Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 24, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | ETFS Precious Metals Basket Trust | ||
Entity Central Index Key | 1,483,386 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 2,750,000 | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 144,868,500 | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No |
Statements of Assets and Liabil
Statements of Assets and Liabilities - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS | |||
Investment in Bullion | $ 161,846,000 | $ 234,158,000 | |
Bullion receivable | 3,080,000 | ||
Total assets | 161,846,000 | 237,238,000 | |
LIABILITIES | |||
Fees payable to Sponsor | 80,206 | 86,196 | |
Total Liabilities | 80,000 | 86,000 | |
Net assets | [1] | 161,766,000 | 237,152,000 |
Gold [Member] | |||
ASSETS | |||
Investment in Bullion | 95,796,000 | 133,356,000 | |
Silver [Member] | |||
ASSETS | |||
Investment in Bullion | 45,699,000 | 65,115,000 | |
Platinum [Member] | |||
ASSETS | |||
Investment in Bullion | 10,485,000 | 17,940,000 | |
Palladium [Member] | |||
ASSETS | |||
Investment in Bullion | $ 9,866,000 | $ 17,747,000 | |
[1] | Authorized share capital is unlimited and no par value per share. Shares issued and outstanding at December 31, 2015 were 3,100,000 and at December 31, 2014 were 3,850,000. Net asset value per Share at December 31, 2015 was $52.18 and at December 31, 2014 was $61.60. |
Statements of Assets and Liabi3
Statements of Assets and Liabilities (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Common stock, shares authorized | unlimited | unlimited |
Common stock, par value | $ 0 | $ 0 |
Investment in bullion at cost | $ 188,277 | $ 242,403 |
Common stock, shares issued | 3,100,000 | 3,850,000 |
Common stock, shares outstanding | 3,100,000 | 3,850,000 |
Net asset value per Share | $ 52.18 | $ 61.60 |
Gold [Member] | ||
Investment in bullion at cost | $ 105,233 | $ 133,156 |
Silver [Member] | ||
Investment in bullion at cost | 56,260 | 73,612 |
Platinum [Member] | ||
Investment in bullion at cost | 14,204 | 19,160 |
Palladium [Member] | ||
Investment in bullion at cost | $ 12,580 | $ 16,475 |
Schedule of Investments
Schedule of Investments $ in Thousands | 12 Months Ended | ||
Dec. 31, 2014USD ($)oz | Dec. 31, 2015USD ($)oz | ||
Investment Holdings [Line Items] | |||
Investment in Bullion (oz) | oz | 4,225,571.5 | 3,426,930.6 | |
Cost | $ 242,403 | $ 188,277 | |
Fair Value | $ 234,158 | $ 161,846 | |
Fair Value, % of Net Assets | 98.74% | 100.05% | |
Less liabilities | $ (80) | ||
Less liabilities, % of Net Assets | (0.05%) | ||
Other assets in excess of liabilities | $ (2,994) | ||
Other assets in excess of liabilities, % of net assets | 1.26 | ||
Net assets | [1] | $ 237,152 | $ 161,766 |
Net assets, % of Net Assets | 100.00% | 100.00% | |
Gold [Member] | |||
Investment Holdings [Line Items] | |||
Investment in Bullion (oz) | oz | 111,199.3 | 90,182.5 | |
Cost | $ 133,156 | $ 105,233 | |
Fair Value | $ 133,356 | $ 95,796 | |
Fair Value, % of Net Assets | 56.23% | 59.22% | |
Silver [Member] | |||
Investment Holdings [Line Items] | |||
Investment in Bullion (oz) | oz | 4,077,306 | 3,306,687.6 | |
Cost | $ 73,612 | $ 56,260 | |
Fair Value | $ 65,115 | $ 45,699 | |
Fair Value, % of Net Assets | 27.46% | 28.25% | |
Platinum [Member] | |||
Investment Holdings [Line Items] | |||
Investment in Bullion (oz) | oz | 14,826.5 | 12,024.2 | |
Cost | $ 19,160 | $ 14,204 | |
Fair Value | $ 17,940 | $ 10,485 | |
Fair Value, % of Net Assets | 7.56% | 6.48% | |
Palladium [Member] | |||
Investment Holdings [Line Items] | |||
Investment in Bullion (oz) | oz | 22,239.7 | 18,036.3 | |
Cost | $ 16,475 | $ 12,580 | |
Fair Value | $ 17,747 | $ 9,866 | |
Fair Value, % of Net Assets | 7.48% | 6.10% | |
[1] | Authorized share capital is unlimited and no par value per share. Shares issued and outstanding at December 31, 2015 were 3,100,000 and at December 31, 2014 were 3,850,000. Net asset value per Share at December 31, 2015 was $52.18 and at December 31, 2014 was $61.60. |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
EXPENSES | |||||||
Sponsor’s Fee | $ 937,624 | $ 1,089,397 | $ 1,201,105 | ||||
Total expenses | 937,000 | [1] | 1,089,000 | [1] | 1,201,000 | [2] | |
Net investment loss | (937,000) | [1] | (1,089,000) | [1] | (1,201,000) | [2] | |
REALIZED AND UNREALIZED GAINS / (LOSSES) | |||||||
Realized (loss) / gain on Bullion transferred to pay expenses | (55,000) | [1] | 36,000 | [1] | (79,000) | [2] | |
Realized (loss) / gain on Bullion distributed for the redemption of Shares | 391,000 | [1] | 2,796,000 | [1] | (4,010,000) | [2] | |
Change in unrealized loss on investment in Bullion | (18,186,000) | [1] | (8,799,000) | [1] | 0 | [2] | |
Realized loss on investment in Bullion | 0 | [1] | 0 | [1] | (48,858,000) | [2] | |
Total loss on Bullion | (17,850,000) | [1] | (5,967,000) | [1] | (52,947,000) | [2] | |
Change in net assets from operations | [1] | $ (18,787,000) | $ (7,056,000) | $ (54,148,000) | [2],[3] | ||
Net decrease in net assets per Share (in Dollars per share) | $ (7.10) | [1] | $ (2.64) | [1] | $ (20.77) | [2] | |
Weighted average number of Shares (in Shares) | 2,645,205 | [1] | 2,669,726 | [1] | 2,607,260 | [2] | |
[1] | Effective January 1, 2014, the Trust has adopted the provisions of Topic 946. Refer to Note 2.1 for additional information. | ||||||
[2] | Represents audited amounts prior to the adoption of provisions for an investment company for accounting purposes. Refer to Note 2.1 for additional information. | ||||||
[3] | In accordance with Topic 946, the Trust meets the exemption criteria to exclude a statement of cash flows. Thus one has not been presented for the years ended December 31, 2015 and 2014. Refer to Note 2.1 for additional information. |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
INCREASE IN CASH FROM OPERATIONS: | ||||
Cash proceeds received from transfer of Bullion | [1] | $ 0 | ||
Cash expenses paid | [1] | 0 | ||
Increase in cash resulting from operations | [1] | 0 | ||
Cash and cash equivalents at beginning of year | [1] | $ 0 | 0 | |
Cash and cash equivalents at end of year | [1] | 0 | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: | ||||
Value of Bullion received for creation of Shares | 111,893 | 149,236 | [1] | |
Value of Bullion distributed for redemption of Shares - at cost | [1] | 24,617 | ||
RECONCILIATION OF CHANGE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES: | ||||
Change in net assets from operations | [2] | $ (7,056) | (54,148) | [1],[3] |
Adjustments to reconcile change in net assets from operations to net cash provided by operating activities: | ||||
Increase in investment in Bullion | [1] | (74,495) | ||
Decrease in Bullion payable | [1] | 0 | ||
Increase / (decrease) in amounts payable to Sponsor | [1] | 15 | ||
Increase / (decrease) in redeemable Shares: | ||||
Creations | [1] | 149,235 | ||
Redemptions | [1] | (20,607) | ||
Net cash provided by operating activities | [1] | 0 | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES: | ||||
Value of Bullion transferred to pay expenses | [1] | $ 1,187 | ||
[1] | In accordance with Topic 946, the Trust meets the exemption criteria to exclude a statement of cash flows. Thus one has not been presented for the years ended December 31, 2015 and 2014. Refer to Note 2.1 for additional information. | |||
[2] | Effective January 1, 2014, the Trust has adopted the provisions of Topic 946. Refer to Note 2.1 for additional information. | |||
[3] | Represents audited amounts prior to the adoption of provisions for an investment company for accounting purposes. Refer to Note 2.1 for additional information. |
Statement of Changes in Net Ass
Statement of Changes in Net Assets - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Statement of Changes in Net Assets [Abstract] | |||||||
Opening balance (in Shares) | 3,850,000 | 3,950,000 | |||||
Creations (in Shares) | 1,000,000 | 1,850,000 | 2,050,000 | ||||
Redemptions (in Shares) | (1,750,000) | (1,950,000) | (300,000) | ||||
Closing balance (in Shares) | 3,100,000 | 3,850,000 | 3,950,000 | ||||
Opening balance | [1] | $ 237,152 | $ 259,804 | ||||
Effect of adoption of new accounting principle (see Note 2.1) | [1] | 554 | |||||
Net investment loss | (937) | [1] | (1,089) | [1] | $ (1,201) | [2] | |
Realized gain on investment in Bullion | [1] | 336 | 2,832 | ||||
Change in unrealized loss on investment Bullion | (18,186) | [1] | (8,799) | [1] | 0 | [2] | |
Creations | 55,156 | [1] | 114,973 | [1] | 149,235 | ||
Redemptions | (111,755) | [1] | (131,123) | [1] | (20,607) | ||
Closing balance | [1] | $ 161,766 | $ 237,152 | $ 259,804 | |||
[1] | Effective January 1, 2014, the Trust has adopted the provisions of Topic 946. Refer to Note 2.1 for additional information. | ||||||
[2] | Represents audited amounts prior to the adoption of provisions for an investment company for accounting purposes. Refer to Note 2.1 for additional information. |
Statement of Changes in Shareho
Statement of Changes in Shareholders' Deficit - 12 months ended Dec. 31, 2013 $ in Thousands | USD ($) | [1] |
Shareholders’ deficit - opening balance at Dec. 31, 2012 | $ (16,919) | |
Statement of Changes in Net Assets [Abstract] | ||
Net loss for the year | (54,148) | [2],[3] |
Adjustment of redeembable Shares to redemption value | 70,513 | |
Shareholders’ deficit - closing balance at Dec. 31, 2013 | $ (554) | |
[1] | Effective January 1, 2014, the Trust has adopted the provisions of Topic 946. Refer to Note 2.1 for additional information. | |
[2] | In accordance with Topic 946, the Trust meets the exemption criteria to exclude a statement of cash flows. Thus one has not been presented for the years ended December 31, 2015 and 2014. Refer to Note 2.1 for additional information. | |
[3] | Represents audited amounts prior to the adoption of provisions for an investment company for accounting purposes. Refer to Note 2.1 for additional information. |
Financial Highlights
Financial Highlights - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Per Share Performance (for a Share outstanding throughout the entire period) | |||
Net asset value per Share at beginning of year | $ 61.60 | $ 65.91 | |
Income from investment operations: | |||
Net investment loss | (0.35) | (0.41) | |
Total realized and unrealized gains or losses on investment in Bullion | (9.07) | (3.90) | |
Change in net assets from operations | (9.42) | (4.31) | |
Net asset value per Share at end of year | $ 52.18 | $ 61.60 | |
Weighted average number of Shares | [1] | 2,645,205 | 2,669,726 |
Expense ratio | 0.60% | 0.60% | |
Net investment loss ratio | (0.60%) | (0.60%) | |
Total return, net asset value | (15.29%) | (6.54%) | |
[1] | Effective January 1, 2014, the Trust has adopted the provisions of Topic 946. Refer to Note 2.1 for additional information. |
Organization
Organization | 12 Months Ended |
Dec. 31, 2015 | |
Organization [Abstract] | |
Organization | 1. Organization The ETFS Precious Metals Basket Trust (the “Trust”) is an investment trust formed on October 18, 2010, under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by ETF Securities USA LLC (the “Sponsor”) and the Bank of New York Mellon (the “Trustee”) at the time of the Trust’s organization. The Trust holds gold, silver, platinum and palladium in set ratios (together, “Bullion”) and issues Shares (“Shares”) (in minimum blocks of 50,000 Shares, referred to as “Baskets”) in exchange for deposits of Bullion and distributes Bullion in connection with the redemption of Baskets. Shares represent units of fractional undivided beneficial interest in and ownership of the Trust which are issued by the Trust. The Sponsor is a Delaware limited liability company and a wholly-owned subsidiary of ETF Securities Limited, a Jersey, Channel Islands based company. The Trust is governed by the Trust Agreement. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold, silver, platinum and palladium, less the Trust’s expenses and liabilities. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the gold, silver, platinum and palladium market through an investment in securities. The fiscal year end for the Trust is December 31. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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”) Accounting Standards Codification (“ASC”), Topic 946, Financial Services—Investment Companies (“Topic 946”). Consequently, the Trust did not prepare its financial statements applying standards applicable to investment companies in accordance with Topic 946, including recording its investment in Bullion at “fair value” as defined in Topic 946. Instead, the Trust recorded its investment in Bullion at the lower of cost or fair value in accordance with ASC 330. 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 the Statement of Operations for the year ended December 31, 2013 has been conformed to the current year accounting standards. A Statement of Changes in Net Assets is required and has been presented for the years ended December 31, 2015 and 2014. 2. A Schedule of Investments is required and is presented as of December 31, 2015 and 2014. 3. Financial Highlights are required and is presented for the years ended December 31, 2015 and 2014. 4. As the Trust meets the exemption criteria under Topic 946, a cash flow statement is not required for the years ended December 31, 2015 and 2014. Since the adoption of the new accounting principle is prospective, the statement of cash flows for the year ended December 31, 2013 is still presented. 5. Required disclosures under Topic 820, Fair Value Measurements , have been included in the footnotes to the financial statements as of December 31, 2015 and 2014. The quantitative effect of the adoption of investment company accounting is presented below: Value at Gain / (loss) December 31, 2013 Value at as a result of at lower of cost January 1, 2014 change in (Amounts in 000's of US$) or market value at fair value accounting principle Bullion Gold $ 139,729 $ 139,729 $ - Silver $ 83,152 $ 83,152 $ - Platinum $ 21,057 $ 21,057 $ - Palladium $ 15,984 $ 16,538 $ 554 2.2. Valuation of Bullion The Trust follows the provisions of ASC 820, Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 provides guidance for determining fair value and requires 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. 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 A.G., or any other firm selected by the Custodian to hold the Trust’s platinum and palladium in the Trust’s allocated account in the firm’s Zurich, Switzerland vault premises on a segregated basis and whose appointment has been approved by the Sponsor, (the “Zurich Sub-Custodian”). The Trust’s Bullion is recorded, per individual metal type, at fair value. The cost of Bullion is determined according to the average cost method and the fair value is based on the relevant “London Metal Price” for each metal held by the Trust. This is the applicable “London Bullion Market Association (“LBMA”) PM Gold Price” for gold of the price of an ounce of gold, the “London Silver Price” for silver and for platinum and palladium the applicable “London Metal Exchange (“LME”) PM Price”. Since March 20, 2015, the LBMA PM Gold Price is set using the afternoon session of the ICE Benchmark Administration (“IBA”) equilibrium auction, an electronic, tradable and auditable over-the-counter auction market with the ability to settle trades in US Dollars, Euros or British Pounds for LBMA authorized participating gold bullion banks or market makers (“gold participants”) that establishes a reference gold price for that day’s trading. Prior to March 20, 2015, the fair value of gold was based on the London PM Fix. The London PM Fix price for gold was set using the afternoon session of the twice daily fix of the price of gold by five market making members of the London Bullion Market Association which occurred at approximately 3:00 PM London time, on each working day. The London PM Fix was discontinued on March 19, 2015. Since December 1, 2014, the LME has been responsible for the administration of the electronic platinum and palladium bullion price fixing system (“LMEbullion”) that replicates electronically the manual London platinum and palladium fixing processes previously employed by the London Platinum and Palladium Fixing Company Ltd (“LPPFCL”) as well as providing electronic market clearing processes for platinum and palladium bullion transactions at the fixed prices established by the LME pricing mechanism. LMEbullion, like the previous London platinum and palladium fix processes, establishes and publishes fixed prices for troy ounces of platinum and palladium twice each London trading day during fixing sessions beginning at 9:45 a.m. London time (the LME AM Fix) and 2:00 p.m. London time (the LME PM Fix). Prior to December 1, 2014, the Trust utilized the London PM Fix as its benchmark for valuation purposes. The London PM Fix for platinum and palladium was the price of an ounce of platinum or palladium (respectively) as set by four fixing members of the London Platinum and Palladium Market (“LPPM”) at approximately 2:00 PM, London time, on each working day and was widely accepted among platinum and palladium market participants. The London PM Fix was discontinued on November 30, 2014. Since August 15, 2014, CME Group, Inc. has been conducting an electronic, over-the-counter silver bullion auction in London, England to establish a fixing price for an ounce of silver once each trading day, which is disseminated by Thomson Reuters (the “London Silver Price”). The London Silver Price is established by the five LBMA authorized bullion banks and market makers participating in the auction. The “London Metal Price” for silver held by the Trust is the London Silver Price. Prior to August 15, 2014, the Trust utilized the “London Fix” for silver as its benchmark for silver valuation purposes. The London Fix for silver, which London Silver Market Fixing Ltd. discontinued on August 14, 2014, was the price of an ounce of silver as set by three market making members of the LBMA at approximately 12:00 noon, London time, on each London business day and was widely accepted among silver market participants. Once the value of gold has been determined, the net asset value (the “NAV”) is computed by the Trustee by deducting all accrued fees and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s Fee”), from the fair value of the gold and all other assets held by the Trust. The Trust 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. The per Share amount of Bullion exchanged for a purchase or redemption is calculated daily by the Trustee, using the London Metal Price for each metal held by the Trust to calculate the Bullion amount in respect of any liabilities for which covering Bullion sales have not yet been made, and 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 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: (Amounts in 000's of US$) December 31, 2015 December 31, 2014 Level 2 Investment in Bullion $ 161,846 $ 234,158 There were no re-allocations or transfers between levels during the years ended December 31, 2015 and 2014. 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 days of the trade date. 2.4. Creations and Redemptions of Shares The Trust expects to create and redeem Shares from time to time, but only in one or more Baskets (a Basket equals a block of 50,000 Shares). The Trust issues Shares in Baskets to Authorized Participants on an ongoing basis. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. An Authorized Participant is a person who (1) is registered as a 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 (4) has established an Authorized Participant Unallocated Account with the Trust’s Custodian. 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 and any cash represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received. Authorized Participants may, on any business day, place an order with the Trustee to create or redeem one or more Baskets. The typical settlement period for Shares is three business days. In the event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded. When Bullion is exchanged in settlement of redemption, it is considered a sale of Bullion for financial statement purposes. The amount of Bullion represented by the Baskets created or redeemed can only be settled to the nearest 1/1000 th of an ounce. 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 metal is available at all times to back the Shares, the Sponsor accepts an adjustment to its management fees in the event of any shortfall or excess. For each transaction, this amount is not more than 1/1000 th of an ounce. As the Shares of the Trust are subject to redemption at the option of Authorized Participants, the Trust has classified the outstanding Shares as Redeemable Capital Shares as of December 31, 2013 and as Net Assets as of December 31, 2015 and 2014. For the year ended December 31, 2013, the Trust recorded the redemption value, which represents the maximum obligation (based on NAV per Share), with the difference from historical cost recorded as an offsetting amount to Shareholders’ Equity. Changes in Shares for the years ended December 31, 2015 and 2014 are presented in the Statement of Changes in Net Assets. Changes in the Shares for the year ended December 31, 2013 are set out below: Year Ended December 31, 2013 (Amounts in 000's of US$, except for Share and per Share data) Number of redeemable Shares Opening balance 2,200,000 Creations 2,050,000 Redemptions (300,000) Closing balance 3,950,000 Redeemable Shares Opening balance $ 202,243 Creations 149,235 Redemptions (20,607) Adjustment to redemption value (70,513) Closing balance $ 260,358 Redemption value per Share at period end $ 65.91 2.5. Income Taxes The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis. The Trust has adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740-10, Income Taxes. The Sponsor has evaluated the application of ASC 740 to the Trust, to determine whether or not there are uncertain tax positions in its major jurisdictions that require financial statement recognition. Based on this evaluation, the Sponsor has determined the Trust’s major jurisdictions to be where it is organized and where bullion is held. No uncertain tax positions have been identified. As a result, no income tax liability or expense has been recorded in the accompanying financial statements. 2.6. Investment in Bullion The following represents the changes in ounces of Bullion and the respective values for the years ended December 31, 2015 and 2014 : (Amounts in 000's of US$, except for ounces data) Year Ended December 31, 2015 Ounces of Bullion Gold Silver Platinum Palladium Total Opening balance 111,199.3 4,077,306.0 14,826.5 22,239.7 4,225,571.5 Creations 30,589.1 1,121,600.0 4,078.5 6,117.8 1,162,385.4 Redemptions (51,145.0) (1,875,318.5) (6,819.3) (10,229.0) (1,943,511.8) Transfers of Bullion to pay expenses (460.9) (16,899.9) (61.5) (92.2) (17,514.5) Closing balance 90,182.5 3,306,687.6 12,024.2 18,036.3 3,426,930.6 Investment in Bullion Opening balance $ 133,356 $ 65,115 $ 17,940 $ 17,747 $ 234,158 Creations 33,895 16,659 3,909 3,773 58,236 Redemptions (63,671) (32,014) (8,176) (7,894) (111,755) Realized gain / (loss) on Bullion distributed for the redemption of Shares 2,404 (1,697) (611) 295 391 Transfers of Bullion to pay expenses (540) (269) (67) (67) (943) Realized loss on Bullion transferred to pay expenses (11) (32) (11) (1) (55) Change in unrealized loss on investment in Bullion (9,637) (2,063) (2,499) (3,987) (18,186) Closing balance $ 95,796 $ 45,699 $ 10,485 $ 9,866 $ 161,846 (Amounts in 000's of US$, except for ounces data) Year Ended December 31, 2014 Ounces of Bullion Gold Silver Platinum Palladium Total Opening balance 116,295.9 4,264,181.5 15,506.1 23,259.1 4,419,242.6 Creations 52,698.7 1,932,284.8 7,026.5 10,539.7 2,002,549.7 Redemptions (57,312.5) (2,101,456.8) (7,641.7) (11,462.5) (2,177,873.5) Transfers of Bullion to pay expenses (482.8) (17,703.5) (64.4) (96.6) (18,347.3) Closing balance 111,199.3 4,077,306.0 14,826.5 22,239.7 4,225,571.5 Investment in Bullion Opening balance $ 139,729 $ 83,152 $ 21,057 $ 16,538 $ 260,476 Creations 63,012 31,840 8,584 8,457 111,893 Redemptions (71,795) (40,304) (10,609) (8,415) (131,123) Realized (loss) / gain on Bullion distributed for the redemption of Shares 2,793 (729) 216 516 2,796 Transfers of Bullion to pay expenses (610) (344) (90) (77) (1,121) Realized (loss) / gain on Bullion transferred to pay expenses 27 (3) 2 10 36 Change in unrealized gain / (loss) on investment in Bullion 200 (8,497) (1,220) 718 (8,799) Closing balance $ 133,356 $ 65,115 $ 17,940 $ 17,747 $ 234,158 2.7. Expenses / Realized Gains / Losses 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. 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 (“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 year ended December 31, 2015 the Sponsor’s Fee was $ 937,624 ( December 31, 2014 : $ 1,089,397 ; December 31, 2013: $1,201,105 ) . As of December 31, 2015 , $ 80,206 was payable to the Sponsor ( December 31, 2014 : $ 86,196 ). 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 years ended December 31, 2015, 2014 and 2013. Unless otherwise directed by the Sponsor, when selling Bullion the Trustee will endeavor to sell at the price established by the London Metal Price 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 Metal Price 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. Realized gains and losses result from the transfer of Bullion for Share redemptions and / or to pay expenses and are recognized on a trade date basis as the difference between the fair value and cost of the Bullion transferred. 2.8. Change of Independent Registered Public Accounting Firm On December 15, 2015, KPMG LLP replaced Deloitte & Touche LLP as the Trust’s independent registered public accounting firm to audit and report on the financial statements included in the Trust’s Form 10-K and the Trust’s 10-Qs. The predecessor independent registered public accounting firm’s reports on the Trust’s financial statements for each of the years ending December 31, 2014 and 2013 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. During the fiscal periods and through December 15, 2015, there were no disagreements between the Trust and the predecessor independent registered public accounting firm on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which such disagreements, if not resolved to the satisfaction of the predecessor independent registered public accounting firm, would have caused them to make reference to the subject matter of the disagreement in connection with their reports on the financial statements for such periods. 2.9. Subsequent Events In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events , the Trust’s management has evaluated the possibility of subsequent events existing in the Trust’s financial statements through the filing date. During this period, no material subsequent events requiring adjustment to or disclosure in the financial statements were identified. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2015 | |
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 Custodian and its affiliates may from time to time act as Authorized Participants or purchase or sell Bullion or Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. |
Concentration Of Risk
Concentration Of Risk | 12 Months Ended |
Dec. 31, 2015 | |
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 production and cost levels in major Bullion-producing countries. Recycling, autocatalyst demand, industrial demand, jewelry demand and investment demand are also important drivers of Bullion supply and demand; (ii) investors’ expectations with respect to the rate of inflation; (iii) currency exchange rates; (iv) interest rates; (v) investment and trading activities of hedge funds and commodity funds; and (vi) global or regional political, economic or financial events and situations. In addition, there is no assurance that Bullion will maintain its long-term value in terms of purchasing power in the future. In the event that the price of Bullion declines, the Sponsor expects the value of an investment in the Shares to decline proportionately. Each of these events could have a material effect on the Trust’s financial position and results of operations. |
Indemnification
Indemnification | 12 Months Ended |
Dec. 31, 2015 | |
Indemnification [Abstract] | |
Indemnification | 5. Indemnification Under the Trust’s organizational documents, each of the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees, and affiliates) is indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith or willful misconduct on its part and without reckless disregard on its part of its obligations and duties under the Trust’s organizational documents. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. |
Significant Accounting Polici15
Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2015 | |
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”) Accounting Standards Codification (“ASC”), Topic 946, Financial Services—Investment Companies (“Topic 946”). Consequently, the Trust did not prepare its financial statements applying standards applicable to investment companies in accordance with Topic 946, including recording its investment in Bullion at “fair value” as defined in Topic 946. Instead, the Trust recorded its investment in Bullion at the lower of cost or fair value in accordance with ASC 330. 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 the Statement of Operations for the year ended December 31, 2013 has been conformed to the current year accounting standards. A Statement of Changes in Net Assets is required and has been presented for the years ended December 31, 2015 and 2014. 2. A Schedule of Investments is required and is presented as of December 31, 2015 and 2014. 3. Financial Highlights are required and is presented for the years ended December 31, 2015 and 2014. 4. As the Trust meets the exemption criteria under Topic 946, a cash flow statement is not required for the years ended December 31, 2015 and 2014. Since the adoption of the new accounting principle is prospective, the statement of cash flows for the year ended December 31, 2013 is still presented. 5. Required disclosures under Topic 820, Fair Value Measurements , have been included in the footnotes to the financial statements as of December 31, 2015 and 2014. The quantitative effect of the adoption of investment company accounting is presented below: Value at Gain / (loss) December 31, 2013 Value at as a result of at lower of cost January 1, 2014 change in (Amounts in 000's of US$) or market value at fair value accounting principle Bullion Gold $ 139,729 $ 139,729 $ - Silver $ 83,152 $ 83,152 $ - Platinum $ 21,057 $ 21,057 $ - Palladium $ 15,984 $ 16,538 $ 554 |
Valuation Of Bullion | 2.2. Valuation of Bullion The Trust follows the provisions of ASC 820, Fair Value Measurements and Disclosures ("ASC 820"). ASC 820 provides guidance for determining fair value and requires 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. 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 A.G., or any other firm selected by the Custodian to hold the Trust’s platinum and palladium in the Trust’s allocated account in the firm’s Zurich, Switzerland vault premises on a segregated basis and whose appointment has been approved by the Sponsor, (the “Zurich Sub-Custodian”). The Trust’s Bullion is recorded, per individual metal type, at fair value. The cost of Bullion is determined according to the average cost method and the fair value is based on the relevant “London Metal Price” for each metal held by the Trust. This is the applicable “London Bullion Market Association (“LBMA”) PM Gold Price” for gold of the price of an ounce of gold, the “London Silver Price” for silver and for platinum and palladium the applicable “London Metal Exchange (“LME”) PM Price”. Since March 20, 2015, the LBMA PM Gold Price is set using the afternoon session of the ICE Benchmark Administration (“IBA”) equilibrium auction, an electronic, tradable and auditable over-the-counter auction market with the ability to settle trades in US Dollars, Euros or British Pounds for LBMA authorized participating gold bullion banks or market makers (“gold participants”) that establishes a reference gold price for that day’s trading. Prior to March 20, 2015, the fair value of gold was based on the London PM Fix. The London PM Fix price for gold was set using the afternoon session of the twice daily fix of the price of gold by five market making members of the London Bullion Market Association which occurred at approximately 3:00 PM London time, on each working day. The London PM Fix was discontinued on March 19, 2015. Since December 1, 2014, the LME has been responsible for the administration of the electronic platinum and palladium bullion price fixing system (“LMEbullion”) that replicates electronically the manual London platinum and palladium fixing processes previously employed by the London Platinum and Palladium Fixing Company Ltd (“LPPFCL”) as well as providing electronic market clearing processes for platinum and palladium bullion transactions at the fixed prices established by the LME pricing mechanism. LMEbullion, like the previous London platinum and palladium fix processes, establishes and publishes fixed prices for troy ounces of platinum and palladium twice each London trading day during fixing sessions beginning at 9:45 a.m. London time (the LME AM Fix) and 2:00 p.m. London time (the LME PM Fix). Prior to December 1, 2014, the Trust utilized the London PM Fix as its benchmark for valuation purposes. The London PM Fix for platinum and palladium was the price of an ounce of platinum or palladium (respectively) as set by four fixing members of the London Platinum and Palladium Market (“LPPM”) at approximately 2:00 PM, London time, on each working day and was widely accepted among platinum and palladium market participants. The London PM Fix was discontinued on November 30, 2014. Since August 15, 2014, CME Group, Inc. has been conducting an electronic, over-the-counter silver bullion auction in London, England to establish a fixing price for an ounce of silver once each trading day, which is disseminated by Thomson Reuters (the “London Silver Price”). The London Silver Price is established by the five LBMA authorized bullion banks and market makers participating in the auction. The “London Metal Price” for silver held by the Trust is the London Silver Price. Prior to August 15, 2014, the Trust utilized the “London Fix” for silver as its benchmark for silver valuation purposes. The London Fix for silver, which London Silver Market Fixing Ltd. discontinued on August 14, 2014, was the price of an ounce of silver as set by three market making members of the LBMA at approximately 12:00 noon, London time, on each London business day and was widely accepted among silver market participants. Once the value of gold has been determined, the net asset value (the “NAV”) is computed by the Trustee by deducting all accrued fees and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s Fee”), from the fair value of the gold and all other assets held by the Trust. The Trust 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. The per Share amount of Bullion exchanged for a purchase or redemption is calculated daily by the Trustee, using the London Metal Price for each metal held by the Trust to calculate the Bullion amount in respect of any liabilities for which covering Bullion sales have not yet been made, and 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 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: (Amounts in 000's of US$) December 31, 2015 December 31, 2014 Level 2 Investment in Bullion $ 161,846 $ 234,158 There were no re-allocations or transfers between levels during the years ended December 31, 2015 and 2014. |
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 days of the trade date. |
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 (a Basket equals a block of 50,000 Shares). The Trust issues Shares in Baskets to Authorized Participants on an ongoing basis. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. An Authorized Participant is a person who (1) is registered as a 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 (4) has established an Authorized Participant Unallocated Account with the Trust’s Custodian. 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 and any cash represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received. Authorized Participants may, on any business day, place an order with the Trustee to create or redeem one or more Baskets. The typical settlement period for Shares is three business days. In the event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded. When Bullion is exchanged in settlement of redemption, it is considered a sale of Bullion for financial statement purposes. The amount of Bullion represented by the Baskets created or redeemed can only be settled to the nearest 1/1000 th of an ounce. 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 metal is available at all times to back the Shares, the Sponsor accepts an adjustment to its management fees in the event of any shortfall or excess. For each transaction, this amount is not more than 1/1000 th of an ounce. As the Shares of the Trust are subject to redemption at the option of Authorized Participants, the Trust has classified the outstanding Shares as Redeemable Capital Shares as of December 31, 2013 and as Net Assets as of December 31, 2015 and 2014. For the year ended December 31, 2013, the Trust recorded the redemption value, which represents the maximum obligation (based on NAV per Share), with the difference from historical cost recorded as an offsetting amount to Shareholders’ Equity. Changes in Shares for the years ended December 31, 2015 and 2014 are presented in the Statement of Changes in Net Assets. Changes in the Shares for the year ended December 31, 2013 are set out below: Year Ended December 31, 2013 (Amounts in 000's of US$, except for Share and per Share data) Number of redeemable Shares Opening balance 2,200,000 Creations 2,050,000 Redemptions (300,000) Closing balance 3,950,000 Redeemable Shares Opening balance $ 202,243 Creations 149,235 Redemptions (20,607) Adjustment to redemption value (70,513) Closing balance $ 260,358 Redemption value per Share at period end $ 65.91 |
Income Taxes | 2.5. Income Taxes The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis. The Trust has adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740-10, Income Taxes. The Sponsor has evaluated the application of ASC 740 to the Trust, to determine whether or not there are uncertain tax positions in its major jurisdictions that require financial statement recognition. Based on this evaluation, the Sponsor has determined the Trust’s major jurisdictions to be where it is organized and where bullion is held. No uncertain tax positions have been identified. As a result, no income tax liability or expense has been recorded in the accompanying financial statements. |
Investment In Bullion | 2.6. Investment in Bullion The following represents the changes in ounces of Bullion and the respective values for the years ended December 31, 2015 and 2014 : (Amounts in 000's of US$, except for ounces data) Year Ended December 31, 2015 Ounces of Bullion Gold Silver Platinum Palladium Total Opening balance 111,199.3 4,077,306.0 14,826.5 22,239.7 4,225,571.5 Creations 30,589.1 1,121,600.0 4,078.5 6,117.8 1,162,385.4 Redemptions (51,145.0) (1,875,318.5) (6,819.3) (10,229.0) (1,943,511.8) Transfers of Bullion to pay expenses (460.9) (16,899.9) (61.5) (92.2) (17,514.5) Closing balance 90,182.5 3,306,687.6 12,024.2 18,036.3 3,426,930.6 Investment in Bullion Opening balance $ 133,356 $ 65,115 $ 17,940 $ 17,747 $ 234,158 Creations 33,895 16,659 3,909 3,773 58,236 Redemptions (63,671) (32,014) (8,176) (7,894) (111,755) Realized gain / (loss) on Bullion distributed for the redemption of Shares 2,404 (1,697) (611) 295 391 Transfers of Bullion to pay expenses (540) (269) (67) (67) (943) Realized loss on Bullion transferred to pay expenses (11) (32) (11) (1) (55) Change in unrealized loss on investment in Bullion (9,637) (2,063) (2,499) (3,987) (18,186) Closing balance $ 95,796 $ 45,699 $ 10,485 $ 9,866 $ 161,846 (Amounts in 000's of US$, except for ounces data) Year Ended December 31, 2014 Ounces of Bullion Gold Silver Platinum Palladium Total Opening balance 116,295.9 4,264,181.5 15,506.1 23,259.1 4,419,242.6 Creations 52,698.7 1,932,284.8 7,026.5 10,539.7 2,002,549.7 Redemptions (57,312.5) (2,101,456.8) (7,641.7) (11,462.5) (2,177,873.5) Transfers of Bullion to pay expenses (482.8) (17,703.5) (64.4) (96.6) (18,347.3) Closing balance 111,199.3 4,077,306.0 14,826.5 22,239.7 4,225,571.5 Investment in Bullion Opening balance $ 139,729 $ 83,152 $ 21,057 $ 16,538 $ 260,476 Creations 63,012 31,840 8,584 8,457 111,893 Redemptions (71,795) (40,304) (10,609) (8,415) (131,123) Realized (loss) / gain on Bullion distributed for the redemption of Shares 2,793 (729) 216 516 2,796 Transfers of Bullion to pay expenses (610) (344) (90) (77) (1,121) Realized (loss) / gain on Bullion transferred to pay expenses 27 (3) 2 10 36 Change in unrealized gain / (loss) on investment in Bullion 200 (8,497) (1,220) 718 (8,799) Closing balance $ 133,356 $ 65,115 $ 17,940 $ 17,747 $ 234,158 |
Expenses / Realized Gains / Losses | 2.7. Expenses / Realized Gains / Losses 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. 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 (“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 year ended December 31, 2015 the Sponsor’s Fee was $ 937,624 ( December 31, 2014 : $ 1,089,397 ; December 31, 2013: $1,201,105 ) . As of December 31, 2015 , $ 80,206 was payable to the Sponsor ( December 31, 2014 : $ 86,196 ). 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 years ended December 31, 2015, 2014 and 2013. Unless otherwise directed by the Sponsor, when selling Bullion the Trustee will endeavor to sell at the price established by the London Metal Price 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 Metal Price 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. Realized gains and losses result from the transfer of Bullion for Share redemptions and / or to pay expenses and are recognized on a trade date basis as the difference between the fair value and cost of the Bullion transferred. |
Change Of Independent Registered Public Accounting Firm | 2.8. Change of Independent Registered Public Accounting Firm On December 15, 2015, KPMG LLP replaced Deloitte & Touche LLP as the Trust’s independent registered public accounting firm to audit and report on the financial statements included in the Trust’s Form 10-K and the Trust’s 10-Qs. The predecessor independent registered public accounting firm’s reports on the Trust’s financial statements for each of the years ending December 31, 2014 and 2013 contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. During the fiscal periods and through December 15, 2015, there were no disagreements between the Trust and the predecessor independent registered public accounting firm on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which such disagreements, if not resolved to the satisfaction of the predecessor independent registered public accounting firm, would have caused them to make reference to the subject matter of the disagreement in connection with their reports on the financial statements for such periods. |
Subsequent Events | 2.9. Subsequent Events In accordance with the provisions set forth in FASB ASC 855-10, Subsequent Events , the Trust’s management has evaluated the possibility of subsequent events existing in the Trust’s financial statements through the filing date. During this period, no material subsequent events requiring adjustment to or disclosure in the financial statements were identified. |
Significant Accounting Polici16
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Quantitative Effect Of Adoption Of Investment Company Accounting | Value at Gain / (loss) December 31, 2013 Value at as a result of at lower of cost January 1, 2014 change in (Amounts in 000's of US$) or market value at fair value accounting principle Bullion Gold $ 139,729 $ 139,729 $ - Silver $ 83,152 $ 83,152 $ - Platinum $ 21,057 $ 21,057 $ - Palladium $ 15,984 $ 16,538 $ 554 |
Categorization Of The Trust's Assets | (Amounts in 000's of US$) December 31, 2015 December 31, 2014 Level 2 Investment in Bullion $ 161,846 $ 234,158 |
Schedule Of Redeemable Capital Shares | Year Ended December 31, 2013 (Amounts in 000's of US$, except for Share and per Share data) Number of redeemable Shares Opening balance 2,200,000 Creations 2,050,000 Redemptions (300,000) Closing balance 3,950,000 Redeemable Shares Opening balance $ 202,243 Creations 149,235 Redemptions (20,607) Adjustment to redemption value (70,513) Closing balance $ 260,358 Redemption value per Share at period end $ 65.91 |
Schedule Of Investment In Bullion | (Amounts in 000's of US$, except for ounces data) Year Ended December 31, 2015 Ounces of Bullion Gold Silver Platinum Palladium Total Opening balance 111,199.3 4,077,306.0 14,826.5 22,239.7 4,225,571.5 Creations 30,589.1 1,121,600.0 4,078.5 6,117.8 1,162,385.4 Redemptions (51,145.0) (1,875,318.5) (6,819.3) (10,229.0) (1,943,511.8) Transfers of Bullion to pay expenses (460.9) (16,899.9) (61.5) (92.2) (17,514.5) Closing balance 90,182.5 3,306,687.6 12,024.2 18,036.3 3,426,930.6 Investment in Bullion Opening balance $ 133,356 $ 65,115 $ 17,940 $ 17,747 $ 234,158 Creations 33,895 16,659 3,909 3,773 58,236 Redemptions (63,671) (32,014) (8,176) (7,894) (111,755) Realized gain / (loss) on Bullion distributed for the redemption of Shares 2,404 (1,697) (611) 295 391 Transfers of Bullion to pay expenses (540) (269) (67) (67) (943) Realized loss on Bullion transferred to pay expenses (11) (32) (11) (1) (55) Change in unrealized loss on investment in Bullion (9,637) (2,063) (2,499) (3,987) (18,186) Closing balance $ 95,796 $ 45,699 $ 10,485 $ 9,866 $ 161,846 (Amounts in 000's of US$, except for ounces data) Year Ended December 31, 2014 Ounces of Bullion Gold Silver Platinum Palladium Total Opening balance 116,295.9 4,264,181.5 15,506.1 23,259.1 4,419,242.6 Creations 52,698.7 1,932,284.8 7,026.5 10,539.7 2,002,549.7 Redemptions (57,312.5) (2,101,456.8) (7,641.7) (11,462.5) (2,177,873.5) Transfers of Bullion to pay expenses (482.8) (17,703.5) (64.4) (96.6) (18,347.3) Closing balance 111,199.3 4,077,306.0 14,826.5 22,239.7 4,225,571.5 Investment in Bullion Opening balance $ 139,729 $ 83,152 $ 21,057 $ 16,538 $ 260,476 Creations 63,012 31,840 8,584 8,457 111,893 Redemptions (71,795) (40,304) (10,609) (8,415) (131,123) Realized (loss) / gain on Bullion distributed for the redemption of Shares 2,793 (729) 216 516 2,796 Transfers of Bullion to pay expenses (610) (344) (90) (77) (1,121) Realized (loss) / gain on Bullion transferred to pay expenses 27 (3) 2 10 36 Change in unrealized gain / (loss) on investment in Bullion 200 (8,497) (1,220) 718 (8,799) Closing balance $ 133,356 $ 65,115 $ 17,940 $ 17,747 $ 234,158 |
Organization (Details)
Organization (Details) | 12 Months Ended |
Dec. 31, 2015shares | |
Organization [Abstract] | |
Minimum block of shares issued redeemed against bullion | 50,000 |
Significant Accounting Polici18
Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Accounting Policies [Abstract] | |||
Reserve for uncertain tax positions | $ 0 | ||
Annualized rate of Sponsors Fee | 0.60% | 0.60% | |
Sponsor Fees | $ 937,624 | $ 1,089,397 | $ 1,201,105 |
Fees payable to Sponsor | 80,206 | 86,196 | |
All other expenses | $ 0 | $ 0 | $ 0 |
Significant Accounting Polici19
Significant Accounting Policies (Quantitative Effect Of Adoption Of Investment Company Accounting) (Details) - USD ($) $ in Thousands | Jan. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Value at December 31, 2013 at lower of cost or market value | $ 234,158 | ||||
Value at January 1, 2014 at fair value | 234,158 | $ 161,846 | $ 260,476 | ||
Gain / (loss) as a result of change in accounting principle | [1] | 554 | |||
Gold [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Value at December 31, 2013 at lower of cost or market value | 133,356 | 139,729 | |||
Value at January 1, 2014 at fair value | $ 139,729 | 133,356 | 95,796 | 139,729 | |
Silver [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Value at December 31, 2013 at lower of cost or market value | 65,115 | 83,152 | |||
Value at January 1, 2014 at fair value | 83,152 | 65,115 | 45,699 | 83,152 | |
Platinum [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Value at December 31, 2013 at lower of cost or market value | 17,940 | 21,057 | |||
Value at January 1, 2014 at fair value | 21,057 | 17,940 | 10,485 | 21,057 | |
Palladium [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Value at December 31, 2013 at lower of cost or market value | 17,747 | 15,984 | |||
Value at January 1, 2014 at fair value | 16,538 | $ 17,747 | $ 9,866 | $ 16,538 | |
Gain / (loss) as a result of change in accounting principle | $ 554 | ||||
[1] | Effective January 1, 2014, the Trust has adopted the provisions of Topic 946. Refer to Note 2.1 for additional information. |
Significant Accounting Polici20
Significant Accounting Policies (Categorization Of The Trust's Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in Bullion | $ 161,846 | $ 234,158 |
Significant Accounting Polici21
Significant Accounting Policies (Schedule Of Bullion Receivable And Payable) (Details) $ in Thousands | Dec. 31, 2014USD ($) |
Significant Accounting Policies [Abstract] | |
Bullion receivable | $ 3,080 |
Significant Accounting Polici22
Significant Accounting Policies (Schedule Of Redeemable Capital Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||
Significant Accounting Policies [Abstract] | ||||||
Opening balance (in Shares) | 3,850,000 | 3,950,000 | 2,200,000 | |||
Creations (in Shares) | 1,000,000 | 1,850,000 | 2,050,000 | |||
Redemptions (in Shares) | (1,750,000) | (1,950,000) | (300,000) | |||
Closing balance (in Shares) | 3,100,000 | 3,850,000 | 3,950,000 | |||
Opening balance | $ 260,358 | $ 202,243 | ||||
Creations | $ 55,156 | [1] | 114,973 | [1] | 149,235 | |
Redemptions | $ (111,755) | [1] | $ (131,123) | [1] | (20,607) | |
Adjustment to redemption value | [1] | (70,513) | ||||
Closing balance | $ 260,358 | |||||
Redemption value per Share at period end (in Dollars per share) | $ 65.91 | |||||
[1] | Effective January 1, 2014, the Trust has adopted the provisions of Topic 946. Refer to Note 2.1 for additional information. |
Significant Accounting Polici23
Significant Accounting Policies (Schedule Of Investment In Bullion) (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2015USD ($)oz | Dec. 31, 2014USD ($)oz | Dec. 31, 2013USD ($)oz | ||||
Bullion [Line Items] | ||||||
Opening balance (in Ounces) | oz | 4,225,571.5 | 4,419,242.6 | ||||
Creations (in Ounces) | oz | 1,162,385.4 | 2,002,549.7 | ||||
Redemptions (in Ounces) | oz | (1,943,511.8) | (2,177,873.5) | ||||
Transfers of Bullion to pay expenses (in Ounces) | oz | (17,514.5) | (18,347.3) | ||||
Closing balance (in Ounces) | oz | 3,426,930.6 | 4,225,571.5 | 4,419,242.6 | |||
Opening balance | $ 234,158 | $ 260,476 | ||||
Creations | 58,236 | 111,893 | $ 149,236 | [1] | ||
Redemptions | (111,755) | (131,123) | ||||
Realized gain / (loss) on Bullion transferred for redemptions | 391 | [2] | 2,796 | [2] | (4,010) | [3] |
Transfers of Bullion to pay expenses | (943) | (1,121) | ||||
Realized (loss) / gain on Bullion transferred to pay expenses | (55) | [2] | 36 | [2] | (79) | [3] |
Change in unrealized loss on investment in Bullion | (18,186) | [2] | (8,799) | [2] | 0 | [3] |
Closing balance | $ 161,846 | $ 234,158 | $ 260,476 | |||
Gold [Member] | ||||||
Bullion [Line Items] | ||||||
Opening balance (in Ounces) | oz | 111,199.3 | 116,295.9 | ||||
Creations (in Ounces) | oz | 30,589.1 | 52,698.7 | ||||
Redemptions (in Ounces) | oz | (51,145) | (57,312.5) | ||||
Transfers of Bullion to pay expenses (in Ounces) | oz | (460.9) | (482.8) | ||||
Closing balance (in Ounces) | oz | 90,182.5 | 111,199.3 | 116,295.9 | |||
Opening balance | $ 133,356 | $ 139,729 | ||||
Creations | 33,895 | 63,012 | ||||
Redemptions | (63,671) | (71,795) | ||||
Realized gain / (loss) on Bullion transferred for redemptions | 2,404 | 2,793 | ||||
Transfers of Bullion to pay expenses | (540) | (610) | ||||
Realized (loss) / gain on Bullion transferred to pay expenses | (11) | 27 | ||||
Change in unrealized loss on investment in Bullion | (9,637) | 200 | ||||
Closing balance | $ 95,796 | $ 133,356 | $ 139,729 | |||
Silver [Member] | ||||||
Bullion [Line Items] | ||||||
Opening balance (in Ounces) | oz | 4,077,306 | 4,264,181.5 | ||||
Creations (in Ounces) | oz | 1,121,600 | 1,932,284.8 | ||||
Redemptions (in Ounces) | oz | (1,875,318.5) | (2,101,456.8) | ||||
Transfers of Bullion to pay expenses (in Ounces) | oz | (16,899.9) | (17,703.5) | ||||
Closing balance (in Ounces) | oz | 3,306,687.6 | 4,077,306 | 4,264,181.5 | |||
Opening balance | $ 65,115 | $ 83,152 | ||||
Creations | 16,659 | 31,840 | ||||
Redemptions | (32,014) | (40,304) | ||||
Realized gain / (loss) on Bullion transferred for redemptions | (1,697) | (729) | ||||
Transfers of Bullion to pay expenses | (269) | (344) | ||||
Realized (loss) / gain on Bullion transferred to pay expenses | (32) | (3) | ||||
Change in unrealized loss on investment in Bullion | (2,063) | (8,497) | ||||
Closing balance | $ 45,699 | $ 65,115 | $ 83,152 | |||
Platinum [Member] | ||||||
Bullion [Line Items] | ||||||
Opening balance (in Ounces) | oz | 14,826.5 | 15,506.1 | ||||
Creations (in Ounces) | oz | 4,078.5 | 7,026.5 | ||||
Redemptions (in Ounces) | oz | (6,819.3) | (7,641.7) | ||||
Transfers of Bullion to pay expenses (in Ounces) | oz | (61.5) | (64.4) | ||||
Closing balance (in Ounces) | oz | 12,024.2 | 14,826.5 | 15,506.1 | |||
Opening balance | $ 17,940 | $ 21,057 | ||||
Creations | 3,909 | 8,584 | ||||
Redemptions | (8,176) | (10,609) | ||||
Realized gain / (loss) on Bullion transferred for redemptions | (611) | 216 | ||||
Transfers of Bullion to pay expenses | (67) | (90) | ||||
Realized (loss) / gain on Bullion transferred to pay expenses | (11) | 2 | ||||
Change in unrealized loss on investment in Bullion | (2,499) | (1,220) | ||||
Closing balance | $ 10,485 | $ 17,940 | $ 21,057 | |||
Palladium [Member] | ||||||
Bullion [Line Items] | ||||||
Opening balance (in Ounces) | oz | 22,239.7 | 23,259.1 | ||||
Creations (in Ounces) | oz | 6,117.8 | 10,539.7 | ||||
Redemptions (in Ounces) | oz | (10,229) | (11,462.5) | ||||
Transfers of Bullion to pay expenses (in Ounces) | oz | (92.2) | (96.6) | ||||
Closing balance (in Ounces) | oz | 18,036.3 | 22,239.7 | 23,259.1 | |||
Opening balance | $ 17,747 | $ 16,538 | ||||
Creations | 3,773 | 8,457 | ||||
Redemptions | (7,894) | (8,415) | ||||
Realized gain / (loss) on Bullion transferred for redemptions | 295 | 516 | ||||
Transfers of Bullion to pay expenses | (67) | (77) | ||||
Realized (loss) / gain on Bullion transferred to pay expenses | (1) | 10 | ||||
Change in unrealized loss on investment in Bullion | (3,987) | 718 | ||||
Closing balance | $ 9,866 | $ 17,747 | $ 16,538 | |||
[1] | In accordance with Topic 946, the Trust meets the exemption criteria to exclude a statement of cash flows. Thus one has not been presented for the years ended December 31, 2015 and 2014. Refer to Note 2.1 for additional information. | |||||
[2] | Effective January 1, 2014, the Trust has adopted the provisions of Topic 946. Refer to Note 2.1 for additional information. | |||||
[3] | Represents audited amounts prior to the adoption of provisions for an investment company for accounting purposes. Refer to Note 2.1 for additional information. |