10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

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

For the Quarterly Period Ended March 31, 2014

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

ETFS PRECIOUS METALS BASKET TRUST

(Exact name of registrant as specified in its charter)

New York	27-2780046
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)
c/o ETF Securities USA LLC
48 Wall Street, 11th Floor
New York, NY	10005
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(212) 918-4954

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

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒ No ☐

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

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

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

Yes ☐ No ☒

As of May 9, 2014, ETFS Precious Metals Basket Trust had  2,600,000 ETFS Physical PM Basket Shares outstanding.

ETFS PRECIOUS METALS BASKET TRUST

FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2014

INDEX

PART I. FINANCIAL INFORMATION
Item 1.	Condensed Financial Statements (Unaudited)	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
Item 4.	Controls and Procedures	17
Item 4T.	Controls and Procedures	17
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	18
Item 1A.	Risk Factors	18
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26
Item 3.	Defaults Upon Senior Securities	26
Item 4.	Mine Safety Disclosures	26
Item 5.	Other Information	26
Item 6.	Exhibits	27
SIGNATURES

ETFS PRECIOUS METALS BASKET TRUST

PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements (Unaudited)

Condensed Statements of Assets and Liabilities (Unaudited)
At March 31, 2014 and December 31, 2013

	March 31, 2014 (1)		December 31, 2013 (4)
(Amounts in 000's of US$, except Share and per Share data)
ASSETS
Investment in Bullion (2)
Gold (cost: March 31, 2014: $96,162; December 31, 2013: $139,729)	$	102,539	$	139,729
Silver (cost: March 31, 2014: $57,122; December 31, 2013: $83,152)		58,124		83,152
Platinum (cost: March 31, 2014: $14,454; December 31, 2013: $21,057)		15,008		21,057
Palladium (cost: March 31, 2014: $11,003: December 31, 2013: $15,984)		12,351		15,984
		188,022		259,922
LIABILITIES
Fees payable to Sponsor		94		118
Total liabilities		94		118
NET ASSETS	$	187,928	$	259,804
ANALYSIS OF NET ASSETS
Redeemable Shares at redemption value to investors (3)	$	187,928	$	260,358
Shareholders' deficit		-		(554)
Total redeemable Shares at redemption value to investors (net asset value) (3)	$	187,928	$	259,804

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

(2)At March 31, 2014, Bullion is recorded at fair value.  At December 31, 2013, Bullion was recorded at the lower of cost or market value. Refer to Note 2.1 for a breakdown of average cost and fair value per metal.

(3)Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at March 31, 2014 were 2,700,000 and at December 31, 2013 were 3,950,000.  Net asset value per Share at March 31, 2014 and December 31, 2013 was $69.60 and $65.91, respectively.

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

See Notes to the Unaudited Condensed Financial Statements.

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ETFS PRECIOUS METALS BASKET TRUST

Schedule of Investments (Unaudited)
At March 31, 2014 and December 31, 2013

	March 31, 2014
Description	oz	Cost		Fair Value		% of Net Assets (1)
Investment in Bullion (in 000's of US$, except for oz data)
Gold	79,379.6	$	96,162	$	102,539		54.56%
Silver	2,910,584.6		57,122		58,124		30.93%
Platinum	10,584.0		14,454		15,008		7.99%
Palladium	15,875.8		11,003		12,351		6.57%
Total Investment in Bullion		$	178,741	$	188,022		100.05%
	December 31, 2013
Description	oz	Cost		Fair Value		% of Net Assets (2)
Investment in Bullion (in 000's of US$, except for oz data)
Gold	116,295.9	$	139,729	$	139,729		53.78%
Silver	4,264,181.5		83,152		83,152		32.01%
Platinum	15,506.1		21,057		21,057		8.10%
Palladium	23,259.1		15,984		16,538		6.37%
Total Investment in Bullion		$	259,922	$	260,476		100.26%

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

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

See Notes to the Unaudited Condensed Financial Statements

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ETFS PRECIOUS METALS BASKET TRUST

Condensed Statements of Operations (Unaudited)
For thethree months ended March 31, 2014 and 2013

	Three Months		Three Months
	Ended		Ended
	March 31, 2014 (1)		March 31, 2013 (2)
(Amounts in 000's of US$, except for Share and per Share data)
EXPENSES
Sponsor's Fee	$	311	$	315
Total expenses		311		315
Net investment loss		(311)		(315)
REALIZED AND UNREALIZED GAINS / (LOSSES)
Realized gain on Bullion transferred to pay expenses		10		27
Realized gain on Bullion distributed for the redemption of Shares		3,446		-
Change in unrealized gain / (loss) on investment in Bullion		8,727		(617)
Total gain / (loss) on Bullion		12,183		(590)
Change in net assets from operations	$	11,872	$	(905)
Net increase / (decrease) in net assets per Share	$	3.93	$	(0.39)
Weighted average number of Shares		3,020,000		2,319,444

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

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

See Notes to the Unaudited Condensed Financial Statements

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ETFS PRECIOUS METALS BASKET TRUST

Condensed Statements of Cash Flows (Unaudited)
For the three months ended March 31, 2013

	Three Months
	Ended
	March 31, 2013 (1)
(Amounts in 000's of US$)
INCREASE IN CASH FROM OPERATIONS:
Cash proceeds received from transfer of Bullion	$	-
Cash expenses paid		-
Increase in cash resulting from operations		-
Cash and cash equivalents at beginning of period		-
Cash and cash equivalents at end of period	$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Value of Bullion received for creation of Shares	$	23,125
Value of Bullion distributed for redemption of Shares - at cost	$	-
RECONCILIATION OF CHANGE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Change in net assets from operations	$	(905)
Adjustments to reconcile change in net assets from operations to net cash provided by operating activities:
Decrease / (increase) in investment in Bullion		(22,226)
(Decrease) / increase in amounts payable to Sponsor		6
Increase / (decrease) in redeemable Shares:
Creations		23,125
Redemptions		-
Net cash provided by operating activities	$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Value of Bullion transferred to pay expenses	$	309

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

See Notes to the Unaudited Condensed Financial Statements

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ETFS PRECIOUS METALS BASKET TRUST

Condensed Statement of Changes in Net Assets (Unaudited)
For the Three months ended March 31, 2014

	Three Months Ended March 31, 2014 (1)
(Amounts in 000's of US$, except for Share data)	Shares		Amount
Opening balance at December 31, 2013	3,950,000	$	259,804
Effect of adoption of new accounting principle (see Note 2.1)			554
Net investment loss			(311)
Realized gain on investment in Bullion			3,456
Change in unrealized gain on investment in Bullion			8,727
Creations	250,000		17,776
Redemptions	(1,500,000)		(102,078)
Closing balance at March 31, 2014	2,700,000	$	187,928

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

See Notes to the Unaudited Condensed Financial Statements

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ETFS PRECIOUS METALS BASKET TRUST

Financial Highlights (Unaudited)
For the three months ended March 31, 2014

	Three Months
	Ended
	March 31, 2014 (1)
Per Share Performance (for a Share outstanding throughout the entire period)
Net asset value per Share at beginning of period	$	65.91
Income from investment operations:
Net investment loss		(0.10)
Net realized and unrealized gains and losses on investment in Bullion		3.79
Change in net assets from operations		3.69
Net asset value per Share at end of period	$	69.60
Weighted Average Shares		3,020,000
Expense Ratio
Annualized Sponsor's fee per Share		0.60%
Net Investment Loss Ratio
Annualized net investment loss ratio		(0.60)%
Non-Annualized Total Return		5.60%

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

See Notes to the Unaudited Condensed Financial Statements

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ETFS PRECIOUS METALS BASKET TRUST

Notes to the Unaudited Financial Statements

1. Organization

The ETFS Precious Metals Basket Trust (the “Trust”) is an investment trust formed on October 18, 2010, under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by ETF Securities USA LLC (the “Sponsor”) and the Bank of New York Mellon (the “Trustee”) at the time of the Trust’s organization. The Trust holds gold, silver, platinum and palladium in set ratios (together, “Bullion”) and issues ETFS Physical PM Basket Shares (“Shares”) (in minimum blocks of 50,000 Shares, also referred to as “Baskets”) in exchange for deposits of Bullion and distributes Bullion in connection with the redemption of Baskets. Shares represent units of fractional undivided beneficial interest in and ownership of the Trust which are issued by the Trust. The Sponsor is a Delaware limited liability company and a wholly-owned subsidiary of ETF Securities Limited, a Jersey, Channel Islands based company. The Trust is governed by the Trust Agreement.

The investment objective of the Trust is for the Shares to reflect the performance of the price of gold, silver, platinum and palladium, less the Trust’s expenses and liabilities. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the gold, silver, platinum and palladium market through an investment in securities. The fiscal year end for the Trust is December 31.

The accompanying unaudited condensed financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America for interim financial information and with the instructions for the Form 10-Q. In the opinion of management of the Sponsor, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for thethree months ended March 31, 2014 and for all periods presented have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed financial statements should be read in conjunction with the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for thethree months ended March 31, 2014 are not necessarily indicative of the operating results for the full year.

2. Significant Accounting Policies

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

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ETFS PRECIOUS METALS BASKET TRUST

2. Significant Accounting Policies (continued)

2.1. Basis of Accounting

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

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

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

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

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

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

Quantitative effect of adoption of investment company accounting
	Value at				Gain / (loss)
	December 31, 2013		Value at		as a result of
	at lower of cost		January 1, 2014		change in
(Amounts in 000's of US$)	or market value		at fair value		accounting principle
Bullion
Gold	$	139,729	$	139,729	$	-
Silver	$	83,152	$	83,152	$	-
Platinum	$	21,057	$	21,057	$	-
Palladium	$	15,984	$	16,538	$	554

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ETFS PRECIOUS METALS BASKET TRUST

2. Significant Accounting Policies (continued)

2.2.  Valuation of Bullion

Bullion is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises on a segregated basis. The allocated platinum and palladium may also be held by UBS AG, or any other firm selected by the Custodian to hold the Trust’s platinum and palladium in the Trust’s allocated account in the firm’s Zurich vault premises on a segregated basis and whose appointment has been approved by the Sponsor, (the “Zurich Sub-Custodian”) at its Zurich, Switzerland vaulting premises on a segregated basis. The Trust’s Bullion is valued, per individual metal type, for financial statement purposes, at fair value. The cost of Bullion is determined according to the average cost method and the fair value is based on the “London Fix” (the applicable fix for each metal of the price of an ounce of such metal and is performed in London, England by fixing members of the London Bullion Market Association (“LBMA”) or London Platinum and Palladium Market (“LPPM”), as applicable) for each metal held by the Trust used to determine the net asset value (the “NAV”) of the Trust. Realized gains and losses on transfers of Bullion, or Bullion distributed for the redemption of Shares, are calculated on a trade date basis using cost.

The Fund follows the provisions of ASC 820, Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Once the value of Bullion has been determined, the NAV is computed by the Trustee by deducting all accrued fees, expenses 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.

The table below summarizes the unrealized gains or losses on the Trust’s Bullion holdings as of March 31, 2014 and December 31, 2013:  

	March 31, 2014
		Gold		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	96,162	$	57,122	$	14,454	$	11,003	$	178,741
Unrealized gain on investment in Bullion		6,377		1,002		554		1,348		9,281
Investment in Bullion - fair value	$	102,539	$	58,124	$	15,008	$	12,351	$	188,022
	December 31, 2013
		Gold		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	139,729	$	83,152	$	21,057	$	15,984	$	259,922
Unrealized gain on investment in Bullion		-		-		-		554		554
Investment in Bullion - fair value	$	139,729	$	83,152	$	21,057	$	16,538	$	260,476

Effective January 1, 2014, the Trust records its investment in Bullion at fair value and recognizes changes in fair value of the investment in Bullion as changes in unrealized gains or losses on investment in Bullion through the Statement of Operations.

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

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

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ETFS PRECIOUS METALS BASKET TRUST

2. Significant Accounting Policies (continued)

2.2.  Valuation of Bullion (continued)

Fair Value Hierarchy

Inputs

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

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

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

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

The Trust’s contractual obligation is to create or redeem Baskets with Authorized Participants at set prices on each trading day.  These prices are based on an agreed formula published in the prospectus, which is equal to the net asset value of the Trust.  Therefore, the investment in Bullion is classified as a level 2 asset, as the Trust’s investment in Bullion is calculated using third party pricing sources supported by observable, verifiable inputs.

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

Fair value hierarchy
(Amounts in 000's of US$)	March 31, 2014		December 31, 2013
Level 2
Investment in Bullion	$	188,022	$	260,476

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

2.3. Bullion Receivable and Payable

Bullion receivable or payable represents the quantity of Bullion covered by contractually binding orders for the creation or redemption of Shares respectively, where the Bullion has not yet been transferred to or from the Trust’s account. Generally, ownership of the Bullion is transferred within three business days of the trade date.

There was no Bullion receivable or payable at March 31, 2014 and December 31, 2013.

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ETFS PRECIOUS METALS BASKET TRUST

2. Significant Accounting Policies (continued)

2.4.  Creations and Redemptions of Shares

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

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

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

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

The Shares of the Trust are classified as “Redeemable Shares” for financial statement purposes, since they are subject to redemption at the option of Authorized Participants. Outstanding Shares are reflected at redemption value, which represents the maximum obligation (based on NAV per Share), with the difference from historical cost recorded as an offsetting amount to retained earnings. When Bullion is exchanged in settlement of a redemption, a realized gain or loss in the amount of the difference between the fair value on the trade date and the historical cost is recorded through the Condensed Statement of Operations.

Changes in the Shares for the year ended December 31, 2013is set out below:

	Year
	Ended
(Amounts in 000's of US$, except for Share and per Share data)	December 31, 2013
Number of Redeemable Shares
Opening balance		2,200,000
Creations		2,050,000
Redemptions		(300,000)
Closing balance		3,950,000
Redeemable Shares
Opening balance	$	202,243
Creations		149,235
Redemptions		(20,607)
Adjustment to redemption value		(70,513)
Closing balance	$	260,358
Redemption value per Share at period end	$	65.91

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ETFS PRECIOUS METALS BASKET TRUST

2. Significant Accounting Policies (continued)

2.5.  Revenue Recognition Policy

The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of Bullion to the Sponsor. With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s Bullion as necessary to pay these expenses. When selling Bullion to pay expenses, the Trustee will endeavor to sell the smallest amounts of Bullion needed to pay these expenses in order to minimize the Trust’s holdings of assets other than Bullion.Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended March 31, 2014.

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

2.6.  Income Taxes

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

The Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2014 and December 31, 2013.

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ETFS PRECIOUS METALS BASKET TRUST

2. Significant Accounting Policies (continued)

2.7.  Investment in Bullion

Changes in ounces of Bullion and the respective values for the three months ended March 31, 2014 and for the year ended December 31, 2013 are set out below:

	Three months ended March 31, 2014
(Amounts in 000's of US$, except for ounces data)		Gold		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		116,295.9		4,264,181.5		15,506.1		23,259.1		4,419,242.6
Creations		7,350.5		269,518.3		980.1		1,470.1		279,319.0
Redemptions		(44,121.9)		(1,617,802.0)		(5,882.9)		(8,824.4)		(1,676,631.2)
Transfers of Bullion to pay expenses		(144.9)		(5,313.2)		(19.3)		(29.0)		(5,506.4)
Closing balance		79,379.6		2,910,584.6		10,584.0		15,875.8		3,016,424.0
Investment in Bullion:
Opening balance	$	139,729	$	83,152	$	21,057	$	16,538	$	260,476
Creations		9,629		5,622		1,416		1,108		17,775
Redemptions		(53,022)		(31,548)		(7,993)		(6,069)		(98,632)
Transfers of Bullion to pay expenses		(174)		(104)		(26)		(20)		(324)
Change in unrealized gain on investment Bullion		6,377		1,002		554		794		8,727
Closing balance	$	102,539	$	58,124	$	15,008	$	12,351	$	188,022
	Year ended December 31, 2013
(Amounts in 000's of US$, except for ounces data)		Gold		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		65,167.3		2,389,467.4		8,689.0		13,033.4		2,476,357.1
Creations		60,409.7		2,215,021.8		8,054.6		12,081.9		2,295,568.0
Redemptions		(8,837.9)		(324,057.5)		(1,178.4)		(1,767.6)		(335,841.4)
Transfers of Bullion to pay expenses		(443.2)		(16,250.2)		(59.1)		(88.6)		(16,841.1)
Closing balance		116,295.9		4,264,181.5		15,506.1		23,259.1		4,419,242.6
Investment in Bullion:
Opening balance	$	96,337	$	68,562	$	12,213	$	8,315	$	185,427
Creations		80,050		48,772		11,510		8,904		149,236
Redemptions		(12,888)		(8,869)		(1,683)		(1,177)		(24,617)
Transfers of Bullion to pay expenses		(660)		(464)		(84)		(58)		(1,266)
Realized loss on investment in Bullion		(23,110)		(24,849)		(899)		-		(48,858)
Closing balance	$	139,729	$	83,152	$	21,057	$	15,984	$	259,922

2.8.  Expenses

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

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

For the three months ended March 31, 2014 and 2013the Sponsor’s Fee was $311,080and $314,846, respectively. At March 31, 2014and at December 31, 2013, the fees payable to the Sponsor were $94,128 and $116,994, respectively.

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ETFS PRECIOUS METALS BASKET TRUST

2. Significant Accounting Policies (continued)

2.9. Subsequent Events

In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events, the Trust’s management has evaluated the possibility of subsequent events existing in the Trust’s financial statements through the filing date. During this period, no material subsequent events were identified.

3. Related Parties

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

4. Concentration of Risk

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

5. Indemnification

Under the Trust’s organizational documents, the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees and affiliates) are indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith or willful misconduct on its part and without reckless disregard on its part of its obligations and duties under the Trust’s organizational documents. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.

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ETFS PRECIOUS METALS BASKET TRUST

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This information should be read in conjunction with the unaudited condensed financial statements and notes to the unaudited condensed financial statements included in Item 1 of Part 1 of this Form 10-Q. The discussion and analysis that follows may contain forward-looking statements with respect to the Trust’s financial conditions, operations, future performance and business. These statements can be identified by the use of the words “may”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or similar words and phrases. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions and expected future developments. Neither the Trust nor the Sponsor is under a duty to update any of the forward looking statements, to conform such statements to actual results or to reflect a change in management’s expectations or predictions.

Introduction

The Trust is a common law trust, formed under the laws of the state of New York on October 18, 2010. The Trust is not managed like a corporation or an active investment vehicle. It does not have any officers, directors, or employees and is administered by the Trustee pursuant to the Trust. 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. It will not hold or trade in commodity futures contracts, nor is it a commodity pool, or subject to regulation as a commodity pool operator or a commodity trading adviser in connection with issuing Shares.

The Trust holds Bullion (consisting of gold, silver, platinum and palladium in specified proportions) and is expected to issue Baskets in exchange for deposits of Bullion, and to distribute Bullion in connection with redemptions of Baskets. Shares issued by the Trust represent units of undivided beneficial interest in the ownership of the Trust. 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 Trust’s expenses. 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 Sponsor believes that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in Bullion.

The Trust issues and redeems Shares only with Authorized Participants in exchange for Bullion, only in aggregations of 50,000 or integral multiples thereof. A list of current Authorized Participants is available from the Sponsor or the Trustee.Shares of the Trust trade on the New York Stock Exchange (the “NYSE”) Arca under the symbol “GLTR”.

Valuation of Bullion and Computation of Net Asset Value

On each business day that the NYSE Arca is open for regular trading, as soon as practicable after 4:00 p.m., New York time, on such day (the “Evaluation Time”), the Trustee values the Bullion held by the Trust and determines 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 Fix” for such metal (the applicable fix for each metal of the price of an ounce of such metal, performed in London, England by fixing members of the London Bullion Market Association (“LBMA”) or London Platinum and Palladium Market (“LPPM”), as applicable), or if no London Fix is made for a metal on such day or has not been announced by the Evaluation Time, the next most recent London Fix 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 case this determination is made, the Sponsor will identify an alternative basis for such evaluation to be used by the Trustee.

Gold held by the Trust will typically be valued on the basis of the price of an ounce of gold as set by the afternoon session of the twice daily fix of the price of an ounce of gold which starts at 3:00 PM London, England time and is performed in London by the five members of the LBMA. Silver held by the Trust will typically be valued on the basis of the price of an ounce of silver as set at approximately 12:00 noon London time and performed in London by three market making members of the LBMA. Platinum held by the Trust will typically be valued on the basis of the price of an ounce of platinum as set by the afternoon session of the twice daily fix of the price of an ounce of platinum which starts at 2:00 PM London, England time and is performed in London by the four fixing members of the LPPM. Palladium held by the Trust will typically be valued on the basis of the price of an ounce of palladium as set by the afternoon session of the twice daily fix of the price of an ounce of palladium which starts at 2:00 PM London, England time and is performed in London by the four fixing members of the LPPM.

Once the value of Bullion held by the Trust has been determined, the Trustee subtracts all estimated accrued but unpaid fees and other liabilities of the Trust from the total value of the Bullion and all other assets of the Trust. The resulting figure is the ANAV of the Trust. The ANAV is used to compute the Sponsor’s Fee.

The Trustee then subtracts from the ANAV the amount of Sponsor’s Fees computed for such day to determine the net asset value (“NAV”) of the Trust. The Trustee also determines the NAV per Share by dividing the NAV of the Trust by the number of Shares outstanding as of the close of trading on the NYSE Arca.

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ETFS PRECIOUS METALS BASKET TRUST

The Quarter Ended March 31, 2014

Effective January 1, 2014, the Trust is deemed to be an investment company under generally accepted accounting principles.  Accordingly, the Trust adopted the specialized accounting for an investment company as prescribed in Topic 946, Investment Companies.  Refer to Note 2.1 of the unaudited condensed financial statements for additional information.

The NAV of the Trust is obtained by subtracting the Trust’s liabilities on any day from the value of the Bullion owned and receivable by the Trust on that day; the NAV per Share is obtained by dividing the NAV of the Trust on a given day by the number of Shares outstanding on that day.

The Trust’s NAV decreased from $260,358,571 at December 31, 2013 to $187,928,311 at March 31, 2014, a 27.82%decrease for the quarter. The decreasein the Trust’s NAV resulted primarily from  adecreasein outstanding Shares, which fellfrom 3,950,000 Shares at December 31, 2013 to 2,700,000 Shares at March 31, 2014, a result of 250,000 Shares (5 Baskets) being created and (1,500,000) Shares (30 Baskets) being redeemed during the quarter.

There was anincrease in the price per ounce of gold, silver, platinum and palladium in the proportions held by the Trust (the “Proportionate Price”), which rose5.75% during the quarter.

NAV per Share increased5.60% from $65.91 at December 31, 2013 to $69.60 at March 31, 2014. The Trust’s NAV per Share roseslightly lessthan the Proportionate Price on a percentage basis due to Sponsor’s Fees, which were $311,080 for the quarter, or 0.60% of the Trust’s assets on an annualized basis.

The NAV per Share of $74.11 at March 14, 2014 was the highest during the quarter, compared with a low of $66.83 at January 8, 2014.

Change in net assets arising from the change in accounting principle (refer to Note 2.1 of the unaudited condensed financial statements) as of January 1, 2014 was $553,752.  Change in net assets from operationsfor the quarter ended March 31, 2014 was $11,871,677, resulting from a realized gain of $9,906 on the transfer of Bullion to pay expenses, a realized gain of$3,445,790 on gold distributed for the redemption of Sharesand a change in unrealized gain on investment in Bullion of $8,727,061, offset bySponsor’s Fees of $311,080. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended March 31, 2014.

Prior to the adoption of investment company accounting, the Trust recorded its investment in Bullion at the lower of cost or market value.  Under the previous presentation and accounting policies, netloss from operations for the quarter endedMarch 31, 2013 was $905,334, resulting from a netgainof $27,154 on the transfer of Bullion to pay expenses, offset byan unrealized loss of $617,642 on  investment inBullion and Sponsor’s Fees of $314,846.

The increase in the realized gain on redemption of Shares in the quarter ended March 31, 2014 occurred because there were no redemptions in the quarter ended March 31, 2013.  There is an unrealized gain on investment in Bullion in the quarter ended March 31, 2014 compared to an unrealized loss on  investment inBullion in the quarter ending March 31, 2014.  This change is due to the adoption of investment company accounting and an increase in the Proportionate Price.  Sponsor’s Fees are calculated as a percentage of assets.  The Sponsor’s Fee in the quarter ended March 31, 2014 was lower than the fee for the quarter ended March 31, 2013 as the average assets were lower in March 31, 2014 compared to March 31, 2013.

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ETFS PRECIOUS METALS BASKET TRUST

Liquidity & Capital Resources

The Trust is not aware of any trends, demands, commitments, 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 ordinary expense of the Trust during the period covered by this report was the Sponsor’s Fee.

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 March 31, 2014 the Trust did not have any cash balances.

Off-Balance Sheet Arrangements

The Trust has no off-balance sheet arrangements.

Critical Accounting Policies

The unaudited condensed financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these unaudited condensed financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies.In addition, please refer to Note 2 to the unaudited condensed financial statements for further discussion of accounting policies.

Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting.Other than a change in the presentation of the Trust’s financial statements, the most significant change is that the Trust must, from January 1, 2014, record its investment in Bullion at fair value.  Prior to January 1, 2014 the investment in Bullion was recorded at the lower of cost and market value.  As a result of this change, the Trust expects that there will be fluctuations in the value of investments based on changes in the Proportionate Price of Bullion.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’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 March 31, 2014, the Trust’s disclosure controls and procedures were effective.

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

Item 4T. Controls and Procedures

Not applicable.

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ETFS PRECIOUS METALS BASKET TRUST

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

You should consider carefully the risks described below before making an investment decision. You should also refer to the other information included in this report, including the Trust’s financial statements and related notes, as reported in our most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

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.

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

In addition, investors should be aware that there is no assurance that 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.

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 Commodity Exchange, Inc., a subsidiary of New York Mercantile Exchange, Inc. (“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 PM 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.

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

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

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 the inception of the Trust, the Sponsor has been unable to discern any impact from Trust operations on the prices of platinum and platinum. Trading activity of the ETFS Platinum Trust and ETFS Palladium Trust, to which the Sponsor also acts as the sponsor, may have impacted the market prices of platinum and palladium, respectively.

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. From 2003 to 2012, world platinum mining supply averaged 6.2 million ounces and world palladium mining supply averaged 7.6 million ounces. In 2012, mining supply measured 5.65 million ounces of platinum and 6.53 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 NYSE Arca or the price of future Baskets created or redeemed by the Trust.

Since the ETFS Platinum Trust’s and the ETFS Palladium Trust’s initial share offerings became effective on January 6, 2010, the Sponsor has been unable to conclude that a long-term metal market price impact has been caused by their holdings.  Nevertheless, the Trust and the Sponsor cannot provide you 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.

19

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 the present offering is completed, potential market participants who would otherwise be willing to purchase or redeem Baskets to take advantage of any arbitrage opportunity arising from discrepancies between the price of the Shares and the prices of the underlying Bullion may not take the risk that, as a result of those difficulties, they may not be able to realize the profit they expect. If this is the case, the liquidity of Shares may decline and the price of the Shares may fluctuate independently of the prices of the underlying Bullion and may fall.

Prior Unregistered Sales of Shares Created Potential Rescission Rights Liabilities of the Trust

The Trust offered and sold 1,750,000 shares in six creation transactions from November 2013 through March 2014 (the “Unregistered Sales”). On October 20, 2013, the Trust’s then-effective registration statement on Form S-3 expired automatically pursuant to SEC Rule 415(a)(5). The Unregistered Sales occurred at a time during which the Trust did not have an effective registration statement with the SEC.

Under the Section 12(a)(1) of the Securities Act of 1933, public shareholders purchasing shares for which no registration statement was then in effect have the right to sue the Trust for rescission of the unregistered sale “either at law or in equity in any court of competent jurisdiction, to recover the consideration paid for such security with interest thereon, less the amount of any income received thereon, upon the tender of such security, or for damages if he no longer owns the security.” Under Section 13 of the Securities Act of 1933, the right of rescission exists for one year after the date of each unregistered sale. Due to Trust shareholders’ general inability to trace the shares they currently hold or previously held to any Creation Unit created in any Unregistered Sale transaction, no shareholder may be able to maintain an action for rescission under Section 12(a)(1) with respect to any Unregistered Sale transaction. Nevertheless, if a shareholder or former shareholder were able to maintain an action for rescission against the Trust for an Unregistered Sale, that shareholder would be entitled to receive a payment based on the NAV per Share at which the Unregistered Sale took place plus interest. Such a rescission rights payment may be greater than the then prevailing NAV per Share of the Trust and would be an extraordinary expense of the Trust. The incurrence of such an extraordinary expense would negatively impact the NAV per Share of the Trust as well as the market prices for Trust Shares. Furthermore, the payment of such an extraordinary expense would diminish the ability of changes in NAV per Share to reflect changes in the value of the Trust’s bullion between periods before the expense and periods after the expense. Consequently, there is a potential that the success of any shareholder pursuing rescission rights against the Trust for any Unregistered Sale will have an adverse effect on the remaining shareholders of the Trust.

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 NYSE Arca withdraw from participation, the liquidity of the Shares will likely decrease which could adversely affect the market price of the Shares and result in your incurring a loss on your investment.

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

The Trust is not registered as an investment company under the Investment Company Act of 1940 and is not required to register under such act. Consequently, Shareholders will 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 regulated by the CEA, as administered by the United States Commodity Futures Trading Commission (“CFTC”). Furthermore, the Trust is not a commodity pool for purposes of the CEA, and neither the Sponsor nor the Trustee is subject to regulation by the CFTC as a commodity pool operator or a commodity trading advisor in connection with the Shares. Consequently, Shareholders do not have the regulatory protections provided to investors in CEA-regulated instruments or commodity pools.

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

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

The lack of an active 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 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).

20

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

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

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

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

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

The possibility of large-scale distress sales of Bullion in times of crisis may have a short-term negative impact on the price of Bullion and adversely affect an investment in the Shares. For example, the 2008 financial credit crisis resulted in significantly depressed prices of 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.

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

Autocatalysts, automobile components that use platinum and palladium, accounted for approximately 40% of the global demand in platinum and 67% of the global demand in palladium in 2012. Reduced automotive industry sales may result in a decline in autocatalyst demand. A continued contraction in the global automotive industry may impact the price of platinum and palladium and affect the price of the Shares.

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

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

21

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-Custodians and any other sub-custodian exposes the Trust and its Shareholders to the risk of loss of the Trust’s Bullion for which no person is liable.

The Trust does not insure its Bullion. The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate in connection with its custodial obligations and is responsible for all costs, fees and expenses arising from the insurance policy or policies. The Trust is not a beneficiary of any such insurance and does not have the ability to dictate the existence, nature or amount of coverage. Therefore, Shareholders cannot be assured that the Custodian maintains adequate insurance or any insurance with respect to the Bullion held by the Custodian on behalf of the Trust. In addition, the Custodian and the Trustee do not require the Zurich Sub-Custodians or any other direct or indirect sub-custodians to be insured or bonded with respect to their custodial activities or in respect of the Bullion held by them on behalf of the Trust. Further, Shareholders’ recourse against the Trust, the Trustee and the Sponsor under New York law, the Custodian, the Zurich Sub-Custodians 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 agreements between the Trustee and the Custodian which establish the Trust’s unallocated Bullion account (“Unallocated Account Agreement”) and the Trust’s allocated Bullion account (“Allocated Account Agreement” and, together with the Unallocated Account Agreement, the “Custody Agreements”). Under the Custody Agreements the Custodian is only liable for losses that are the direct result of its own negligence, fraud or willful default in the performance of its duties. Any such liability is further limited, in the case of the Allocated Account Agreement, to the market value of the Bullion held in the Trust’s allocated account (“Trust Allocated Account”) at the time such negligence, fraud or willful default is discovered by the Custodian and, in the case of the Unallocated Account Agreement, to the amount of Bullion credited to the Trust’s unallocated account (“Trust Unallocated Account”) at the time such negligence, fraud or willful default is discovered by the Custodian. Under each agreement between an Authorized Participant and the Custodian which establishes the Authorized Participant Unallocated Account (“Authorized Participant Unallocated Bullion Account Agreement”), the Custodian is not contractually or otherwise liable for any losses suffered by any Authorized Participant or Shareholder that are not the direct result of its own gross negligence, fraud or willful default in the performance of its duties under such agreement, and in no event will its liability exceed the market value of the balance in the Authorized Participant Unallocated Account at the time such gross negligence, fraud or willful default is discovered by the Custodian. For any Authorized Participant Unallocated Bullion Account Agreement between an Authorized Participant and another Bullion clearing bank, the liability of the Bullion clearing bank to the Authorized Participant may be greater or lesser than the Custodian’s liability to the Authorized Participant described in the preceding sentence, depending on the terms of the agreement. In addition, the Custodian will not be liable for any delay in performance or any non-performance of any of its obligations under the Allocated Account Agreement, the Unallocated Account Agreement or the Authorized Participant Unallocated Bullion Account Agreement by reason of any cause beyond its reasonable control, including acts of God, war or terrorism. As a result, the recourse of the Trustee or the investor, under English law, is limited. Furthermore, under English common law, the Custodian, any 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.

The obligations of the Custodian, any 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, a 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 will enter into arrangements with any 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 or LPPM rules or the customs and practices in the London custody market. It may be difficult or impossible for the Trust to sue any 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.

22

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

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

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

If the Trust’s Bullion is lost, damaged, stolen or destroyed under circumstances rendering a party liable to the Trust, the responsible party may not have the financial resources sufficient to satisfy the Trust’s claim. For example, as to a particular event of loss, the only source of recovery for the Trust might be limited to the Custodian, the Zurich Sub-Custodians 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-Custodians, 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 Trustee against the Custodian, any 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.

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.

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Because neither the Trustee nor the Custodian oversees or monitors 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) in London only for all Bullion, Barclays Bank plc, The Bank of Nova Scotia – ScotiaMocatta, HSBC Bank USA, N.A and Deutsche Bank A.G (2) in London only for gold only, the Bank of England (3) in London and Zurich for all Bullion, Union Bank of Switzerland (UBS), Brink’s Global Services Inc., (4) in London only for Silver, Via Mat International and (5) in Zurich only for platinum and palladium only, Credit Suisse, 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, 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 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.

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.

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.

24

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.

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 will sell Bullion held by the Trust to pay Trust expenses not assumed by the Sponsor on an as-needed basis irrespective of then-current 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 any Bullion metal. Consequently, the Trust’s Bullion may be sold at a time when the Bullion prices are low, resulting in a negative effect on the value of the Shares.

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

Under the Trust Agreement, each of the Sponsor and the Trustee has a right to be indemnified from the Trust for any liability or expense it incurs without gross negligence, bad faith or willful misconduct on its part and without reckless disregard on its part of its obligations and duties under the Trust’s organizational documents.  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 net asset value of the Trust and the value of the Shares.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 2(a).The Trust has issued Shares without registration under the Securities Act of 1933 or an applicable exemption from such registration, in exchange for the delivery to the Trust of the amount of Bullion represented by the Shares being created based on the combined NAV of such Shares, in six creation transactions as set forth below:

Date	Number of Baskets	Number of Shares	NAV per Share		Aggregate Value
December 11, 2013	28	1,400,000	$	68.94	$	96,516,000
December 19, 2013	2	100,000		65.38		6,538,000
January 8, 2014	1	50,000		66.83		3,341,500
February 26, 2014	1	50,000		72.63		3,631,500
March 7, 2014	2	100,000		72.64		7,264,000
March 20, 2014	1	50,000		70.80		3,540,000

The beneficial owners of the Shares issued in these transactions are unknown to the Trust.

Item 2(b).Not applicable.

Item 2(c).For the three months ended March 31, 2014:  

5 Baskets were created.

30 Baskets  were redeemed.

	Total Baskets	Total Shares	Average Ounces of Bullion per Share
Period	Redeemed	Redeemed	Gold	Silver	Platinum	Palladium
January 2014	30	1,500,000	0.029	1.079	0.004	0.006
February 2014	-	-	-	-	-	-
March 2014	-	-	-	-	-	-
	30	1,500,000

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

26

ETFS PRECIOUS METALS BASKET TRUST

Item 6. Exhibits

(a) Exhibits

31.1	Chief Executive Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Chief Financial Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Chief Executive Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Chief Financial Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema Document*
101.CAL	XBRL Taxonomy Extension Calculation Document*
101.DEF	XBRL Taxonomy Extension Definitions Document*
101.LAB	XBRL Taxonomy Extension Labels Document*
101.PRE	XBRL Taxonomy Extension Presentation Document*

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

27

SIGNATURES

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

	ETF SECURITIES USA LLC
	Sponsor of the ETFS Precious Metals Basket Trust
	(Registrant)
Date: May 12, 2014	/s/ Graham Tuckwell
	Graham Tuckwell
	President and Chief Executive Officer
	(Principal Executive Officer)
Date: May 12, 2014	/s/ Christopher Foulds
	Christopher Foulds
	Chief Financial Officer and Treasurer
	(Principal Financial Officer and Principal Accounting Officer)

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

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT
TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Graham Tuckwell, certify that:

1. I have reviewed this Report on Form 10-Q of ETFSPrecious Metals BasketTrust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 12, 2014	/s/ Graham Tuckwell
	Graham Tuckwell
	President and Chief Executive Officer
	(Principal Executive Officer)

* The Registrant is a trust and Mr. Tuckwell is signing in his capacity as an officer of ETF Securities USA LLC, the Sponsor of the Registrant.

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT
TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Christopher Foulds, certify that:

1. I have reviewed this Report on Form 10-Q of ETFS Precious Metals BasketTrust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 12, 2014	/s/ Christopher Foulds
	Christopher Foulds
	Chief Financial Officer and Treasurer
	(Principal Financial Officer and Principal Accounting Officer)

* The Registrant is a trust and Mr. Foulds is signing in his capacity as an officer of ETF Securities USA LLC, the Sponsor of the Registrant.

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of ETFS Precious Metals BasketTrust (the “Company”) on Form 10-Q for the quarter ended March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 12, 2014	/s/ Graham Tuckwell	**
	Graham Tuckwell*
	President and Chief Executive Officer
	(Principal Executive Officer)

*  The Registrant is a trust and Mr. Tuckwell is signing in his capacity as an officer of ETF Securities USA LLC, the Sponsor of the Registrant.

**The original executed copy of this Certification will be maintained at the Sponsor’s offices and will be made available for inspection upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of ETFS Precious Metals BasketTrust (the “Company”) on Form 10-Q for the quarter ended March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 12, 2014	/s/ Christopher Foulds	**
	Christopher Foulds *
	Chief Financial Officer and Treasurer
	(Principal Financial Officer and Principal Accounting Officer)

*The Registrant is a trust and Mr. Foulds is signing in his capacity as an officer of ETF Securities USA LLC, the Sponsor of the Registrant.

**The original executed copy of this Certification will be maintained at the Sponsor’s offices and will be made available for inspection upon request.

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Organization

3 Months Ended

Mar. 31, 2014

Organization [Abstract]

Organization

1. Organization

The ETFS Precious Metals Basket Trust (the “Trust”) is an investment trust formed on October 18, 2010, under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by ETF Securities USA LLC (the “Sponsor”) and the Bank of New York Mellon (the “Trustee”) at the time of the Trust’s organization. The Trust holds gold, silver, platinum and palladium in set ratios (together, “Bullion”) and issues ETFS Physical PM Basket Shares (“Shares”) (in minimum blocks of 50,000 Shares, also referred to as “Baskets”) in exchange for deposits of Bullion and distributes Bullion in connection with the redemption of Baskets. Shares represent units of fractional undivided beneficial interest in and ownership of the Trust which are issued by the Trust. The Sponsor is a Delaware limited liability company and a wholly-owned subsidiary of ETF Securities Limited, a Jersey, Channel Islands based company. The Trust is governed by the Trust Agreement.

The investment objective of the Trust is for the Shares to reflect the performance of the price of gold, silver, platinum and palladium, less the Trust’s expenses and liabilities. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the gold, silver, platinum and palladium market through an investment in securities. The fiscal year end for the Trust is December 31.

The accompanying unaudited condensed financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America for interim financial information and with the instructions for the Form 10-Q. In the opinion of management of the Sponsor, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for the three months ended March 31, 2014 and for all periods presented have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed financial statements should be read in conjunction with the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the operating results for the full year.

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Financial Highlights (USD $)	3 Months Ended
	Mar. 31, 2014
Per Share Performance (for a Share outstanding throughout the entire period)
Net asset value per Share at beginning of period	$ 65.91	[1],[2]
Income from investment operations:
Net investment loss	$ (0.10)	[1]
Net realized and unrealized gains and losses on investment in Bullion	$ 3.79	[1]
Change in net assets from operations	$ 3.69	[1]
Net asset value per Share at end of period	$ 69.60	[1]
Weighted Average Shares	3,020,000	[1]
Expense Ratio
Annualized Sponsor's fee per Share	0.60%	[1]
Net Investment Loss Ratio
Annualized net investment loss ratio	(0.60%)	[1]
Non-Annualized Total Return	5.60%	[1]

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

[2] Derived from audited Statement of Financial Condition as of December 31, 2013.

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Statements of Assets and Liabilities (USD $)	Mar. 31, 2014		Dec. 31, 2013
Investment in Bullion
Investment in Bullion, fair value	$ 188,022,000		$ 260,476,000
Investment in Bullion, lower of cost or market value			259,922,000
Total assets	188,022,000	[1],[2]	259,922,000	[2],[3]
LIABILITIES
Fees payable to Sponsor	94,128		116,994
Total liabilities	94,000	[1]	118,000	[3]
NET ASSETS	187,928,000	[1]	259,804,000	[3]
ANALYSIS OF NET ASSETS
Shares at redemption value to investors	187,928,000	[1],[4]	260,358,000	[3],[4]
Shareholders’ deficit			(554,000)	[3]
Total Shares at redemption value to investors (net asset value)	187,928,000	[1],[4]	259,804,000	[1],[3],[4]
Gold [Member]
Investment in Bullion
Investment in Bullion, fair value	102,539,000	[1],[2]	139,729,000
Investment in Bullion, lower of cost or market value			139,729,000	[2],[3]
Silver [Member]
Investment in Bullion
Investment in Bullion, fair value	58,124,000	[1],[2]	83,152,000
Investment in Bullion, lower of cost or market value			83,152,000	[2],[3]
Platinum [Member]
Investment in Bullion
Investment in Bullion, fair value	15,008,000	[1],[2]	21,057,000
Investment in Bullion, lower of cost or market value			21,057,000	[2],[3]
Palladium [Member]
Investment in Bullion
Investment in Bullion, fair value	12,351,000	[1],[2]	16,538,000
Investment in Bullion, lower of cost or market value			$ 15,984,000	[2],[3]

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

[2] At March 31, 2014, Bullion is recorded at fair value. At December 31, 2013, Bullion was recorded at the lower of cost or market value. Refer to Note 2.1 for a breakdown of average cost and fair value per metal.

[3] Derived from audited Statement of Financial Condition as of December 31, 2013.

[4] Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at March 31, 2014 were 2,700,000 and at December 31, 2013 were 3,950,000.

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Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2013		Dec. 31, 2013
INCREASE IN CASH FROM OPERATIONS:
Cash proceeds received from transfer of Bullion	$ 0
Cash expenses paid	0
Increase in cash resulting from operations	0
Cash and cash equivalents at beginning of period	0		0
Cash and cash equivalents at end of period	0
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Value of Bullion received for creation of Shares	23,125		149,236
Value of Bullion distributed for redemption of Shares - at average cost	0
RECONCILIATION OF NET (LOSS) / GAIN TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Net income / (loss)	(905)	[1]
Adjustments to reconcile net (loss) / gain to net cash provided by operating activities:
Decrease / (increase) in investment in Bullion	(22,226)
(Decrease) / increase in amounts payable to Sponsor	6
Increase / (decrease) in redeemable Shares:
Creations	23,125
Redemptions	0
Net cash provided by operating activities	0
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Value of Bullion transferred to pay expenses	$ 309

[1] Amounts are those previously reported under non investment company accounting. Refer to Note 2.1 for additional information.

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Significant Accounting Policies (Schedule Of Investment In Bullion) (Details) (USD $)	3 Months Ended				12 Months Ended	3 Months Ended		12 Months Ended			3 Months Ended		12 Months Ended			3 Months Ended		12 Months Ended			3 Months Ended		12 Months Ended
	Mar. 31, 2014 oz		Mar. 31, 2013 oz		Dec. 31, 2013 oz	Mar. 31, 2014 Gold [Member] oz		Dec. 31, 2013 Gold [Member] oz		Jan. 02, 2014 Gold [Member]	Mar. 31, 2014 Silver [Member] oz		Dec. 31, 2013 Silver [Member] oz		Jan. 02, 2014 Silver [Member]	Mar. 31, 2014 Platinum [Member] oz		Dec. 31, 2013 Platinum [Member] oz		Jan. 02, 2014 Platinum [Member]	Mar. 31, 2014 Palladium [Member] oz		Dec. 31, 2013 Palladium [Member] oz		Jan. 02, 2014 Palladium [Member]
Bullion [Line Items]
Opening balance (in Ounces)	4,419,242.6		2,476,357.1		2,476,357.1	116,295.9		65,167.3			4,264,181.5		2,389,467.4			15,506.1		8,689.0			23,259.1		13,033.4
Creations (in Ounces)	279,319.0				2,295,568.0	7,350.5		60,409.7			269,518.3		2,215,021.8			980.1		8,054.6			1,470.1		12,081.9
Redemptions (in Ounces)	(1,676,631.2)				(335,841.4)	(44,121.9)		(8,837.9)			(1,617,802.0)		(324,057.5)			(5,882.9)		(1,178.4)			(8,824.4)		(1,767.6)
Transfers of Bullion to pay expenses (in Ounces)	(5,506.4)				(16,841.1)	(144.9)		(443.2)			(5,313.2)		(16,250.2)			(19.3)		(59.1)			(29.0)		(88.6)
Closing balance (in Ounces)	3,016,424.0				4,419,242.6	79,379.6		116,295.9			2,910,584.6		4,264,181.5			10,584.0		15,506.1			15,875.8		23,259.1
Investment in Bullion, fair value, opening balance	$ 260,476,000					$ 139,729,000				$ 139,729,000	$ 83,152,000				$ 83,152,000	$ 21,057,000				$ 21,057,000	$ 16,538,000				$ 16,538,000
Investment in Bullion, lower of cost or market value, pening balance	259,922,000		185,427,000		185,427,000	139,729,000	[1],[2]	96,337,000			83,152,000	[1],[2]	68,562,000			21,057,000	[1],[2]	12,213,000			15,984,000	[1],[2]	8,315,000
Creations	17,775,000		23,125,000		149,236,000	9,629,000		80,050,000			5,622,000		48,772,000			1,416,000		11,510,000			1,108,000		8,904,000
Redemptions	(98,632,000)				(24,617,000)	(53,022,000)		(12,888,000)			(31,548,000)		(8,869,000)			(7,993,000)		(1,683,000)			(6,069,000)		(1,177,000)
Transfers of Bullion to pay expenses	(324,000)				(1,266,000)	(174,000)		(660,000)			(104,000)		(464,000)			(26,000)		(84,000)			(20,000)		(58,000)
Change in unrealized gain on investment Bullion	8,727,000	[3]	(617,000)	[4]		6,377,000					1,002,000					554,000					794,000
Realized loss on investment in Bullion					(48,858,000)			(23,110,000)					(24,849,000)					(899,000)					0
Investment in Bullion, fair value, closing balance	188,022,000				260,476,000	102,539,000	[1],[3]	139,729,000		139,729,000	58,124,000	[1],[3]	83,152,000		83,152,000	15,008,000	[1],[3]	21,057,000		21,057,000	12,351,000	[1],[3]	16,538,000		16,538,000
Investment in Bullion, lower of cost or market value, closing balance					$ 259,922,000			$ 139,729,000	[1],[2]				$ 83,152,000	[1],[2]				$ 21,057,000	[1],[2]				$ 15,984,000	[1],[2]

[1] At March 31, 2014, Bullion is recorded at fair value. At December 31, 2013, Bullion was recorded at the lower of cost or market value. Refer to Note 2.1 for a breakdown of average cost and fair value per metal.

[2] Derived from audited Statement of Financial Condition as of December 31, 2013.

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

[4] Amounts are those previously reported under non investment company accounting. Refer to Note 2.1 for additional information.

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Statement of Changes in Net Assets (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014		Dec. 31, 2013
Opening balance at December 31, 2013 (in Shares)	3,950,000	[1]
Creations (in Shares)	250,000	[1]	2,050,000
Redemptions (in Shares)	(1,500,000)	[1]	(300,000)
Closing balance at March 31, 2014 (in Shares)	2,700,000	[1]	3,950,000	[1]
Opening balance at December 31, 2013	$ 259,804	[1],[2],[3]
Net investment loss	(311)	[1]
Realized gain on investment in Bullion	3,456	[1]
Change in unrealized gain on investment Bullion	8,727	[1]
Creations	17,776	[1]	149,235
Redemptions	(102,078)	[1]	(20,607)
Closing balance at March 31, 2014	187,928	[1],[2]	259,804	[1],[2],[3]
Adjustments for Change to Fair Value [Member]
Closing balance at March 31, 2014	$ 554	[1]

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

[2] Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at March 31, 2014 were 2,700,000 and at December 31, 2013 were 3,950,000.

[3] Derived from audited Statement of Financial Condition as of December 31, 2013.

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Statements of Assets and Liabilities (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013
Common stock, shares authorized	unlimited		unlimited	[1]
Average cost on investment in bullion	$ 178,741		$ 259,922
Common stock, shares issued	2,700,000	[2]	3,950,000	[1]
Common stock, shares outstanding	2,700,000	[2]	3,950,000	[1]
Net asset value per Share	$ 69.60	[2]	$ 65.91	[1],[2]
Gold [Member]
Average cost on investment in bullion	96,162	[2]	139,729	[1]
Silver [Member]
Average cost on investment in bullion	57,122	[2]	83,152	[1]
Platinum [Member]
Average cost on investment in bullion	14,454	[2]	21,057	[1]
Palladium [Member]
Average cost on investment in bullion	$ 11,003	[2]	$ 15,984	[1]

[1] Derived from audited Statement of Financial Condition as of December 31, 2013.

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

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Significant Accounting Policies (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013	Dec. 31, 2013
Significant Accounting Policies [Abstract]
Bullion receivable at market value	$ 0			$ 0
Annualized rate of Sponsors Fee	0.60%	[1]
Sponsor Fees	311,080		314,846
Fees payable to Sponsor	$ 94,128			$ 116,994

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

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Document And Entity Information	3 Months Ended
	Mar. 31, 2014	May 09, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Entity Registrant Name	ETFS Precious Metals Basket Trust
Entity Central Index Key	0001483386
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		2,600,000

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Significant Accounting Policies (Quantitative Effect Of Adoption Of Investment Company Accounting) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Jan. 02, 2014	Dec. 31, 2013		Dec. 31, 2012
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Value at December 31, 2013 at lower of cost or market value				$ 259,922		$ 185,427
Value at January 1, 2014	188,022			260,476
Gold [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Value at December 31, 2013 at lower of cost or market value				139,729	[1],[2]	96,337
Value at January 1, 2014	102,539	[1],[3]	139,729	139,729
Gain / (loss) as a result of change in accounting treatment	0
Silver [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Value at December 31, 2013 at lower of cost or market value				83,152	[1],[2]	68,562
Value at January 1, 2014	58,124	[1],[3]	83,152	83,152
Gain / (loss) as a result of change in accounting treatment	0
Platinum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Value at December 31, 2013 at lower of cost or market value				21,057	[1],[2]	12,213
Value at January 1, 2014	15,008	[1],[3]	21,057	21,057
Gain / (loss) as a result of change in accounting treatment	0
Palladium [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Value at December 31, 2013 at lower of cost or market value				15,984	[1],[2]	8,315
Value at January 1, 2014	12,351	[1],[3]	16,538	16,538
Gain / (loss) as a result of change in accounting treatment	$ 554

[1] At March 31, 2014, Bullion is recorded at fair value. At December 31, 2013, Bullion was recorded at the lower of cost or market value. Refer to Note 2.1 for a breakdown of average cost and fair value per metal.

[2] Derived from audited Statement of Financial Condition as of December 31, 2013.

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

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Schedule of Investments (oz, USD $) In Thousands, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013
Investment Holdings [Line Items]
Investment in Bullion (oz)	3,016,424.0		4,419,242.6
Cost	$ 178,741		$ 259,922
Fair Value	188,022		260,476
% of Net Assets	100.05%	[1]	100.26%	[2]
Gold [Member]
Investment Holdings [Line Items]
Investment in Bullion (oz)	79,379.6		116,295.9
Cost	96,162	[3]	139,729	[4]
Fair Value	102,539		139,729
% of Net Assets	54.56%	[1]	53.78%	[2]
Silver [Member]
Investment Holdings [Line Items]
Investment in Bullion (oz)	2,910,584.6		4,264,181.5
Cost	57,122	[3]	83,152	[4]
Fair Value	58,124		83,152
% of Net Assets	30.93%	[1]	32.01%	[2]
Platinum [Member]
Investment Holdings [Line Items]
Investment in Bullion (oz)	10,584.0		15,506.1
Cost	14,454	[3]	21,057	[4]
Fair Value	15,008		21,057
% of Net Assets	7.99%	[1]	8.10%	[2]
Palladium [Member]
Investment Holdings [Line Items]
Investment in Bullion (oz)	15,875.8		23,259.1
Cost	11,003	[3]	15,984	[4]
Fair Value	$ 12,351		$ 16,538
% of Net Assets	6.57%	[1]	6.37%	[2]

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

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

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

[4] Derived from audited Statement of Financial Condition as of December 31, 2013.

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Concentration Of Risk

3 Months Ended

Mar. 31, 2014

Concentration Of Risk [Abstract]

Concentration Of Risk

4. Concentration of Risk

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

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Related Parties

3 Months Ended

Mar. 31, 2014

Related Parties [Abstract]

Related Parties

3. Related Parties

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

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Significant Accounting Policies (Schedule Of Unrealized Gains Or Losses On The Trust's Bullion Holdings) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014		Jan. 02, 2014	Dec. 31, 2013
Bullion [Line Items]
Investment in bullion - average cost	$ 178,741			$ 259,922
Unrealized gain on investment in Bullion	9,281			554
Investment in Bullion - fair value	188,022			260,476
Gold [Member]
Bullion [Line Items]
Investment in bullion - average cost	96,162	[1]		139,729	[2]
Unrealized gain on investment in Bullion	6,377			0
Investment in Bullion - fair value	102,539	[1],[3]	139,729	139,729
Silver [Member]
Bullion [Line Items]
Investment in bullion - average cost	57,122	[1]		83,152	[2]
Unrealized gain on investment in Bullion	1,002			0
Investment in Bullion - fair value	58,124	[1],[3]	83,152	83,152
Platinum [Member]
Bullion [Line Items]
Investment in bullion - average cost	14,454	[1]		21,057	[2]
Unrealized gain on investment in Bullion	554			0
Investment in Bullion - fair value	15,008	[1],[3]	21,057	21,057
Palladium [Member]
Bullion [Line Items]
Investment in bullion - average cost	11,003	[1]		15,984	[2]
Unrealized gain on investment in Bullion	1,348			554
Investment in Bullion - fair value	$ 12,351	[1],[3]	$ 16,538	$ 16,538

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

[2] Derived from audited Statement of Financial Condition as of December 31, 2013.

[3] At March 31, 2014, Bullion is recorded at fair value. At December 31, 2013, Bullion was recorded at the lower of cost or market value. Refer to Note 2.1 for a breakdown of average cost and fair value per metal.

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Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2014

Significant Accounting Policies [Abstract]

Quantitative Effect Of Adoption Of Investment Company Accounting

Quantitative effect of adoption of investment company accounting
	Value at				Gain / (loss)
	December 31, 2013		Value at		as a result of
	at lower of cost		January 1, 2014		change in
(Amounts in 000's of US$)	or market value		at fair value		accounting principle
Bullion
Gold	$	139,729	$	139,729	$	-
Silver	$	83,152	$	83,152	$	-
Platinum	$	21,057	$	21,057	$	-
Palladium	$	15,984	$	16,538	$	554

Schedule Of Unrealized Gains Or Losses On The Trust's Bullion Holdings

	March 31, 2014
		Gold		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	96,162	$	57,122	$	14,454	$	11,003	$	178,741
Unrealized gain on investment in Bullion		6,377		1,002		554		1,348		9,281
Investment in Bullion - fair value	$	102,539	$	58,124	$	15,008	$	12,351	$	188,022
	December 31, 2013
		Gold		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	139,729	$	83,152	$	21,057	$	15,984	$	259,922
Unrealized gain on investment in Bullion		-		-		-		554		554
Investment in Bullion - fair value	$	139,729	$	83,152	$	21,057	$	16,538	$	260,476

Categorization Of The Trust's Assets

Fair value hierarchy
(Amounts in 000's of US$)	March 31, 2014		December 31, 2013
Level 2
Investment in Bullion	$	188,022	$	260,476

Schedule Of Redeemable Capital Shares

	Year
	Ended
(Amounts in 000's of US$, except for Share and per Share data)	December 31, 2013
Number of Redeemable Shares
Opening balance		2,200,000
Creations		2,050,000
Redemptions		(300,000)
Closing balance		3,950,000
Redeemable Shares
Opening balance	$	202,243
Creations		149,235
Redemptions		(20,607)
Adjustment to redemption value		(70,513)
Closing balance	$	260,358
Redemption value per Share at period end	$	65.91

Schedule Of Investment In Bullion

	Three months ended March 31, 2014
(Amounts in 000's of US$, except for ounces data)		Gold		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		116,295.9		4,264,181.5		15,506.1		23,259.1		4,419,242.6
Creations		7,350.5		269,518.3		980.1		1,470.1		279,319.0
Redemptions		(44,121.9)		(1,617,802.0)		(5,882.9)		(8,824.4)		(1,676,631.2)
Transfers of Bullion to pay expenses		(144.9)		(5,313.2)		(19.3)		(29.0)		(5,506.4)
Closing balance		79,379.6		2,910,584.6		10,584.0		15,875.8		3,016,424.0
Investment in Bullion:
Opening balance	$	139,729	$	83,152	$	21,057	$	16,538	$	260,476
Creations		9,629		5,622		1,416		1,108		17,775
Redemptions		(53,022)		(31,548)		(7,993)		(6,069)		(98,632)
Transfers of Bullion to pay expenses		(174)		(104)		(26)		(20)		(324)
Change in unrealized gain on investment Bullion		6,377		1,002		554		794		8,727
Closing balance	$	102,539	$	58,124	$	15,008	$	12,351	$	188,022
	Year ended December 31, 2013
(Amounts in 000's of US$, except for ounces data)		Gold		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		65,167.3		2,389,467.4		8,689.0		13,033.4		2,476,357.1
Creations		60,409.7		2,215,021.8		8,054.6		12,081.9		2,295,568.0
Redemptions		(8,837.9)		(324,057.5)		(1,178.4)		(1,767.6)		(335,841.4)
Transfers of Bullion to pay expenses		(443.2)		(16,250.2)		(59.1)		(88.6)		(16,841.1)
Closing balance		116,295.9		4,264,181.5		15,506.1		23,259.1		4,419,242.6
Investment in Bullion:
Opening balance	$	96,337	$	68,562	$	12,213	$	8,315	$	185,427
Creations		80,050		48,772		11,510		8,904		149,236
Redemptions		(12,888)		(8,869)		(1,683)		(1,177)		(24,617)
Transfers of Bullion to pay expenses		(660)		(464)		(84)		(58)		(1,266)
Realized loss on investment in Bullion		(23,110)		(24,849)		(899)		-		(48,858)
Closing balance	$	139,729	$	83,152	$	21,057	$	15,984	$	259,922

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Indemnification

3 Months Ended

Mar. 31, 2014

Indemnification [Abstract]

Indemnification

5. Indemnification

Under the Trust’s organizational documents, the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees and affiliates) are indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith or willful misconduct on its part and without reckless disregard on its part of its obligations and duties under the Trust’s organizational documents. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.

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Significant Accounting Policies (Policy)

3 Months Ended

Mar. 31, 2014

Significant Accounting Policies [Abstract]

Basis Of Accounting

2.1. Basis of Accounting

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

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

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

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

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

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

Quantitative effect of adoption of investment company accounting
	Value at				Gain / (loss)
	December 31, 2013		Value at		as a result of
	at lower of cost		January 1, 2014		change in
(Amounts in 000's of US$)	or market value		at fair value		accounting principle
Bullion
Gold	$	139,729	$	139,729	$	-
Silver	$	83,152	$	83,152	$	-
Platinum	$	21,057	$	21,057	$	-
Palladium	$	15,984	$	16,538	$	554

Valuation Of Bullion

2.2.  Valuation of Bullion

Bullion is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises on a segregated basis. The allocated platinum and palladium may also be held by UBS AG, or any other firm selected by the Custodian to hold the Trust’s platinum and palladium in the Trust’s allocated account in the firm’s Zurich vault premises on a segregated basis and whose appointment has been approved by the Sponsor, (the “Zurich Sub-Custodian”) at its Zurich, Switzerland vaulting premises on a segregated basis. The Trust’s Bullion is valued, per individual metal type, for financial statement purposes, at fair value. The cost of Bullion is determined according to the average cost method and the fair value is based on the “London Fix” (the applicable fix for each metal of the price of an ounce of such metal and is performed in London, England by fixing members of the London Bullion Market Association (“LBMA”) or London Platinum and Palladium Market (“LPPM”), as applicable) for each metal held by the Trust used to determine the net asset value (the “NAV”) of the Trust. Realized gains and losses on transfers of Bullion, or Bullion distributed for the redemption of Shares, are calculated on a trade date basis using cost.

The Fund follows the provisions of ASC 820, Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Once the value of Bullion has been determined, the NAV is computed by the Trustee by deducting all accrued fees, expenses 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.

The table below summarizes the unrealized gains or losses on the Trust’s Bullion holdings as of March 31, 2014 and December 31, 2013:  

	March 31, 2014
		Gold		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	96,162	$	57,122	$	14,454	$	11,003	$	178,741
Unrealized gain on investment in Bullion		6,377		1,002		554		1,348		9,281
Investment in Bullion - fair value	$	102,539	$	58,124	$	15,008	$	12,351	$	188,022
	December 31, 2013
		Gold		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	139,729	$	83,152	$	21,057	$	15,984	$	259,922
Unrealized gain on investment in Bullion		-		-		-		554		554
Investment in Bullion - fair value	$	139,729	$	83,152	$	21,057	$	16,538	$	260,476

Effective January 1, 2014, the Trust records its investment in Bullion at fair value and recognizes changes in fair value of the investment in Bullion as changes in unrealized gains or losses on investment in Bullion through the Statement of Operations.

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

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

2.2.  Valuation of Bullion (continued)

Fair Value Hierarchy

Inputs

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

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

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

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

The Trust’s contractual obligation is to create or redeem Baskets with Authorized Participants at set prices on each trading day.  These prices are based on an agreed formula published in the prospectus, which is equal to the net asset value of the Trust.  Therefore, the investment in Bullion is classified as a level 2 asset, as the Trust’s investment in Bullion is calculated using third party pricing sources supported by observable, verifiable inputs.

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

Fair value hierarchy
(Amounts in 000's of US$)	March 31, 2014		December 31, 2013
Level 2
Investment in Bullion	$	188,022	$	260,476

Bullion Receivable And Payable

2.3. Bullion Receivable and Payable

Bullion receivable or payable represents the quantity of Bullion covered by contractually binding orders for the creation or redemption of Shares respectively, where the Bullion has not yet been transferred to or from the Trust’s account. Generally, ownership of the Bullion is transferred within three business days of the trade date.

There was no Bullion receivable or payable at March 31, 2014 and December 31, 2013.

Creations And Redemptions Of Shares

2.4.  Creations and Redemptions of Shares

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

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

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

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

The Shares of the Trust are classified as “Redeemable Shares” for financial statement purposes, since they are subject to redemption at the option of Authorized Participants. Outstanding Shares are reflected at redemption value, which represents the maximum obligation (based on NAV per Share), with the difference from historical cost recorded as an offsetting amount to retained earnings. When Bullion is exchanged in settlement of a redemption, a realized gain or loss in the amount of the difference between the fair value on the trade date and the historical cost is recorded through the Condensed Statement of Operations.

Changes in the Shares for the year ended December 31, 2013is set out below:

	Year
	Ended
(Amounts in 000's of US$, except for Share and per Share data)	December 31, 2013
Number of Redeemable Shares
Opening balance		2,200,000
Creations		2,050,000
Redemptions		(300,000)
Closing balance		3,950,000
Redeemable Shares
Opening balance	$	202,243
Creations		149,235
Redemptions		(20,607)
Adjustment to redemption value		(70,513)
Closing balance	$	260,358
Redemption value per Share at period end	$	65.91

Revenue Recognition Policy

2.5.  Revenue Recognition Policy

The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of Bullion to the Sponsor. With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s Bullion as necessary to pay these expenses. When selling Bullion to pay expenses, the Trustee will endeavor to sell the smallest amounts of Bullion needed to pay these expenses in order to minimize the Trust’s holdings of assets other than Bullion.Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended March 31, 2014.

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

Income Taxes

2.6.  Income Taxes

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

The Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2014 and December 31, 2013.

Investment In Bullion

2.7.  Investment in Bullion

Changes in ounces of Bullion and the respective values for the three months ended March 31, 2014 and for the year ended December 31, 2013 are set out below:

	Three months ended March 31, 2014
(Amounts in 000's of US$, except for ounces data)		Gold		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		116,295.9		4,264,181.5		15,506.1		23,259.1		4,419,242.6
Creations		7,350.5		269,518.3		980.1		1,470.1		279,319.0
Redemptions		(44,121.9)		(1,617,802.0)		(5,882.9)		(8,824.4)		(1,676,631.2)
Transfers of Bullion to pay expenses		(144.9)		(5,313.2)		(19.3)		(29.0)		(5,506.4)
Closing balance		79,379.6		2,910,584.6		10,584.0		15,875.8		3,016,424.0
Investment in Bullion:
Opening balance	$	139,729	$	83,152	$	21,057	$	16,538	$	260,476
Creations		9,629		5,622		1,416		1,108		17,775
Redemptions		(53,022)		(31,548)		(7,993)		(6,069)		(98,632)
Transfers of Bullion to pay expenses		(174)		(104)		(26)		(20)		(324)
Change in unrealized gain on investment Bullion		6,377		1,002		554		794		8,727
Closing balance	$	102,539	$	58,124	$	15,008	$	12,351	$	188,022
	Year ended December 31, 2013
(Amounts in 000's of US$, except for ounces data)		Gold		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		65,167.3		2,389,467.4		8,689.0		13,033.4		2,476,357.1
Creations		60,409.7		2,215,021.8		8,054.6		12,081.9		2,295,568.0
Redemptions		(8,837.9)		(324,057.5)		(1,178.4)		(1,767.6)		(335,841.4)
Transfers of Bullion to pay expenses		(443.2)		(16,250.2)		(59.1)		(88.6)		(16,841.1)
Closing balance		116,295.9		4,264,181.5		15,506.1		23,259.1		4,419,242.6
Investment in Bullion:
Opening balance	$	96,337	$	68,562	$	12,213	$	8,315	$	185,427
Creations		80,050		48,772		11,510		8,904		149,236
Redemptions		(12,888)		(8,869)		(1,683)		(1,177)		(24,617)
Transfers of Bullion to pay expenses		(660)		(464)		(84)		(58)		(1,266)
Realized loss on investment in Bullion		(23,110)		(24,849)		(899)		-		(48,858)
Closing balance	$	139,729	$	83,152	$	21,057	$	15,984	$	259,922

Expenses

2.8. Expenses

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

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

For the three months ended March 31, 2014 and 2013the Sponsor’s Fee was $311,080and $314,846, respectively.  At March 31, 2014and at December 31, 2013, the fees payable to the Sponsor were $94,128 and $116,994, respectively.

Subsequent Events

2.9. Subsequent Events

In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events, the Trust’s management has evaluated the possibility of subsequent events existing in the Trust’s financial statements through the filing date. During this period, no material subsequent events were identified.

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Organization (Details)	3 Months Ended
	Mar. 31, 2014
Organization [Abstract]
Minimum block of shares issued redeemed against bullion	50,000

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Significant Accounting Policies (Schedule Of Redeemable Capital Shares) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014		Dec. 31, 2013
Significant Accounting Policies [Abstract]
Opening balance (in Shares)	3,950,000	[1]	2,200,000
Creations (in Shares)	250,000	[2]	2,050,000
Redemptions (in Shares)	(1,500,000)	[2]	(300,000)
Closing balance (in Shares)	2,700,000	[2]	3,950,000	[1]
Opening balance	$ 260,358	[1],[3]	$ 202,243
Creations	17,776	[2]	149,235
Redemptions	(102,078)	[2]	(20,607)
Adjustment to redemption value			(70,513)
Closing balance	$ 187,928	[2],[3]	$ 260,358	[1],[3]
Redemption value per Share at period end (in Dollars per share)			$ 65.91

[1] Derived from audited Statement of Financial Condition as of December 31, 2013.

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

[3] Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at March 31, 2014 were 2,700,000 and at December 31, 2013 were 3,950,000.

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Statements of Operations (USD $)	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
EXPENSES
Sponsor’s Fee	$ 311,080		$ 314,846
Total expenses	311,000	[1]	315,000	[2]
Net investment loss	(311,000)	[1]	(315,000)	[2]
REALIZED AND UNREALIZED GAINS / (LOSSES)
Realized gain on Bullion transferred to pay expenses	10,000	[1]	27,000	[2]
Realized gain on Bullion distributed for the redemption of Shares	3,446,000	[1]	0	[2]
Change in unrealized gain / (loss) on investment in Bullion	8,727,000	[1]	(617,000)	[2]
Total gain / (loss) on Bullion	12,183,000	[1]	(590,000)	[2]
Change in net assets from operations	$ 11,872,000	[1]	$ (905,000)	[2]
Net increase / (decrease) in net assets per Share (in Dollars per share)	$ 3.93	[1]	$ (0.39)	[2]
Weighted average number of Shares (in Shares)	3,020,000	[1]	2,319,444	[2]

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

[2] Amounts are those previously reported under non investment company accounting. Refer to Note 2.1 for additional information.

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2014

Significant Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

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

2.1. Basis of Accounting

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

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

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

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

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

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

Quantitative effect of adoption of investment company accounting
	Value at				Gain / (loss)
	December 31, 2013		Value at		as a result of
	at lower of cost		January 1, 2014		change in
(Amounts in 000's of US$)	or market value		at fair value		accounting principle
Bullion
Gold	$	139,729	$	139,729	$	-
Silver	$	83,152	$	83,152	$	-
Platinum	$	21,057	$	21,057	$	-
Palladium	$	15,984	$	16,538	$	554

2.2.  Valuation of Bullion

Bullion is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises on a segregated basis. The allocated platinum and palladium may also be held by UBS AG, or any other firm selected by the Custodian to hold the Trust’s platinum and palladium in the Trust’s allocated account in the firm’s Zurich vault premises on a segregated basis and whose appointment has been approved by the Sponsor, (the “Zurich Sub-Custodian”) at its Zurich, Switzerland vaulting premises on a segregated basis. The Trust’s Bullion is valued, per individual metal type, for financial statement purposes, at fair value. The cost of Bullion is determined according to the average cost method and the fair value is based on the “London Fix” (the applicable fix for each metal of the price of an ounce of such metal and is performed in London, England by fixing members of the London Bullion Market Association (“LBMA”) or London Platinum and Palladium Market (“LPPM”), as applicable) for each metal held by the Trust used to determine the net asset value (the “NAV”) of the Trust. Realized gains and losses on transfers of Bullion, or Bullion distributed for the redemption of Shares, are calculated on a trade date basis using cost.

The Fund follows the provisions of ASC 820, Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 provides guidance for determining fair value and requires increased disclosure regarding the inputs to valuation techniques used to measure fair value. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Once the value of Bullion has been determined, the NAV is computed by the Trustee by deducting all accrued fees, expenses 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.

The table below summarizes the unrealized gains or losses on the Trust’s Bullion holdings as of March 31, 2014 and December 31, 2013:  

	March 31, 2014
		Gold		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	96,162	$	57,122	$	14,454	$	11,003	$	178,741
Unrealized gain on investment in Bullion		6,377		1,002		554		1,348		9,281
Investment in Bullion - fair value	$	102,539	$	58,124	$	15,008	$	12,351	$	188,022
	December 31, 2013
		Gold		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	139,729	$	83,152	$	21,057	$	15,984	$	259,922
Unrealized gain on investment in Bullion		-		-		-		554		554
Investment in Bullion - fair value	$	139,729	$	83,152	$	21,057	$	16,538	$	260,476

Effective January 1, 2014, the Trust records its investment in Bullion at fair value and recognizes changes in fair value of the investment in Bullion as changes in unrealized gains or losses on investment in Bullion through the Statement of Operations.

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

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

2.2.  Valuation of Bullion (continued)

Fair Value Hierarchy

Inputs

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

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

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

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

The Trust’s contractual obligation is to create or redeem Baskets with Authorized Participants at set prices on each trading day.  These prices are based on an agreed formula published in the prospectus, which is equal to the net asset value of the Trust.  Therefore, the investment in Bullion is classified as a level 2 asset, as the Trust’s investment in Bullion is calculated using third party pricing sources supported by observable, verifiable inputs.

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

Fair value hierarchy
(Amounts in 000's of US$)	March 31, 2014		December 31, 2013
Level 2
Investment in Bullion	$	188,022	$	260,476

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

2.3. Bullion Receivable and Payable

Bullion receivable or payable represents the quantity of Bullion covered by contractually binding orders for the creation or redemption of Shares respectively, where the Bullion has not yet been transferred to or from the Trust’s account. Generally, ownership of the Bullion is transferred within three business days of the trade date.

There was no Bullion receivable or payable at March 31, 2014 and December 31, 2013.

2.4.  Creations and Redemptions of Shares

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

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

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

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

The Shares of the Trust are classified as “Redeemable Shares” for financial statement purposes, since they are subject to redemption at the option of Authorized Participants. Outstanding Shares are reflected at redemption value, which represents the maximum obligation (based on NAV per Share), with the difference from historical cost recorded as an offsetting amount to retained earnings. When Bullion is exchanged in settlement of a redemption, a realized gain or loss in the amount of the difference between the fair value on the trade date and the historical cost is recorded through the Condensed Statement of Operations.

Changes in the Shares for the year ended December 31, 2013is set out below:

	Year
	Ended
(Amounts in 000's of US$, except for Share and per Share data)	December 31, 2013
Number of Redeemable Shares
Opening balance		2,200,000
Creations		2,050,000
Redemptions		(300,000)
Closing balance		3,950,000
Redeemable Shares
Opening balance	$	202,243
Creations		149,235
Redemptions		(20,607)
Adjustment to redemption value		(70,513)
Closing balance	$	260,358
Redemption value per Share at period end	$	65.91

2.5.  Revenue Recognition Policy

The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of Bullion to the Sponsor. With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s Bullion as necessary to pay these expenses. When selling Bullion to pay expenses, the Trustee will endeavor to sell the smallest amounts of Bullion needed to pay these expenses in order to minimize the Trust’s holdings of assets other than Bullion.Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended March 31, 2014.

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

2.6.  Income Taxes

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

The Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2014 and December 31, 2013.

2.7.  Investment in Bullion

Changes in ounces of Bullion and the respective values for the three months ended March 31, 2014 and for the year ended December 31, 2013 are set out below:

	Three months ended March 31, 2014
(Amounts in 000's of US$, except for ounces data)		Gold		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		116,295.9		4,264,181.5		15,506.1		23,259.1		4,419,242.6
Creations		7,350.5		269,518.3		980.1		1,470.1		279,319.0
Redemptions		(44,121.9)		(1,617,802.0)		(5,882.9)		(8,824.4)		(1,676,631.2)
Transfers of Bullion to pay expenses		(144.9)		(5,313.2)		(19.3)		(29.0)		(5,506.4)
Closing balance		79,379.6		2,910,584.6		10,584.0		15,875.8		3,016,424.0
Investment in Bullion:
Opening balance	$	139,729	$	83,152	$	21,057	$	16,538	$	260,476
Creations		9,629		5,622		1,416		1,108		17,775
Redemptions		(53,022)		(31,548)		(7,993)		(6,069)		(98,632)
Transfers of Bullion to pay expenses		(174)		(104)		(26)		(20)		(324)
Change in unrealized gain on investment Bullion		6,377		1,002		554		794		8,727
Closing balance	$	102,539	$	58,124	$	15,008	$	12,351	$	188,022
	Year ended December 31, 2013
(Amounts in 000's of US$, except for ounces data)		Gold		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		65,167.3		2,389,467.4		8,689.0		13,033.4		2,476,357.1
Creations		60,409.7		2,215,021.8		8,054.6		12,081.9		2,295,568.0
Redemptions		(8,837.9)		(324,057.5)		(1,178.4)		(1,767.6)		(335,841.4)
Transfers of Bullion to pay expenses		(443.2)		(16,250.2)		(59.1)		(88.6)		(16,841.1)
Closing balance		116,295.9		4,264,181.5		15,506.1		23,259.1		4,419,242.6
Investment in Bullion:
Opening balance	$	96,337	$	68,562	$	12,213	$	8,315	$	185,427
Creations		80,050		48,772		11,510		8,904		149,236
Redemptions		(12,888)		(8,869)		(1,683)		(1,177)		(24,617)
Transfers of Bullion to pay expenses		(660)		(464)		(84)		(58)		(1,266)
Realized loss on investment in Bullion		(23,110)		(24,849)		(899)		-		(48,858)
Closing balance	$	139,729	$	83,152	$	21,057	$	15,984	$	259,922

2.8. Expenses

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

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

For the three months ended March 31, 2014 and 2013the Sponsor’s Fee was $311,080and $314,846, respectively.  At March 31, 2014and at December 31, 2013, the fees payable to the Sponsor were $94,128 and $116,994, respectively.

2.9. Subsequent Events

In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events, the Trust’s management has evaluated the possibility of subsequent events existing in the Trust’s financial statements through the filing date. During this period, no material subsequent events were identified.

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Significant Accounting Policies (Categorization Of The Trust's Assets) (Details) (Fair Value, Inputs, Level 2 [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2014
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in Bullion	$ 188,022