GraniteShares Platinum Trust 10-K

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The Trust was formed on January 11, 2018 (the “Date of Inception”) following an initial deposit of platinum. The Trust’s Shares have been listed on the NYSE Arca under the symbol PLTM since its initial public offering on January 18, 2018. The following tables set out the range of high and low closing prices for the Shares as reported for NYSE Arca transactions for each of the quarters during the fiscal year ended June 30, 2021: Fiscal Year Ended June 30, 2021: Quarter Ended High Low September 2020 $ 9.89 $ 8.05 December 2020 $ 10.62 $ 8.36 March 2021 $ 12.62 $ 10.22 June 2021 $ 12.40 $ 10.25 The number of outstanding Shares of the Trust as of August 13, 2021 was 3,600,000. Monthly Share Price The following table sets forth, for each month since inception, the high and low closing prices of the Shares, as reported for NYSE Arca transactions. High Low July 2020 $ 9.47 $ 8.05 August 2020 $ 9.89 $ 9.08 September 2020 $ 9.60 $ 8.24 October 2020 $ 8.96 $ 8.36 November 2020 $ 9.56 $ 8.52 December 2020 $ 10.62 $ 9.91 January 2021 $ 11.20 $ 10.22 February 2021 $ 12.62 $ 10.73 March 2021 $ 12.04 $ 11.10 April 2021 $ 12.26 $ 11.40 May 2021 $ 12.40 $ 11.53 June 2021 $ 11.79 $ 10.25 Issuer Purchase of Shares The Trust issues and redeems Shares only with Authorized Participants in exchange for platinum, only in aggregations of 50,000 Shares or integral multiples thereof. A list of current Authorized Participants is available from the Sponsor or the Trustee and is included in Item 7 of this report. Although the Trust does not purchase Shares directly from its Shareholders in connection with the redemption of Baskets, the Trust redeemed as follows during the fiscal year ended June 30, 2021: Month Total number of Shares redeemed Average ounces of platinum per Share July 2020 - - August 2020 - - September 2020 - - October 2020 - - November 2020 150,000 0.0098604 December 2020 - - January 2021 - - February 2021 - - March 2021 April 2021 - - May 2021 June 2021 - - Total 150,000 0.0098604 26 Item 6. Selected Financial Data The following selected financial data for the reporting periods should be read in conjunction with the Trust’s financial statements and related notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations. June 30, 2021 June 30, 2020 (Amounts in 000’s of US$, except per Share data) Total assets $ 37,494 $ 8,849 Total gain / (loss) on platinum $ 1,440 $ (1,204 ) Change in net assets from operations $ 1,310 $ (1,241 ) Weighted average number of Shares (in 000’s) 2,433 868 Net increase / (decrease) in net assets per Share $ 0.54 $ (1.43 ) Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations This information should be read in conjunction with the financial statements and notes to the financial statements included with this report. The discussion and analysis that follows may contain statements that relate to future events or future performance. In some cases, such forward-looking statements can be identified by terminology such as “may,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or the negative of these terms or other comparable terminology. We remind readers that forward-looking statements are merely predictions and therefore inherently subject to uncertainties and other factors and involve known and unknown risks that could cause the actual results, performance, levels of activity, or our achievements, or industry results, to be materially different from any future results, performance, levels of activity, or our achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Trust undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Introduction. The GraniteShares Platinum Trust (the “Trust”) is a trust formed under the laws of the State of New York. The Trust does not have any officers, directors, or employees, and is administered by The Bank of New York Mellon (the “Trustee”) acting as trustee pursuant to the Depositary Trust Agreement (the “Trust Agreement”) between the Trustee and GraniteShares LLC, the sponsor of the Trust (the “Sponsor”). The Trust issues Shares representing fractional undivided beneficial interests in its net assets. The assets of the Trust consist of platinum bullion held by a custodian as an agent of the Trust and responsible only to the Trustee. The Trust is a passive investment vehicle and the objective of the Trust is for the value of each Share to approximately reflect, at any given time, the price of the platinum bullion owned by the Trust, less the Trust’s liabilities (anticipated to be principally for accrued operating expenses), divided by the number of outstanding Shares. The Trust does not engage in any activities designed to obtain a profit from, or ameliorate losses caused by, changes in the price of platinum. The Trust issues and redeems Shares only in exchange for platinum, only in aggregations of 50,000 or integral multiples thereof (each, a “Basket”), and only in transactions with registered broker-dealers or other securities market participants not required to register as broker-dealers, such as a bank or other financial institution, that (1) are participants in DTC and (2) have previously entered into an agreement with the Trust governing the terms and conditions of such issuance (such dealers, the “Authorized Participants”). As of the date of this annual report the Authorized Participants that have signed an Authorized Participant Agreement with the J.P. Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., and Virtu Financial BD, LLC. Shares of the Trust trade on the NYSE Arca under the symbol “PLTM”. 27 Investing in the Shares does not insulate the investor from certain risks, including price volatility. The following graph illustrates the movement in the net asset value (“NAV”) of the Shares against the corresponding platinum price (per 1/100 of an oz. of platinum) since inception: NAV per Share vs. 1/100th platinum price from the January 11, 2018 (the Date of Inception) to June 30, 2021 (1) (1) Adjusted for effect of stock split. The stock split was effective on March 11, 2019. See Note 1 to the Financial Statements Source: Bloomberg The divergence of the NAV per Share from the platinum price over time reflects the cumulative effect of the Trust expenses that arise if an investment had been held since inception. Critical Accounting Policy The financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. Below we describe the valuation of platinum bullion, a critical accounting policy that we believe is important to understanding our results of operations and financial position. In addition, please refer to Note 2 to the Financial Statements for further discussion of our accounting policies. Valuation of Platinum Platinum is held by the Custodian on behalf of the Trust. Platinum is recorded at fair value. The cost of platinum is determined according to the average cost method and the fair value is based on the LBMA Platinum Price PM. Realized gains and losses on transfers of platinum, or platinum distributed for the redemption of Shares, are calculated on a trade date basis as the difference between the fair value and cost of platinum transferred. June 30, 2021 June 30, 2020 (Amounts in 000’s of US$) Investment in platinum - cost $ 37,168 $ 9,975 Unrealized gain / (loss) on investment in platinum 326 (1,126 ) Investment in platinum - fair value $ 37,494 $ 8,849 Inspection of Platinum Under the Custody Agreements, the Trustee, the Sponsor and the Sponsor’s auditors and inspectors may, only up to twice a year, visit the premises of the Custodian for the purpose of examining the Trust’s platinum and certain related records maintained by the Custodian. 28 The Sponsor has exercised its right to visit the Custodian in order to examine the platinum and the records maintained by them. The most recent inspection by Inspectorate International Limited, a leading commodity inspection and testing company retained by the Sponsor, of the Custodian was conducted as of July 8, 2021 Liquidity The Trust is not aware of any trends, demands, conditions or events that are reasonably likely to result in material changes to its liquidity needs. In exchange for a fee (the “Sponsor’s Fee”), the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only expense of the Trust during the period covered by this report was the Sponsor’s Fee. The Trust’s only source of liquidity is its transfers and sales of platinum. The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s platinum as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell platinum to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of platinum to the Sponsor. At June 30, 2021 the Trust did not have any cash balances. Review of Financial Results Financial Highlights June 30, 2021 June 30, 2020 (Amounts in 000’s of US$) Total gain / (loss) on platinum $ 1,440 $ (1,204 ) Change in net assets from operations $ 1,310 $ (1,241 ) Net increase (decrease) in net assets per share $ 0.54 $ (1.43 ) Fiscal year ended June 30, 2021 The Trust’s NAV increased from $8,845,503 on June 30, 2020 to $37,477,854 on June 30, 2021, a 324% increase for the year. The increase in the Trust’s NAV resulted primarily from an increase in outstanding Shares, which rose from 1,100,000 Shares on June 30, 2020 to 3,600,000 Shares on June 30, 2021, a result of 2,650,000 Shares (53 Baskets) being created and 150,000 Shares (3 Baskets) being redeemed during that period The NAV per Share increased 29.5% from $8.04 on June 30, 2020 to $10.41 on June 30, 2021. The price per ounce of platinum increased 30.1% from $814.00 on June 30, 2020 to $1059.00 on June 30, 2021. The Trust’s NAV per Share increased slightly less than the price per ounce of platinum on a percentage basis due to the Sponsor’s Fee, which was $130,460 for the year, or 0.50% of the Trust’s assets on an annualized basis. Fiscal year ended June 30, 2020 The Trust’s NAV increased from $3,654,518 on June 30, 2019 to $8,845,503 on June 30, 2020, a 142% increase for the year. The increase in the Trust’s NAV resulted primarily from an increase in outstanding Shares, which rose from 450,000 Shares on June 30, 2019 to 1,100,000 Shares on June 30, 2020, a result of 1,100,000 Shares (22 Baskets) being created and 450,000 Shares (9 Baskets) being redeemed during that period The NAV per Share decreased 0.99% from $8.12 on June 30, 2019 to $8.04 on June 30, 2020. The price per ounce of platinum decreased 0.49% from $818.00 on June 30, 2019 to $814.00 on June 30, 2020. The Trust’s NAV per Share decreased slightly more than the price per ounce of platinum on a percentage basis due to the Sponsor’s Fee, which was $37,135 for the year, or 0.50% of the Trust’s assets on an annualized basis. Off-Balance Sheet Arrangements The Trust is not a party to any off-balance sheet arrangements. 29