10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

x 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

o 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: 001-34916

ETFS WHITE METALS BASKET TRUST

(Exact name of registrant as specified in its charter)

New York	27-2780294
(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 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 13, 2014, ETFS White Metals Basket Trust has 700,000 ETFS Physical WM Basket Shares outstanding.

ETFS WHITE 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	18
Item 3.	Defaults Upon Senior Securities	18
Item 4.	Mine Safety Disclosures	18
Item 5.	Other Information	18
Item 6.	Exhibits	19
SIGNATURES

ETFS WHITE 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 for Share and per Share data)
ASSETS
Investment in Bullion (2)
Silver (cost: March 31, 2014: $13,386; December 31, 2013: $13,406)	$	13,709	$	13,406
Platinum (cost: March 31, 2014: $9,322; December 31, 2013: $9,336)		9,734		9,336
Palladium (cost: March 31, 2014: $3,519; December 31, 2013: $3,524)		4,273		3,524
		27,716		26,266
LIABILITIES
Fees payable to Sponsor		14		14
Total liabilities		14		14
NET ASSETS	$	27,702	$	26,252
ANALYSIS OF NET ASSETS
Redeemable Shares at redemption value to investors (3)		27,702		26,639
Shareholders' deficit		-		(387)
Total redeemable Shares at redemption value to investors (net asset value) (3)	$	27,702	$	26,252

(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 700,000 and at December 31, 2013 were 700,000. Net asset value per Share at March 31, 2014 and December 31, 2013 was $39.57 and $38.06, 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 WHITE 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)
Silver	686,478.7	$	13,386	$	13,709		49.49%
Platinum	6,864.9		9,322		9,734		35.14%
Palladium	5,491.8		3,519		4,273		15.42%
Total Investment in Bullion		$	26,227	$	27,716		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)
Silver	687,498.1	$	13,406	$	13,406		51.07%
Platinum	6,875.1		9,336		9,336		35.56%
Palladium	5,500.0		3,524		3,911		13.42%
Total Investment in Bullion		$	26,266	$	26,653		100.05%

(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.

See Notes to the Unaudited Condensed Financial Statements

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ETFS WHITE METALS BASKET TRUST

Condensed Statements of Operations (Unaudited)
For the three 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	$	41	$	64
Total expenses		41		64
Net investment loss		(41)		(64)
REALIZED AND UNREALIZED GAINS / (LOSSES)
Realized gain on Bullion transferred to pay expenses		2		6
Change in unrealized gain on investment in Bullion		1,102		-
Total gain on Bullion		1,104		6
Change in net assets from operations	$	1,063	$	(58)
Net increase / (decrease) in net assets per Share	$	1.52	$	(0.07)
Weighted average number of Shares		700,000		843,333

(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 WHITE METALS BASKET TRUST

Condensed Statements of Cash Flows (Unaudited)
For thethree 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	$	5,041
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	$	(58)
Adjustments to reconcile change in net assets from operations to net cash provided by operating activities:
Increase in investment in Bullion		(4,985)
Increase in fees payable to Sponsor		2
Increase / (decrease) in redeemable Shares:
Creations		5,041
Redemptions		-
Net cash provided by operating activities	$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Value of Bullion transferred to pay expenses	$	62

(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 WHITE 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	700,000	$	26,252
Effect of adoption of new accounting principle (see Note 2.1)			387
Net investment loss			(41)
Realized gain on investment in Bullion			2
Change in unrealized gain on investment in Bullion			1,102
Creations	-		-
Redemptions	-		-
Closing balance at March 31, 2014	700,000	$	27,702

(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 Statement

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ETFS WHITE 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	$	38.06
Income from investment operations:
Net investment loss		(0.06)
Net realized and unrealized gains and losses on investment in Bullion		1.57
Change in net assets from operations		1.51
Net asset value per Share at end of period	$	39.57
Weighted Average Shares		700,000
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		3.98%

(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 WHITE METALS BASKET TRUST

Notes to the Unaudited Condensed Financial Statements

1. Organization

The ETFS White Metals Basket Trust (the “Trust”) is an investment trust formed on November 29, 2010, under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by ETF Securities USA LLC (the “Sponsor”) and the Bank of New York Mellon (the “Trustee”) at the time of the Trust’s organization. The Trust holds silver, platinum and palladium in set ratios (together, “Bullion”) and issues ETFS Physical WM 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 silver, platinum and palladium, less the Trust’s expenses and liabilities. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the silver, platinum and palladium markets 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.

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ETFS WHITE METALS BASKET TRUST

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
Silver	$	13,406	$	13,406	$	-
Platinum	$	9,336	$	9,336	$	-
Palladium	$	3,524	$	3,911	$	387

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ETFS WHITE METALS BASKET TRUST

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 (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 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
		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	13,386	$	9,322	$	3,519	$	26,227
Unrealized gain on investment in Bullion		323		412		754		1,489
Investment in Bullion - fair value	$	13,709	$	9,734	$	4,273	$	27,716
	December 31, 2013
		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	13,406	$	9,336	$	3,524	$	26,266
Unrealized gain on investment in Bullion		-		-		387		387
Investment in Bullion - fair value	$	13,406	$	9,336	$	3,911	$	26,653

Effective January 1, 2014, the Trust records its investment in Bullion at fair value and recognizes changes in fair value of the investment in Bullion as 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 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.

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ETFS WHITE METALS BASKET TRUST

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	$	27,716	$	26,653

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 WHITE METALS BASKET TRUST

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, 2013 is 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		750,000
Creations		100,000
Redemptions		(150,000)
Closing balance		700,000
Redeemable Shares
Opening balance	$	37,605
Creations		5,041
Redemptions		(6,534)
Adjustments to redemption value		(9,473)
Closing balance	$	26,639
Redemption value per Share at period end	$	38.06

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ETFS WHITE METALS BASKET TRUST

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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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)		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		687,498.1		6,875.1		5,500.0		699,873.2
Transfers of Bullion		(1,019.4)		(10.2)		(8.2)		(1,037.8)
Closing balance		686,478.7		6,864.9		5,491.8		698,835.4
Investment in Bullion:
Opening balance	$	13,406	$	9,336	$	3,911	$	26,653
Transfers of Bullion to pay expenses		(20)		(14)		(5)		(39)
Change in unrealized gain on Bullion		323		412		367		1,102
Closing balance	$	13,709	$	9,734	$	4,273	$	27,716
		Year ended December 31, 2013
		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		741,050.4		7,410.5		5,928.4		754,389.3
Creations		98,745.0		987.5		790.0		100,522.5
Redemptions		(147,834.5)		(1,478.3)		(1,182.7)		(150,495.5)
Transfers of Bullion		(4,462.8)		(44.6)		(35.7)		(4,543.1)
Closing balance		687,498.1		6,875.1		5,500.0		699,873.2
Investment in Bullion:
Opening balance	$	20,883	$	10,234	$	3,770	$	34,887
Creations		2,976		1,531		534		5,041
Redemptions		(4,200)		(2,071)		(757)		(7,028)
Transfers of Bullion to pay expenses		(127)		(62)		(23)		(212)
Realized loss on investment in Bullion		(6,126)		(296)		-		(6,422)
Closing balance	$	13,406	$	9,336	$	3,524	$	26,266

13

ETFS WHITE METALS BASKET TRUST

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 2013 the Sponsor’s Fee was $41,101 and $64,412, respectively. At March 31, 2014 and at December 31, 2013, the fees payable to the Sponsor were $14,162 and $13,169, 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.

On May 14, 2014, London Silver Market Fixing Ltd announced its intention to discontinue the London Fix for silver after August 14, 2014.  The Sponsor has not yet assessed the full impact of this upon the Trust.  However, in the absence of the London Fix for silver, the Sponsor is able to instruct the Trustee to use an alternative price as considered appropriate to determine the fair value of its investment in silver. Once the Sponsor has assessed the full impact of this upon the Trust, the Sponsor will make further public disclosures.  

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, 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.

14

ETFS WHITE 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 November 29, 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 Agreement. 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 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 and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of 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 1.0 ounces of silver, it holds 0.01 ounces of platinum and 0.008 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 “WITE”.

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.

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, England by the 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.

15

ETFS WHITE 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 increased from $26,639,308 at December 31, 2013 to $27,701,728 at March 31, 2014,  a3.99%increase for the quarter. The increase in the Trust’s NAV resulted primarily from  anincrease in the price per ounce of silver, platinum and palladium in the proportions held by the Trust (the “Proportionate Price”), which rose4.14% during the quarter.

There were no creations or redemptions of Shares during the quarter,therefore, at bothDecember 31, 2013 and March 31, 2014, 700,000 Shares were outstanding.

NAV per Share increased3.97% from $38.06 at December 31, 2013 to $39.57 at March 31, 2014. The Trust’s NAV per Share rose slightly lessthan the Proportionate Price on a percentage basis due to Sponsor’s Fees, which were $41,101 for the quarter, or 0.60% of the Trust’s assets on an annualized basis.

The NAV per Share of $41.55 at March 14, 2014 was the highest during the quarter, compared with a low of $37.96 at February 4, 2014.

Change in net assets arising from the change in accounting principle (refer to Note 2.1to the unaudited condensed financial statements) as of January 1, 2014 was $386,941.  Change in net assets from operations for the quarter ended March 31, 2014 was $1,062,420, resulting from  arealizedgain of $1,608 on the transfer of Bullion to pay expenses and a change in unrealized gain on investment in Bullion of $1,101,913, offset bySponsor’s Fees of $41,101. 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, net loss from operations for the quarter ended March 31, 2013 was $58,536, resulting from a net gain of $5,876 on the transfer of Bullion to pay expenses, offset by Sponsor’s Fees of $64,412.

The increase in the change in unrealized gain on investment in Bullion in the quarter ended March 31, 2014 compared to the quarter ended March 31, 2013 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.

16

ETFS WHITE 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 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.

17

ETFS WHITE METALS BASKET TRUST

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013.  

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

Item 2(a).None.

Item 2(b).Not applicable.

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

0Baskets were created.

0 Baskets were redeemed.

	Total Baskets	Total Baskets	Average Ounces of Bullion per Share
Period	Redeemed	Redeemed	Silver	Platinum	Palladium
January 2014	-	-	-	-	-
February 2014	-	-	-	-	-
March 2014	-	-	-	-	-
	-	-

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

18

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.”

19

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 White Metals Basket Trust
	(Registrant)
Date: May 15, 2014	/s/ Graham Tuckwell
	Graham Tuckwell
	President and Chief Executive Officer
	(Principal Executive Officer)
Date: May 15, 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 ETFSWhite 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 15, 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 White 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 15, 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 White 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 15, 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 White 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 15, 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.

XML

Organization

3 Months Ended

Mar. 31, 2014

Organization [Abstract]

Organization

1. Organization

The ETFS White Metals Basket Trust (the “Trust”) is an investment trust formed on November 29, 2010, under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by ETF Securities USA LLC (the “Sponsor”) and the Bank of New York Mellon (the “Trustee”) at the time of the Trust’s organization. The Trust holds silver, platinum and palladium in set ratios (together, “Bullion”) and issues ETFS Physical WM 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 silver, platinum and palladium, less the Trust’s expenses and liabilities. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the silver, platinum and palladium markets 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.

XML

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	$ 38.06	[1],[2]
Income from investment operations:
Net investment loss	$ (0.06)	[1]
Net realized and unrealized gains and losses on investment in Bullion	$ 1.57	[1]
Change in net assets from operations	$ 1.51	[1]
Net asset value per Share at end of period	$ 39.57	[1]
Weighted Average Shares	700,000	[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	3.98%	[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] 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.

XML

Statements of Assets and Liabilities (USD $)	Mar. 31, 2014		Dec. 31, 2013
Investment in Bullion
Investment in Bullion, fair value	$ 27,716,000		$ 26,653,000
Investment in Bullion, lower of cost or market value			26,266,000
Total assets	27,716,000	[1],[2]	26,266,000	[2],[3]
LIABILITIES
Fees payable to Sponsor	14,162		13,169
Total liabilities	14,000	[1]	14,000	[3]
NET ASSETS	27,702,000	[1]	26,252,000	[3]
ANALYSIS OF NET ASSETS
Redeemable Shares at redemption value to investors	27,702,000	[1],[4]	26,639,000	[3],[4]
Shareholders’ deficit	0	[1]	(387,000)	[3]
Redeemable Shares at redemption value to investors (net asset value)	27,702,000	[1],[4]	26,252,000	[1],[3],[4]
Silver [Member]
Investment in Bullion
Investment in Bullion, fair value	13,709,000	[1],[2]	13,406,000
Investment in Bullion, lower of cost or market value			13,406,000	[2],[3]
Platinum [Member]
Investment in Bullion
Investment in Bullion, fair value	9,734,000	[1],[2]	9,336,000
Investment in Bullion, lower of cost or market value			9,336,000	[2],[3]
Palladium [Member]
Investment in Bullion
Investment in Bullion, fair value	4,273,000	[1],[2]	3,911,000
Investment in Bullion, lower of cost or market value			$ 3,524,000	[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. The amounts are those previously reported under non investment company accounting. Refer to Note 2.1 for additional information.

[4] Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at March 31, 2014 were 700,000 and at December 31, 2013 were 700,000. Net asset value per Share at March 31, 2014 and December 31, 2013 was $39.57 and $38.06, respectively.

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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	[1]
Cash expenses paid	0	[1]
Increase in cash resulting from operations	0	[1]
Cash and cash equivalents at beginning of period	0	[1]	0	[1]
Cash and cash equivalents at end of period	0	[1]
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Value of Bullion received for creation of Shares	5,041	[1]	5,041
Value of Bullion distributed for redemption of Shares - at cost	0	[1]
RECONCILIATION OF CHANGE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Change in net assets from operations	(58)	[1],[2]
Adjustments to reconcile change in net assets from operations to net cash provided by operating activities:
Increase in investment in Bullion	(4,985)	[1]
Increase in fees payable to Sponsor	2	[1]
Increase / (decrease) in redeemable Shares:
Creations	5,041	[1]
Redemptions	0	[1]
Net cash provided by operating activities	0	[1]
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Value of Bullion transferred to pay expenses	$ 62	[1]

[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.

[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 (Schedule Of Investment In Bullion) (Details) (USD $) In Thousands, unless otherwise specified	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 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)	699,873.2		754,389.3		754,389.3	687,498.1		741,050.4			6,875.1		7,410.5			5,500.0		5,928.4
Creations (in Ounces)					100,522.5			98,745.0					987.5					790.0
Redemptions (in Ounces)					(150,495.5)			(147,834.5)					(1,478.3)					(1,182.7)
Transfers of Bullion (in Ounces)	(1,037.8)				(4,543.1)	(1,019.4)		(4,462.8)			(10.2)		(44.6)			(8.2)		(35.7)
Closing balance (in Ounces)	698,835.4				699,873.2	686,478.7		687,498.1			6,864.9		6,875.1			5,491.8		5,500.0
Investment in Bullion, fair value, opening balance	$ 26,653					$ 13,406				$ 13,406	$ 9,336				$ 9,336	$ 3,911				$ 3,911
Investment in Bullion, lower of cost or market value, beginning balance	26,266		34,887		34,887	13,406	[1],[2]	20,883			9,336	[1],[2]	10,234			3,524	[1],[2]	3,770
Creations			5,041	[3]	5,041			2,976					1,531					534
Redemptions					(7,028)			(4,200)					(2,071)					(757)
Transfers of Bullion to pay expenses	(39)				(212)	(20)		(127)			(14)		(62)			(5)		(23)
Change in unrealized gain on Bullion	1,102	[4]	0	[5]		323					412					367
Realized loss on investment in Bullion					(6,422)			(6,126)					(296)					0
Investment in Bullion, fair value, closing balance	27,716				26,653	13,709	[1],[4]	13,406		13,406	9,734	[1],[4]	9,336		9,336	4,273	[1],[4]	3,911		3,911
Investment in Bullion, lower of cost or market value, closing balance					$ 26,266			$ 13,406	[1],[2]				$ 9,336	[1],[2]				$ 3,524	[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. The amounts are those previously reported under non investment company accounting. Refer to Note 2.1 for additional information.

[3] 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.

[4] 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.

[5] 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)	700,000	[1]
Creations (in Shares)	0	[1]	100,000
Redemptions (in Shares)	0	[1]	(150,000)
Closing balance at March 31, 2014 (in Shares)	700,000	[1]	700,000	[1]
Opening balance at December 31, 2013	$ 26,252	[1],[2],[3]
Net investment loss	(41)	[1]
Realized gain on investment in Bullion	2	[1]
Change in unrealized gain on Bullion	1,102	[1]
Creations	0	[1]	5,041
Redemptions	0	[1]	(6,534)
Closing balance at March 31, 2014	27,702	[1],[2]	26,252	[1],[2],[3]
Adjustments for Change to Fair Value [Member]
Closing balance at March 31, 2014	$ 387	[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 700,000 and at December 31, 2013 were 700,000. Net asset value per Share at March 31, 2014 and December 31, 2013 was $39.57 and $38.06, respectively.

[3] 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.

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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	[1]	unlimited	[2]
Cost on investment in bullion	$ 26,227		$ 26,266
Common stock, shares issued	700,000		700,000
Common stock, shares outstanding	700,000		700,000
Net asset value per Share	$ 39.57	[1]	$ 38.06	[1],[3]
Silver [Member]
Cost on investment in bullion	13,386	[1]	13,406	[3]
Platinum [Member]
Cost on investment in bullion	9,322	[1]	9,336	[3]
Palladium [Member]
Cost on investment in bullion	$ 3,519	[1]	$ 3,524	[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] 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.

[3] 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.

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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
Bullion payable at market value	0			0
Annualized rate of Sponsors Fee	0.60%	[1]
Sponsor Fees	41,101		64,412
Fees payable to Sponsor	$ 14,162			$ 13,169

[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 13, 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 White Metals Basket Trust
Entity Central Index Key	0001489024
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		700,000

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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				$ 26,266		$ 34,887
Value at January 1, 2014	27,716			26,653
Silver [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Value at December 31, 2013 at lower of cost or market value				13,406	[1],[2]	20,883
Value at January 1, 2014	13,709	[1],[3]	13,406	13,406
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				9,336	[1],[2]	10,234
Value at January 1, 2014	9,734	[1],[3]	9,336	9,336
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				3,524	[1],[2]	3,770
Value at January 1, 2014	4,273	[1],[3]	3,911	3,911
Gain / (loss) as a result of change in accounting treatment	$ 387

[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. The amounts are those previously reported under non investment company accounting. 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.

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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)	698,835.4		699,873.2
Cost	$ 26,227		$ 26,266
Fair Value	27,716		26,653
% of Net Assets	100.05%	[1]	100.05%	[2]
Silver [Member]
Investment Holdings [Line Items]
Investment in Bullion (oz)	686,478.7		687,498.1
Cost	13,386	[3]	13,406	[4]
Fair Value	13,709		13,406
% of Net Assets	49.49%	[1]	51.07%	[2]
Platinum [Member]
Investment Holdings [Line Items]
Investment in Bullion (oz)	6,864.9		6,875.1
Cost	9,322	[3]	9,336	[4]
Fair Value	9,734		9,336
% of Net Assets	35.14%	[1]	35.56%	[2]
Palladium [Member]
Investment Holdings [Line Items]
Investment in Bullion (oz)	5,491.8		5,500.0
Cost	3,519	[3]	3,524	[4]
Fair Value	$ 4,273		$ 3,911
% of Net Assets	15.42%	[1]	13.42%	[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] 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.

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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, 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 - cost	$ 26,227			$ 26,266
Unrealized gain on investment in Bullion	1,489			387
Investment in Bullion - fair value	27,716			26,653
Silver [Member]
Bullion [Line Items]
Investment in bullion - cost	13,386	[1]		13,406	[2]
Unrealized gain on investment in Bullion	323			0
Investment in Bullion - fair value	13,709	[1],[3]	13,406	13,406
Platinum [Member]
Bullion [Line Items]
Investment in bullion - cost	9,322	[1]		9,336	[2]
Unrealized gain on investment in Bullion	412			0
Investment in Bullion - fair value	9,734	[1],[3]	9,336	9,336
Palladium [Member]
Bullion [Line Items]
Investment in bullion - cost	3,519	[1]		3,524	[2]
Unrealized gain on investment in Bullion	754			387
Investment in Bullion - fair value	$ 4,273	[1],[3]	$ 3,911	$ 3,911

[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] 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.

[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
Silver	$	13,406	$	13,406	$	-
Platinum	$	9,336	$	9,336	$	-
Palladium	$	3,524	$	3,911	$	387

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

	March 31, 2014
		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	13,386	$	9,322	$	3,519	$	26,227
Unrealized gain on investment in Bullion		323		412		754		1,489
Investment in Bullion - fair value	$	13,709	$	9,734	$	4,273	$	27,716
	December 31, 2013
		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	13,406	$	9,336	$	3,524	$	26,266
Unrealized gain on investment in Bullion		-		-		387		387
Investment in Bullion - fair value	$	13,406	$	9,336	$	3,911	$	26,653

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	$	27,716	$	26,653

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		750,000
Creations		100,000
Redemptions		(150,000)
Closing balance		700,000
Redeemable Shares
Opening balance	$	37,605
Creations		5,041
Redemptions		(6,534)
Adjustments to redemption value		(9,473)
Closing balance	$	26,639
Redemption value per Share at period end	$	38.06

Schedule Of Investment In Bullion

		Three months ended March 31, 2014
(Amounts in 000's of US$, except for ounces data)		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		687,498.1		6,875.1		5,500.0		699,873.2
Transfers of Bullion		(1,019.4)		(10.2)		(8.2)		(1,037.8)
Closing balance		686,478.7		6,864.9		5,491.8		698,835.4
Investment in Bullion:
Opening balance	$	13,406	$	9,336	$	3,911	$	26,653
Transfers of Bullion to pay expenses		(20)		(14)		(5)		(39)
Change in unrealized gain on Bullion		323		412		367		1,102
Closing balance	$	13,709	$	9,734	$	4,273	$	27,716
		Year ended December 31, 2013
		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		741,050.4		7,410.5		5,928.4		754,389.3
Creations		98,745.0		987.5		790.0		100,522.5
Redemptions		(147,834.5)		(1,478.3)		(1,182.7)		(150,495.5)
Transfers of Bullion		(4,462.8)		(44.6)		(35.7)		(4,543.1)
Closing balance		687,498.1		6,875.1		5,500.0		699,873.2
Investment in Bullion:
Opening balance	$	20,883	$	10,234	$	3,770	$	34,887
Creations		2,976		1,531		534		5,041
Redemptions		(4,200)		(2,071)		(757)		(7,028)
Transfers of Bullion to pay expenses		(127)		(62)		(23)		(212)
Realized loss on investment in Bullion		(6,126)		(296)		-		(6,422)
Closing balance	$	13,406	$	9,336	$	3,524	$	26,266

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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
Silver	$	13,406	$	13,406	$	-
Platinum	$	9,336	$	9,336	$	-
Palladium	$	3,524	$	3,911	$	387

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 (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 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
		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	13,386	$	9,322	$	3,519	$	26,227
Unrealized gain on investment in Bullion		323		412		754		1,489
Investment in Bullion - fair value	$	13,709	$	9,734	$	4,273	$	27,716
	December 31, 2013
		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	13,406	$	9,336	$	3,524	$	26,266
Unrealized gain on investment in Bullion		-		-		387		387
Investment in Bullion - fair value	$	13,406	$	9,336	$	3,911	$	26,653

Effective January 1, 2014, the Trust records its investment in Bullion at fair value and recognizes changes in fair value of the investment in Bullion as 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 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	$	27,716	$	26,653

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

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, 2013 is 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		750,000
Creations		100,000
Redemptions		(150,000)
Closing balance		700,000
Redeemable Shares
Opening balance	$	37,605
Creations		5,041
Redemptions		(6,534)
Adjustments to redemption value		(9,473)
Closing balance	$	26,639
Redemption value per Share at period end	$	38.06

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)		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		687,498.1		6,875.1		5,500.0		699,873.2
Transfers of Bullion		(1,019.4)		(10.2)		(8.2)		(1,037.8)
Closing balance		686,478.7		6,864.9		5,491.8		698,835.4
Investment in Bullion:
Opening balance	$	13,406	$	9,336	$	3,911	$	26,653
Transfers of Bullion to pay expenses		(20)		(14)		(5)		(39)
Change in unrealized gain on Bullion		323		412		367		1,102
Closing balance	$	13,709	$	9,734	$	4,273	$	27,716
		Year ended December 31, 2013
		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		741,050.4		7,410.5		5,928.4		754,389.3
Creations		98,745.0		987.5		790.0		100,522.5
Redemptions		(147,834.5)		(1,478.3)		(1,182.7)		(150,495.5)
Transfers of Bullion		(4,462.8)		(44.6)		(35.7)		(4,543.1)
Closing balance		687,498.1		6,875.1		5,500.0		699,873.2
Investment in Bullion:
Opening balance	$	20,883	$	10,234	$	3,770	$	34,887
Creations		2,976		1,531		534		5,041
Redemptions		(4,200)		(2,071)		(757)		(7,028)
Transfers of Bullion to pay expenses		(127)		(62)		(23)		(212)
Realized loss on investment in Bullion		(6,126)		(296)		-		(6,422)
Closing balance	$	13,406	$	9,336	$	3,524	$	26,266

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 2013 the Sponsor’s Fee was $41,101 and $64,412, respectively. At March 31, 2014 and at December 31, 2013, the fees payable to the Sponsor were $14,162 and $13,169, 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.

On May 14, 2014, London Silver Market Fixing Ltd announced its intention to discontinue the London Fix for silver after August 14, 2014.  The Sponsor has not yet assessed the full impact of this upon the Trust.  However, in the absence of the London Fix for silver, the Sponsor is able to instruct the Trustee to use an alternative price as considered appropriate to determine the fair value of its investment in silver. Once the Sponsor has assessed the full impact of this upon the Trust, the Sponsor will make further public disclosures.

XML

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

XML

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)	700,000		750,000
Creations (in Shares)	0	[1]	100,000
Redemptions (in Shares)	0	[1]	(150,000)
Closing balance (in Shares)	700,000		700,000
Opening balance	$ 26,639	[2],[3]	$ 37,605
Creations	0	[1]	5,041
Redemptions	0	[1]	(6,534)
Adjustment to redemption value			(9,473)
Closing balance	$ 27,702	[1],[2]	$ 26,639	[2],[3]
Redemption value per Share at period end (in Dollars per share)			$ 38.06

[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 700,000 and at December 31, 2013 were 700,000. Net asset value per Share at March 31, 2014 and December 31, 2013 was $39.57 and $38.06, respectively.

[3] 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.

XML

Statements of Operations (USD $)	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
EXPENSES
Sponsor’s Fee	$ 41,101		$ 64,412
Total expenses	41,000	[1]	64,000	[2]
Net investment loss	(41,000)	[1]	(64,000)	[2]
REALIZED AND UNREALIZED GAINS / (LOSSES)
Realized gain on Bullion transferred to pay expenses	2,000	[1]	6,000	[2]
Change in unrealized gain on investment in Bullion	1,102,000	[1]	0	[2]
Total gain on Bullion	1,104,000	[1]	6,000	[2]
Change in net assets from operations	$ 1,063,000	[1]	$ (58,000)	[2],[3]
Net increase / (decrease) in net assets per Share (in Dollars per share)	$ 1.52	[1]	$ (0.07)	[2]
Weighted average number of Shares (in Shares)	700,000	[1]	843,333	[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.

[3] 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.

XML

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
Silver	$	13,406	$	13,406	$	-
Platinum	$	9,336	$	9,336	$	-
Palladium	$	3,524	$	3,911	$	387

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 (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 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
		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	13,386	$	9,322	$	3,519	$	26,227
Unrealized gain on investment in Bullion		323		412		754		1,489
Investment in Bullion - fair value	$	13,709	$	9,734	$	4,273	$	27,716
	December 31, 2013
		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - cost	$	13,406	$	9,336	$	3,524	$	26,266
Unrealized gain on investment in Bullion		-		-		387		387
Investment in Bullion - fair value	$	13,406	$	9,336	$	3,911	$	26,653

Effective January 1, 2014, the Trust records its investment in Bullion at fair value and recognizes changes in fair value of the investment in Bullion as 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 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	$	27,716	$	26,653

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, 2013 is 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		750,000
Creations		100,000
Redemptions		(150,000)
Closing balance		700,000
Redeemable Shares
Opening balance	$	37,605
Creations		5,041
Redemptions		(6,534)
Adjustments to redemption value		(9,473)
Closing balance	$	26,639
Redemption value per Share at period end	$	38.06

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)		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		687,498.1		6,875.1		5,500.0		699,873.2
Transfers of Bullion		(1,019.4)		(10.2)		(8.2)		(1,037.8)
Closing balance		686,478.7		6,864.9		5,491.8		698,835.4
Investment in Bullion:
Opening balance	$	13,406	$	9,336	$	3,911	$	26,653
Transfers of Bullion to pay expenses		(20)		(14)		(5)		(39)
Change in unrealized gain on Bullion		323		412		367		1,102
Closing balance	$	13,709	$	9,734	$	4,273	$	27,716
		Year ended December 31, 2013
		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		741,050.4		7,410.5		5,928.4		754,389.3
Creations		98,745.0		987.5		790.0		100,522.5
Redemptions		(147,834.5)		(1,478.3)		(1,182.7)		(150,495.5)
Transfers of Bullion		(4,462.8)		(44.6)		(35.7)		(4,543.1)
Closing balance		687,498.1		6,875.1		5,500.0		699,873.2
Investment in Bullion:
Opening balance	$	20,883	$	10,234	$	3,770	$	34,887
Creations		2,976		1,531		534		5,041
Redemptions		(4,200)		(2,071)		(757)		(7,028)
Transfers of Bullion to pay expenses		(127)		(62)		(23)		(212)
Realized loss on investment in Bullion		(6,126)		(296)		-		(6,422)
Closing balance	$	13,406	$	9,336	$	3,524	$	26,266

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 2013 the Sponsor’s Fee was $41,101 and $64,412, respectively. At March 31, 2014 and at December 31, 2013, the fees payable to the Sponsor were $14,162 and $13,169, 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.

On May 14, 2014, London Silver Market Fixing Ltd announced its intention to discontinue the London Fix for silver after August 14, 2014.  The Sponsor has not yet assessed the full impact of this upon the Trust.  However, in the absence of the London Fix for silver, the Sponsor is able to instruct the Trustee to use an alternative price as considered appropriate to determine the fair value of its investment in silver. Once the Sponsor has assessed the full impact of this upon the Trust, the Sponsor will make further public disclosures.  

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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	Dec. 31, 2013
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment in Bullion	$ 27,716	$ 26,653