NYSE: GLTR

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. The Trust does not and will not
hold or trade in commodities futures contracts, “commodity interests” or any other instruments regulated by the Commodity
Exchange Act (the “CEA”), as administered by the Commodity Futures Trading Commission (the “CFTC”) and
the National Futures Association (“NFA”). The Trust is not a commodity pool for purposes of the CEA and the Shares
are not “commodity interests,” and neither the Sponsor nor the Trustee is subject to regulation as a commodity pool
operator or a commodity trading advisor in connection with the Shares. The Trust has no fixed termination date.

The Sponsor of the registrant maintains an
Internet website at www.abrdn.com/us/etf through which the registrant’s annual
reports on Form 10-K, quarterly reports on Form 10-Q, and amendments to those reports filed or furnished pursuant to Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, are made available free of charge as soon as
reasonably practicable after they have been filed or furnished to the Securities and Exchange Commission (the “SEC”).
The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers
that file electronically at www.sec.gov.

Trust Objective

The investment objective of the Trust is for
the Shares to reflect the performance of the prices of physical gold, silver, platinum and palladium, in the proportions held by
the Trust, less the Trust’s expenses. The Shares are intended to constitute a simple and cost-effective means of making an
investment similar to a proportional investment in gold, silver, platinum and palladium. An investment in physical Bullion requires
expensive and sometimes complicated arrangements in connection with the assay, transportation, warehousing and insurance of the
metal. Although the Shares are not the exact equivalent of an investment in Bullion, they provide investors with an alternative
that allows a level of participation in the gold, silver, platinum and palladium markets through the securities market.

The Shares are intended to provide institutional
and retail investors with a simple and cost-efficient means, with minimal credit risk, of gaining investment benefits similar to
those of holding physical Bullion. The Shares offer an investment that:

● Easily Accessible and Relatively Cost Effective.
Investors can access the gold, silver, platinum, and palladium markets through a traditional brokerage account. The Sponsor believes
that investors will be able to more effectively implement strategic and tactical asset allocation strategies that use Bullion
by using the Shares instead of using the traditional means of purchasing, trading and holding Bullion and for many investors,
transaction costs related to the Shares will be lower than those associated with the purchase, storage and insurance of physical
Bullion.

2

● Exchange Traded and Transparent. The Shares trade
on the NYSE Arca, providing investors with an efficient means to implement various investment strategies. The Shares are eligible
for margin accounts and are backed by the assets of the Trust and the Trust does not hold or employ any derivative securities.
Furthermore, the value of the Trust’s holdings are reported on the Trust’s website daily.

● Minimal Credit Risk. The Shares represent an interest
in physical bullion owned by the Trust (other than an amount held in unallocated form which is not sufficient to make up a whole
bar or plate or ingot of which is held temporarily to effect a creation or redemption of Shares). Physical bullion of the Trust
in the Custodian’s possession is not subject to borrowing arrangements with third parties. Other than the Bullion temporarily
being held in an unallocated Bullion account with the Custodian, the physical bullion of the Trust is not subject to counterparty
or credit risks. See “Risk Factors—Bullion held in the Trust’s unallocated Bullion account and any Authorized
Participant’s unallocated Bullion account is not segregated from the Custodian’s assets...” This contrasts
with most other financial products that gain exposure to bullion through the use of derivatives that are subject to counterparty
and credit risks.

Investing in the Shares does not insulate the investor
from certain risks, including price volatility. See “Risk Factors.”

Overview of the Bullion Industry

This section provides a brief introduction
to the Bullion industries by looking at some of the key participants, detailing the primary sources of demand and supply and, with
respect to the gold and silver industries, outlining the role of the “official” sector (i.e., central banks) in the
markets.

In this annual report, the term “ounces”
refers to fine troy ounces (with respect to gold only) and troy ounces (with respect to silver, platinum and palladium).

The Gold Industry

Market Participants

The participants in the world gold market may
be classified in the following sectors: the mining and producer sector, the banking sector, the official sector, the investment
sector, and the manufacturing sector. A brief description of each follows.

Mining and Producer Sector

This group includes mining companies that
specialize in gold and silver production, mining companies that produce gold as a by-product of other production (such as a copper
or silver producer), scrap merchants and recyclers.

Banking Sector

Gold bullion banks provide a variety of services
to the gold market and its participants, thereby facilitating interactions between other parties. Services provided by the gold
bullion banking community include traditional banking products as well as mine financing, physical gold purchases and sales, hedging
and risk management, inventory management for industrial users and consumers, and gold deposit and loan instruments.

The Official Sector

The official sector encompasses the activities
of the various central banking operations of gold-holding countries. According to statistics provided by the World Gold Council,
as of Q4 2025, central banks are estimated to hold approximately 36,492 tonnes (“tonne” refers to one metric tonne, which
is equivalent to 1,000 kilograms or 32,151 troy ounces) of gold reserves.

The Investment Sector

This sector includes the investment and trading
activities of both professional and private investors and speculators. These participants range from large hedge and mutual funds
to day-traders on futures exchanges, and retail-level coin collectors.

The Manufacturing Sector

The fabrication and manufacturing sector represents
all the commercial and industrial users of gold for whom gold is a daily part of their business. The jewelry industry is a large
user of gold. Other industrial users of gold include the electronics and dental industries.

3

World Gold Supply and Demand 2015-2024 (in tonnes)

The following table sets forth a summary of
the world gold supply and demand for the period from 2015 to 2024 and is based on information reported by the World Gold Council. Information for the calendar year ended 2025 is not available as of the date of this report.

(tonnes)
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Supply

Mine production
3,362
3,516
3,581
3,658
3,606
3,483
3,579
3,645
3,641
3,645

Net producer hedging
13
38
(26 )
(12 )
6
(37 )
(5 )
(7 )
69
(54 )

Recycled gold
1,067
1,232
1,112
1,132
1,276
1,293
1,136
1,136
1,234
1,366

Total supply
4,442
4,786
4,667
4,778
4,888
4,739
4,710
4,775
4,944
4,957

Demand

Jewellery fabrication
2,479
2,023
2,267
2,298
2,162
1,332
2,252
2,208
2,208
2,027

Jewellery consumption
2,459
2,108
2,250
2,263
2,142
1,405
2,177
2,095
2,109
1,888

Jewellery inventory
20
(85 )
17
34
20
(73 )
75
114
99
139

Technology
338
329
339
342
333
309
337
315
305
326

Electronics
268
262
272
275
269
255
279
258
249
271

Other Industrial
51
50
51
52
50
42
47
47
47
47

Dentistry
19
18
16
15
14
12
11
10
9
9

Investment
964
1,622
1,322
1,167
1,282
1,805
1,007
1,125
951
1,181

Total bar and coin
1,087
1,079
1,051
1,097
878
913
1,196
1,235
1,195
1,187

Bars
787
803
787
782
590
553
826
814
787
863

Official Coins
224
208
188
242
221
290
284
321
293
199

Medals/Imitation Coins
76
68
76
73
67
70
86
100
115
126

ETFs & similar products
(124 )
543
271
70
404
893
(189 )
(110 )
(244 )
(6 )

Central banks & other inst.
580
395
379
656
605
255
450
1,080
1,051
1,089

Gold demand
4,360
4,370
4,307
4,463
4,382
3,701
4,047
4,729
4,515
4,623

OTC and other*
82
416
360
316
506
1,038
663
46
429
334

Total demand
4,442
4,786
4,667
4,778
4,888
4,739
4,710
4,775
4,944
4,957

LBMA Gold Price (US$/oz)
1,160
1,251
1,257
1,268
1,393
1,770
1,799
1,800
1,941
2,386

Source: Metals Focus, Refinitiv GFMS, ICE Benchmark Administration,
World Gold Council

* This number captures demand in the OTC market (for
which data is not readily available), changes to inventories on commodity exchanges, any unobserved changes in fabrication inventories
and any statistical residual. It is the difference between total supply and gold demand.

The following are some of the main characteristics
of the gold market illustrated by the table:

One factor which separates gold from other
precious metals is that there are large above-ground stocks which can be quickly mobilized. As a result of gold’s liquidity,
gold often acts more like a currency than a commodity.

Over the past ten years, (new) mine production
of gold has experienced a modest rise of an average of 1.09% per annum. Of the three sources of supply, mine production accounts
for 73.5% in 2024. Recycled gold volumes have ranged from 1,067 tonnes to 1,366 tonnes over the past 10 years.

On the demand side, jewelry is clearly the
greatest source of demand, accounting for 43.8% of total demand in 2024. Industrial demand has fluctuated between 6.7% and 8.3%
of total demand over the past 10 years. Exchange traded product inventory build was positive each year from 2016 to 2020, averaging
8% of total demand and peaking at 24.1% in 2020, but experienced net outflows on average of -3.1% from 2021 to 2024. Coin and bar
demand fell to a 10-year low in 2019 but has since averaged 26.5% of total demand from 2020 to 2024. Demand from Central Banks
and other institutions fluctuated between 8.8% and 14.7% from 2015 to 2019, before reaching a low of 6.9% in 2020. However, that
figure has increased in each of the last three years, reaching a high of 23.6% in 2024.

Historical Chart of the Price of Gold

The price of gold is volatile and fluctuations
are expected to have a direct impact on the value of the Shares. However, movements in the price of gold in the past are not a
reliable indicator of future movements. Movements may be influenced by various factors, including announcements from central banks
regarding a country’s reserve gold holdings, agreements among central banks, political uncertainties around the world, and
economic concerns.

The following chart illustrates the movements
in the price of an ounce of gold in U.S. Dollars from December 31, 2015 to December 31, 2025.

Source: Bloomberg, Aberdeen Chart
data from 12/31/2015 to 12/31/2025. Spot Gold Price = GOLDLNPM Index.

The price of gold tends to rise during periods
of low real interest rates and high monetary expansion, as they are often associated with currency debasement and systemic financial
failures. The price of gold peaked at $1,943.20 per ounce in January 2021 as the uncertainties regarding the pandemic drove prices
higher. 2021 proved to be a volatile year for gold as major market events and continued pandemic uncertainty, coupled with new
variants, allowed gold to remain in the investment picture during the year. Additionally, the trends of 3 years of investor
outflows in global ETFs and net negative investor sentiment in gold futures positioning reversed in 2016 and continued through
2020. Continued low real interest rates, tepid economic growth, and concerns regarding the recovery of the pandemic were key tailwinds
for gold that sparked a return of investor interest. 2022 proved to be another volatile year for gold as the price climbed as high
as $2,039.05 per ounce in the weeks following Russia’s invasion of Ukraine. Aggressive interest rate hikes by the U.S. Federal
Reserve combined with a firming US Dollar led ETF holders to liquidate as the price of gold dropped as low as $1,628.75
per ounce on November 3, 2022. However, increased demand from central banks, along with the weakening of the U.S. Dollar, sparked
a Q4 rally that saw the price of gold climb to $1,813.75 per ounce to close 2022.

4

Similarly in 2023, economic and geopolitical
factors continued to drive volatility in the price of gold over the course of the year. While the central bank demand that sparked
a fourth quarter rally remained strong throughout the year, a weaker US Dollar and a drop in US 10-Year Treasury Yields caused
the price of gold to reach $1,932.45 per ounce on January 26, 2023. However, the disappointing Chinese economic recovery drove
the price lower, before the U.S. banking crisis increased the likelihood of U.S. policy rate cuts and investors turned to gold
in anticipation of lower interest rates. However, the subsequent interest rate hike by the U.S. Federal Reserve in May contributed
to the price of gold falling further. During the third quarter the price of gold continued to fluctuate as a weaker dollar and
central bank purchasing provided support before the U.S. Federal Reserve’s final interest rate hike of the year increased the probability
of a policy rate mistake given mixed economic news leading the price to close as low as $1,870.50 per ounce on September 29, 2023.
The spot price of gold continued to fall at the start of the fourth quarter before the U.S. Treasury shifted issuance to short
duration bonds, lowering 10-year yields. While treasury market yields moved lower, removing the risk of excessive policy rate tightening,
tensions in the Middle East increased with the attacks by Hamas on Israeli targets and civilians escalating the ongoing conflict
between the two entities, driving the spot price higher. The spot price of gold gave back some of its gains over the first half
of November before speculation of potential interest rate cuts in the U.S. and Chinese economic stimulus drove the spot price of
gold to an all-time high of $2,078.40 per ounce on December 28, 2023.

In 2024, the spot price of gold was relatively
flat to start the year as metals investors focused on hopes of economic stimulus out of China making a meaningful rise in demand
in more cyclically exposed metals like copper and silver. This led to a continuation of the sharp reduction in gold owned by ETF
investors into March, which moderated into June as it became clear the U.S Federal Reserve was going to need to cut interest rates
in the Autumn. From July to October these investors added to positions helping support gold prices as central bank purchases continued
albeit without the People’s Bank of China which halted purchases between June and October. The primary motivator for central bank
purchases of gold are as a foreign exchange reserves diversifier away from U.S dollars and Treasuries at the margin. The Council
on Foreign Relations notes a primary risk to emerging market economies comes from sanctions, tariffs and U.S. Dollar trading system
bans on behest of western economies. We view the addition of gold to foreign reserves as the actions of a prudent investor diversifying
risk, not as an indication of the imminent loss of global reserve currency status for the U.S. dollar. That said, results of the
U.S. election raised the prospects of sanctions, and tariffs and thus the motivation of central banks to continue reserve diversification
with gold purchases.

The threat of tariffs and sanctions were very
much in focus at the start of 2025, with the market narrative that blanket U.S. tariffs could potentially cause a recession that
would require aggressive interest rate cuts, driving interest in exchange-traded funds (ETFs), while the spot climbed to $3,115.1
per ounce to end the first quarter. Despite the increase in the spot price, the magnitude of U.S. tariffs at the start of April
continued to support demand from central banks moving to diversify their foreign exchange reserves away from U.S. dollars and treasuries,
which can become illiquid in the event of tariffs or sanctions. Further, Chinese insurance companies were given the option to own
gold, and several joined the Shanghai Gold Exchange as members. Those holdings would be longer-term based and early signs indicated
an uptick in gold demand from that sector, which provided an additional tailwind to the spot price. However, in May, progress on
trade deal frameworks with a number of countries, as well as a Federal Reserve which seemed hesitant to cut rates, sent the spot
price of gold into a tighter range of trading where it would remain until the end of August. Following U.S. employment numbers
that were revised dramatically lower, it became clear the Federal Reserve would need to cut in September, driving investment demand
for gold higher. The combination of investor demand and central bank demand created a powerful rally into the end of September.
Following a 10% selloff in October, gold experienced a sustained rally into year-end that saw the spot price close out
the year up 65% at $4,307.95 per ounce.

The Silver Industry

Market Participants

The participants in the world silver market
may be classified in the following sectors: the mining and producer sector, the banking sector, the official sector, the investment
sector, and the manufacturing sector. A brief description of each follows.

Mining and Producer Sector

This group includes mining companies that
specialize in silver and silver production, mining companies that produce silver as a by-product of other production (such as a
copper or gold producer), scrap merchants and recyclers. According to The Silver Institute’s World Silver Survey 2025, the
top 20 producing countries are set forth in the table below. As the World Silver Survey 2025 was published in April 2025, information
for 2025 is not available as of the date of this report.

In million ounces
2023
2024
Y/Y

Mexico
181.9
185.7
2 %

China
111.6
110.1
-1 %

Peru
108.9
108.0
-1 %

Bolivia
43.2
47.8
11 %

Chile
52.0
43.2
-17 %

Poland
42.5
42.5
0 %

Russia
38.3
41.0
7 %

Australia
32.7
38.8
19 %

United States
33.1
36.2
10 %

Argentina
26.0
24.9
-4 %

India
23.8
22.5
-5 %

Kazakhstan
16.4
16.1
-2 %

Sweden
12.6
11.6
-8 %

Indonesia
10.9
11.5
5 %

Canada
7.1
9.5
33 %

Morocco
8.9
8.6
-4 %

Uzbekistan
7.1
7.8
9 %

Papua New Guinea
4.3
4.2
-3 %

Spain
3.7
3.5
-5 %

Portugal
3.4
3.5
3 %

Others
44.4
42.8
-4 %

Total
812.7
819.7
1 %

Source: The Silver
Institute - World Silver Survey 2025 (Metals Focus)

5

Banking Sector

Bullion banks provide a variety of services
to the silver market and its participants, thereby facilitating interactions between other parties. Services provided by the bullion
banking community include traditional banking products as well as mine financing, physical silver purchases and sales, hedging
and risk management, inventory management for industrial users and consumers and silver leasing.

The Official Sector

There are no official
statistics published by the International Monetary Fund, Bank for International Settlements, or national banks on silver holdings
by national governments. The main reason for this is that silver is generally not recognized as a reserve asset.

Consequently, there are
very limited silver stocks held by governments. According to The Silver Institute World Silver Survey 2025, the identifiable silver
bullion inventories are as set forth in the table below. As the World Silver Survey 2025 was published in April 2025, information
for 2025 is not available as of the date of this report.

Identifiable Silver Bullion Inventories*

Million ounces
2022
2023
2024
Y/Y

London Vaults
840.9
856.2
827.5
-3 %

COMEX
299.0
277.9
318.6
15 %

Shanghai Futures Exchange (SHFE)
69.2
38.2
43.9
15 %

Shanghai Gold Exchange (SGE)
69.0
46.5
40.5
-13 %

Other
7.4
4.1
8.6
109 %

Total
1,285.5
1,229.9
1,239.2
1 %

*Year-end; Source: The Silver Institute - World Silver Survey 2025 (Metals Focus, LBMA, CME, SGE, SHFE, MCX & OSE)

The Investment Sector

This sector includes the investment and trading
activities of both professional and private investors and speculators. These participants range from large hedge and mutual funds
to day-traders on futures exchanges, and retail-level coin collectors.

The Manufacturing Sector

The fabrication and manufacturing sector represents
all the commercial and industrial users of silver. Industrial applications comprise the largest use of silver. The jewelry and
silverware sector is the second largest, followed by the photographic industry (although the latter has been declining over a number
of years as a result of the spread of digital photography).

6

World Silver Supply and Demand 2016-2025

The following table sets forth a summary of
the world silver supply and demand for the period from 2016 to 2025 and is based on information reported by the World Silver Survey
2025, published by The Silver Institute. As the World Silver Survey 2025 was published in April 2025, the table below includes
forecasted information for 2025 as of the date of publication. As of the date of this report, final figures (i.e., non-forecasted)
for 2025 are not yet available.

Year on Year

(in millions of ounces)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025F*
2024
2025F*

Supply

Mine Production
900.1
863.9
850.8
837.4
783.8
830.8
839.4
812.7
819.7
835.0
1 %
2 %

Recycling
156.3
160.2
162.3
163.8
180.5
190.7
193.5
183.5
193.9
193.2
6 %
-0.4 %

Net Hedging Supply
—
—
—
13.9
8.5
—
—
—
—
0.9
na
na

Net Official Sector Sales
1.1
1.0
1.2
1.0
1.2
1.5
1.7
1.6
1.5
1.5
-9 %
4 %

Total Supply
1,057.4
1,025.1
1,014.3
1,016.2
974.0
1,023.1
1,034.6
997.8
1,015.1
1,030.6
2 %
2 %

Demand

Industrial
491.0
528.0
525.8
525.4
511.9
564.1
592.3
657.1
680.5
677.4
4 %
-0.5 %

Electrical & Electronics
309.0
339.1
330.4
326.6
321.4
350.7
370.7
444.4
460.5
465.6
4 %
1 %

…of which photovoltaics
81.6
99.3
87.0
74.9
82.8
88.9
118.1
192.7
197.6
195.7
3 %
-1 %

Brazing Alloys & Solders
49.1
50.9
52.0
52.4
47.5
50.5
49.2
50.2
51.6
52.9
3 %
3 %

Other Industrials
132.9
138.0
143.5
146.4
142.9
162.9
172.4
162.6
168.4
158.9
4 %
-6 %

Photography
34.7
32.4
31.4
30.7
26.9
27.7
27.7
27.3
25.5
24.2
-7 %
-5 %

Jewelry
189.1
196.2
203.2
201.6
150.9
182.0
234.5
203.1
208.7
196.2
3 %
-6 %

Silverware
53.5
59.4
67.1
61.3
31.2
40.7
73.5
55.1
54.2
46.0
-2 %
-15 %

Net Physical Investment
212.9
155.8
165.9
187.4
208.1
284.3
338.3
244.3
190.9
204.4
-22 %
7 %

Net Hedging Demand
12.0
1.1
7.4
—
—
3.5
17.9
11.5
4.3
—
-62 %
na

Total Demand
993.3
972.9
1,008.8
1,006.4
929.0
1,102.4
1,284.2
1,198.5
1,164.1
1,148.3
-3 %
-1 %

Market Balance
64.1
52.2
13.5
9.8
45.1
(79.3 )
(249.6 )
(200.6 )
(148.9 )
(117.6 )
-26 %
-21 %

Net Investment in ETPS
53.9
7.2
(21.4 )
83.3
331.1
64.9
(117.4 )
(37.6 )
61.6
70.0
na
14 %

Market Balance less ETPS
10.2
45.1
34.9
(73.5 )
(286.1 )
(144.3 )
(132.2 )
(163.0 )
(210.5 )
(187.6 )
29 %
-11 %

Silver Price (US$/oz, London Price)
17.1
17.1
15.7
16.2
20.6
25.1
21.7
23.4
28.3
—
21 %
na

* Forecasted

Source: The Silver Institute - World Silver Survey
2025 (Metals Focus)

7

The following are some of the main characteristics
of the silver market illustrated by the table.

The balance between silver supply and demand
is a fundamental driver of its price. Silver has some of the same drivers of investment demand as gold, in that it can be used
as a hedge against inflation or currency devaluation, or for portfolio diversification as an alternative currency. As such, silver
investment demand may be influenced by interest rates. Silver, unlike gold, has a significant demand for industrial applications,
such as electronics, solar panels, and medical equipment, due to its unique properties, such a high thermal and electrical conductivity.

New mine production accounts for approximately 82.3%
of total silver supply. Recycled silver accounts for around 17.3% of total supply.

Industrial applications and jewelry demand
accounted for over 58% of total demand in 2024. Photography has been taking a lower share of overall silver demand, falling from
3.5% in 2016 to 2.2% in 2024, while photovoltaic demand has risen in recent years accounting for 17% in 2024. Net physical investment
(i.e. in coins and bars) fell for a second consecutive year, accounting for 16% of demand in 2024, down from a high of 26.3% in
2022.

Historical Chart Of The Price Of Silver

The price of silver is volatile and fluctuations
are expected to have a direct impact on the value of the Shares. However, movements in the price of silver in the past are not
a reliable indicator of future movements. Movements may be influenced by various factors, including announcements from central
banks regarding a country’s reserve silver holdings, agreements among central banks, political uncertainties around the world,
and economic concerns. The following chart illustrates the movements in the price of an ounce of silver in dollars from December
31, 2015 to December 31, 2025 and is based on information provided by Bloomberg:

Source: Bloomberg, Aberdeen Chart
data from 12/31/2015 to 12/31/2025. Spot Silver Price = SLVRLND Index.

The rise in the value of the U.S. Dollar,
sluggish industrial growth and a tame inflation environment (which led some investors to revise their expectations of the effects
of monetary expansion) were some of the drivers behind the movement fall in silver prices from 2015 to 2019. Silver reversed
course in 2020, after COVID stimulus measures were announced, helping prices rise 46.75%, closing the year at $26.49 per ounce.
In 2021, silver took a slight step back after its performance in 2020, as it returned -13% for the year, as silver took a backseat
to riskier asset classes.

2022 was a volatile year for silver as well
as other metals in the wake of Russia’s invasion of Ukraine. The invasion caused sanctions and geopolitical unrest which weighed
on the economic outlook and affected the interest rate outlook. Ultimately silver finished the year at $23.95 per ounce, with a
yearly performance of +2.77%.

The strong demand and reduced supply trends
that were prevalent towards the end of 2022 were expected to continue in 2023. However economic and geopolitical factors including
a US banking crisis drove interest rate and industrial demand volatility for the year. The price of silver ultimately ended the
year at $23.79 per ounce on December 29, 2023, down -0.65% for the year, as market participants were disappointed by the lack of
economic stimulus in China.

In 2024, the spot price of silver began the
year on a downward trend as the economic stimulus out of China at the end of 2023 disappointed investors and had little immediate
effect on the economy. The potential for U.S. interest rate cuts inspired some increased attention by investors over the summer
months. The U.S. Federal Reserve’s interest rate cut provided an additional tailwind that would send the price as high as $32.48
per ounce on September 26, 2024. Headwinds grew as the US election resulted in an increased potential of tariffs that are large
enough to slow Chinese economic growth. Overall, the year was marked by alternating optimism and pessimism on China’s economic
activity and levels of stimulus. Additional volatility came from a disappointing energy transition in the U.S. despite an outperforming
energy transition in China where silver’s use in solar panel manufacturing is a key silver demand driver.

8

In 2025, as the threat of extreme tariffs and
sanctions came into focus, the spot price of silver finally responded to the deficit that had existed over the prior six years.
That market deficit has mostly been driven by industrial demand, however investor interest in Exchange-Traded Products (ETPs) also
accounted for a sizable portion of this year’s rally. In April, the US administration added silver to the draft Section 232 notice,
including it as a critical mineral and fueling speculation of US tariffs, which resulted in large volumes of silver being moved
from London vaults to U.S. exchange vaults to avoid any potential tariffs, with the result of tightening silver availability in
London, the highest volume market. The spot price rose to $54.10 per ounce on October 17, 2025. Following a 14% selloff in October,
the spot price found ongoing support from industrial demand in India and China, as the jewelry/investing sector substituted silver
purchases for gold, industrial demand increased, and the Indian government approved holding both gold and silver ETPs in local
pension plans. While the decision to impose tariffs on critical minerals was ultimately delayed into 2026, market speculation and
investor interest in ETPs more than doubled the market deficit with large purchases throughout the year. These factors combined
to support a year-end rally that drove the spot price of silver to $71.99 per ounce on December 31, 2025, an increase of 149% from
the prior year end.

Platinum Group Metals

Platinum and palladium are the two best known
metals of the six platinum group metals (“PGMs”). Platinum and palladium have the greatest economic importance and
are found in the largest quantities. The other four—iridium, rhodium, ruthenium and osmium—are produced only as co-products
of platinum and palladium. PGMs are known for their purity, high melting points and unique catalytic properties. In addition to
their oxidation and reduction properties, they are also extremely resistant to corrosion. PGMs are utilized in a number of industrial
processes, technologies and commercial applications. Their unique chemical and physical properties make PGMs an excellent raw material,
catalyst and ingredient for manufacturing processes. Consumer and industrial products made with platinum and other PGMs include
flat panel monitors, glass fiber, medical tools, computer hard drives, nylon and razors, among others. PGMs play a critical role
in autocatalysis and pollution control in the automotive sector.

PGM mining is heavily concentrated in southern
Africa (South Africa and Zimbabwe), with smaller percentages coming from the United States, Russia and other locations. South Africa
is the world’s leading platinum producer and one of the largest palladium producers. Russia is the second largest producer
of platinum and palladium. All of South Africa’s production is sourced from the Bushveld Igneous Complex, which hosts the
world’s largest resource of PGMs. Together, South Africa and Russia accounted for over 83% of platinum supply and 77% of
palladium in 2024.

Platinum

World Platinum Supply and Demand 2015-2024

The following table sets forth a summary of
the world platinum supply and demand over the last 10 years (from 2015 to 2024) and is based on information reported by Johnson
Matthey, PGM Market Reports (2015 – 2025). Information for the year ended 2025 is not available as of the date of this report.

(thousands of ounces)
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Supply

South Africa
4,572
4,392
4,450
4,467
4,344
3,243
4,609
3,966
4,003
4,112

Russia
670
714
720
687
721
699
638
350
850
650

North America
339
370
368
370
367
334
279
280
288
267

Zimbabwe
400
489
466
474
451
482
465
488
515
507

Others
158
162
157
152
154
205
222
157
154
187

Total primary supply
6,139
6,127
6,161
6,150
6,037
4,963
6,213
5,241
5,810
5,723

Recycling

Autocatalyst
1,136
1,132
1,249
1,332
1,389
1,154
1,230
1,201
1,074
1,084

Electrical
30
32
35
38
40
41
49
48
48
56

Jewellery
574
738
746
699
663
506
366
273
226
232

Total secondary supply
1,740
1,902
2,030
2,069
2,092
1,701
1,645
1,522
1,348
1,372

Total combined supply
7,879
8,029
8,191
8,219
8,129
6,664
7,858
6,763
7,158
7,095

Demand by Application

Auto
3,273
3,339
3,061
2,815
2,589
2,024
2,410
2,743
3,353
3,410

Chemical
502
477
453
654
662
614
675
701
649
631

Dental & Biomedical
215
218
238
241
254
214
220
249
266
273

Electrical & Electronics
228
232
224
228
216
226
262
241
206
245

Glass
227
247
314
501
490
518
786
875
782
446

Investment
451
620
361
67
1,131
1,049
(1 )
(475 )
179
525

Jewellery
2,746
2,413
2,385
2,258
2,073
1,657
1,468
1,401
1,372
1,375

Petroleum
140
186
228
380
262
286
222
241
160
144

Pollution Control
—
—
184
193
190
165
187
221
274
269

Other
494
535
530
531
542
417
444
483
550
551

Total demand
8,276
8,267
7,978
7,868
8,409
7,170
6,673
6,680
7,791
7,869

Movements in Stocks
(397 )
(238 )
213
351
(280 )
(506 )
1,185
83
(633 )
(774 )

Source: Johnson Matthey PGM Market Reports (2015
– 2025)

1 Primary supply: Supply figures represent sales of primary
PGM by producers and are allocated to the region where mining took place, rather than the region of subsequent processing.

2 Secondary supply: Secondary supply is the quantity of
metal recovered from open-loop recycling (i.e. where the original purchaser does not retain ownership of the PGM). Outside the
automotive, jewelry and electronics markets, open-loop recycling is negligible.

3 Automotive recycling represents the weight of metal recovered
from end-of-life vehicles and aftermarket scrap. It does not include warranty or production scrap.

4 Demand: Demand figures for any given application represent the sum of industry demand for
new metal in that application, net of any closed-loop recycling (i.e. where industry participants retain ownership of the
metal: an example would be recycling of spent chemical catalysts where the metal is retained to be used on fresh catalyst
that replaces the spent charge).

5 Automotive demand is allocated to the region where the
vehicle is manufactured and is accounted for at the time of vehicle production. It includes emissions catalysts on vehicles, motorcycles
and three-wheelers, as well as fuel cell vehicles. Non-road mobile machinery is counted as industrial demand, in the pollution
control category.

6 Jewelry demand is allocated to the region where the finished
jewelry is manufactured, not sold.

7 Movements in stocks: This figure gives the overall market
balance in any one year and reflects the extent of stocks that must be mobilized to balance the market in that year. It is thus
a proxy for changes in stocks held by fabricators, dealers, banks and depositories, but excludes stocks held by primary and secondary
refiners and final consumers. A positive figure (market surplus) thus reflects an increase in global market stocks. A negative
value (market deficit) indicates a decrease in global market stocks.

The following are some of the main characteristics
of the platinum market illustrated by the table:

The main supplier of platinum is South Africa,
providing approximately 72% of total mine supply over the past 10 years (2015-2024). Russia is the second largest supplier of platinum.
Its share of world mine production has averaged around 11.4% of total mine supply over the past ten years ended 2024. Scrap supply
from recycling of autocatalyst and other sources have accounted for about 22.9% of total supply over the last 10 years.

Over the ten years ended December 2024, jewelry
demand for platinum peaked at approximately 33% of total demand in 2015. Jewelry demand has since declined to 17% of total demand
in 2024, following a consistent downward trend. Automotive demand for platinum, which accounted for around 40% of total demand
at the end of 2015, has increased to roughly 43% of total demand as of the end of 2024. Following two consecutive years of growth,
investment demand fell from a high of 15% in 2020 into negative territory in 2022 at (7%) but improved to 7% in 2024. Pollution
control demand, which captures the production demand of non-road vehicles such as agricultural equipment and industrial machinery
as well as small engines and stationary source emissions controls in factories that use technology that is similar to autocatalysts,
decreased to 3% in 2024 after increasing to 4% of total demand in 2023.

9

Historical Chart of the Price of Platinum

The price of platinum is volatile and fluctuations
are expected to have a direct impact on the value of the Shares. However, movements in the price of platinum in the past are not
a reliable indicator of future movements. The following chart illustrates the movements in the price of an ounce of platinum in
U.S. Dollars from December 31, 2015 to December 31, 2025 and is based on information provided by Bloomberg:

Source: Bloomberg, Aberdeen Chart
data from 12/31/2015 to 12/31/2025. Spot Platinum Price = PLTMLNPM Index.

Despite autocatalyst demand for platinum increasing
in 2015, tightening nitrogen oxide emission standards led to pessimism about the future demand for platinum-heavy diesel autocatalysts
relative to palladium-heavy gasoline autocatalysts. Further pessimistic outlook for South Africa’s economy and its currency, the
South African Rand, weighed on platinum prices throughout 2017, and platinum continued to fall in 2018 driven by lackluster investor
sentiment, a stronger US dollar, weaker diesel demand and rising mine supply. Platinum prices bounced back, rising 19.9% to $952
per ounce at the end of 2019. After seeing the price fall as low as $593 per ounce on March 19, 2020, platinum rebounded from pandemic
lows and finished the year at $1,068 per ounce. The steep climb in palladium price led some investors to conclude that platinum
appeared under-valued, in view of its potential to substitute for palladium in automotive applications in the future. Additionally,
the outlook for mining in South Africa was increasingly uncertain, with producers facing steep increases in electricity prices,
periodic disruption to power supplies and a risk of industrial action during anticipated wage negotiations. In 2021, platinum took
a back seat to risky assets, similarly to other precious metals, as it returned -10% (as of December 31, 2021). Follow through
from auto production disruptions during the pandemic were a major contributor to the price performance in 2021. The price of platinum
reached as high as $1,151 per ounce on March 8, 2022, as Russia’s invasion of Ukraine and the threat of sanctions on Russian exports,
including platinum, pushed prices higher. However, while other precious metals (gold, silver, palladium) saw prices fluctuate throughout
the year, platinum’s volatility was much more pronounced within the first quarter of 2022, as the price fell roughly 15% by March
31, 2022, to close the first quarter at $983 per ounce. Aggressive interest rate hikes by the U.S. Federal Reserve, a strong U.S.
Dollar and risks of diminishing global economic growth exerted additional pressure on prices, as the price of platinum fell as
low as $831 per ounce on July 14, 2022. Through the end of 2022, increasing autocatalyst demand and a growing substitution of platinum
for palladium contributed to ongoing physical market tightness, despite a global surplus, which saw the price of platinum increase
roughly 24% from July 14, 2022 through December 31, 2022 to $1,031 per ounce.

In 2023, a decrease in platinum production
in South Africa, the world’s leading producer, continued to impact global supply (see “World Platinum Supply and Demand in
2023” above for additional discussion). While industry analysis groups saw potential for a nearly 1-million-ounce deficit
in platinum in 2023, the price performance did not reflect this sentiment over the course of the year as the market remained well
supplied, pulling from existing above ground stockpiles. Despite a positive outlook at the beginning of the year, fueled by China’s
loosening of Covid-related restrictions, that drove the price as high as $1,128 per ounce on April 21, 2023, the Chinese economic
rebound disappointed investors and led the price of platinum to fall as low as $850 per ounce on November 13, 2023. While an end-of-year
rally saw the price of platinum increase roughly 18% off the yearly low to $1,000 per ounce, platinum ended the year approximately
3% below its 2022 closing price.

In 2024, mining production in South Africa
continued to impact global supply, as the country experienced some remaining power supply disruptions, although at a far lower
pace than in 2023. Coupled with political instability, inflation and volatile market prices, which compressed profit margins and
subsequently led to a decrease in expected supply from the world’s leading producer. As a result, platinum markets remained volatile
throughout the year while prices did not respond to the existing supply side deficit as above ground stocks were being worked through.
An increase in expected automotive demand provided some tailwinds during the first half of the year that sent the spot price of
platinum as high as $1,065 per ounce on May 17, 2024. However, the lackluster Chinese economic rebound and disappointing level
of stimulus turned to headwinds as the price retreated to $910 per ounce. The risk of additional sanctions on Russian metal exports
in October provided some temporary price support, however market fears over supply restrictions quickly dissipated, and prices
retreated once more. Headwinds grew as the US election resulted in an increased potential of tariffs that are large enough to slow
global economic growth and the spot price of platinum ended the year down -8.6%, at $914 per ounce.

In 2025, platinum experienced its strongest
rally in years as persistent supply deficits, elevated trading activity and geopolitical tensions drove prices sharply higher.
While tightening emission standards in China and India supported Industrial Demand from the automotive industry, the larger trend
this year has been from Chinese jewelry demand. The Chinese and Indian public are significant gold buyers; however, they are price
sensitive and given capital restrictions, jewelry in China is also an investment - and not just jewelry. During London Platinum
Week, in mid-May, compelling evidence emerged that the Chinese consumer had begun to revert to platinum jewelry from gold and the
spot price of Platinum subsequently rallied from $986 per ounce on May 16, 2025, to $1474 per ounce on July 18, 2025. Platinum
traded in a tighter range between July and mid-September, before U.S. tariff uncertainty and heavy buying from China and the U.S.
amplified market tightness, driving the price into a range of $1,500 - $1,600 per ounce, where it would remain towards the end
of November. However, on November 27th, 2025, the Guangzhou Futures Exchange launched a new futures contract on Platinum, further
boosting optimism about Chinese demand. Speculative positioning intensified through the end of the year, sending prices to a 17
year high and lifting platinum to $2,226 per ounce before ending the year at $2,027 on December 31, 2025 (+121.8%).

10

Palladium

World Palladium Supply and Demand 2015-2024

The following table sets forth a summary of the
world palladium supply and demand for the period from 2015 to 2024 and is based on information reported by Johnson Matthey, PGM
Market Report. Information for the year ended 2025 is not available as of the date of this report.

(thousands of ounces)
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024

Supply

South Africa
2,683
2,570
2,547
2,543
2,571
1,975
2,645
2,288
2,360
2,420

Russia
2,434
2,781
2,452
2,976
2,987
2,636
2,689
2,200
2,700
2,750

North America
874
917
956
1,035
1,042
990
908
832
863
814

Zimbabwe
320
396
386
393
379
410
392
409
427
419

Others
144
129
131
135
140
185
212
235
247
251

Total Supply
6,455
6,793
6,472
7,082
7,119
6,196
6,846
5,964
6,597
6,654

Secondary supply

Automotive
1,952
1,986
2,357
2,624
2,916
2,689
2,886
2,790
2,389
2,449

Electronics/other
475
481
479
475
477
430
444
457
466
481

Jewellery
46
21
21
12
12
9
9
10
10
10

Total secondary supply
2,473
2,488
2,857
3,111
3,405
3,128
3,339
3,257
2,865
2,940

Total combined supply
8,928
9,281
9,329
10,193
10,524
9,324
10,185
9,221
9,462
9,594

Demand by Application

Auto
7,657
8,019
8,423
8,837
9,675
8,534
8,452
8,413
8,767
8,313

Chemical
449
419
435
605
530
498
593
602
539
546

Dental & Biomedical
474
435
398
364
320
228
208
189
192
177

Electrical & Electronics
903
872
844
768
711
636
649
547
516
535

Investment
(659 )
(646 )
(386 )
(574 )
(87 )
(190 )
17
(109 )
61
229

Jewellery
220
189
167
148
128
85
88
87
87
85

Pollution Control
56
71
78
86
88
75
92
102
123
124

Other
104
114
91
117
120
93
96
82
85
86

Total Demand
9,204
9,473
10,050
10,351
11,485
9,959
10,195
9,913
10,370
10,095

Movements in stocks
(276 )
(192 )
(721 )
(158 )
(961 )
(635 )
(10 )
(692 )
(908 )
(501 )

Source: Johnson Matthey PGM Market Reports (2015
– 2025).

The following are some of the main characteristics
of the palladium market illustrated by the table:

Russia has traditionally been the largest
producer of palladium, providing on average 40% of supply over the past 10 years. South Africa has, on average, supplied approximately
37% of production over the past 10 years. In 2024, Russia provided 41.3% of mine supplies, while South Africa produced 36.4%. North
America contributed approximately 13.9% of mine supply in 2024. Scrap supply, from recycling of autocatalyst and other sources,
accounted for roughly 30.6% of total supply in 2024 in line with the value from 2023.

Autocatalysts continue to be the largest component
of palladium demand, averaging 84.2% of total demand from 2015 to 2024, compared to 83.2% in 2015. Jewelry demand for palladium
has tapered off considerably over the last 10 years, contributing only 0.8% of total demand in 2024, down from a high of 2.4% in
2015. Other industrial demand (chemical, dental and electrical) has fallen from 19.8% of total demand in 2015 to 12.5% of total
demand in 2024. Since 2015, pollution control demand has increased from 0.6% to 1.2% of total demand. Pollution control demand
captures the production demand for emissions control in non-automotive applications.

Historical Chart of the Price of Palladium

The price of palladium is volatile and fluctuations
are expected to have a direct impact on the value of the Shares. However, movements in the price of palladium in the past are not
a reliable indicator of future movements. The following chart illustrates the movements in the price of an ounce of palladium in
U.S. Dollars from December 31, 2015 to December 31, 2025 and is based on information provided by Bloomberg:

Source: Bloomberg, Aberdeen Chart
data from 12/31/2015 to 12/31/2025. Spot Palladium Price = PLDMLNPM Index.

The strong rally in 2014 palladium prices
was completely unwound in 2015, when South African mine supply resumed back to pre-strike levels and pessimism about industrial
demand in China overwhelmed the true tightness in the market. Palladium was then the top performer of the precious metals complex
for 3 consecutive years from 2017 to 2019, where it rose nearly 182% from $676 per troy ounce on December 31, 2016 to $1,905 per
troy ounce on December 31, 2019. The price of palladium reached an all-time high of $2,781/oz on February 19, 2020, before closing
out the year at a price of $2,342/oz on December 31, 2020. Similar to other precious metals, palladium took a step back in 2021
as it returned -16% (as of December 31, 2021). A decline in autocatalyst demand due to the pandemic was a big reason for the negative
performance seen during the year.

11

The price of palladium reached a record high
of $3,015 per ounce on March 7, 2022, as Russian’s invasion of Ukraine infused uncertainty into global markets and created additional
price pressure that pushed the price of palladium nearly 53% above its 2021 close. While each of the precious metals (gold, silver,
platinum) saw prices fluctuate throughout the year, the price of palladium showed greater correlation with the price of Platinum
during the first quarter. The price of palladium fell by roughly 25% between March 8th and March 31st, ending the first quarter
at a price of $2,259 per ounce. On June 14th, 2022, the price of palladium fell as low as $1,810 per ounce, as aggressive interest
rate policies from the U.S. Federal Reserve drove the U.S. Dollar higher. Contrary to the other three precious metals, the price
of palladium increased as high as $2,315 per ounce on October 4th, 2022, as supplies were further constrained by operational challenges
in South African and North American mines, as well as a weaker automotive recycling market. Throughout the year, tailwinds from
supply disruptions were countered by weaker automotive and investment demand, higher interest rates and the risk of a potential
recession. As a result, while the other three precious metals rallied to end the year, the price of palladium reversed course during
the fourth quarter to end the year at $1,775 per ounce, down 10% from the end of 2021.

In 2023, palladium production in Russia and
South Africa continued to impact global supply. Russian production was relatively flat compared to 2020 and 2021, however sanctions
imposed in 2022 constrained the production capacity of Russian metals producer Nornickel, the world’s largest palladium producer.
In contrast, South Africa continued to experience power supply disruptions along with rising electricity prices. Coupled with labor
strikes, political instability, inflation and volatile prices, which compressed profit margins and subsequently led to a decrease
in expected supply from the world’s second leading producer. However, despite the supply deficit, investors sold short a large
amount of palladium that year, in hopes that electric vehicles would curtail the demand for palladium in gasoline-powered automobiles.
Additionally, while a positive outlook at the beginning of the year, fueled by China’s loosening of COVID-19 related restrictions,
drove the price as high as $1,628 per ounce on April 21, 2023, the Chinese economic rebound disappointed investors. As a result
of these two factors, the price of palladium continued on a downward trend throughout most of the year before reaching a low of
$957 per ounce on December 6, 2023. Fears of additional Russian sanctions sparked a year-end rally that saw the price climb as
high as $1,221 per ounce on December 20, 2023, but the precious metal ultimately ended the year at $1,136 per ounce, 36% below
its 2022 closing price.

In 2024, palladium markets continued to be
volatile as the market remained net short and prices did not respond to the existing supply side deficit as the market worked through
above ground stockpiles. While autocatalyst demand continued to be the largest component of palladium demand, it has not yet returned
to pre-pandemic levels, and the price remained between $850 and $1,050 per ounce for much of the year. In October, the threat of
potential new sanctions on Russian exports, which accounts for roughly 40% of new mined supply, sent the price as high as $1,222
per ounce on October 29, 2024, as short sellers bought long contracts to reduce their positions. However, once market fears about
disruptions in supply dissipated the spot price retreated and ultimately ended the year at $909 per ounce on December 31, 2024
(-19.98%).

In 2025, palladium markets remained volatile,
but benefited from a deficit-driven, supply-constrained environment that saw prices rebound off 2024 lows. While the palladium
market has been in deficit of various magnitudes since 2012, this year saw a turn in the overwhelming narrative driving weak prices.
Several mining companies reduced mining operations into the prior year end and U.S. government support for EV subsidies waned.
Nearly 80% of palladium demand comes from the automotive sector for pollution control of internal combustion engine vehicles and
hybrids. The cessation of the $7.500 EV tax credit in September accelerated automakers’ decisions to offer more fossil fuel and
hybrid vehicles which use palladium for pollution control. Further, weaker than anticipated South African supply and recycling,
along with revised market forecasts for 2025 and 2026, contributed to a sharp increase in the spot price of palladium that reached
$1,297 per ounce on July 18, 2025, an increase of 42.7% from the end of 2024. The spot price of Palladium pulled back into a tighter
range between July and the end of September before pricing became increasingly sensitive to financial flows, with futures positioning
amplifying the movement in spot price driven by U.S. tariff uncertainty, South African disruptions, tighter leasing markets and
strong Chinese imports. The spot price would reach as high as $1,837 per ounce, before ending the year at $1,567 per ounce on December
31, 2025 (+72.4%).

Operation of the Bullion Markets

The global trade in Bullion consists of Over-the-Counter
(“OTC”) transactions in spot, forwards, and options and other derivatives, together with exchange-traded futures and
options.

Global Over-The-Counter Market

The OTC market trades on a 24-hour per day continuous
basis and accounts for most global Bullion trading.

Market makers, as well as others in the OTC
market, trade with each other and with their clients on a principal-to-principal basis. All risks and issues of credit are between
the parties directly involved in the transaction.

For gold and silver,
market makers include the market-making members of the London Bullion Market Association (“LBMA”), the trade association
that acts as the coordinator for activities conducted on behalf of its members and other participants in the London bullion market.
As of the date of this report, the eleven market-making members of the LBMA are: BNP Paribas SA, Citibank N.A., HSBC Bank PLC,
Goldman Sachs International, ICBC Standard Bank, JPMorgan Chase Bank, Merrill Lynch International, Morgan Stanley & Co. International
Plc, Standard Chartered Bank, Toronto-Dominion Bank and UBS AG.

For platinum and palladium, five member participants
of the London Platinum and Palladium Market (“LPPM”), the trade association that acts as the coordinator for activities
conducted on behalf of its members and other participants in the LPPM, are currently participating in the London Metal Exchange’s (“LME”) administration of the LBMA Platinum and Palladium prices. In January 2026, the LBMA announced that it
intends to appoint ICE Benchmark Administration (“IBA”) to replace the LME as the third-party administrator of the LBMA Platinum and Palladium
prices in mid-2026. The OTC market provides a relatively flexible market in terms of quotes, price, size, destinations
for delivery and other factors. Bullion dealers customize transactions to meet clients’ requirements. The OTC market has
no formal structure and no open-outcry meeting place.

12

The main centers of the OTC market are London,
Zurich and New York for gold and silver and London, New York, Hong Kong and Zurich for platinum and palladium. Mining companies,
central banks, manufacturers of jewelry and industrial products, together with investors and speculators, tend to transact their
business through one of these market centers. Centers such as Dubai and several cities in the Far East also transact substantial
OTC market business, typically involving jewelry and small bars of gold or silver and small plates or ingots of platinum or palladium
(1 kilogram or less) and will hedge their exposure by selling into one of these main OTC centers. Precious metals dealers have
offices around the world and most of the world’s major bullion dealers are either members or associate members of the LBMA
and/or the LPPM.

In the OTC market for gold, the standard size
of trades between market makers ranges between 5,000 and 10,000 ounces. Bid-offer spreads are typically 50 US cents per ounce.
Certain dealers are willing to offer clients competitive prices for much larger volumes, including trades over 100,000 ounces,
although this will vary according to the dealer, the client and market conditions, as transaction costs in the OTC market are negotiable
between the parties and therefore vary widely. Cost indicators can be obtained from various information service providers as well
as dealers.

In the OTC market for silver, the standard size
of trades between market makers is 100,000 ounces.

In the OTC market for platinum and palladium, the
standard size of trades between market makers is 1,000 ounces.

Liquidity in the OTC market can vary from
time to time during the course of the 24-hour trading day. Fluctuations in liquidity are reflected in adjustments to dealing spreads—the
differential between a dealer’s “buy” and “sell” prices. The period of greatest liquidity in the
Bullion markets generally occurs at the time of day when trading in the European time zones overlaps with trading in the United
States, which is when OTC market trading in London, New York, Zurich and other centers coincides with futures and options trading
on the Commodity Exchange, Inc. (“COMEX”), a designated contract market within the CME Group. This period lasts for
approximately four hours each New York business day morning.

The Gold Bullion Market

The London Gold Bullion Market

Although the market for physical gold is distributed
globally, most OTC market trades are cleared through London. In addition to coordinating market activities, the LBMA acts as the
principal point of contact between the market and its regulators. A primary function of the LBMA is its involvement in the promotion
of refining standards by maintenance of the “Good Delivery List,” which is a list of LBMA accredited refiners of gold.
The LBMA also coordinates market clearing and vaulting, promotes good trading practices and develops standard documentation.

The terms “loco London” gold and
“loco Zurich” gold refer to gold physically held in London and Zurich, respectively, that meets the specifications
for weight, dimensions, fineness (or purity), identifying marks (including the assay stamp of a LBMA acceptable refiner) and appearance
set forth in “The Good Delivery Rules for Gold and Silver Bars” published by the LBMA. Gold bars meeting these requirements
are described in this annual report from time to time as “London Good Delivery Bars.” The unit of trade in London is
the troy ounce, whose gram conversion is: 1,000 grams equals 32.1507465 troy ounces and 1 troy ounce equals 31.1034768 grams. A
London Good Delivery Bar is acceptable for delivery in settlement of a transaction on the OTC market. Typically referred to as
400-ounce bars, a London Good Delivery Bar must contain between 350 and 430 fine troy ounces of gold, with a minimum fineness (or
purity) of 995 parts per 1,000 (99.5%), be of good appearance and be easy to handle and stack. The fine gold content of a gold
bar is calculated by multiplying the gross weight of the bar (expressed in units of 0.025 troy ounces) by the fineness of the bar.
A London Good Delivery Bar must also bear the stamp of one of the refiners who are on the LBMA approved list. Unless otherwise
specified, the gold spot price always refers to that of a London Good Delivery Bar. Business is generally conducted over the phone
and through electronic dealing systems.

On March 20, 2015, ICE Benchmark Administration
(“IBA”) began administering the operation of an “equilibrium auction,” which is an electronic, tradable
and auditable, over-the-counter auction market with the ability to settle trades in US Dollars (“USD”), 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. IBA’s equilibrium auction is the gold valuation replacement selected
by the LBMA for the London gold fix previously determined by the London Gold Market Fixing Ltd. that was discontinued on March
19, 2015. IBA’s equilibrium auction, like the previous gold fixing process, establishes and publishes fixed prices for troy
ounces of gold twice each London trading day during fixing sessions beginning at 10:30 a.m. London time (the “LBMA AM Gold
Price”) and 3:00 p.m. London time (the “LBMA PM Gold Price”).

13

Daily during London trading hours the LBMA
AM Gold Price and the LBMA PM Gold Price each provide reference gold prices for that day’s trading. Many long-term contracts
will be priced on either the basis of the LBMA AM Gold Price or the LBMA PM Gold Price, and market participants will usually refer
to one or the other of these prices when looking for a basis for valuations. The LBMA AM Gold Price and the LBMA PM Gold Price,
determined according to the methodologies of IBA and disseminated electronically by IBA to selected major market data vendors,
such as Refinitiv and Bloomberg, are widely used benchmarks for daily gold prices and are quoted by various financial information
sources as the London gold fix was previously. The Trust values its gold on the basis of LBMA Gold Price PM. If there is no LBMA
PM Gold Price on any day, the Trust will value its gold on the basis of LBMA AM Gold Price announced on that day. If neither price
is available for that day, the Trust will value its gold based on the most recently announced LBMA PM Gold Price or LBMA AM Gold
Price.

The LBMA PM Gold Price is the result of an
“equilibrium auction” because it establishes a price for a troy ounce of gold that clears the maximum amount of bids
and offers for gold entered by order-submitting gold participants each day. The opening bid and subsequent bid prices are generated
by an algorithm based method, and each auction is actively supervised by IBA staff. There are currently 15 direct gold participants
(Bank of China Limited, London Branch, Citibank N.A. London Branch, Coins ‘N Things, Inc., DRW Investments, LLC, Goldman Sachs, HSBC Bank USA NA, StoneX Financial Ltd., Jane Street Global Trading, LLC, JPMorgan Chase Bank, N.A.
London Branch, Koch Supply and Trading LP, Marex, Morgan Stanley, Standard Chartered Bank, Toronto Dominion Bank, and Virtu Financial Global Markets, LLC), and IBA uses
ICE’s front-end system, WebICE, as the technology platform that allows direct participants as well as sponsored clients to
manage their orders in the auction in real time via their own screens.

The IBA auction process begins with a notice
of an auction round issued to gold participants before the commencement of the auction round stating a gold price in U.S. Dollars,
at which the auction round will be conducted. An auction round lasts 30 seconds. Gold participants electronically place bid and
offer orders at the round’s stated price and indicate whether the orders are for their own account or for the account of
clients. Aggregate bid and offer volume will be shown live on WebICE, providing a level playing field for all participants.

At the end of the auction round, the IBA system
evaluates the equilibrium of the bid and offer orders submitted. If bid and offer orders indicate an imbalance outside of acceptable
tolerances established for the IBA system (normally 10,000 oz) (e.g., too many purchase orders submitted compared to sell orders
or vice versa), the auction chairman calculates a new auction round price principally based on the volume weighting of bid and
offer orders submitted in the immediately completed auction round. For instance, if the order imbalance indicates that purchase
orders (bids) outweigh sales orders (offers) then a new auction round price will be issued that will be increased over that used
in the prior auction round. Likewise, the new auction round price will be decreased from the prior round’s price if offers
outweigh bids. To clear the imbalance, the IBA system then issues another notice of auction round to gold participants at the newly
calculated price. During this next 30 second auction round, gold participants again submit orders, and after it ends, the IBA system
evaluates for order imbalances. If order imbalances persist, a new auction price is calculated and a further auction round will
occur. This auction round process continues until an equilibrium within specified tolerances is determined to exist. Once the IBA
system determines that orders are in equilibrium within system tolerances, the auction process ends and the equilibrium auction
round price becomes the LBMA PM Gold Price.

The LBMA PM Gold Price and all bid and offer
order information for all auction rounds become publicly available electronically via IBA instantly after the conclusion of the
equilibrium auction. Since April 1, 2015, the LBMA Gold Price has been regulated by the Financial Conduct Authority (“FCA”)
in the United Kingdom (“UK”). IBA also has an Oversight Committee, made up of market participants, industry bodies,
direct participant representatives, infrastructure providers and IBA. The Oversight Committee allows the LBMA to continue to have
significant involvement in the oversight of the auction process, including, among other matters, changes to the methodology and
accreditation of direct participants. Additionally, IBA watches over the price discovery process for the LBMA Gold Price and ensures that it meets
the International Organization of Securities Commission’s (IOSCO) Principles for Financial Benchmarks (the “IOSCO Principles”).

The LBMA PM Gold Price is widely viewed as
a full and fair representation of all or material market interest at the conclusion of the equilibrium auction. IBA’s LBMA
PM Gold Price electronic auction methodology is similar to the non-electronic process previously used to establish the London gold
fix where the London gold fix process adjusted the gold price up or down until all the buy and sell orders are matched, at which
time the price was declared fixed. Nevertheless, the LBMA PM Gold Price has several advantages over the previous London gold fix.
The LBMA PM Gold Price auction process is fully transparent in real time to the gold participants and, at the close of each equilibrium
auction, to the general public.

The LBMA PM Gold Price auction process is
also fully auditable by third parties since an audit trail exists from the time of each notice of an auction round. Moreover, the
LBMA PM Gold Price’s audit trail and active, real time surveillance of the auction process by IBA as well as FCA’s
oversight of IBA, deters manipulative and abusive conduct in establishing each day’s LBMA PM Gold Price.

Since March 20, 2015, the Sponsor determined
that the London gold fix, which ceased to be published as of March 19, 2015, could no longer serve as a basis for valuing gold
bullion received upon purchase of the Trust’s Shares, delivered upon redemption of the Trust’s Shares and otherwise
held by the Trust on a daily basis, and that the LBMA PM Gold Price is an appropriate alternative for determining the value of
the Trust’s gold each trading day. The Sponsor also determined that the LBMA Gold Price PM fairly represents the commercial
value of gold bullion held by the Trust and the “Benchmark Price” (as defined in Trust Agreement) as of any day is
such day’s LBMA Gold Price PM or such day’s LBMA Gold Price AM if such day’s LBMA Gold Price PM is not available.

14

Futures Exchanges

The most significant gold futures exchanges
are the COMEX, a designated contract market within the CME Group, and the Tokyo Commodity Exchange (“TOCOM”). The COMEX
is the largest exchange in the world for trading precious metals futures and options and has been trading gold since 1974. The
TOCOM has been trading gold since 1982. Trading on these exchanges is based on fixed delivery dates and transaction sizes for the
futures and options contracts traded. Trading costs are negotiable. As a matter of practice, only a small percentage of the futures
market turnover ever comes to physical delivery of the gold represented by the contracts traded. Both exchanges permit trading
on margin. Margin trading can add to the speculative risk involved given the potential for margin calls if the price moves against
the contract holder. The COMEX trades gold futures almost continuously (with one short break in the evening) through its CME Globex
electronic trading system and clears through its central clearing system. On June 6, 2003, TOCOM adopted a similar clearing system.
In each case, the exchange acts as a counterparty for each member for clearing purposes.

Other Exchanges

There are other gold exchange markets, such
as the Istanbul Gold Exchange (trading gold since 1995), the Shanghai Gold Exchange (trading gold since 2002), the Hong Kong Chinese
Gold & Silver Exchange Society (trading gold since 1918) and the Singapore Mercantile Exchange (trading gold since 2010).

The Silver Market

The London Silver Bullion Market

Although the market for physical silver is
distributed globally, most OTC market trades are cleared through London. In addition to coordinating market activities, the LBMA
acts as the principal point of contact between the market and its regulators. A primary function of the LBMA is its involvement
in the promotion of refining standards by maintenance of the “Good Delivery List,” which is a list of LBMA accredited
refiners of silver. The LBMA also coordinates market clearing and vaulting, promotes good trading practices and develops standard
documentation.

The term “loco London” silver
refers to silver physically held in London that meets the specifications for weight, dimensions, fineness (or purity), identifying
marks (including the assay stamp of a LBMA acceptable refiner) and appearance set forth in “The Good Delivery Rules for Gold
and Silver Bars” published by the LBMA. Silver bars meeting these requirements are described in this report from time to
time as “Silver Good Delivery Bars.” The unit of trade in London is the troy ounce, whose conversion between grams
is: 1,000 grams equals 32.1507465 troy ounces and 1 troy ounce equals 31.1034768 grams. A Silver Good Delivery Bar is acceptable
for delivery in settlement of a transaction on the OTC market. A Silver Good Delivery Bar must contain between 750 troy ounces
and 1,100 troy ounces of silver with a minimum fineness (or purity) of 999.0 parts per 1,000. A Silver Good Delivery Bar must also
bear the stamp of one of the refiners who are on the LBMA-approved list. Unless otherwise specified, the silver spot price always
refers to that of a Silver Good Delivery Bar. Business is generally conducted over the phone and through electronic dealing systems.

On July 14, 2017, the LBMA announced that
ICE Benchmark Administration (“IBA”) had been selected to be the third-party administrator for the “LBMA Silver
Price”. Effective from October 2, 2017, IBA is providing the auction platform and methodology as well as the overall administration
and governance for the LBMA Silver Price benchmark. IBA operates an “equilibrium auction”, which is an electronic,
tradable and auditable, over-the-counter auction for LBMA-authorized participating silver bullion banks or market makers and sponsored
clients of direct participants (“silver participants”) that establishes a reference silver price for that day’s
trading, often referred to as the “LBMA Silver Price”. The LBMA Silver Price equilibrium auction operated by CME Group
Inc. and Refinitiv prior to October 2, 2017 was selected by the LBMA as the silver valuation replacement for the London silver
fix previously determined by the London Silver Market Fixing Ltd. that was discontinued on August 14, 2014. The LBMA Silver Price
has become a widely used benchmark for daily silver prices and is quoted by various financial information sources as the London
silver fix was previously.

The LBMA Silver Price is the result of an
“equilibrium auction” because it establishes a price for a troy ounce of Silver Good Delivery Bars that clears the
maximum amount of bids and offers for silver entered by order-submitting silver participants each day. IBA uses ICE’s front-end
system, WebICE, as the technology platform that allows direct participants, as well as sponsored clients of direct participants,
to manage their orders in the auction in real time via their own desktops. As the IBA electronic silver auction market develops,
IBA expects to admit additional silver participants to the order submission process. The benchmark is published when the auction
finishes, typically a few minutes after 12:00 noon (London time).

At the opening of each auction, IBA in the
role of auction chairman (“Chairman”) announces an opening price (in U.S. Dollars), that takes into account current
market conditions and begins auction rounds, with an expected duration of at least 30 seconds each. During each auction round,
participants may enter the volume they wish to buy or sell at that price, and such orders will be part of the price formation.
Aggregate bid and offer volume is shown live on WebICE. At the end of each auction round, the total net volume is calculated. If
this “imbalance” is larger than the imbalance tolerance (normally 500,000 oz.) then the Chairman sets a new price (based
on the current market conditions, and the direction and magnitude of the imbalance in the round) and begins a new auction round.
If the imbalance is less than the tolerance, then the auction is complete with all volume tradeable at that price. The price is
then set in U.S. Dollars and also converted into other currencies, including Australian Dollars, British Pounds, Canadian Dollars,
Euros, Onshore and Offshore Yuan, Indian Rupees, Japanese Yen, Malaysian Ringgit, Russian Rubles, Singapore Dollars, South African
Rand, Swiss Francs, New Taiwan Dollars, Thai Baht and Turkish Lira. The auction is run at 12:00 noon (London time).

15

During the auction, the price at the start
of each round, and the volumes at the end of each round are available through major market data vendors. As soon as the auction
finishes, the final prices and volumes are available through major market data vendors. IBA also publishes transparency reports,
detailing the prices, volumes and times for each round of the auction. These transparency reports are available through major market
data vendors and IBA when the auction finishes. The process can also be observed real-time through a WebICE screen. The auction
mechanism provides a complete audit trail.

There are currently thirteen direct participants
who have been accredited to contribute to the LBMA Silver Price: Citibank N.A. London Branch, Coins ‘N Things Inc., DRW Investments,
LLC, Goldman Sachs International plc, HSBC Bank USA NA, Jane Street Global Trading LLC, JP Morgan Chase Bank N.A London Branch, Koch Supply and Trading
LP, Marex, Morgan Stanley, Standard Chartered Bank, StoneX Financial Ltd. and The Toronto Dominion Bank.

Since April 1, 2015, the LBMA Silver Price
has been regulated by the FCA in the UK. IBA is authorized as a regulated benchmark administrator by the FCA. Under the UK benchmark
regulation, the governance structure for a regulated benchmark must include an Oversight Committee, made up of market participants,
industry bodies, direct participant representatives, infrastructure providers and the administrator (i.e., IBA). Through the Oversight
Committee the LBMA continues to have significant involvement in the oversight of the auction process, including, among other matters,
changes to the methodology and accreditation of direct participants. The price discovery process for the LBMA Silver Price is subject
to surveillance by IBA. IBA has been formally assessed against the IOSCO Principles. In order to meet the IOSCO Principles, the
price discovery used for the LBMA Silver Price benchmark is auditable and transparent.

The LBMA Silver Price is viewed as a full
and fair representation of all market interest at the conclusion of the auction. IBA’s auction process is similar to CME
Group’s auction process, which in turn was similar to the non-electronic process previously used to establish the London
silver fix where the London silver fix process adjusted the silver price up or down until all the buy and sell orders are matched,
at which time the price was declared fixed. Nevertheless, the LBMA Silver Price has several advantages over the previous London
silver fix. IBA’s auction process is fully transparent in real-time to direct participants and sponsored clients and, at
the close of each auction, to the general public. IBA’s auction process is also fully auditable since an audit trail exists
for every change made in the process. Moreover, the audit trail and active surveillance of the auction process by IBA, as well
as the FCA’s oversight of IBA, deters manipulative and abusive conduct in establishing each day’s LBMA Silver Price.

Since August 15, 2014, the Sponsor determined
that the London silver fix, which ceased to be published as of that date, would be an inappropriate basis for valuing silver bullion
received upon purchase of the Trust’s Shares, delivered upon redemption of the Trust’s Shares and otherwise held by
the Trust on a daily basis, and that the LBMA Silver Price is an appropriate alternative for determining the value of the Trust’s
silver each trading day. The Sponsor also determined that the LBMA Silver Price fairly represents the commercial value of silver
bullion held by the Trust and that the “Benchmark Price” (as defined in the Trust Agreement) as of any day is the LBMA
Silver Price for such day.

Futures Exchanges

The most significant silver futures exchanges
are the COMEX and the TOCOM. Futures exchanges seek to provide a neutral, regulated marketplace for the trading of derivatives
contracts for commodities. Futures contracts are defined by the exchange for each commodity. For each commodity traded, this contract
specifies the precise quality and quantity standards. The contract’s terms and conditions also define the location and timing
of physical delivery.

An exchange does not buy or sell those contracts,
but seeks to offer a transparent forum where members, on their own behalf or on the behalf of customers, can trade the contracts
in a safe, efficient and orderly manner. During regular trading hours at the COMEX, the commodity contracts are traded on CME Globex
system, an electronic auction in which all bids, offers and trades must be publicly announced to all members and, upon execution,
centrally cleared. Electronic trading is offered by the exchange almost 24 hours a day (except for a short break in the evening),
six days a week.

In addition to the public nature of the pricing,
futures exchanges in the United States are regulated at two levels: internal and external governmental supervision. The internal
is performed through self-regulation and consists of regular monitoring of the following: the central algorithmic matching process
to ensure that it is conducted in conformance with all exchange rules; the orderly trading and settlement of futures and options;
the financial condition of all exchange member firms to ensure that they continuously meet financial commitments; and the volume
positions of commercial and non-commercial customers to ensure that physical delivery and other commercial commitments can be met,
and that pricing is not being improperly affected by the size of any particular customer positions. External governmental oversight
is performed by the CFTC, which reviews all the rules and regulations of United States futures exchanges and clearing houses and
monitors their enforcement.

16

The Platinum Market

The Zurich and London Platinum Bullion Markets

Although the market for physical platinum
is distributed globally, most platinum is stored and most OTC market trades are cleared through London and Zurich. In addition
to coordinating market activities, the LPPM acts as the principal point of contact between the market and its regulators. A primary
function of the LPPM is its involvement in the promotion of refining standards by maintenance of the “London/Zurich Good
Delivery Lists,” which are the lists of LPPM accredited refiners of platinum. The LPPM also coordinates market clearing and
vaulting, promotes good trading practices and develops standard documentation.

Platinum is traded generally on a “loco
London” or “loco Zurich” basis, meaning the precious metal is physically held in vaults in London or Zurich or
is transferred into accounts established in London or Zurich. Delivery of the platinum can either be by physical delivery or through
the clearing systems to an unallocated account.

The unit of trade in London and Zurich is
the troy ounce, whose conversion between grams is: 1,000 grams equals 32.1507465 troy ounces, and one troy ounce is equivalent
to 31.1034768 grams. A good delivery platinum plate or ingot on the LPPM approved list is acceptable for delivery in settlement
of a transaction on the OTC market (a “Good Delivery Platinum Plate or Ingot”). A Good Delivery Platinum Plate or Ingot
must contain between 32 and 192.904 troy ounces of platinum with a minimum fineness (or purity) of 999.5 parts per 1,000 (99.95%),
be of good appearance, and be easy to handle and stack. The platinum content of a platinum Good Delivery Platinum Plate or Ingot
is calculated by multiplying the gross weight by the fineness of the plate or ingot. A Good Delivery Platinum Plate or Ingot must
also bear the stamp of one of the refiners who are on the LPPM approved list. Unless otherwise specified, the platinum spot price
always refers to the “Good Delivery Standards” set by the LPPM. Business is generally conducted over the phone and
through electronic dealing systems.

Since December 1, 2014, the LME has been administering
the operation of an electronic platinum bullion price fixing system (“LMEbullion”) that replicates electronically the
manual London platinum fix processes previously employed by the London Platinum and Palladium Fixing Company Ltd (“LPPFCL”),
as well as providing electronic market clearing processes for platinum bullion transactions at the fixed prices established by
the LME pricing mechanism. The LME’s electronic price fixing processes, like the previous London platinum fix processes,
establishes and publishes fixed prices for troy ounces of platinum twice each London trading day during fixing sessions beginning
at 9:45 a.m. London time (the “LBMA Price AM”) and 2:00 p.m. London time (the “LBMA Price PM”). In addition
to utilizing the same London platinum fix standards and methods, the LME also supervises the platinum electronic price fixing processes
through its market operations, compliance, internal audit and third-party complaint handling capabilities in order to support the
integrity of the LBMA Price PM. The LME, in administering LMEbullion, uses a pricing methodology that meets the administrative
and regulatory needs of platinum market participants, including the IOSCO Principles. In January 2026, the LBMA announced that it intends to appoint ICE Benchmark Administration (“IBA”) to replace the LME as the third-party
administrator of the LBMA Platinum and Palladium prices in mid-2026.

Daily during London trading hours the LBMA
Price AM and the LBMA Price PM each provide reference platinum prices for that day’s trading. Many long-term contracts will
be priced on the basis of either the LBMA Price AM or the LBMA Price PM, and market participants will usually refer to one or the
other of these prices when looking for a basis for valuations. The Trust values its platinum on the basis of the LBMA Price PM.
If there is no LBMA Price PM on any day, the Trust will value its platinum on the basis of LBMA Price AM announced on that day.
If neither price is available for that day, the Trust will value its platinum based on the most recently announced LBMA Price PM
price or LBMA Price AM price.

Formal participation in the LBMA Price PM
is limited to participating LPPM members. Five LPPM members are currently participating in establishing the LBMA Price PM (Goldman
Sachs International, HSBC Bank USA NA, ICBC Standard Bank plc, Johnson Matthey plc and BASF Metals Ltd.). Any other market participant
wishing to participate in the trading on the LBMA Price PM is required to do so through one of the participating LPPM members.

Orders are placed either with one of the participating
LPPM member participants or with another precious metals dealer who will then be in contact with a participating LPPM member during
the fixing. The fix begins with the chair reflecting the market price and other data, prevailing at the opening of the fix. This
is relayed by the LPPM member participants to their dealing rooms which have direct communication with all interested parties.
Any member participant may enter the fixing process at any time, or adjust or withdraw his order. The platinum price is adjusted
up or down until all the buy and sell orders are electronically matched, at which time the price is declared fixed. All orders
are transacted on the basis of this fixed price, which is instantly relayed to the market through various media.

The LBMA and the LME have asserted that the
LME’s electronic price fixing processes are similar to the non-electronic processes previously used to establish the applicable
London platinum fix where the London platinum fix process adjusted the platinum price up or down until all the buy and sell orders
entered by the participating LPPM members are matched, at which time the price was declared fixed. Nevertheless, the LBMA Price
PM has several advantages over the previous London platinum fix. The LME’s electronic price fixing processes are intended
to be transparent. The LME asserts that its electronic price fixing processes are fully auditable by third parties since an audit
trail exists from the beginning of each fixing session. The LME also asserts that the market operation, compliance, internal audit
and third-party complaint handling capabilities of the LME supports the integrity of the LBMA Price PM.

17

Since December 1, 2014, the Sponsor determined
that the London platinum fix, which has been revised based on the new LME method and is now known as the LBMA Platinum Price (PM),
which we refer to herein as the LBMA Price PM, is an appropriate basis for valuing platinum bullion received upon purchase of the
Trust’s Shares, delivered upon redemption of the Trust’s Shares and for determining the value of the Trust’s
platinum bullion each trading day. The Sponsor also has determined that the LBMA Platinum Price PM will fairly represent the commercial
value of platinum bullion held by the Trust and, the “Benchmark Price” (as defined in the Trust Agreement) of the Trust’s
platinum bullion as of any day is the LBMA Price PM for such day.

As of December 1, 2014, the LPPFCL transferred
the ownership of the historic and future intellectual property of the twice daily “fix” for platinum and palladium
bullion to a subsidiary company of the LBMA.

Futures Exchanges

The most significant platinum futures exchanges
are the COMEX and the TOCOM. The COMEX is the largest exchange in the world for trading precious metals futures and options and
launched platinum futures in 1956, followed with options in 1990. The TOCOM has been trading platinum since 1984. Trading on these
exchanges is based on fixed delivery dates and transaction sizes for the futures and options contracts traded. Trading costs are
negotiable. As a matter of practice, only a small percentage of the futures market turnover ever comes to physical delivery of
the platinum represented by the contracts traded. Both exchanges permit trading on margin. Margin trading can add to the speculative
risk involved given the potential for margin calls if the price moves against the contract holder. The COMEX trades platinum futures
almost continuously (with one short break in the evening) through its CME Globex electronic trading system and clears through its
central clearing system. On June 6, 2003, the TOCOM adopted a similar clearing system. In each case, the exchange acts as a counterparty
for each member for clearing purposes.

The Palladium Market

The Zurich and London Palladium Bullion Markets

Although the market for physical palladium
is distributed globally, most palladium is stored and most OTC market trades are cleared through Zurich. As of September 1, 2009,
London also serves as a center for the clearing of OTC trades in palladium. In addition to coordinating market activities, the
LPPM acts as the principal point of contact between the market and its regulators. A primary function of the LPPM is its involvement
in the promotion of refining standards by maintenance of the “London/Zurich Good Delivery Lists,” which are the lists
of LPPM accredited refiners of palladium. The LPPM also coordinates market clearing and vaulting, promotes good trading practices
and develops standard documentation.

Palladium is traded generally on a loco Zurich
basis, meaning the precious metal is physically held in vaults in Zurich or is transferred into accounts established in Zurich.
As of September 1, 2009, palladium began trading on a loco London basis as well, meaning that the precious metal is physically
held in vaults in London or is transferred into accounts established in London. The basis for settlement and delivery of a loco
Zurich spot trade is payment (generally in U.S. Dollars) two business days after the trade date against delivery.

Delivery of the palladium can either be by physical
delivery or through the clearing systems to an unallocated account.

The unit of trade in London and Zurich is
the troy ounce, whose conversion between grams is: 1,000 grams equals 32.1507465 troy ounces, and one troy ounce equals 31.1034768
grams. A good delivery palladium plate or ingot on the LPPM approved list is acceptable for delivery in settlement of a transaction
on the OTC market (a “Good Delivery Plate or Ingot”). A Good Delivery Plate or Ingot must contain between 32 and 192
troy ounces of palladium with a minimum fineness (or purity) of 999.5 parts per 1,000 (99.95%), be of good appearance, and be easy
to handle and stack. The palladium content of a palladium plate or ingot is calculated by multiplying the gross weight by the fineness
of the plate or ingot. A Good Delivery Plate or Ingot must also bear the stamp of one of the refiners who are on the LPPM approved
list. Unless otherwise specified, the palladium spot price always refers to that of “Good Delivery Standards” set by
the LPPM. Business is generally conducted over the phone and through electronic dealing systems.

Since December 1, 2014, the LME has been administering
the operation of electronic palladium bullion price fixing system (“LMEbullion”) that replicate electronically the
manual London palladium fix processes previously employed by the London Platinum and Palladium Fixing Company Ltd (“LPPFCL”)
as well as providing electronic market clearing processes for palladium bullion transactions at the fixed prices established by
the LME pricing mechanism. The LME’s electronic price fixing processes, like the previous London palladium fix processes,
establishes and publishes fixed prices for troy ounces of palladium twice each London trading day during fixing sessions beginning
at 9:45 a.m. London time (the LBMA Price AM) and 2:00 p.m. London time (the LBMA Price PM). In addition to utilizing the same London
palladium fix standards and methods, the LME also supervises the palladium electronic price fixing processes through its market
operations, compliance, internal audit and third-party complaint handling capabilities in order to support the integrity of the
LBMA Price PM. The LME, in administering LMEbullion, uses a pricing methodology that meets the administrative and regulatory needs
of palladium market participants, including the International Organization of Securities Commission’s (IOSCO) Principles
for Financial Benchmarks.

18

Daily during London trading hours the LBMA
Price AM and the LBMA Price PM each provide reference palladium prices for that day’s trading. Many long-term contracts will
be priced on the basis of either the LBMA Price AM or the LBMA Price PM, and market participants will usually refer to one or the
other of these prices when looking for a basis for valuations. The Trust values its palladium on the basis of the LBMA Price PM.
If there is no LME Price PM on any day, the Trust will value its palladium on the basis of LBMA Price AM announced on that day.
If neither price is available for that day, the Trust will value its palladium based on the most recently announced LBMA Price
PM price or LBMA Price AM price.

Formal participation in the LBMA Price PM
is limited to participating LPPM members. Five LPPM members are currently participating in establishing the LBMA Price PM (Goldman
Sachs International, HSBC Bank USA NA, ICBC Standard Bank plc, Johnson Matthey plc and BASF Metals Ltd.). Any other market participant
wishing to participate in the trading on the LBMA Price PM is required to do so through one of the participating LPPM members.

Orders are placed either with one of the participating
LPPM member participants or with another precious metals dealer who will then be in contact with a participating LPPM member during
the fixing. The fix begins with the chair reflecting the market price and other data, prevailing at the opening of the fix. This
is relayed by the LPPM member participants to their dealing rooms which have direct communication with all interested parties.
Any market member may enter the fixing process at any time, or adjust or withdraw his order. The palladium price is adjusted up
or down until all the buy and sell orders are electronically matched, at which time the price is declared fixed. All fixing orders
are transacted on the basis of this fixed price, which is instantly relayed to the market through various media.

The LBMA and the LME have asserted that the
LME’s electronic price fixing processes are similar to the non-electronic processes previously used to establish the applicable
London palladium fix where the London palladium fix process adjusted the palladium price up or down until all the buy and sell
orders entered by the participating LPPM members are matched, at which time the price was declared fixed. Nevertheless, the LBMA
Price PM has several advantages over the previous London palladium fix. The LME’s electronic price fixing processes are intended
to be transparent. The LME asserts that its electronic price fixing processes are fully auditable by third parties since an audit
trail exists from the beginning of each fixing session. The LME also asserts that the market operation, compliance, internal audit
and third-party complaint handling capabilities of the LME supports the integrity of the LBMA Price PM.

Since December 1, 2014, the Sponsor determined
that the London palladium fix, which has been revised based on the new LME method and is now known as the LBMA Price PM, is an
appropriate basis for valuing palladium bullion received upon purchase of the Trust’s Shares, delivered upon redemption of
the Trust’s Shares and for determining the value of the Trust’s palladium bullion each trading day. The Sponsor also
has determined that the LBMA Price PM will fairly represent the commercial value of palladium bullion held by the Trust and, the
“Benchmark Price” (as defined in the Trust Agreement) of the Trust’s palladium bullion as of any day is the LBMA
Price PM for such day.

As of December 1, 2014, the LPPFCL transferred ownership
of the historic and future intellectual property of the twice daily “fix” for platinum and palladium bullion to a subsidiary
company of the LBMA.

Futures Exchanges

The most significant palladium futures exchanges
are the COMEX and the TOCOM. The COMEX is the largest exchange in the world for trading precious metals futures and options and
launched palladium futures in 1968, followed with options in 2010. The TOCOM has been trading palladium since 1992. Trading on
these exchanges is based on fixed delivery dates and transaction sizes for the futures and options contracts traded. Trading costs
are negotiable. As a matter of practice, only a small percentage of the futures market turnover ever comes to physical delivery
of the palladium represented by the contracts traded. Both exchanges permit trading on margin. Margin trading can add to the speculative
risk involved given the potential for margin calls if the price moves against the contract holder. The COMEX trades palladium futures
almost continuously (with one short break in the evening) through its CME Globex electronic trading system and clears through its
central clearing system. On June 6, 2003, the TOCOM adopted a similar clearing system. In each case, the exchange acts as a counterparty
for each member for clearing purposes.

Market Regulation

The global gold, silver, platinum and palladium
markets are overseen and regulated by both governmental and self-regulatory organizations. In addition, certain trade associations
have established rules and protocols for market practices and participants. In the United Kingdom, responsibility for the regulation
of the financial market participants, including the major participating members of the LBMA and the LPPM, falls under the authority
of the FCA as provided by the Financial Services and Markets Act 2000 (“FSM Act”). Under this act, all UK-based banks,
together with other investment firms, are subject to a range of requirements, including fitness and properness, capital adequacy,
liquidity, and systems and controls.

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The FCA is responsible for regulating investment
products, including derivatives, and those who deal in investment products. Regulation of spot, commercial forwards, and deposits
of gold, silver, platinum and palladium not covered by the FSM Act is provided for by The London Code of Conduct for Non-Investment
Products, which was established by market participants in conjunction with the Bank of England.

The TOCOM has authority to perform financial
and operational surveillance on its members’ trading activities, scrutinize positions held by members and large-scale customers,
and monitor the price movements of futures markets by comparing them with cash and other derivative markets’ prices. To act
as a Futures Commission Merchant Broker on the TOCOM, a broker must obtain a license from Japan’s Ministry of Economy, Trade
and Industry (“METI”), the regulatory authority that oversees the operations of the TOCOM.

The CFTC regulates trading in commodity contracts,
such as futures, options and swaps. In addition, under the CEA, the CFTC has jurisdiction to prosecute manipulation and fraud in
any commodity (including precious metals) traded in interstate commerce as spot as well as deliverable forwards. The CFTC is the
exclusive regulator of U.S. commodity exchanges and clearing houses.

Secondary Market Trading

While the Trust’s investment objective
is for the Shares to reflect the performance of the prices of physical gold, silver, platinum and palladium, in the proportions
held by the Trust, less the Trust’s expenses, the Shares may trade in the secondary market on the NYSE Arca at prices that
are lower or higher relative to their net asset value (the value of the Trust’s assets less its liabilities (“NAV”))
per Share. The amount of the discount or premium in the trading price relative to the NAV per Share may be influenced by non-concurrent
trading hours between the NYSE Arca, COMEX and the London and Zurich gold, silver, platinum and palladium markets. While the Shares
trade on the NYSE Arca until 4:00 PM New York time, liquidity in the global bullion markets is reduced after the close of the COMEX
at 1:30 PM New York time. As a result, during this time, trading spreads, and the resulting premium or discount, on the Shares
may widen.

Valuation of Bullion and Computation of Net
Asset Value

On each day that the NYSE Arca is open for regular
trading, as promptly as practicable after 4:00 p.m., New York time, on such day (“Evaluation Time”), the Trustee will
evaluate the Bullion held by the Trust and determine both the ANAV and the NAV of the Trust.

At the Evaluation Time, the Trustee will value
(1) the gold held by the Trust based on the LBMA Gold Price PM for an ounce of gold, or such day’s LBMA Gold Price AM if
such day’s LBMA Gold Price PM is not available, (2) the silver held by the Trust based on the LBMA Silver Price for an ounce
of silver, (3) the platinum held by the Trust based on the LBMA Price PM price for a troy ounce of platinum, or such day’s
LBMA Price AM if such day’s LBMA Price PM is not available, and (4) the palladium held by the Trust based on the LBMA Price
PM price for a troy ounce of palladium or such day’s LBMA Price AM if such day’s LBMA Price PM is not available. If
the London Metal Price referenced above is not available or has not been announced by the Evaluation Time, for any Bullion metal,
the next most recent London Metal Price announced 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.

Once the value of the gold,
silver, platinum and palladium has been determined, the Trustee subtracts all estimated accrued but unpaid fees (other than
the fees accruing for such day on which the valuation takes place which are computed by reference to the value of the Trust or
its assets), expenses and other liabilities of the Trust from the total value of the Bullion and any other assets of the Trust.
The resulting figure is the ANAV of the Trust. The ANAV of the Trust is used to compute the Sponsor’s Fee.

All fees accruing for the day on which the
valuation takes place which are computed by reference to the value of the Trust or its assets are calculated using the ANAV calculated
for such day. The Trustee subtracts from the ANAV the amount of accrued fees so computed for such day and the resulting figure
is the NAV of the Trust. The Trustee also determines the NAV per Share by dividing the NAV of the Trust by the number of the Shares
outstanding as of the close of trading on the NYSE Arca (which includes the net number of any Shares created or redeemed on such
evaluation day).

Any estimate of the accrued but unpaid fees,
expenses and liabilities of the Trust for purposes of computing the NAV of the Trust and ANAV made by the Trustee in good faith
shall be conclusive upon all persons interested in the Trust and no revision or correction in any computation made under the Trust
Agreement will be required by reason of any difference in amounts estimated from those actually paid.

The Sponsor and the Shareholders (as defined
below) may rely on any evaluation furnished by the Trustee, and the Sponsor has no responsibility for the evaluation’s accuracy.
The determinations the Trustee makes will be made in good faith upon the basis of, and the Trustee will not be liable for any errors
contained in, information reasonably available to it. The Trustee will not be liable to the Sponsor, The Depository Trust Company
(“DTC”), Authorized Participants, the Shareholders or any other person for errors in judgment. However, the preceding
liability exclusion will not protect the Trustee against any liability resulting from bad faith or gross negligence in the performance
of its duties.

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On May 23, 2024, the Sponsor entered into
an Amendment (the “Trust Amendment”) to the Depositary Trust Agreement (the “Trust Agreement”) with the
Trustee. The Trust Amendment reflects the following changes, effective as of June 18, 2024, as approved and directed by the Sponsor
on behalf of the Trust: (1) the amendment of the definition of “Benchmark Price” to mean, “as of any day, as
applicable (i) such day’s LBMA Price PM or such day’s LBMA Price AM if such day’s LBMA Price PM is not available,
for Gold, Platinum or Palladium, or such day’s LBMA Silver Price for Silver; or (ii) such other publicly available price
which is reasonably available to the Trustee and which the Sponsor may determine fairly represents the commercial value of Gold,
Silver, Platinum or Palladium held by the Trust and instructs the Trustee to use as the Benchmark Price”; (2) the deletion
and replacement of the defined term for “London Fix” with the defined term “LBMA Silver Price”, which means
“the price of a troy ounce of silver as determined by ICE Benchmark Administration, the third party administrator of the
London silver price selected by the LBMA, or any successor administrator of the London silver price, at or about 12:00 p.m. London,
England time”; (3) the deletion and replacement of the defined term for “London PM Fix” with the defined term
“LBMA Price PM”, which means “the price of a troy ounce of (i) Gold as determined by ICE Benchmark Administration,
the third party administrator of the London gold price selected by the LBMA, or any successor administrator of the London gold
price, at or about 3:00 p.m. London, England time, (ii) Platinum as determined by as determined by the LME, the third party administrator
of the London platinum price selected by the LBMA, or any successor administrator of the London platinum price, at or about 2:00
p.m. London, England time, or (iii) Palladium as determined by the LME, the third party administrator of the London palladium price
selected by the LBMA, or any successor administrator of the London palladium price, at or about 2:00 p.m. London, England time”;
and (4) the addition of the new definition for “LBMA Price AM” which means “the price of a troy ounce of (i)
Gold as determined by ICE Benchmark Administration, the third party administrator of the London gold price selected by the LBMA,
or any successor administrator of the London gold price, at or about 10:30 a.m. London, England time, (ii) Platinum as determined
by as determined by the LME, the third party administrator of the London platinum price selected by the LBMA, or any successor
administrator of the London platinum price, at or about 9:45 a.m. London, England time, or (iii) Palladium as determined by the
LME, the third party administrator of the London palladium price selected by the LBMA, or any successor administrator of the London
palladium price, at or about 9:45 a.m. London, England time.

Trust Expenses

The Trust’s only ordinary recurring
expense is the Sponsor’s Fee. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume the following administrative
and marketing expenses incurred by the Trust: the Trustee’s monthly fee and out-of-pocket expenses, the Custodian’s
fee and reimbursement of the Custodian’s expenses under the Custody Agreements (defined below), Exchange listing fees, SEC
registration fees, printing and mailing costs, audit fees and up to $100,000 per annum in legal expenses. The Sponsor also paid
the costs of the Trust’s organization and the initial sale of the Shares, including the applicable SEC registration fees.

The Sponsor’s Fee accrues daily at an
annualized rate equal to 0.60% of the ANAV of the Trust and is payable monthly in arrears. The Sponsor, from time to time, may
temporarily waive all or a portion of the Sponsor’s Fee at its discretion. Presently, the Sponsor does not intend to waive
any of its fee.

Furthermore, the Sponsor may, in its sole
discretion, agree to rebate all or a portion of the Sponsor’s Fee attributable to Shares held by certain institutional investors
subject to minimum shareholding and lock up requirements as determined by the Sponsor to foster stability in the Trust’s
asset levels. Any such rebate will be subject to negotiation and written agreement between the Sponsor and the investor on a case
by case basis. The Sponsor is under no obligation to provide any rebates of the Sponsor’s Fee. Neither the Trust nor the
Trustee will be a party to any Sponsor’s Fee rebate arrangements negotiated by the Sponsor. Any Sponsor’s Fee rebate
shall be paid from the funds of the Sponsor and not from the assets of the Trust.

The Sponsor’s Fee is paid by delivery
of Bullion to an account maintained by the Custodian for the Sponsor on an unallocated basis, monthly on the first business day
of the month in respect of fees payable for the prior month. The delivery is of that number of ounces of gold, silver, platinum
and palladium which equals the daily accrual of the Sponsor’s Fee for such prior month calculated at the applicable London
Metal Price. The gold, silver, platinum and palladium delivered to pay the Sponsor’s Fee shall be in such proportion so as
to ensure that the Bullion held by the Trust following such transfer is in the same ratio of metals as the Bullion delivered for
the Creation Basket Deposits.

The Trustee will, when directed by the Sponsor,
and, in the absence of such direction, may, in its discretion, sell Bullion in such quantity and at such times as may be necessary
to permit payment in cash of Trust expenses not assumed by the Sponsor. The Trustee is authorized to sell Bullion at such times
and in the smallest amounts required to permit such payments as they become due, it being the intention to avoid or minimize the
Trust’s holdings of assets other than Bullion. Accordingly, the amount of Bullion to be sold will vary from time to time
depending on the level of the Trust’s expenses and the market prices of Bullion. The Custodian is authorized to purchase
from the Trust, at the request of the Trustee, Bullion needed to cover Trust expenses not assumed by the Sponsor at the prices
used by the Trustee to determine the value of the Bullion held by the Trust on the date of the sale.

The Sponsor’s Fee for the year ended December
31, 2025 was $9,539,023 (December 31, 2024: $6,060,263; December 31, 2023: $5,919,545).

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Cash held by the Trustee pending payment of the
Trust’s expenses will not bear any interest. Each delivery or sale of Bullion by the Trust to pay the Sponsor’s Fee
or other Trust expenses will be a taxable event to Shareholders.

Creation and Redemption of Shares

The Trust creates and redeems Shares from time to
time, but only in one or more Baskets (a Basket equals a block of 25,000

Shares). 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 physical gold, silver,
platinum and palladium 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 are the only persons
that may place orders to create and redeem Baskets. Authorized Participants must be (1) registered broker-dealers or other securities
market participants, such as banks and other financial institutions, which are not required to register as broker-dealers to engage
in securities transactions, and (2) participants in DTC. To become an Authorized Participant, a person must enter into an Authorized
Participant Agreement with the Sponsor and the Trustee. The Authorized Participant Agreement provides the procedures for the creation
and redemption of Baskets and for the delivery of the Bullion and any cash required for such creations and redemptions. The Authorized
Participant Agreement and the related procedures attached thereto may be amended by the Trustee and the Sponsor, without the consent
of any Shareholder or Authorized Participant. Authorized Participants pay a transaction fee of $500 to the Trustee for each order
they place to create or redeem one or more Baskets. Authorized Participants who make deposits with the Trust in exchange for Baskets
receive no fees, commissions or other form of compensation or inducement of any kind from either the Sponsor or the Trust for serving
as an Authorized Participant, and no such person has any obligation or responsibility to the Sponsor or the Trust to effect any
sale or resale of Shares.

Authorized Participants are cautioned that
some of their activities will result in their being deemed participants in a distribution in a manner which would render them statutory
underwriters and subject them to the prospectus-delivery and liability provisions of the Securities Act, as described in “Plan
of Distribution”.

Prior to initiating any creation or redemption
order, an Authorized Participant must have entered into an agreement with the Custodian or a Bullion clearing bank to establish
an Authorized Participant Unallocated Account in London (“Authorized Participant Unallocated Bullion Account Agreement”).
Authorized Participant Unallocated Accounts may only be used for transactions with the Trust. Bullion held in Authorized Participant
Unallocated Accounts is typically not segregated from the Custodian’s or other Bullion clearing bank’s assets, as a
consequence of which an Authorized Participant will have no proprietary interest in any specific bars of gold or silver or plates
or ingots of platinum or palladium held by the Custodian or the clearing bank. Credits to its Authorized Participant Unallocated
Account are therefore at risk of the Custodian’s or other Bullion clearing bank’s insolvency. No fees will be charged
by the Custodian for the use of the Authorized Participant Unallocated Account as long as the Authorized Participant Unallocated
Account is used solely for Bullion transfers to and from the Trust Unallocated Account and the Custodian (or one of its affiliates)
receives compensation for maintaining the Trust Allocated Account. Authorized Participants should be aware that the Custodian’s
liability threshold under the Authorized Participant Unallocated Bullion Account Agreement is generally gross negligence, not negligence,
which is the Custodian’s liability threshold under the Trust’s Custody Agreements.

As the terms of the Authorized Participant
Unallocated Bullion Account Agreement differ in certain respects from the terms of the Trust’s Unallocated Account Agreement,
potential Authorized Participants should review the terms of the Authorized Participant Unallocated Bullion Account Agreement carefully.
A copy of the Authorized Participant Agreement may be obtained by potential Authorized Participants from the Trustee.

Certain Authorized Participants are expected
to have the facility to participate directly in the physical gold, silver, platinum and palladium markets and the Bullion futures
markets. In some cases, an Authorized Participant may from time to time acquire Bullion from or sell Bullion to its affiliated
Bullion trading desk, which may profit in these instances. Each Authorized Participant must be registered as a broker-dealer under
the Securities Exchange Act of 1934 ("Exchange Act") and regulated by FINRA or be exempt from being or otherwise not
be required to be so regulated or registered, and must be qualified to act as a broker or dealer in the states or other jurisdictions
where the nature of its business so requires. Certain Authorized Participants are regulated under federal and state banking laws
and regulations. Each Authorized Participant has its own set of rules and procedures, internal controls and information barriers
as it determines is appropriate in light of its own regulatory regime.

Authorized Participants may act for their
own accounts or as agents for broker-dealers, custodians and other securities market participants that wish to create or redeem
Baskets. An order for one or more Baskets may be placed by an Authorized Participant on behalf of multiple clients. As of the date
of this report, Goldman Sachs & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Merrill Lynch Professional Clearing
Corp., Mizuho Securities USA LLC, Morgan Stanley & Co., Inc, Scotia Capital (USA) LLC, UBS Securities LLC and Virtu Americas,
LLC have each signed an Authorized Participant Agreement with the Trust and, upon the effectiveness of such agreement, may create
and redeem Baskets as described above. Persons interested in purchasing Baskets should contact the Sponsor or the Trustee to obtain
the contact information for the Authorized Participants. Shareholders who are not Authorized Participants are only able to redeem
their Shares through an Authorized Participant.

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All Bullion is be delivered to the Trust and
distributed by the Trust in unallocated form through credits and debits between Authorized Participant Unallocated Accounts and
the Trust Unallocated Account. Bullion transferred from an Authorized Participant Unallocated Account to the Trust in unallocated
form will first be credited to the Trust Unallocated Account. Thereafter, the Custodian will allocate specific bars of gold and
silver and allocate, specific plates or ingots of platinum, in each case representing the amount of Bullion credited to the Trust
Unallocated Account (to the extent such amount is representable by whole gold or silver bars or platinum or palladium plates or
ingots) to the Trust Allocated Account. The movement of Bullion is reversed for the distribution of Bullion to an Authorized Participant
in connection with the redemption of Baskets.

All physical gold represented by a credit
to any Authorized Participant Unallocated Account and to the Trust Unallocated Account and all physical gold held in the Trust
Allocated Account with the Custodian must be of at least a minimum fineness (or purity) of 995 parts per 1,000 (99.5%) and otherwise
conform to the rules, regulations practices and customs of the LBMA, including the specifications for a London Good Delivery Bar.

All physical silver represented by a credit
to any Authorized Participant Unallocated Account and to the Trust Unallocated Account and all physical silver held in the Trust
Allocated Account with the Custodian must be of at least a minimum fineness (or purity) of 999.0 parts per 1,000 (99.9%) and otherwise
conform to the rules, regulations, practices and customs of the LBMA, including the specifications for a Silver Good Delivery Bar.

All physical platinum or palladium represented
by a credit to any Authorized Participant Unallocated Account and to the Trust Unallocated Account and all physical platinum or
palladium held in the Trust Allocated Account with the Custodian must be of at least a minimum fineness (or purity) of 999.5 parts
per 1,000 (99.95%) and otherwise conform to the rules, regulations practices and customs of the LPPM, including the specifications
for a Good Delivery Platinum Plate or Ingot or a Good Delivery Palladium Plate or Ingot, as applicable Under the Authorized Participant
Agreement, the Sponsor has agreed to indemnify the Authorized Participants against certain liabilities, including liabilities under
the Securities Act.

The following description of the procedures
for the creation and redemption of Baskets is only a summary and an investor should refer to the relevant provisions of the Trust
Agreement and the form of Authorized Participant Agreement for more detail.

Creation Procedures

On any business day, an Authorized Participant
may place an order with the Trustee to create one or more Baskets. Creation and redemption orders are accepted on “business
days” the NYSE Arca is open for regular trading. Settlements of such orders requiring receipt or delivery, or confirmation
of receipt or delivery, of Bullion in the United Kingdom, or another jurisdiction will occur on “business days” when
(1) banks in the United Kingdom, Zurich and such other jurisdiction and (2) the London and Zurich Bullion markets are regularly
open for business. If such banks or the London or Zurich Bullion markets are not open for regular business for a full day, such
a day will only be a “business day” for settlement purposes if the settlement procedures can be completed by the end
of such day. Settlement of orders requiring receipt or delivery, or confirmation of receipt or delivery, of Shares will occur,
after confirmation of the applicable Bullion delivery, on “business days” when the NYSE Arca is open for regular trading.
In the event of a level 3 market-wide circuit breaker resulting in a trading halt for the remainder of the trading day, the time
of the market-wide trading halt is considered the close of regular trading and no creation orders for the current trade date will
be accepted after that time (the “cutoff”). Orders placed after the cutoff will be deemed to be rejected and will not
be processed. Orders should be placed in proper form on the following business day. Purchase orders must be placed no later than
3:59:59 p.m. on each business day the NYSE Arca is open for regular trading.

By placing a purchase order, an Authorized
Participant agrees to deposit Bullion with the Trust. Prior to the delivery of Baskets for a purchase order, the Authorized Participant
must also have wired to the Trustee the non-refundable transaction fee due for the purchase order.

Determination of required deposits

The amount of gold, silver, platinum and palladium
in the required deposit is determined by dividing the number of ounces of each metal held by the Trust by the number of Baskets
outstanding, as adjusted for the amount of Bullion constituting estimated accrued but unpaid fees and expenses of the Trust. Fractions
of a fine ounce of gold, silver, platinum and palladium smaller than 0.001 of a fine ounce which are included in the deposit amount
are disregarded in the foregoing calculation. All questions as to the composition of a Creation Basket Deposit will be finally
determined by the Trustee. The Trustee’s determination of the Creation Basket Deposit shall be final and binding on all persons
interested in the Trust.

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Delivery of required deposits

An Authorized Participant who places a purchase
order is responsible for crediting its Authorized Participant Unallocated Account with the required Bullion deposit amount by the
prescribed settlement date in London. Upon receipt of the Bullion deposit amount, the Custodian, after receiving appropriate instructions
from the Authorized Participant and the Trustee, will transfer on the prescribed settlement date the Bullion deposit amount from
the Authorized Participant Unallocated Account to the Trust Unallocated Account and the Trustee will direct DTC to credit the number
of Baskets ordered to the Authorized Participant’s DTC account. The expense and risk of delivery, ownership and safekeeping
of Bullion until such Bullion has been received by the Trust shall be borne solely by the Authorized Participant. The Trustee may
accept delivery of Bullion by such other means as the Sponsor, from time to time, may determine with the Trustee to be acceptable
for the Trust, provided that the same is disclosed in a prospectus relating to the Trust filed with the SEC pursuant to Rule 424
under the Securities Act. If Bullion is to be delivered other than as described above, the Sponsor is authorized to establish such
procedures and to appoint such custodians and establish such custody accounts in addition to those described in this report, as
the Sponsor determines to be desirable.

Acting on standing instructions given by the
Trustee, the Custodian will transfer the Bullion deposit amount from the Trust Unallocated Account to the Trust Allocated Account
by transferring gold and silver bars from its inventory and platinum and palladium plates and ingots from its inventory to the
Trust Allocated Account. The Custodian uses commercially reasonable efforts to complete the transfer of Bullion to the Trust Allocated
Account prior to the time by which the Trustee is to credit the Basket to the Authorized Participant’s DTC account; if, however,
such transfers have not been completed by such time, the number of Baskets ordered will be delivered against receipt of the Bullion
deposit amount in the Trust Unallocated Account, and all Shareholders will be exposed to the risks of unallocated Bullion to the
extent of that Bullion deposit amount until the Custodian completes the allocation process. See “Risk Factors-Bullion held
in the Trust’s unallocated Bullion account and any Authorized Participant’s unallocated Bullion account will not be
segregated from the Custodian’s assets.”

Because gold and silver are allocated only
in multiples of whole bars and platinum and palladium are only allocated in multiples of whole plates or ingots, the amount of
Bullion allocated from the Trust Unallocated Account to the Trust Allocated Account may be less than the total fine ounces of Bullion
credited to the Trust Unallocated Account. Any balance will be held in the Trust Unallocated Account. The Custodian uses commercially
reasonable efforts to minimize the amount of Bullion held in the Trust Unallocated Account; no more than 430 troy ounces of gold
(maximum weight to make one London Good Delivery Bar), no more than 1,100 troy ounces of silver (maximum weight to make one Silver
Good Delivery Bar), no more than 192.904 troy ounces of platinum (maximum weight to make one Good Delivery Platinum Plate or Ingot)
and no more than 192.904 troy ounces of palladium (maximum weight to make one Good Delivery Palladium Plate or Ingot) is expected
to be held in the Trust Unallocated Account at the close of each business day.

Rejection of purchase orders

The Trustee may reject a purchase order or
a Creation Basket Deposit if such order or Creation Basket Deposit is not presented in proper form as described in the Authorized
Participant Agreement or if the fulfillment of the order, in the opinion of counsel, might be unlawful. None of the Trustee, the
Sponsor or the Custodian will be liable for the rejection of any purchase order or Creation Basket Deposit.

Redemption Procedures

The procedures by which an Authorized Participant
can redeem one or more Baskets will mirror the procedures for the creation of Baskets. On any business day, an Authorized Participant
may place an order with the Trustee to redeem one or more Baskets.

Redemption orders must be placed no later than
3:59:59 p.m. on each business day the NYSE Arca is open for regular trading. In the event of a level 3 market-wide circuit breaker
resulting in a trading halt for the remainder of the trading day, the time of the market-wide trading halt is considered the close
of regular trading and no redemption orders for the current trade date will be accepted after that time (the “cutoff”).
Orders placed after the cutoff will be deemed to be rejected and will not be processed. Orders should be placed in proper form
on the following business day. A redemption order so received is effective on the date it is received in satisfactory form by the
Trustee. The redemption procedures allow Authorized Participants to redeem Baskets and do not entitle an individual Shareholder
to redeem any Shares in an amount less than a Basket, or to redeem Baskets other than through an Authorized Participant.

By placing a redemption order, an Authorized
Participant agrees to deliver the Baskets to be redeemed through DTC’s book-entry system to the Trust by the prescribed settlement
date. Prior to the delivery of the redemption distribution for a redemption order, the Authorized Participant must also have wired
to the Trustee the non-refundable transaction fee due for the redemption order.

Determination of redemption distribution

The redemption distribution from the Trust
consists of a credit to the redeeming Authorized Participant’s Authorized Participant Unallocated Account, representing the
amount of the Bullion (in specified proportion of gold, silver, platinum and palladium) held by the Trust evidenced by the Shares
being redeemed. Fractions of a fine ounce of Bullion included in the redemption distribution smaller than 0.001 of a fine ounce
are disregarded. Redemption distributions will be subject to the deduction of any applicable tax or other governmental charges
which may be due.

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Delivery of redemption distribution

The redemption distribution due from the Trust
will be delivered to the Authorized Participant on the prescribed settlement date following a loco London redemption order date
if, by 10:00 a.m. New York time on the settlement date, the Trustee’s DTC account has been credited with the Baskets to be
redeemed. If a loco swap or physical transfer is necessary to effect a loco London redemption, the redemption distribution due
from the Trust will be delivered to the Authorized Participant on or before the prescribed settlement date if, by 10:00 a.m. New
York time on the prescribed settlement date, the Trustee’s DTC account has been credited with the Baskets to be redeemed.
In the event that, by 10:00 a.m. New York time on the prescribed settlement date, the Trustee’s DTC account has not been
credited with the total number of Shares corresponding to the total number of Baskets to be redeemed pursuant to such redemption
order, the Trustee shall send to the Authorized Participant and the Custodian via fax or electronic mail message notice of such
fact and the Authorized Participant shall have one business day following receipt of such notice to correct such failure. If such
failure is not cured within such one business day period, the Trustee (in consultation with the Sponsor) will cancel such redemption
order and will send via fax or electronic mail message notice of such cancellation to the Authorized Participant and the Custodian,
and the Authorized Participant will be solely responsible for all costs incurred by the Trust, the Trustee or the Custodian related
to the cancelled order. The Trustee is also authorized to deliver the redemption distribution notwithstanding that the Baskets
to be redeemed are not credited to the Trustee’s DTC account by 10:00 a.m. New York time on the prescribed settlement date
if the Authorized Participant has collateralized its obligation to deliver the Baskets through DTC’s book entry system on
such terms as the Sponsor and the Trustee may from time to time agree upon.

The Custodian transfers the redemption Bullion
amount from the Trust Allocated Account to the Trust Unallocated Account and, thereafter, to the redeeming Authorized Participant’s
Authorized Participant Unallocated Account. The Authorized Participant and the Trust are each at risk in respect of Bullion credited
to their respective unallocated accounts in the event of the Custodian’s insolvency. See “Risk Factors-Bullion held
in the Trust’s unallocated Bullion account and any Authorized Participant’s unallocated Bullion account is not segregated
from the Custodian’s assets.”

As with the allocation of Bullion to the Trust
Allocated Account which occurs upon a purchase order, if in transferring Bullion from the Trust Allocated Account to the Trust
Unallocated Account in connection with a redemption order there is an excess amount of Bullion transferred to the Trust Unallocated
Account, the excess over the Bullion redemption amount will be held in the Trust Unallocated Account. The Custodian uses commercially
reasonable efforts to minimize the amount of Bullion held in the Trust Unallocated Account; no more than 430 ounces of gold (maximum
weight to make one London Good Delivery Bar), no more than 1,100 ounces of silver (maximum weight to make one Silver Good Delivery
Bar), no more than 192.904 ounces of platinum (maximum weight to make one Good Delivery Platinum Plate or Ingot) and no more than
192 ounces of palladium (maximum weight to make one Good Delivery Palladium Plate or Ingot) is expected to be held in the Trust
Unallocated Account at the close of each business day.

Suspension or rejection of redemption orders

The Trustee may, in its discretion, and will
when directed by the Sponsor, suspend the right of redemption, or postpone the redemption settlement date, (1) for any period during
which the NYSE Arca is closed other than customary weekend or holiday closings, or trading on the NYSE Arca is suspended or restricted
or (2) for any period during which an emergency exists as a result of which delivery, disposal or evaluation of Bullion is not
reasonably practicable. None of the Sponsor, the Trustee or the Custodian are liable to any person or in any way for any loss or
damages that may result from any such suspension or postponement.

The Trustee will reject a redemption order
if the order is not in proper form as described in the Authorized Participant Agreement or if the fulfillment of the order, in
the opinion of its counsel, might be unlawful.

Creation and Redemption Transaction Fee

To compensate the Trustee for services in
processing the creation and redemption of Baskets, an Authorized Participant is required to pay a transaction fee to the Trustee
of $500 per order to create or redeem Baskets. An order may include multiple Baskets. The transaction fee may be reduced, increased
or otherwise changed by the Trustee with the consent of the Sponsor. From time to time, the Trustee, with the consent of the Sponsor,
may waive all or a portion of the applicable transaction fee. The Trustee shall notify DTC of any agreement to change the transaction
fee and will not implement any increase in the fee for the redemption of Baskets until 30 days after the date of the notice.

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The Sponsor

The Trust’s Sponsor is abrdn ETFs Sponsor
LLC, a Delaware limited liability company formed on June 17, 2009.

The Sponsor’s office
is located at c/o abrdn ETFs Sponsor LLC, 1900 Market Street, Suite 200, Philadelphia, PA 19103. Prior to April 27, 2018, the Sponsor
was wholly-owned by ETF Securities Limited, a Jersey, Channel Islands based company. Effective April 27, 2018, ETF Securities Limited
sold its membership interest in the Sponsor to abrdn Inc. (known as Aberdeen Standard Investments Inc. prior to January 1, 2022),
a Delaware corporation. As a result of the sale, abrdn Inc. became the sole member of the Sponsor. abrdn Inc. is a wholly-owned
indirect subsidiary of Aberdeen Group plc. (“Aberdeen”). Aberdeen has retained “abrdn” as an operational abbreviation across its subsidiary legal entities (including
the Sponsor, fund names and descriptors).
Under the Delaware Limited Liability Company Act and the governing documents of the Sponsor, the sole member of the Sponsor, abrdn
Inc., is not responsible for the debts, obligations and liabilities of the Sponsor solely by reason of being the sole member of
the Sponsor.

The Sponsor’s Role

The Sponsor arranged for the creation of the
Trust, the ongoing registration of the Shares for their public offering in the United States and the listing of the Shares on the
NYSE Arca. The Sponsor has agreed to assume the organizational expenses of the Trust and the following administrative and marketing
expenses incurred by the Trust: the Trustee’s monthly fee and out-of-pocket expenses, the Custodian’s fee and the reimbursement
of the Custodian’s expenses under the Custody Agreements, exchange listing fees, SEC registration fees, printing and mailing
costs, audit fees and up to $100,000 per annum in legal expenses. The Sponsor also paid the costs of the Trust’s organization
and the initial sale of the Shares, including the applicable SEC registration fees.

The Sponsor does not exercise day-to-day oversight
over the Trustee or the Custodian. The Sponsor may remove the Trustee and appoint a successor Trustee (i) if the Trustee ceases
to meet certain objective requirements (including the requirement that it have capital, surplus and undivided profits of at least
$150 million), (ii) if, having received written notice of a material breach of its obligations under the Trust Agreement, the Trustee
has not cured the breach within 30 days, or (iii) if the Trustee refuses to consent to the implementation of an amendment to the
Trust’s initial Internal Control Over Financial Reporting. The Sponsor also has the right to replace the Trustee during the
90 days following any merger, consolidation or conversion in which the Trustee is not the surviving entity or, in its discretion,
on the fifth anniversary of the creation of the Trust or on any subsequent third anniversary thereafter. The Sponsor also has the
right to approve any new or additional custodian that the Trustee may wish to appoint and any new or additional sub-custodian that
the Custodian may wish to appoint.

The Sponsor or one of its affiliates or agents (1)
develops a marketing plan for the Trust on an ongoing basis, (2) prepares marketing materials regarding the Shares, including the
content of the Trust’s website and (3) executes the marketing plan for the Trust.

The Trustee

The Bank of New York Mellon, a banking corporation
organized under the laws of the State of New York with trust powers (“BNYM”), serves as the Trustee. BNYM has a trust
office at 240 Greenwich Street, New York, NY 10286. BNYM is subject to supervision by the New York State Financial Services Department
and the Board of Governors of the Federal Reserve System. Information regarding creation and redemption Basket composition, NAV
of the Trust, transaction fees and the names of the parties that have each executed an Authorized Participant Agreement may be
obtained from BNYM. A copy of the Trust Agreement is available for inspection at BNYM’s trust office identified above. Under
the Trust Agreement, the Trustee is required to have capital, surplus and undivided profits of at least $150 million.

The Trustee’s Role

The Trustee is generally responsible for the
day-to-day administration of the Trust, including keeping the Trust’s operational records. The Trustee’s principal
responsibilities include (1) transferring the Trust’s Bullion as needed to pay the Sponsor’s Fee in Bullion (Bullion
transfers are expected to occur approximately monthly in the ordinary course), (2) valuing the Trust’s Bullion and calculating
the NAV of the Trust and the NAV per Share, (3) receiving and processing orders from Authorized Participants to create and redeem
Baskets and coordinating the processing of such orders with the Custodian and DTC, (4) selling the Trust’s Bullion as needed
to pay any extraordinary Trust expenses that are not assumed by the Sponsor, (5) when appropriate, making distributions of cash
or other property to Shareholders, and (6) receiving and reviewing reports from or on the Custodian’s custody of and transactions
in the Trust’s Bullion. The Trustee shall, with respect to directing the Custodian, act in accordance with the instructions
of the Sponsor. If the Custodian resigns, the Trustee shall appoint an additional or replacement Custodian selected by the Sponsor.

The Trustee intends to regularly communicate
with the Sponsor to monitor the overall performance of the Trust. The Trustee does not monitor the performance of the Custodian
or any other sub-custodian other than to review the reports provided by the Custodian pursuant to the Custody Agreements. The Trustee,
along with the Sponsor, will liaise with the Trust’s legal, accounting and other professional service providers as needed.
The Trustee will assist and support the Sponsor with the preparation of all periodic reports required to be filed with the SEC
on behalf of the Trust.

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The Trustee’s monthly fees and out-of-pocket
expenses are paid by the Sponsor.

Affiliates of the Trustee
may from time to time act as Authorized Participants or purchase or sell gold, silver, platinum and palladium or Shares for their
own account, as agent for their customers and for accounts over which they exercise investment discretion. Affiliates of the Trustee
are subject to the same transaction fee as other Authorized Participants.

The Custodian

Effective May 23, 2024, the Trustee, at the
direction of the Sponsor, entered into an Allocated Account Agreement and Unallocated Account Agreement with ICBC Standard Bank
Plc (“ICBC”), providing for the custody of the Trust’s Bullion. Effective August 8, 2024, JPMorgan Chase Bank
N.A. no longer serves as a custodian of the Trust’s Bullion.

ICBC is a public limited company incorporated
under the laws of England and Wales, serves as a Custodian of the Trust’s Bullion. ICBC’s office is located at 20 Gresham
Street, London, EC2V 7JE, United Kingdom.

The Custodian’s Role

The Custodian is responsible for the safekeeping
of the Trust’s Bullion deposited with it by Authorized Participants in connection with the creation of Baskets. The Custodian
is also responsible for selecting sub-custodians, if any. The Custodian facilitates the transfer of Bullion in and out of the Trust
through the unallocated Bullion accounts it will maintain for each Authorized Participant and the unallocated and allocated Bullion
accounts it maintains for the Trust. The Custodian holds at its London, England vault premises that portion of the Trust’s
allocated Bullion to be held in London. The Custodian is responsible for allocating specific bars of physical gold and silver and
specific plates or ingots of physical platinum and palladium to the Trust’s allocated Bullion account. The Custodian provides
the Trustee with regular reports detailing the Bullion transfers in and out of the Trust’s unallocated and allocated Bullion
accounts and identifying the gold and silver bars and the platinum and palladium plates or ingots held in the Trust’s allocated
Bullion account.

The Custodian’s fees and expenses under the
Custody Agreements are paid by the Sponsor.

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. The Custodian and its affiliates are subject to the same transaction
fee as other Authorized Participants.

Inspection of Bullion

Under the Custody Agreements, the Trustee,
the Sponsor and the Trust’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 Bullion and certain related records maintained by the Custodian. In addition, under
the Custody Agreements, the Custodian shall procure that any sub-custodian that it appoints allows access to its premises during
normal business hours to examine the Trust’s Bullion held there and such records as the Trustee, the Sponsor or the Trust’s
auditors and inspectors may reasonably require to perform their respective duties to Shareholders.

The Sponsor has exercised
its right to visit the Custodian in order to examine the Bullion and the records maintained by the Custodian. Inspections were
conducted by Bureau Veritas Commodities UK Ltd, a leading commodity inspection and testing company retained by the Sponsor, as
of August 4, 2025 and January 5, 2026.

There can be no guarantee that the Sponsor or
the Trust’s auditors and inspectors will be able to perform physical inspections of the Trust’s Bullion as planned.
Local policies, regulations, or ordinances, as well as polices or restrictions adopted by the Custodian or a sub-custodian, may
temporarily prevent, or otherwise impair the ability of, the Sponsor or the Trust’s auditors and inspectors, from performing
a physical inspection of the Trust’s Bullion on a desired date. In those situations, the Sponsor or the Trust’s auditors
and inspectors may seek to verify the Bullion held by the Trust by alternate means, including through virtual inspections of the
Trust’s Bullion and/or a review of pertinent records.

Description of the Shares

General

The Trustee is authorized under the Trust
Agreement to create and issue an unlimited number of Shares. The Trustee creates Shares only in Baskets (a Basket equals a block
of 25,000 Shares) and only upon the order of an Authorized Participant. The Shares represent units of fractional undivided beneficial
interest in and ownership of the Trust and have no par value. Any creation and issuance of Shares above the amount registered on
the Trust’s then-current and effective registration statement with the SEC will require the registration of such additional
Shares.

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Description of Limited Rights

The Shares do not represent a traditional
investment and Shareholders should not view them as similar to shares of a corporation operating a business enterprise with management
and a board of directors. Shareholders do not have the statutory rights normally associated with the ownership of shares of a corporation,
including, for example, the right to bring “oppression” or “derivative” actions. All Shares are of the
same class with equal rights and privileges. Each Share is transferable, is fully paid and non-assessable and entitles the holder
to vote on the limited matters upon which Shareholders may vote under the Trust Agreement. The Shares do not entitle their holders
to any conversion or pre-emptive rights, or, except as provided below, any redemption rights or rights to distributions.

Distributions

If the Trust is terminated and liquidated,
the Trustee will distribute to the Shareholders any amounts remaining after the satisfaction of all outstanding liabilities of
the Trust and the establishment of such reserves for applicable taxes, other governmental charges and contingent or future liabilities
as the Trustee shall determine. Shareholders of record on the record date fixed by the Trustee for a distribution will be entitled
to receive their pro rata portion of any distribution.

Voting and Approvals

Under the Trust Agreement, Shareholders have
no voting rights, except in limited circumstances. The Trustee may terminate the Trust upon the agreement of Shareholders owning
at least 75% of the outstanding Shares. In addition, certain amendments to the Trust Agreement require advance notice to the Shareholders
before the effectiveness of such amendments, but no Shareholder vote or approval is required for any amendment to the Trust Agreement.

Redemption of the Shares

The Shares may only be redeemed by or through an
Authorized Participant and only in Baskets.

Book-Entry Form

Individual certificates will not be issued
for the Shares. Instead, one or more global certificates is deposited by the Trustee with DTC and registered in the name of Cede
& Co., as nominee for DTC. The global certificates evidence all of the Shares outstanding at any time. Under the Trust Agreement,
Shareholders are limited to (1) participants in DTC such as banks, brokers, dealers and trust companies (DTC Participants), (2)
those who maintain, either directly or indirectly, a custodial relationship with a DTC Participant (Indirect Participants), and
(3) those banks, brokers, dealers, trust companies and others who hold interests in the Shares through DTC Participants or Indirect
Participants. The Shares are only transferable through the book-entry system of DTC. Shareholders who are not DTC Participants
may transfer their Shares through DTC by instructing the DTC Participant holding their Shares (or by instructing the Indirect Participant
or other entity through which their Shares are held) to transfer the Shares. Transfers will be made in accordance with standard
securities industry practice.

Custody of the Trust’s Bullion

Custody of the physical gold and silver deposited
with and held by the Trust is provided by the Custodian at its London, England vaults and by other sub-custodians on a temporary
basis. Custody of the physical platinum and palladium deposited with and held by the Trust is provided by the Custodian at its
London, England vaults and by other sub-custodians on a temporary basis. The Custodian is a market maker, clearer and approved
weigher under the rules of the LBMA and the LPPM.

The Custodian is the custodian of the physical
Bullion credited to the Trust Allocated Account in accordance with the Custody Agreements. The Custodian segregates the physical
Bullion credited to the Trust Allocated Account from any other precious metal it holds or holds for others by entering appropriate
entries in its books and records, Under the Custody Agreements, the Trustee, the Sponsor and the Trust’s auditors and inspectors
may inspect the vaults of the Custodian. See “Inspection of Bullion”.

The Custodian, as instructed by the Trustee
on behalf of the Trust, is authorized to accept, on behalf of the Trust, deposits of Bullion in unallocated form. Acting on standing
instructions specified in the Custody Agreements, the Custodian allocates, Bullion deposited in unallocated form with the Trust
by selecting bars of gold or silver or plates or ingots of platinum or palladium for deposit to the Trust Allocated Account. All
physical gold and silver allocated to the Trust must conform to the rules, regulations, practices and customs of the LBMA. All
physical platinum and palladium allocated to the Trust must conform to the rules, regulations, practices and customs of the LPPM.
The Custodian must replace any non-conforming Bullion with conforming Bullion as soon as practical upon a determination by the
Custodian any Bullion is non-conforming.

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The process of withdrawing Bullion
from the Trust for a redemption of a Basket follows the same general procedure as for depositing Bullion with the Trust for a
creation of a Basket, only in reverse. Each transfer of Bullion between the Trust Allocated Account and the Trust Unallocated
Account connected with a creation or redemption of a Basket may result in a small amount of Bullion being held in the Trust
Unallocated Account after the completion of the transfer. In making deposits and withdrawals between the Trust Allocated
Account and the Trust Unallocated Account, the Custodian will use commercially reasonable efforts to minimize the amounts of
gold, silver, platinum and palladium held in the Trust Unallocated Account as of the close of each business day. See
"Creation and Redemption of Shares.”

United States Federal Income Tax Consequences

The following discussion of the
material US federal income tax consequences generally applies to the purchase, ownership and disposition of Shares by a US
Shareholder (as defined below) and certain US federal income tax consequences that may apply to an investment in Shares by a
Non-US Shareholder (as defined below). The discussion is based on the United States Internal Revenue Code of 1986 as amended
(the “Code”). The discussion below is based on the Code, United States Treasury Regulations (“Treasury
Regulations”) promulgated under the Code and judicial and administrative interpretations of the Code, all as in effect
on the date of this annual report and all of which are subject to change either prospectively or retroactively. The tax
treatment of Shareholders may vary depending upon their own particular circumstances. Certain Shareholders (including
broker-dealers, traders, banks and other financial institutions, insurance companies, real estate investment trusts,
tax-exempt entities, Shareholders whose functional currency is not the U.S. Dollar or other investors with special
circumstances) may be subject to special rules not discussed below. In addition, the following discussion applies only to
investors who hold Shares as “capital assets” within the meaning of Code section 1221 and not as part of a
straddle, hedging transaction or a conversion or constructive sale transaction. Moreover, the discussion below does not
address the effect of any state, local or foreign tax law or any transfer tax on an owner of Shares. Purchasers of Shares are
urged to consult their own tax advisors with respect to all federal, state, local and foreign tax law or any transfer
tax considerations potentially applicable to their investment in Shares.

For purposes of this discussion, a “US Shareholder”
is a Shareholder that is:

● An individual who is a citizen or resident of the United
States;

● A corporation (or other entity treated as a corporation
for US federal tax purposes) created or organized in or under the laws of the United States or any political subdivision thereof;

● An estate, the income of which is includible in gross
income for US federal income tax purposes regardless of its source; or

● A trust, if a court within the United States is able
to exercise primary supervision over the administration of the trust and one or more US persons have the authority to control
all substantial decisions of the trust.

Taxation of the Trust

The Trust is classified
as a “grantor trust” for US federal income tax purposes. As a result, the Trust itself is not subject to US federal
income tax. Instead, the Trust’s income and expenses “flow through” to the Shareholders, and the Trustee reports
the Trust’s income, gains, losses and deductions to the Internal Revenue Service (“IRS”) on that basis.

A Shareholder that is not a US Shareholder
as defined above (other than a partnership, or an entity treated as a partnership for US federal tax purposes) generally is considered
a “Non-US Shareholder” for purposes of this discussion. For US federal income tax purposes, the treatment of any beneficial
owner of an interest in a partnership, including any entity treated as a partnership for US federal income tax purposes, generally
depends upon the status of the partner and upon the activities of the partnership. Partnerships and partners in partnerships should
consult their tax advisors about the US federal income tax consequences of purchasing, owning and disposing of Shares.

Taxation of US Shareholders

Shareholders generally are treated, for US
federal income tax purposes, as if they directly owned a pro rata share of the underlying assets held by the Trust. Shareholders
are also treated as if they directly received their respective pro rata share of the Trust’s income, if any, and as if they
directly incurred their respective pro rata share of the Trust’s expenses. In the case of a Shareholder that purchases Shares
for cash, its initial tax basis in its pro rata share of the assets held in the Trust at the time it acquires its Shares is equal
to its cost of acquiring the Shares. In the case of a Shareholder that acquires its Shares as part of a creation of a Basket, the
delivery of Bullion to the Trust in exchange for the Shares is not a taxable event to the Shareholder, and the Shareholder’s
tax basis and holding period for the Shares are the same as its tax basis and holding period for the Bullion delivered in exchange
therefore (except to the extent of any cash contributed for such Shares). For purposes of this discussion, it is assumed that all
of a Shareholder’s Shares are acquired on the same date and at the same price per Share. Shareholders that hold multiple
lots of Shares, or that are contemplating acquiring multiple lots of Shares, should consult their tax advisors.

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When the Trust sells or transfers precious
metal, for example to pay expenses, a Shareholder generally will recognize gain or loss in an amount equal to the difference between
(1) the Shareholder’s pro rata share of the amount realized by the Trust upon the sale or transfer and (2) the Shareholder’s
tax basis for its pro rata share of the precious metal that was sold or transferred. Such gain or loss will generally be long-term
or short-term capital gain or loss, depending upon whether the Shareholder has a holding period in its Shares of longer than one
year. A Shareholder’s tax basis for its share of any precious metal sold by the Trust generally will be determined by multiplying
the Shareholder’s total basis for its Shares immediately prior to the sale, by a fraction the numerator of which is the amount
of precious metal sold, and the denominator of which is the total amount of the precious metal held by the Trust immediately prior
to the sale. After any such sale, a Shareholder’s tax basis for its pro rata share of the Bullion remaining in the Trust
will be equal to its tax basis for its Shares immediately prior to the sale, less the portion of such basis allocable to its share
of the precious metal that was sold.

Upon a Shareholder’s sale of some or
all of its Shares, the Shareholder will be treated as having sold a pro rata share of the precious metal held in the Trust at the
time of the sale. Accordingly, the Shareholder generally will recognize a gain or loss on the sale in an amount equal to the difference
between (1) the amount realized pursuant to the sale of the Shares, and (2) the Shareholder’s tax basis for the Shares sold,
as determined in the manner described in the preceding paragraph.

A redemption of some or all of a Shareholder’s
Shares in exchange for the underlying precious metal represented by the Shares redeemed generally will not be a taxable event to
the Shareholder. The Shareholder’s tax basis for the precious metal received in the redemption generally will be the same
as the Shareholder’s tax basis for the Shares redeemed. The Shareholder’s holding period with respect to the Bullion
received should include the period during which the Shareholder held the Shares redeemed. A subsequent sale of the precious metal
received by the Shareholder will be a taxable event.

An Authorized Participant and other investors
may be able to re-invest, on a tax-deferred basis, in-kind redemption proceeds received from exchange-traded products that are
substantially similar to the Trust in the Trust’s Shares. Authorized Participants and other investors should consult their
tax advisors as to whether and under what circumstances the reinvestment in the Shares of proceeds from substantially similar exchange-traded
products can be accomplished on a tax-deferred basis.

Under current law, gains recognized by individuals,
estates or trusts from the sale of “collectibles,” including physical Bullion, held for more than one year are taxed
at a maximum federal income tax rate of 28%, rather than the 20% rate applicable to most other long-term capital gains. For these
purposes, gains recognized by an individual upon the sale of Shares held for more than one year, or attributable to the Trust’s
sale of any physical Bullion which the Shareholder is treated (through its ownership of Shares) as having held for more than one
year, generally will be taxed at a maximum rate of 28%. The tax rates for capital gains recognized upon the sale of assets held
by an individual US Shareholder for one year or less or by a corporate taxpayer are generally the same as those at which ordinary
income is taxed.

In addition, high-income individuals and certain
trusts and estates are subject to a 3.8% Medicare contribution tax that is imposed on net investment income and gain. Shareholders
should consult their tax advisor regarding this tax.

Brokerage Fees and Trust Expenses

Any brokerage or other
transaction fees incurred by a Shareholder in purchasing Shares is treated as part of the Shareholder’s tax basis in the
Shares. Similarly, any brokerage fee incurred by a Shareholder in selling Shares reduces the amount realized by the Shareholder
with respect to the sale.

Shareholders will be required to recognize
a gain or loss upon a sale of Bullion by the Trust (as discussed above), even though some or all of the proceeds of such sale are
used by the Trustee to pay Trust expenses. Shareholders may deduct their respective pro rata share of each expense incurred by
the Trust to the same extent as if they directly incurred the expense. Shareholders who are individuals, estates or trusts, however,
may be required to treat some or all of the expenses of the Trust, to the extent that such expenses may be deducted, as miscellaneous
itemized deductions. Miscellaneous itemized deductions, including expenses for the production of income, will not be deductible
for either regular federal income tax or alternative minimum tax purposes for taxable years beginning after December 31, 2017 and
before January 1, 2026 and thereafter generally are (i) deductible only to the extent that the aggregate of a Shareholder’s
miscellaneous itemized deductions exceeds 2% of such Shareholder’s adjusted gross income for federal income tax purposes,
(ii) not deductible for the purposes of the alternative minimum tax and (iii) are subject to the overall limitation on itemized
deductions under the Code.

Investment by Regulated Investment Companies

Mutual funds and other investment vehicles
which are “regulated investment companies” within the meaning of Code section 851 should consult with their tax advisors
concerning (1) the likelihood that an investment in Shares, although they are a “security” within the meaning of the
Investment Company Act of 1940, may be considered an investment in the underlying Bullion for purposes of Code section 851(b),
and (2) the extent to which an investment in Shares might nevertheless be consistent with preservation of their qualification under
Code section 851. In administrative guidance, the IRS stated that it will no longer issue rulings under Code section 851(b) relating
to the determination of whether or not an instrument or position is a “security”, but, instead, intends to defer to
guidance from the SEC for such determination.

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United States Information Reporting and Backup
Withholding Tax for US and Non-US Shareholders

The Trustee or the appropriate broker will file
certain information returns with the IRS, and provides certain tax-related information to Shareholders, in accordance with applicable
Treasury Regulations. Each Shareholder will be provided with information regarding its allocable portion of the Trust’s annual
income (if any) and expenses.

A US Shareholder may be subject to US backup withholding
tax in certain circumstances unless it provides its taxpayer identification number and complies with certain certification procedures.
Non-US Shareholders may have to comply with certification procedures to establish that they are not a US person in order to avoid
the backup withholding tax.

The amount of any backup
withholding tax will be allowed as a credit against a Shareholder’s US federal income tax liability and may entitle such
a Shareholder to a refund, provided that the required information is furnished to the IRS.

Income Taxation of Non-US Shareholders

The Trust does not expect to generate taxable
income except for gains (if any) upon the sale of precious metal. A Non-US Shareholder generally is not subject to US federal income
tax with respect to gains recognized upon the sale or other disposition of Shares, or upon the sale of precious metal by the Trust,
unless (1) the Non-US Shareholder is an individual and is present in the United States for 183 days or more during the taxable
year of the sale or other disposition, and the gain is treated as being from United States sources; or (2) the gain is effectively
connected with the conduct by the Non-US Shareholder of a trade or business in the United States.

Taxation in Jurisdictions other than the United
States

Prospective purchasers of Shares that are
based in or acting out of a jurisdiction other than the United States are advised to consult their own tax advisers as to the tax
consequences, under the laws of such jurisdiction (or any other jurisdiction not being the United States to which they are subject),
of their purchase, holding, sale and redemption of or any other dealing in Shares and, in particular, as to whether any value added
tax, other consumption tax or transfer tax is payable in relation to such purchase, holding, sale, redemption or other dealing.

ERISA and Related Considerations

The Employee Retirement Income Security Act
of 1974, as amended (“ERISA”), and/or Code section 4975 impose certain requirements on certain employee benefit plans
and certain other plans and arrangements, including individual retirement accounts and annuities, Keogh plans, and certain commingled
investment vehicles or insurance company general or separate accounts in which such plans or arrangements are invested (collectively,
“Plans”), and on persons who are fiduciaries with respect to the investment of “plan assets” of a Plan.
Government plans and some church plans are not subject to the fiduciary responsibility provisions of ERISA or the provisions of
section 4975 of the Code, but may be subject to substantially similar rules under other federal law, or under state or local law
(“Other Law”).

In contemplating an investment of a
portion of Plan assets in Shares, the Plan fiduciary responsible for making such investment should carefully consider, taking
into account the facts and circumstances of the Plan and the “Risk Factors” discussed above and whether such
investment is consistent with its fiduciary responsibilities under ERISA or Other Law, including, but not limited to: (1)
whether the investment is permitted under the Plan’s governing documents, (2) whether the fiduciary has the authority
to make the investment, (3) whether the investment is consistent with the Plan’s funding objectives, (4) the tax
effects of the investment on the Plan, and (5) whether the investment is prudent considering the factors discussed in this
report. In addition, ERISA and Code section 4975 prohibit a broad range of transactions involving assets of a plan and
persons who are “parties in interest” under ERISA or “disqualified persons” under section 4975 of the
Code. A violation of these rules may result in the imposition of significant excise taxes and other liabilities. Plans
subject to Other Law may be subject to similar restrictions.

It is anticipated that the Shares
will constitute “publicly offered securities” as defined in the Department of Labor “Plan Asset
Regulations,” §2510.3-101 (b)(2) as modified by section 3(42) of ERISA. Accordingly, pursuant to the Plan Asset
Regulations, only Shares purchased by a Plan, and not an interest in the underlying assets held in the Trust, should be
treated as assets of the Plan, for purposes of applying the “fiduciary responsibility” rules of ERISA and the
“prohibited transaction” rules of ERISA and the Code. Fiduciaries of plans subject to Other Law should consult
legal counsel to determine whether there would be a similar result under the Other Law.

31

Investment by Certain Retirement Plans

Code section 408(m) provides that
the acquisition of a “collectible” by an individual retirement account (“IRA”) or a
participant-directed account maintained under any plan that is tax-qualified under Code section 401(a) (“Tax Qualified
Account”) is treated as a taxable distribution from the account to the owner of the IRA, or to the participant for whom
the Tax Qualified Account is maintained, of an amount equal to the cost to the account of acquiring the collectible. The term
“collectible” is defined to include, with certain exceptions, “any metal or gem”. The IRS has issued
several private letter rulings to the effect that a purchase by an IRA, or by a participant-directed account under a Code
section 401(a) plan, of publicly-traded shares in a trust holding precious metals will not be treated as resulting in a
taxable distribution to the IRA owner or Tax Qualified Account participant under Code section 408(m). However the private
letter rulings provide that, if any of the Shares so purchased are distributed from the IRA or Tax Qualified Account to the
IRA owner or Tax Qualified Account participant, or if any precious metals are received by such IRA or Tax Qualified Account
upon the redemption of any of the Shares purchased by it, the Shares or precious metal so distributed will be subject to
federal income tax in the year of distribution, to the extent provided under the applicable provisions of Code sections
408(d), 408(m) or 402. Accordingly, potential IRA or Tax Qualified Account investors are urged to consult with their own
professional advisors concerning the treatment of an investment in Shares under Code section 408(m).