 6, 2003, the TOCOM adopted a similar clearing system. In each case, the exchange acts as a counterparty for each member for
clearing purposes.









Market
Regulation









The
global gold, 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 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 gold, silver, platinum and palladium 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.








The
US Commodity Futures Trading Commission (“CFTC”) regulates trading in commodity contracts, such as futures,
options and swaps. In addition, under the Commodity Exchange Act of 1936 (“CEA”), the CFTC has jurisdiction to
prosecute manipulation and fraud in any commodity (including precious metals) traded in interstate commerce as spot as
well as deliverable forwards. The CFTC is the exclusive regulator of U.S. commodity exchanges and clearing houses.











Secondary
Market Trading









While
the Trust’s investment objective is for the Shares to reflect the performance of gold, 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, COMEX and the London and Zurich gold, silver, platinum
and palladium markets. While the Shares trade on the NYSE Arca until 4:00 PM New York time, liquidity in the global bullion
market 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.














19

















Valuation
of Bullion and Computation of Net Asset Value









On
each 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
(“Evaluation Time”), the Trustee will evaluate the Bullion held by the Trust and determine both the ANAV and the NAV
of the Trust.








At
the Evaluation Time, the Trustee values the Trust’s Bullion on the basis of that day’s London Metal Price for
such metal or, if no London Metal Price is made for a metal on such day or has not been announced by the Evaluation
Time, the next most recent London Metal 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 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 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.








Once
the value of the gold, silver, platinum and palladium has been determined, the Trustee subtracts all estimated accrued but
unpaid fees (other than the fees accruing for such day on which the valuation takes place which are computed by reference
to the value of the Trust or its assets), expenses and other liabilities of the Trust from the total value of the Bullion
and any other assets of the Trust. The resulting figure is the adjusted net asset value (“ANAV”) of the Trust.
The ANAV of the Trust is used to compute the Sponsor’s Fee.








All
fees accruing for the day on which the valuation takes place which are computed by reference to the value of the Trust or
its assets are calculated using the ANAV calculated for such day. The Trustee subtracts from the ANAV the amount of accrued fees
so computed for such day and the resulting figure is the NAV of the Trust. The Trustee also determines the NAV per Share
by dividing the NAV of the Trust by the number of the Shares outstanding as of the close of trading on the NYSE Arca (which includes
the net number of any Shares created or redeemed on such evaluation day).








The
Trustee’s estimation of accrued but unpaid fees, expenses and liabilities are conclusive upon all persons interested
in the Trust and no revision or correction in any computation made under the Trust Agreement will be required by reason of any
difference in amounts estimated from those actually paid.











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
Sponsor, from time to time, may temporarily waive all or a portion of the Sponsor’s Fee at its discretion for a stated period
of time. Presently, the Sponsor does not intend to waive any of its fee.














20














Furthermore,
the Sponsor may, in its sole discretion, agree to rebate all or a portion of the Sponsor’s Fee attributable to Shares held
by certain institutional investors subject to minimum shareholding and lock up requirements as determined by the Sponsor to foster
stability in the Trust’s asset levels. The Sponsor expects that any agreement to rebate the Sponsor’s Fee will address
key terms such as the requirement that the institutional investor invest in an amount greater than 2,000,000 Shares and that all
or a portion of the investment to which the rebate applies be subject to a lockup period. Furthermore, the written agreement would
detail how the institutional investor may establish that shareholdings and lockup period requirements have been met (e.g., permitting
the Sponsor to monitor the institutional investor’s holdings in Shares from time to time). Each written rebate agreement
will be expected to have an initial term of one year and will automatically be extended on a month-to-month basis until terminated
by either party on written notice. Any such rebate will be subject to negotiation and written agreement between the Sponsor and
the investor on a case by case basis. The Sponsor is under no obligation to provide any rebates of the Sponsor’s Fee. Neither
the Trust nor the Trustee will be a party to any Sponsor’s Fee rebate arrangements negotiated by the Sponsor. Any Sponsor’s
Fee rebate shall be paid from the funds of the Sponsor and not from the assets of the Trust.








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 gold, silver, Bullion 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, 2020 was $3,821,435 (December 31, 2019: $2,403,544; December 31, 2018: $2,132,987).








Cash
held by the Trustee pending payment of the Trust’s expenses will not bear any interest.











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, or other securities market participants not required to register as broker-dealers such as banks or other financial
institutions, who (1) are participants in the DTC and (2) have entered into written agreements with the Sponsor and the Trustee
(each an “Authorized Participant”) can deposit Bullion in the specified proportion of gold, 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 occurs 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.














21














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 gold, silver, platinum
and palladium by the second 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 second 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.”











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 second 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 gold, 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. If a loco swap or physical transfer is
necessary to effect a loco London or loco Zurich redemption, the settlement of loco London or loco Zurich redemption deliveries
may be delayed more than two, but not more than five, business days.











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.














22

















The
Sponsor









The
Sponsor is a Delaware limited liability company and a wholly-owned subsidiary of Aberdeen Standard Investments Inc. (“ASII”).
Aberdeen Standard Investments is a brand of the investment businesses of Standard Life Investments plc, its affiliates and subsidiaries.
In the United States, Aberdeen Standard Investments is the marketing name for the following affiliated, registered investment
advisers: ASII, Aberdeen Asset Managers Ltd., Aberdeen Standard Investments Australia Ltd., Aberdeen Standard Investments (Asia)
Ltd., Aberdeen Capital Management, LLC, Aberdeen Standard Investments ETFs Advisors LLC and Standard Life Investments (Corporate
Funds) Ltd.








The
Sponsor’s office is located at c/o Aberdeen Standard Investments ETFs Sponsor LLC, 712 Fifth Avenue, 49th Floor, New York,
NY 10019. Under the Delaware Limited Liability Company Act and the governing documents of the Sponsor, the sole member of the
Sponsor, ASII, 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.














23

















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 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 have capital, surplus and undivided profits
of at least $150 million. As of December 31, 2020, the Trustee was in compliance with these conditions.









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-Custodian, or any other 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 are paid by the Sponsor.








Affiliates
of the Trustee may from time to time act as Authorized Participants or purchase or sell gold, silver, platinum and palladium
or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.
Affiliates of the Trustee are subject to the same transaction fee as other Authorized Participants.











The
Custodian









JPMorgan
Chase Bank, N.A. (“JPMorgan”) serves as the Custodian of the Trust’s Bullion. JPMorgan 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, Canary Wharf, London, E14 5JP, United Kingdom. JPMorgan is a subsidiary of JPMorgan Chase & Co.
While the United 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 under the Custody Agreements, are presently not a regulated activity
subject to the supervision and rules of the FCA. The Zurich Sub-Custodian that the Custodian currently uses is UBS AG, which is
located at 45 Bahnhofstrasse, 8021 Zurich, Switzerland.









The
Custodian’s Role









The
Custodian is responsible for the safekeeping of the Trust’s 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 sub-custodians,
if any. The Custodian facilitates the transfer of Bullion in and out of the Trust through the unallocated Bullion accounts it
will maintain for each Authorized Participant and the unallocated and allocated Bullion accounts it will 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
gold and silver and specific plates or ingots of physical platinum and palladium to the Trust’s allocated Bullion account.
The Custodian provides the Trustee with regular reports detailing the Bullion transfers in and out of the Trust’s unallocated
and allocated Bullion accounts and identifying the gold and silver bars and the platinum and palladium plates or ingots held in
the Trust’s allocated Bullion account.














24














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. The Custodian and its
affiliates are subject to the same transaction fee as other Authorized Participants.











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-Custodian 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. Visits by auditors and inspectors to the Zurich Sub-Custodian’s facilities
will be arranged through the Custodian. Other than with respect to the Zurich Sub-Custodian, the Trustee and the Sponsor have
no right to visit the premises of any sub-custodian for the purposes of examining the Trust’s Bullion or any records
maintained by the sub-custodian, and no 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 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 them. Inspections were conducted by Inspectorate International Limited, a leading commodity inspection
and testing company retained by the Sponsor, as of August 14, 2020. Due to unprecedented social lock-down policies implemented in the UK and Switzerland to help prevent the spread of COVID-19, neither the
Sponsor, nor Inspectorate, were able to perform a physical inspection of the Trust's Bullion at December 31, 2020. In lieu of a physical
inspection, the Sponsor performed alternative procedures to verify the Bullion held by the Trust at December 31, 2020. These procedures
included confirmation of the Bullion list and total ounces of Bullion held by the Custodian at December 31, 2020, and an independent recalculation
of ounces of Bullion for each creation or redemption transaction from August 14, 2020, the date of the last physical inspection, through
December 31, 2020. The Sponsor and Inspectorate also virtually inspected a selection of Bullion held by the Custodian on behalf of the
Trust, verifying the weight of the Bullion, and that the serial numbers of the Bullion selected matched the records of the Trust.











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 Shareholders 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.














25















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.











Custody
of the Trust’s Bullion









Custody
of the physical gold and silver deposited with and held by the Trust is provided by the Custodian at its London, England vaults
and by other sub-custodians on a temporary basis. 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 sub-custodians on a temporary basis. 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 on behalf of the Trust, 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 gold or silver or plates or ingots of platinum or palladium for deposit
to the Trust Allocated Account or, with respect to platinum or palladium to be held in Zurich, require the Zurich Sub-Custodians
to allocate platinum or palladium deposited in unallocated form with the Trust by selecting plates or ingots of platinum or palladium
for deposit for the benefit of the Trust Allocated Amount. All physical gold and 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.














26














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 gold, silver, platinum and palladium held in the Trust Unallocated Account as of the close of each business
day. See “Deposit of Bullion; Issuance of Shares” and “Withdrawal of Bullion; Redemption of Shares.”











United
States Federal Income Tax Consequences









The
following discussion of the material US federal income tax consequences generally applies 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 U.S. 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, including substantial
changes to the Code made in the Tax Cuts and Jobs Act (P.L. 115-97).








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) generally is 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.












27













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 by the Trust. Shareholders are also treated as if they directly received their respective pro rata share of the Trust’s
income, if any, and as if they directly incurred their respective pro rata share 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 by 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 Shares is not a taxable event
to the Shareholder, and the Shareholder’s tax basis and holding period for the Shares 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.








When
the Trust sells or transfers precious metal, 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 precious metal that was sold or transferred.
Such 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 or any precious metal sold
by the Trust generally will be determined by multiplying the Shareholder’s total basis for its Shares of all of the precious
metal held in the Trust immediately prior to the sale, by a fraction the numerator of which is the amount of precious metal sold,
and the denominator of which is the total amount of the precious metal held by 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 Shares immediately prior to the sale, less the portion of such basis allocable to its share of the precious
metal that was sold.








Upon
a Shareholder’s sale of some or all of its Shares, the Shareholder will be treated as having sold a pro rata share of the precious
metal held in the Trust at the time of the sale. 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 Shares sold, as determined in the manner described in the preceding paragraph.








A
redemption of some or all of a Shareholder’s Shares in exchange for the underlying precious metal represented by the
Shares redeemed generally will not be a taxable event to the Shareholder. The Shareholder’s tax basis for the precious
metal received in the redemption generally will be the same as the Shareholder’s tax basis for 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 precious metal received by the Shareholder will be a taxable event.








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.








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%, rather than the 20% rate applicable
to most other long-term capital gains. For these purposes, gains recognized by an individual 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 Shareholder for one year or less or by a corporate
taxpayer are generally the same as those at which ordinary income is taxed.














28














In
addition, high-income individuals and certain trusts and estates are subject to a 3.8% Medicare contribution tax that is imposed
on net investment income and gain. Shareholders should consult their tax advisor regarding this tax.









Brokerage
Fees and Trust Expenses









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








Shareholders
will be required to recognize gain or loss upon 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 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. Under the Tax Cuts and Jobs Act (P.L. 115-97),
miscellaneous itemized deductions, including expenses for the production of income, will not be deductible for either regular
federal income tax or alternative minimum tax purposes for taxable years beginning after December 31, 2017 and before January
1, 2026.









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. In recent administrative guidance, the IRS stated that it will no longer issue
rulings under Code section 851(b) relating to the determination of whether or not an instrument or position is a “security”,
but, instead, intends to defer to guidance from the SEC for such determination.









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









The
Trustee or the appropriate broker will 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 in order to avoid the backup withholding tax.








The
amount of any backup withholding tax will be 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.














29















Income
Taxation of Non-US Shareholders









The
Trust does not expect to generate taxable income except for gains (if any) upon the sale of precious metal. A Non-US Shareholder
generally is not subject to US federal income tax with respect to gains recognized upon the sale or other disposition of Shares,
or upon the sale of precious metal 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.











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’s governing documents, (2) whether the fiduciary has the authority
to make the investment, (3) whether the investment is consistent with the 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 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 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 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, only Shares purchased by a Plan, and not an interest in the underlying assets held in the Trust, should
be treated as 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) (“Tax Qualified
Account”) is treated as a taxable distribution from the account to the owner of the IRA, or to the participant for whom
the Tax Qualified 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 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 Tax Qualified Account 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 Tax Qualified Account to the IRA owner or Tax Qualified Account
participant, or if any precious metal is received by such IRA or Tax Qualified Account upon the redemption of any of the Shares
purchased by it, the Shares or 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. Accordingly, potential IRA or Tax
Qualified Account investors are urged to consult with their own professional advisors concerning the treatment of an investment
in Shares under Code section 408(m).














30

















Item
1A. Risk Factors









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






RISKS RELATED TO BULLION











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









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









Crises
may motivate large-scale sales of gold, palladium, platinum and silver which could decrease the price of 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 gold, silver, platinum and palladium largely due to forced sales and deleveraging from institutional investors.
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.









Autocatalysts,
automobile components that use platinum and palladium, accounted for approximately 88% of the net global demand in platinum
and palladium in 2019. While the automotive sector in China and the US is showing signs of recovery, the European market is
currently experiencing declining demand and, in certain cases, solvency concerns. Reduced automotive industry sales in Europe
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.







A
decline in the automobile industry or a shift from gasoline-powered to electric vehicles may have the effect of causing a decline
in the prices of platinum and palladium and a corresponding decline in the price of Shares.









Autocatalysts,
automobile components for emissions control that use platinum and palladium, accounted for approximately 35% of the gross global
demand in platinum and 84% of the gross global demand in palladium in 2019.  Reduced automotive industry sales or a
shift from gasoline-powered to electric vehicles may result in a decline in autocatalyst demand.  A contraction in
the global automotive industry or more widespread acceptance of electric vehicles may impact the price of platinum and palladium
and affect the price of the Shares.









The
value of the Shares relates directly to the value of the Bullion held by the Trust and fluctuations in the price of gold, 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 gold, silver, platinum and 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 gold, silver, platinum
and palladium 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.






In
addition, investors should be aware that there is no assurance that gold, 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 held by the Trust declines, the Sponsor
expects the value of an investment in the Shares to decline proportionately.






RISKS RELATED TO THE
SHARES











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 Bullion held by the Trust to pay Trust expenses not assumed by the Sponsor on an as-needed basis irrespective
of then-current gold, 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 Bullion. Consequently,
the Trust’s Bullion may be sold at a time when the Bullion price is 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, willful misconduct, willful malfeasance or reckless disregard 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 of the Trust and the value of the Shares.









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 will trade on the NYSE Arca until 4:00 p.m.
New York time, liquidity in the market for gold, platinum and palladium will be reduced after the close of the major world markets
for gold, 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 these periods, 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.















31














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.









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.









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 2015 to 2019, world platinum mine
supply averaged 6.1 million ounces and world palladium mine supply averaged 6.7 million ounces. During the same period, total
gross global demand measured 8.1 million ounces of platinum and 10.1 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 Trust and the Sponsor cannot provide Shareholders any assurance that the metal
holdings of the Trust will have a similar impact or have no long-term metal price impact thereby affecting Share trading
prices.









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.









Discrepancies,
disruptions or unreliability of the LBMA PM Gold Price, the LBMA Silver Price, or the LME PM Fix could impact the value of the
Trust’s Bullion and the market price of the Shares.















32














The
Trustee values the Trust’s gold, silver, platinum and palladium pursuant to the LBMA PM Gold Price for gold, the LBMA Silver
Price for silver, and the LME PM Fix for platinum and palladium. In the event that the LBMA PM Gold Price, the LBMA Silver Price,
or the LME PM Fix (the “London Metal Prices”) prove to be inaccurate benchmarks, or such London Metal Prices vary
materially from the prices determined by other mechanisms for valuing precious metals, the value of the Trust’s Bullion
and the market price of the Shares could be adversely impacted. Any future developments in the London Metal Prices, to the extent
they have a material impact on the London Metal Prices, could adversely impact the value of the Trust’s Bullion and the
market price of the Shares. It is possible that electronic failures or other unanticipated events may occur that could result
in delays in the announcement of, or the inability of the benchmarks to produce, the London Metal Prices on any given date. Furthermore,
any actual or perceived disruptions that result in the perception that the London Metal Prices are vulnerable to actual or attempted
manipulation could adversely affect the behavior of market participants, which may have an effect on the prices of gold, silver,
platinum or palladium. If the London Metal Prices are unreliable for any reason, the prices of gold, silver, platinum and 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
intended to keep the price of the Shares closely linked to the prices of the underlying Bullion 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 its 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. Additionally, redemptions could
be suspended in any period during which (1) the NYSE Arca is closed (other than customary weekend or holiday closings) or trading
on the NYSE Arca is suspended or restricted, or (2) an emergency exists as a result of which delivery, disposal or evaluation
of the Bullion is not reasonably practicable.









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 Shareholders incurring a loss on their
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 not and will not hold or trade in commodity futures contracts, “commodity interests” or any other instruments
regulated by the CEA, as administered by the CFTC and the National Futures Association (“NFA”). Furthermore, the Trust
is not a commodity pool for purposes of the CEA and the Shares are not “commodity interests”, 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 Trust or the Shares. Consequently, Shareholders do not have the regulatory protections provided to investors in CEA-regulated
instruments or commodity pools operated by registered commodity pool operators or advised by commodity trading advisors.









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.














33















The
lack of an active market for the Shares may limit the ability of Shareholders to sell 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
or approve amendments to the Trust Agreement 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 with other financial vehicles, including traditional debt and equity securities issued by companies in the gold,
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.














34

















The
amount of Bullion represented by each Share will decrease over the life of the Trust due to the recurring deliveries of Bullion
necessary to pay the Sponsor’s Fee in-kind and potential sales of Bullion to pay in cash the Trust expenses not assumed
by the Sponsor. Without increases in the price of gold, silver, platinum and palladium sufficient to compensate for that
decrease, the price of the Shares will also decline proportionately over the life of the Trust.









The
amount of Bullion represented by each Share decreases each day by the Sponsor’s Fee. In addition, although the Sponsor
has agreed to assume all organizational and certain 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, Exchange listing fees, SEC registration fees, printing and mailing costs, audit fees and up to $100,000 per annum in legal expenses), in exceptional
cases certain Trust expenses may need to be paid by the Trust. Because the Trust does not have any income, it must either make
payments in-kind by deliveries of Bullion (as is the case with the Sponsor’s Fee) or it must sell Bullion to obtain
cash (as in the case of any exceptional expenses).  The result of these sales of Bullion and recurring deliveries of Bullion
to pay the Sponsor’s Fee in-kind is a decrease in the amount of Bullion represented by each Share. New deposits of
Bullion, received in exchange for new Shares issued by the Trust, will not reverse this trend.








A
decrease in the amount of Bullion represented by each Share results in a decrease in each Share’s price even if the
price of gold, palladium, platinum and silver does not change. To retain the Share’s original price, the price
of gold, silver, platinum and palladium must increase. Without that increase, the lesser amount of gold, silver, platinum
and palladium represented by the Share will have a correspondingly lower price. If this increase does not occur, or is not sufficient
to counter the lesser amount of Bullion represented by each Share, Shareholders will sustain losses on their investment in
Shares.








An
increase in Trust expenses not assumed by the Sponsor, or the existence of unexpected liabilities affecting the Trust, will require
the Trustee to sell larger amounts of Bullion, and will result in a more rapid decrease of the amount of Bullion represented
by each Share and a corresponding decrease in its value.














35














RISKS RELATED TO THE
CUSTODY OF BULLION







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, the Zurich Sub-Custodian 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 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 and any other
sub-custodian under English law, and any other sub-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.









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 between the Trustee and the Custodian
which establish the Trust’s unallocated Bullion account (“Unallocated Account”) and the Trust’s allocated Bullion
account (“Allocated Account”), 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 to the market value of the Bullion
lost or damaged at the time such negligence, fraud or willful default is discovered by the Custodian provided the Custodian notifies
the Trust and the Trustee promptly after the discovery of the loss or damage. Under each Authorized Participant Unallocated Bullion
Account Agreement (between the Custodian 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 a Shareholder, under English law,
is limited. Furthermore, under English common law, the Custodian, the Zurich Sub-Custodian, or any 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.














36















The
obligations of the Custodian, the Zurich Sub-Custodian and any other sub-custodians are governed by English law, which may
frustrate the Trust in attempting to seek legal redress against the Custodian, the Zurich Sub-Custodian or any 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 entered into arrangements with the Zurich Sub-Custodian and
may enter into arrangements with any other sub-custodians for the custody or temporary holding 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 and the LPPM rules or the customs and practices in the London
custody market. It may be difficult or impossible for the Trust to sue the Zurich Sub-Custodian or any other 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 their 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.









The
obligations of the Zurich Sub-Custodian under its arrangement with the Custodian with respect to the Trust’s allocated gold,
silver, platinum and palladium is 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 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 application
of Swiss law may, among other things, alter the relative rights and obligations of the Custodian and the Zurich Sub-Custodian
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 the 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
or any other sub-custodian 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, and any other sub-custodian.









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









The
Custodian may be reliant on the Zurich Sub-Custodians for the safekeeping of 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 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 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 will be reliant on one or more Zurich Sub-Custodians for the safekeeping of that portion of the Trust’s allocated
platinum and palladium that is held in Zurich. Other than obligations to (1) use reasonable care in appointing a Zurich Sub-Custodian,
(2) require 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 a Zurich Sub-Custodian 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-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
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 a Zurich Sub-Custodian for the purpose of examining the Trust’s platinum or palladium and certain related records maintained
by the Custodian or the Zurich Sub-Custodians.














37














As
a result of the above, any failure by 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.









Because
the Trustee does not, and the Custodian has limited obligations to, oversee and monitor the activities of sub-custodians who may
hold the Trust’s Bullion, failure by the 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 sub-custodians to hold the
Trust’s Bullion on a temporary basis pending delivery to the Custodian. The sub-custodians which the Custodian
currently uses are (1) The Bank of Nova Scotia – ScotiaMocatta, Brinks Global Services Inc., HSBC Bank plc and ICBC
Standard Bank plc for all Bullion; (2) Malca-Amit UK Limited, London, for gold and platinum; (3) the Bank of England for gold
only; (4) Loomis for silver only; (5) Malca-Amit SA, Zurich, for palladium and platinum; (6) UBS for gold, palladium and
platinum, and the custodian may use LBMA and LPPM market-making members that provide bullion vaulting and clearing services
to third parties. The Custodian will select the Zurich Sub-Custodians, and each Zurich Sub-Custodian will custody 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
sub-custodian, making the Custodian liable only for negligence or bad faith in the selection of such sub-custodians, and has
an obligation to use commercially reasonable efforts to obtain delivery of the Trust’s Bullion from any sub-custodians
appointed by the Custodian. Otherwise, the Custodian is not liable for the acts or omissions of its sub-custodians. These
sub-custodians may in turn appoint further sub-custodians, but the Custodian is not responsible for the appointment of these
further sub-custodians. The Custodian does not undertake to monitor the performance by sub-custodians of their custody
functions or their selection of further 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 sub-custodian. Furthermore, except for the Zurich Sub-Custodian, the Trustee may have no right to visit
the premises of any sub-custodian for the purposes of examining the Trust’s Bullion or any records maintained by the
sub-custodian, and no 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 sub-custodian. In addition, the ability of the Trustee to monitor
the performance of the Custodian and the Zurich Sub-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 for the
purpose of examining the Trust’s Bullion and certain related records maintained by the Custodian and the Zurich
Sub-Custodian. See “

Custody of the Trust’s Bullion

” for more information about sub-custodians that
may hold the Trust’s bullion.









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









Except
for the Custodian’s arrangements with the Zurich Sub-Custodians, there are expected to be no written contractual arrangements
between sub-custodians 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 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 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 sub-custodian,
the Trust may not be able to recover damages from the Custodian or the sub-custodian. Whether a sub-custodian will be liable for
the failure of sub-custodians 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 whether appointed by the Custodian or by another sub-custodian for any losses relating to the safekeeping
of Bullion by such sub-custodian.














38















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 gold, 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 gold and 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.









Bullion
held in the Trust’s unallocated Bullion account and any Authorized Participant’s unallocated Bullion account will
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 gold and silver bars and platinum and palladium plates and 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 gold or silver or plates or ingots of platinum or palladium held by the Custodian and 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 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.














39














GENERAL RISKS







The
Trust relies on the information and technology systems of the Trustee, the Custodian, the Marketing Agent and, to a lesser degree,
the Sponsor, which could be adversely affected by information systems interruptions, cybersecurity attacks or other disruptions
which could have a material adverse effect on the Trust’s record keeping and operations.









The
Custodian, the Trustee and the Marketing Agent depend upon information technology infrastructure, including network, hardware
and software systems to conduct their business as it relates to the Trust. A cybersecurity incident, or a failure to protect their
computer systems, networks and information against cybersecurity threats, could result in a loss of information and adversely
impact their ability to conduct their business, including their business on behalf of the Trust. Despite implementation of network
and other cybersecurity measures, their security measures may not be adequate to protect against all cybersecurity threats.









Uncertainty
regarding the effects of Brexit could adversely affect the price of the Shares.









The
United Kingdom left the European Union (the “EU”) (“Brexit”) on January 31, 2020, subject to a transitional
period which ended December 31, 2020. During the transitional period, although the United Kingdom was no longer a member state of the
EU, it remained subject to EU law and regulations as if it were still a member state. The United Kingdom and the EU were to negotiate
the terms of their future trading relationship during the transitional period. On December 24, 2020, negotiators representing
the United Kingdom and the EU came to a preliminary trade agreement, which was subsequently ratified by the UK Parliament. The
trade agreement must also be ratified by the European Parliament.








The
unavoidable uncertainties and events related to Brexit could increase taxes and costs of business and cause volatility in currency
exchange rates and interest rates. Brexit could adversely affect the performance of contracts in existence at the date of Brexit
and European, United Kingdom or worldwide political, regulatory, economic or market conditions and could contribute to instability
in political institutions, regulatory agencies and financial markets. Brexit could also lead to legal uncertainty and politically
divergent national laws and regulations as a new relationship between the United Kingdom and EU is defined and the United Kingdom
determines which EU laws to replace or replicate. Any of these effects of Brexit, and others that cannot be anticipated, could
adversely affect the price of the Shares. In addition, the risk that Standard Life Aberdeen plc, the parent of the Sponsor and
which is headquartered in the United Kingdom, failed to adequately prepare for the end of Brexit’s transitional period could
have significant customer, reputation and capital impacts for Standard Life Aberdeen plc and its subsidiaries, including those
providing services to the Trust; however, Standard Life Aberdeen plc and its subsidiaries have detailed contingency planning in
place to seek to manage the consequences of Brexit to the Trust and to avoid any disruption on the Trust and to the services they
provide. Given the fluidity and complexity of the situation, we cannot provide assurance that the Trust will not be adversely
impacted despite these preparations.














40















The
Trust as well as the Sponsor and its service providers are vulnerable to the effects of public health crises, including the ongoing
novel coronavirus pandemic.









The
respiratory illness COVID-19 caused by a novel coronavirus has resulted in a global pandemic and major disruption to economies
and markets around the world, including the United States. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. Liquidity for many instruments has been greatly reduced for periods of time.
Some interest rates are very low and in some cases yields are negative. Some sectors of the economy and individual issuers have
experienced particularly large losses. These circumstances may continue for an extended period of time, and may continue to affect
adversely the value and liquidity of the Trust’s investments. The ultimate economic fallout from the pandemic, and the long-term
impact on economies, markets, industries and individual issuers, including the Trust and its service providers, are not known.
The information technology and other operational systems upon which the Trust’s service providers rely could be impaired
and the ability of employees of the Trust’s service providers to perform essential tasks on behalf of the Trust could be
disrupted. Governments and central banks, including the Federal Reserve in the U.S., have taken extraordinary and unprecedented
actions to support local and global economies and the financial markets. The impact of these measures, and whether they will be
effective to mitigate the economic and market disruption, will not be known for some time.











Item
1B. Unresolved Staff Comments









None.











Item
2. Properties









Not
applicable.











Item
3. Legal Proceedings









None











Item
4. Mine Safety Disclosure









Not
applicable.











PART
II












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









On
October 22, 2010, the Trust’s Shares commenced trading on the NYSE Arca under the symbol GLTR, 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, 2020 and 2019:














41


















































































Fiscal Year Ended December 31, 2020: Quarter Ended











High



Low



March 31, 2020




$

85.13



$

65.30



June 30, 2020




$

83.53



$

74.44



September 30, 2020




$

104.83



$

82.72



December 31, 2020




$

99.23



$

90.77










































































Fiscal Year Ended December 31, 2019: Quarter Ended











High



Low



March 31, 2019




$

66.67



$

63.21



June 30, 2019




$

68.38



$

61.86



September 30, 2019




$

77.41



$

67.19



December 31, 2019




$

76.40



$

71.82






The
number of outstanding Share of the Trust as of February 24, 2021 was

9,250,000.










Monthly
Share Price









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


























































































Month



High



Low



August 2020




$

104.83



$

95.69



September 2020




$

101.42



$

92.03



October 2020




$

97.83



$

92.67



November 2020




$

99.23



$

90.77



December 2020




$

98.95



$

93.11


January 2021



$

101.84



$

94.64










42













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 Shares
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 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, 2020 and 2019:



















































































































































































































































































































































Month



Total number of Shares redeemed



Gold






Average
ounces of Bullion per Share












Silver






Platinum



Palladium



January 2020





50,000




0.028




1.041




0.004




0.006



February 2020





























March 2020





250,000




0.028




1.039




0.004




0.006



April 2020





250,000




0.028




1.039




0.004




0.006



May 2020





























June 2020





























July 2020





























August 2020





























September 2020





























October 2020





























November 2020





























December 2020





























Total





550,000




























































































































































































































































































































































Month



Total number of Shares redeemed



Gold






Average ounces of Bullion per Share










Silver






Platinum



Palladium


January 2019























February 2019





150,000




0.029




1.046




0.004




0.006



March 2019





150,000




0.029




1.046




0.004




0.006



April 2019





























May 2019





























June 2020





100,000




0.029




1.044




0.004




0.006



July 2019





























August 2019





























September 2019





50,000




0.028




1.043




0.004




0.006



October 2019





























November 2019





























December 2019





























Total





450,000


























43















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

.
































































































































































































Year
Ended






December 31, 2020









Year
Ended






December 31, 2019









Year
Ended






December 31, 2018









Year
Ended






December 31, 2017









Year
Ended






December 31, 2016





(Amounts in 000’s of US$, except for Share and per Share data)





















Total assets


$

842,282



$

499,326



$

359,447



$

362,116



$

261,641


Total gain/(loss) on Bullion


$

145,383



$

78,598



$

(7,542

)


$

33,188



$

6,284


Change in net assets from operations


$

141,562



$

76,194



$

(9,675

)


$

31,245



$

5,000


Weighted average number of Shares



7,247,814




5,811,918




5,700,685




5,131,918




3,443,989


Net increase / (decrease) in net assets per Share


$

19.53



$

13.11



$

(1.70

)


$

6.09



$

1.45


Net cash provided by operating activities


$





$





$





$





$











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. 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.










Introduction.









The
Aberdeen Standard Precious Metals Basket ETF 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 Aberdeen Standard Investments ETFs Sponsor 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 gold, 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 merely 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.














44














The
Trust issues and redeems Shares only in exchange for Bullion, only in aggregations of 50,000 Shares or integral multiples thereof
(each, a “Basket”), and only in transactions with registered broker-dealers, or other securities market participants
not required to register as broker-dealers, such as a bank or other financial institution, that (1) are participants in DTC and
(2) 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., Goldman
Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., Mizuho
Securities USA LLC, Morgan Stanley & Co. Inc., Scotia Capital (USA) Inc., UBS Securities LLC and Virtu Financial BD, LLC.








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








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

























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.










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 recorded, per individual metal type, at fair value. The cost of Bullion is determined according to the
average cost method and the fair value is based on the relevant “London Metal Price” for each metal held
by the Trust.  The cost of gold is determined according to the average cost method and the fair value is based on the
LBMA PM Gold Price. For silver this is the LBMA Silver Price as established by the seven LBMA authorised bullion banks. For platinum
and palladium this is the “LME PM 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 LPPM. Realized gains and losses on transfers of Bullion, or Bullion
distributed for the redemption of Shares, are calculated on a trade date basis as the difference between the fair value and cost
of Bullion transferred.








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 remuneration due to the Sponsor (the “Sponsor’s Fee”), from the fair value of the
Bullion and all other assets held by the Trust.





















































































December
31, 2020









December
31, 2019









December
31, 2018





(Amounts in 000’s of US$)













Investment in Bullion - cost


$

603,126



$

407,094



$

351,430


Unrealized gain on investment in Bullion



224,472




84,612




8,017


Investment in Bullion - fair value


$

827,598



$

491,706



$

359,447










45













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-Custodian 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. Visits by auditors and inspectors to the Zurich Sub-Custodian’s facilities
will be arranged through the Custodian. Other than with respect to the Zurich Sub-Custodian, the Trustee and the Sponsor have
no right to visit the premises of any sub-custodian for the purposes of examining the Trust’s Bullion or any records
maintained by the sub-custodian, and no 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 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 them. Inspections were conducted by Inspectorate International Limited, a leading commodity inspection
and testing company retained by the Sponsor, as of August 14, 2020. Due to unprecedented social lock-down policies implemented in the UK and Switzerland to help prevent the spread of COVID-19, neither the
Sponsor, nor Inspectorate, were able to perform a physical inspection of the Trust's Bullion at December 31, 2020. In lieu of a physical
inspection, the Sponsor performed alternative procedures to verify the Bullion held by the Trust at December 31, 2020. These procedures
included confirmation of the Bullion list and total ounces of Bullion held by the Custodian at December 31, 2020, and an independent recalculation
of ounces of Bullion for each creation or redemption transaction from August 14, 2020, the date of the last physical inspection, through
December 31, 2020. The Sponsor and Inspectorate also virtually inspected a selection of Bullion held by the Custodian on behalf of the
Trust, verifying the weight of the Bullion, and that the serial numbers of the Bullion selected matched the records of the Trust.










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 gold, 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, 2020 and 2019, the Trust did not have any cash
balances.









Review
of Financial Results










Financial
Highlights






















































































Year
Ended






December 31, 2020









Year
Ended






December 31, 2019









Year
Ended






December 31, 2018





(Amounts in 000’s of US$)













Total gain/(loss) on Bullion


$

145,383



$

78,598



$

(7,542

)

Net change in assets from operations


$

141,562



$

76,194



$

(9,675

)

Net cash provided by operating activities


$





$





$












46













The
year ended December 31, 2020









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 NAV of the Trust on
a given day by the number of Shares outstanding on that day.








The
Trust’s NAV increased from $499,077,573 at December 31, 2019 to $841,868,238 at December 31, 2020, a 68.68% increase for
the year. The increase in the Trust’s NAV resulted primarily from an increase in outstanding Shares, which rose from 6,550,000
Shares at December 31, 2019 to 8,600,000 Shares at December 31, 2020, a result of 2,600,000 Shares (52 Baskets) being created
and 550,000 Shares (11 Baskets) being redeemed during the year and an increase in the price per ounce of gold, silver, platinum
and palladium in the proportions held by the Trust (the “Proportionate Price”), which rose 29.26% during the year.








The
NAV per Share increased 28.46% from $76.20 at December 31, 2019 to $97.89 at December 31, 2020. The Trust’s NAV per Share
rose slightly less than the Proportionate Price on a percentage basis due to the Sponsor’s Fee, which was $3,821,435 for
the year, or 0.60% of the Trust’s ANAV.








The
NAV per Share of $103.63 at August 6, 2020 was the highest during the year, compared with a low of $66.20 at March 19, 2020.








The
increase in net assets from operations for the year ended December 31, 2020 was $141,562,097, resulting from a realized gain of
$815,237 on Bullion transferred to pay expenses, a realized gain of $4,680,483 on Bullion distributed for the redemption of Shares,
a change in unrealized gain on investment in Bullion of $139,887,814, offset by the Sponsor’s Fee of $3,821,435. Other than
the Sponsor’s Fee, the Trust had no expenses during the year ended December 31, 2020.









The
year ended December 31, 2019









The
Trust’s NAV increased from $359,264,176 at December 31, 2018 to $499,077,573 at December 31, 2019, a 38.92% increase for
the year. The increase in the Trust’s NAV resulted primarily from an increase in outstanding Shares, which rose from 5,700,000
Shares at December 31, 2018 to 6,550,000 Shares at December 31, 2019, a result of 1,300,000 Shares (26 Baskets) being created
and 450,000 Shares (9 Baskets) being redeemed during the year and an increase in the price per ounce of gold, silver, platinum
and palladium in the proportions held by the Trust (the “Proportionate Price”), which rose 21.62% during the year.








The
NAV per Share increased 20.89% from $63.03 at December 31, 2018 to $76.20 at December 31, 2019. The Trust’s NAV per Share
rose slightly less than the Proportionate Price on a percentage basis due to the Sponsor’s Fee, which was $2,403,544 for
the year, or 0.60% of the Trust’s ANAV.








The
NAV per Share of $76.68 at September 4, 2019 was the highest during the year, compared with a low of $61.87 at May 22, 2019.








The
increase in net assets from operations for the year ended December 31, 2019 was $76,193,992, resulting from a realized gain of
$194,828 on Bullion transferred to pay expenses, a realized gain of $1,807,417 on Bullion distributed for the redemption of Shares,
a change in unrealized gain on investment in Bullion of $76,595,291, offset by the Sponsor’s Fee of $2,403,544. Other than
the Sponsor’s Fee, the Trust had no expenses during the year ended December 31, 2019.









The
year ended December 31, 2018









The
Trust’s NAV decreased from $361,931,979 at December 31, 2017 to $359,264,176 at December 31, 2018, a 0.74% decrease for
the year. The decrease in the Trust’s NAV resulted primarily from an increase in outstanding Shares, which rose from 5,600,000
Shares at December 31, 2017 to 5,700,000 Shares at December 31, 2018, a result of 1,100,000 Shares (22 Baskets) being created
and 1,000,000 Shares (20 Basket) being redeemed during the year and an decrease in the price per ounce of gold, silver, platinum
and palladium in the proportions held by the Trust (the “Proportionate Price”), which fell 1.89% during the year.














47

















The NAV per Share decreased 2.48% from $64.63 at December 31,
2017 to $63.03 at December 31, 2018. The Trust’s NAV per Share fell slightly more than the Proportionate Price on a percentage
basis due to the Sponsor’s Fee, which was $2,132,987 for the year, or 0.60% of the Trust’s ANAV.





The NAV per Share of $67.58 at January 25, 2018 was the highest
during the year, compared with a low of $57.16 at August 16, 2018.





The decrease in net assets from operations for the year ended
December 31, 2018 was $9,675,779, resulting from a realized gain of $13,067 on Bullion transferred to pay expenses, a realized
gain of $115,533 on Bullion distributed for the redemption of Shares and offset by a change in unrealized loss on investment in
Bullion of $7,671,392 and the Sponsor’s Fee of $2,132,987. Other than the Sponsor’s Fee, the Trust had no expenses
during the year ended December 31, 2018.






Off-Balance Sheet Arrangements





The Trust is not a party to any off-balance sheet arrangements.








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.








Item 8. Financial Statements and Supplementary Data

(Unaudited)







Quarterly Income Statements






Year Ended December 31, 2020





































































































































































































































































































































































































































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


$

796



$

804



$

1,035



$

1,186



$

3,821


Total expenses



796




804




1,035




1,186




3,821























Net investment loss



(796

)



(804

)



(1,035

)



(1,186

)



(3,821

)






















REALIZED AND UNREALIZED GAINS / (LOSSES)





















Realized gain on Bullion transferred to pay expenses



150




129




243




293




815


Realized gain / (loss) on Bullion distributed for the redemption of Shares



1,351




3,329














4,680


Change in unrealized gain and loss on investment in Bullion



(8,769

)



41,506




77,619




29,532




139,888


Total gain / (loss) on investment in Bullion



(7,268

)



44,964




77,862




29,825




145,383























Change in net assets from operations


$

(8,064

)


$

44,160



$

76,827



$

28,639



$

141,562























Net increase / (decrease) in net assets per Share


$

(1.20

)


$

6.56



$

10.50



$

3.50



$

19.53























Weighted average number of Shares



6,742,857




6,735,714




7,319,022




8,182,609




7,247,814










48












Year Ended December 31, 2019





































































































































































































































































































































































































































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


$

540



$

547



$

615



$

702



$

2,404


Total expenses



540




547




615




702




2,404























Net investment loss



(540

)



(547

)



(615

)



(702

)



(2,404

)






















REALIZED AND UNREALIZED GAINS / (LOSSES)





















Realized gain on Bullion transferred to pay expenses



21




18




60




97




196


Realized gain / (loss) on Bullion distributed for the redemption of Shares



954




275




579




(1

)



1,807


Change in unrealized gain on investment in Bullion



4,644




22,138




29,649




20,164




76,595


Total gain on investment in Bullion



5,619




22,431




30,288




20,260




78,598























Change in net assets from operations


$

5,079



$

21,884



$

29,673



$

19,558



$

76,194























Net increase in net assets per Share


$

0.90



$

3.90



$

5.16



$

3.14



$

13.11























Weighted average number of Shares



5,648,889




5,608,242




5,751,630




6,233,152




5,811,918






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-13 of this filing.








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





None.








Item 9A. 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 Rules 13a-15(e) and 15d-15(e). Based on this evaluation, the Chief Executive
Officer and the Chief Financial Officer of the Sponsor concluded that, as of December 31, 2020, the Trust’s disclosure controls
and procedures were effective.










49











Internal controls over financial reporting have been maintained
throughout the Trust’s fiscal year ended December 31, 2020. There have been no changes that have materially affected, or
are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial reporting.






Management’s Report on Internal Control over Financial
Reporting





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, 2020. 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, 2020.





KPMG LLP, the independent registered public accounting firm
that audited and reported on the financial statements included in this Form 10-K, as stated in their report which is included herein,
issued an attestation report on the effectiveness of the Trust’s internal control over financial reporting as of December
31, 2020.








50














Report of Independent Registered Public
Accounting Firm











To the Sponsor, Trustee and Shareholders


Aberdeen Standard Precious Metals Basket ETF Trust:



Opinion on Internal Control Over Financial Reporting



We have audited Aberdeen Standard Precious Metals Basket ETF
Trust’s (the Trust) internal control over financial reporting as of December 31, 2020, based on criteria established
in

Internal Control – Integrated Framework (2013)

issued by the Committee of Sponsoring Organizations of the Treadway
Commission. In our opinion, the Trust maintained, in all material respects, effective internal control over financial reporting
as of December 31, 2020, based on criteria established in

Internal Control – Integrated Framework (2013)

issued
by the Committee of Sponsoring Organizations of the Treadway Commission.



We also have audited, in accordance with the standards of
the Public Company Accounting Oversight Board (United States) (PCAOB), the statements of assets and liabilities of the Trust,
including the schedules of investments, as of December 31, 2020 and 2019, the related statements of operations and changes
in net assets for each of the years in the three-year period ended December 31, 2020, and the related notes (collectively,
the financial statements) and the financial highlights for each of the years in the three-year period ended December 31, 2020,
and our report dated February 26, 2021 expressed an unqualified opinion on those financial statements and financial highlights.



Basis for Opinion



The Sponsor’s management is responsible for maintaining
effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial
reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility
is to express an opinion on the Trust’s internal control over financial reporting based on our audit. We are a public accounting
firm registered with the PCAOB and are required to be independent with respect to the Trust in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.



We conducted our audit in accordance with the standards of
the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal
control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists,
and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also
included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.



Definition and Limitations of Internal Control Over
Financial Reporting



A company’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 and financial highlights for external purposes in accordance with generally accepted accounting principles. A company’s
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 assets of the company; (2) provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements and financial highlights
in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only
in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a
material effect on the financial statements and financial highlights.



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 inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.



/s/ KPMG LLP



New York, New York


February 26, 2021






51
















Item 9B. Other Information





Not applicable.








52












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:







Christopher Demetriou – President and Chief Executive
Officer






Mr. Demetriou is Chief Executive Officer – Americas for
ASII. Mr. Demetriou is a member of the Group Executive Committee as well as several other committees within the organization. Mr.
Demetriou is based in Philadelphia and is responsible for Aberdeen Standard Investments’ operations across North and South
America. Mr. Demetriou previously held the position of Deputy Chief Executive Officer – Americas for ASII from December 2016
to April 2018, Chief Financial Officer – Americas from January 2016 to December 2016, and Head of Finance – Americas
from June 2014 to January 2016. Mr. Demetriou joined ASII in June 2014, as a result of Aberdeen’s acquisition of SVG, a FTSE
250 private equity investor based in London. While at SVG, from June 2010 to June 2014, Mr. Demetriou was Group Financial Controller
and Deputy Head of Strategy. Prior to joining SVG, Mr. Demetriou worked at Ernst and Young, specializing in Asset and Wealth Management
audits and transactions. Mr. Demetriou is a Chartered Accountant and has a BA in Politics from the University of York in England.







Andrea Melia – Chief Financial Officer and Treasurer






Ms. Melia is Vice President and Head of Fund Operations, Traditional
Assets – Americas for ASII. Ms. Melia has managed the fund administration team since joining ASII in September 2009. Prior
to joining ASII, Ms. Melia was Director of fund administration and accounting oversight for Princeton Administrators LLC, a division
of BlackRock Inc. and had worked with Princeton Administrators since 1992. Ms. Melia holds a BS in Accounting from University of
Scranton and a MBA from Rider University.





As described under Item 1 above, ASII is the parent of the Sponsor.








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.








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






Security Ownership of Certain Beneficial Owners





There are no persons known by the Trust to own directly or indirectly
beneficially more than 5% of the outstanding Shares of the Trust.






Security Ownership of Management





Not 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










53











The Trust has no directors or executive officers.








54














Item 14. Principal Accounting Fees and Services





Fees for services performed by KPMG LLP for the years ended
December 31, 2020 and 2019



















































December 31, 2020









December 31, 2019



Audit fees – KPMG


$

77,825



$

72,900


Audit related fees – KPMG








10,000




$

77,825



$

82,900





Audit Fees are fees paid by the Sponsor to KPMG LLP for professional
services for the audit of the Trust’s financial statements included in the Form 10-K and review of financial statements included
in the Form 10-Qs, and for services that are normally provided by the accountants in connection with regulatory filings or engagements.
Audit Related Fees are paid by the Sponsor to KPMG LLP for assurance and related services that are reasonably related to the performance
of the audit or review of the Trust’s financial statements. These services include the accountant providing a consent letter related to the Trust's registration statement filing.






Pre-Approval 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 KPMG LLP. Such determinations are made
by the Sponsor.








55














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




4.1(a)




Depositary Trust Agreement, incorporated by reference to Exhibit 4.1 filed with Registration Statement No. 333-164769 on October 19, 2010






4.1(b)




Amendment to the Depositary Trust Agreement effective October 1, 2018, incorporated by reference to Exhibit 4.1 filed with Registration Statement 333-234723 on November 15, 2019






4.2




Form of Authorized Participant Agreement, effective as of September 5, 2017, incorporated by reference to Exhibit 4.2 filed with the Trust’s Annual Quarterly Report on Form 10-Q for the quarter ended September 30, 2017






4.3




Global Certificate, incorporated by reference to Exhibit 4.3 filed with Registration Statement No. 333-164769 on October 19, 2010






10.1(a)




Allocated Account Agreement, incorporated by reference to Exhibit 10.1 filed with Registration Statement No. 333-164769 on October 19, 2010






10.1(b)




Amendment to the Allocated Account Agreement, incorporated by reference to Exhibit 10.1 filed with the Trust’s Current Report on Form 8-K on October 5, 2018






10.1(c)




Second amendment to the Allocated Account Agreement effective June 5, 2020 incorporated by reference to Exhibit 10.1 filed with the Trust’s Current Report on Form 8-K on June 11, 2020






10.2(a)




Unallocated Account Agreement, incorporated by reference to Exhibit 10.2 filed with Registration Statement No. 333-164769 on October 19, 2010






10.2(b)




Amendment to the Unallocated Account Agreement, incorporated by reference to Exhibit 10.2 filed with the Trust’s Current Report on Form 8-K on October 5, 2018






10.2(c)




Second amendment to the Unallocated Account Agreement effective June 5, 2020 incorporated by reference to Exhibit 10.2 filed with the Trust’s Current Report on Form 8-K on June 11, 2020






10.3




Depository Agreement, incorporated by reference to Exhibit 10.3 filed with Registration Statement No. 333-164769 on October 19, 2010






10.4(a)




Marketing Agent Agreement, incorporated by reference to Exhibit 10.4 filed with Registration Statement No. 333-164769 on October 19, 2010






10.4(b)




Novation of and Amendment No. 1 to the Marketing Agent Agreement effective October 1, 2108






23.1




Consent of KPMG LLP, Independent Registered Public Accounting Firm






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













56

































































101



The following financial statements from the Trust’s Annual Report on Form 10-K for the year ended December 31, 2020, formatted in Inline XBRL: (i) Statements of Assets and Liabilities, (ii) Statements of Operations, (iii) Statements of Changes in Net Assets, and (iv) Notes to the Financial Statements.





101.SCH



Inline XBRL Taxonomy Extension Schema Document





101.CAL



Inline XBRL Taxonomy Extension Calculation Document





101.DEF



Inline XBRL Taxonomy Extension Definitions Document





101.LAB



Inline XBRL Taxonomy Extension Labels Document





101.PRE



Inline XBRL Taxonomy Extension Presentation Document





104



The cover page from the Trust’s Annual Report on Form 10-K for the year ended December 31, 2020, formatted in Inline XBRL (included as Exhibit 101).








57














Item 16. Form 10-K Summary





Not applicable.










58














ABERDEEN STANDARD PRECIOUS METALS BASKET
ETF TRUST


FINANCIAL STATEMENTS AS OF DECEMBER 31, 2020


INDEX







































































Page











Report of Independent Registered Public Accounting Firm




F-2










Statements of Assets and Liabilities at December 31, 2020 and 2019




F-3










Schedules of Investments at December 31, 2020 and 2019




F-4










Statements of Operations for the years ended December 31, 2020, 2019 and 2018




F-5










Statements of Changes in Net Assets for the years ended December 31, 2020, 2019 and 2018




F-6










Financial Highlights for the years ended December 31, 2020, 2019 and 201


8




F-7










Notes to the Financial Statements




F-8









F-

1














Report of Independent Registered Public
Accounting Firm











To the Sponsor, Trustee and Shareholders


Aberdeen Standard Precious Metals Basket ETF Trust:



Opinion on the Financial Statements



We have audited the accompanying statements of assets and
liabilities of Aberdeen Standard Precious Metals Basket ETF Trust (the Trust), including the schedules of investments, as
of December 31, 2020 and 2019, the related statements of operations and changes in net assets for each of the years in the
three-year period ended December 31, 2020, and the related notes (collectively, the financial statements) and the financial
highlights for each of the years in the three-year period ended December 31, 2020. In our opinion, the financial statements
and financial highlights present fairly, in all material respects, the financial position of the Trust as of December 31,
2020 and 2019, and the results of its operations and the changes in its net assets, for each of the years in the three-year period
ended December 31, 2020, and the financial highlights for each of the years in the three-year period ended December 31,
2020, in conformity with U.S. generally accepted accounting principles.



We also have audited, in accordance with the standards of
the Public Company Accounting Oversight Board (United States) (PCAOB), the Trust’s internal control over financial reporting
as of December 31, 2020, based on criteria established in

Internal Control – Integrated Framework (2013)

issued
by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 26, 2021 expressed
an unqualified opinion on the effectiveness of the Trust’s internal control over financial reporting.



Basis for Opinion



These financial statements and financial highlights are the
responsibility of the Sponsor’s management. Our responsibility is to express an opinion on these financial statements and
financial highlights based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent
with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.



We conducted our audits in accordance with the standards of
the PCAOB. 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, whether due to error or fraud. Our audits included performing
procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating
the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of
the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.



Critical Audit Matter



The critical audit matter communicated below is a matter arising
from the current period audit of the financial statements and financial highlights that was communicated or required to be communicated
to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and
the financial highlights and (2) involved our especially challenging, subjective, or complex judgment. The communication of
a critical audit matter does not alter in any way our opinion on the financial statements and the financial highlights, taken as
a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter
or on the accounts or disclosures to which it relates.



Evaluation of the Evidence Pertaining to the
Existence of the Bullion Holdings



As presented on the December 31, 2020 schedule of investments,
the fair value of the Trust’s investment in bullion was $827.6 million, representing 98.26% of the Trust’s total assets,
and 9,064,300.1 ounces of bullion holdings. The investment in bullion is held by a third-party custodian or sub-custodian (collectively,
the custodian).



We identified the evaluation of the evidence pertaining
to the existence of the bullion holdings as a critical audit matter. Given the nature and volume of the bullion holdings, subjective
auditor judgment was required to evaluate the extent and nature of evidence obtained to assess the existence of bullion held by
the custodian.



The following are the primary procedures we performed
to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls
over the Trust’s bullion holdings process, including controls over (1) the comparison of the Trust’s records of bullion
held to the custodian’s records, (2) the approval of bullion deposits and withdrawals by the trustee of the Trust and (3)
the roll forward of bullion holdings from the date of the Trust’s most recent physical inspection through December 31, 2020.
We obtained a schedule directly from the custodian of the Trust’s bullion holdings held by the custodian as of December 31,
2020. We compared the total ounces on such schedule to the Trust’s record of bullion holdings. We also tested the Trust’s
roll forward of bullion holdings from August 14, 2020 (the date of the Trust’s most recent physical inspection performed
at the custodian’s locations by a third party engaged by the Trust’s sponsor (the inspector)) through December 31,
2020 by (1) agreeing the Trust’s records of bullion holdings as of the last inspection date to the inspector’s and/or
custodian’s records, (2) agreeing bullion holdings transactions to order confirmations and trade tickets, and (3) comparing
the Trust’s expected holdings to the schedule obtained directly from the custodian of the Trust’s bullion holdings
at December 31, 2020.





We have served as the Trust’s auditor since 2015.



/s/ KPMG LLP



New York, New York


February 26, 2021





F-