GraniteShares Platinum Trust (PLTM) risk factors, FY2025 10-K

Other

1. 01The value of the Shares relates directly to the value of the platinum held by the Trust and fluctuations in the price of platinum could materially adversely affect an investment in the Shares
2. 02The Shares may trade at a price which is at, above or below the NAV per Share and any discount or premium in the trading price relative to the NAV per Share may widen as a result of non-concurrent trading hours between the NYSE Arca, London and COMEX
3. 03A possible “short squeeze” due to a sudden increase in demand of Shares that largely exceeds supply may lead to price volatility in the Shares
4. 04Purchasing activity in the platinum market associated with the purchase of Baskets from the Trust may cause a temporary increase in the price of platinum. This increase may adversely affect an investment in the Shares
5. 05The Shares and their value could decrease if unanticipated operational or trading problems arise
6. 06Discrepancies, disruptions or unreliability of the LBMA Platinum Price could impact the value of the Trust’s platinum and the market price of the Shares
7. 07Crises may motivate large-scale sales of platinum which could decrease the price of platinum and adversely affect an investment in the Shares
8. 08The Trust is a passive investment vehicle. This means that the value of your Shares may be adversely affected by Trust losses that, if the Trust had been actively managed, it might have been possible to avoid
9. 09The result obtained by subtracting the Trust’s expenses and liabilities on any day from the price of the platinum owned by the Trust on that day is the net asset value of the Trust which, when divided by the number of Shares outstanding on that day, results in the NAV per Share
10. 10The Trust may be forced to sell platinum earlier than anticipated if expenses are higher than expected
11. 11Because the Trust is not a diversified investment, it may be more volatile than other investments
12. 12The liquidation of the Trust may occur at a time when the disposition of the Trust’s platinum will result in losses to investors in Shares
13. 13In the event that one or more Authorized Participants that have substantial interests in Shares withdraw from participation, the liquidity of the Shares will likely decrease which could adversely affect the market price of the Shares and result in your incurring a loss on your investment
14. 14Authorized Participants with large holdings may choose to terminate the Trust
15. 15The lack of an active trading market for the Shares may result in losses on your investment at the time of disposition of your Shares
16. 16If the process of creation and redemption of Baskets encounters any unanticipated difficulties, the possibility for arbitrage transactions intended to keep the price of the Shares closely linked to the price of platinum may not exist and, as a result, the price of the Shares may fall or otherwise diverge from NAV
17. 17As an owner of Shares, you will not have the rights normally associated with ownership of other types of shares
18. 18As an owner of Shares, you will not have the protections normally associated with ownership of shares in an investment company registered under the Investment Company Act, or the protections afforded by the Commodity Exchange Act
19. 19An investment in the Shares may be adversely affected by competition from other methods of investing in platinum
20. 20The price of platinum may be affected by the sale of ETVs tracking the platinum market
21. 21The value of the Shares will be adversely affected if platinum owned by the Trust is lost or damaged in circumstances in which the Trust is not in a position to recover the corresponding loss
22. 22Any loss of platinum owned by the Trust will result in a corresponding loss in the net asset value of the Trust and it is reasonable to expect that such loss will also result in a decrease in the value at which the Shares are traded on the Exchange
23. 23Neither the Shareholders nor any Authorized Participant will have a right under the Custody Agreements to assert a claim of the Trustee against the Custodian. Claims under the Custody Agreements may only be asserted by the Trustee on behalf of the Trust
24. 24The value of the Shares will be adversely affected if any services provided to the Trust by the Sponsor, the Custodian or the Trustee are suddenly or unexpectedly terminated
25. 25The value of the Shares will be adversely affected if the Trust is required to indemnify the Sponsor, the Trustee, or the Custodian as contemplated in the Trust Agreement and the Custody Agreements
26. 26The service providers engaged by the Trust may not carry adequate insurance to cover claims against them by the Trust, which could adversely affect the value of net assets of the Trust
27. 27The Sponsor and its affiliates manage other funds, including those that invest in physical platinum bullion or other precious metals, and conflicts of interest may occur, which may reduce the value of the net assets of the Trust, the NAV and the trading price of the Shares
28. 28The Sponsor and the Trustee may agree to amend the Trust Agreement without the consent of the Shareholders
29. 29Shareholders could incur a tax liability without an associated distribution of the Trust
30. 30The Trust may be negatively impacted by the effects of the spread of illnesses or other public health emergencies on the global economy and the markets and service providers relevant to the performance of the Trust

Risks Relating to Prior Securities Issuances

1. 31Issuances of the Trust’s securities are subject to federal and state securities laws, and certain holders of shares of beneficial interest issued by the Trust may be entitled to rescission