2. Significant Accounting Policies

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires those responsible for preparing financial statements to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from those estimates. The following is a summary of significant accounting policies followed by the Trust.

2.1. Valuation of Bullion

Bullion is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its London, England vaulting premises on a segregated basis. The allocated platinum and palladium is held by UBS AG (the “Zurich Sub-Custodian”) at its Zurich, Switzerland vaulting premises on a segregated basis. The Trust’s Bullion is valued, per individual metal type, for financial statement purposes, at the lower of cost or market. The cost of Bullion is determined according to the average cost method and the market value is based on the “London Fix” (the applicable fix for each metal of the price of an ounce of such metal and is performed in London, England by fixing members of the London Bullion Market Association (“LBMA”) or London Platinum and Palladium Market (“LPPM”), as applicable) for each metal held by the Trust used to determine the net asset value (the “NAV”) of the Trust. Realized gains and losses on transfers of Bullion, or Bullion distributed for the redemption of Shares, are calculated on a trade date basis using average cost.

Once the value of Bullion has been determined, the NAV is computed by the Trustee by deducting all accrued fees, expenses and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s Fee”), from the fair value of the Bullion and all other assets held by the Trust.

The table below summarizes the unrealized gains or losses on the Trust’s Bullion holdings as of March 31, 2013 and December 31, 2012:



	March 31, 2013
		Gold		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - average cost	$	108,358	$	76,713	$	13,801	$	9,398	$	208,270
Unrealized gain / (loss) on investment in Bullion		7,458		(617)		1,426		1,762		10,029
Investment in Bullion - market value	$	115,816	$	76,096	$	15,227	$	11,160	$	218,299


	December 31, 2012
		Gold		Silver		Platinum		Palladium		Total
(Amounts in 000's of US$)
Investment in Bullion - average cost	$	96,337	$	68,563	$	12,213	$	8,314	$	185,427
Unrealized gain on investment in Bullion		12,101		3,002		1,020		796		16,919
Investment in Bullion - market value	$	108,438	$	71,565	$	13,233	$	9,110	$	202,346

The Trust recognizes the diminution in value of the investment in Bullion which arises from market declines on an interim basis. Increases in the value of the investment in Bullion through market price recoveries in later interim periods of the same fiscal year are recognized in the later interim period. Increases in value recognized on an interim basis may not exceed the previously recognized diminution in value.

The per Share amount of Bullion exchanged for a purchase or redemption is calculated daily by the Trustee, using the London Fix for each metal held by the Trust to calculate the Bullion amount in respect of any liabilities for which covering Bullion sales have not yet been made, and represents the per Share amount of Bullion held by the Trust, after giving effect to its liabilities, to cover expenses and liabilities and any losses that may have occurred.

2.2. Bullion Receivable and Payable

Bullion receivable or payable represents the quantity of Bullion covered by contractually binding orders for the creation or redemption of Shares respectively, where the Bullion has not yet been transferred to or from the Trust’s account. Generally, ownership of the Bullion is transferred within three business days of the trade date.

There was no Bullion receivable or payable at March 31, 2013 and December 31, 2012

2.3. Creations and Redemptions of Shares

The Trust expects to create and redeem Shares from time to time, but only in one or more Baskets. The Trust issues Shares in Baskets to Authorized Participants on an ongoing basis. Individual investors cannot purchase or redeem Shares in direct transactions with the Trust. An Authorized Participant is a person who (1) is a registered broker-dealer or other securities market participant such as a bank or other financial institution which is not required to register as a broker-dealer to engage in securities transactions, (2) is a participant in The Depository Trust Company, (3) has entered into an Authorized Participant Agreement with the Trustee and the Sponsor, and (4) has established an Authorized Participant Unallocated Account with the Trust’s Custodian or other Bullion clearing bank. An Authorized Participant Agreement is an agreement entered into by each Authorized Participant, the Sponsor and the Trustee which provides the procedures for the creation and redemption of Baskets and for the delivery of the Bullion required for such creations and redemptions. An Authorized Participant Unallocated Account is an unallocated Bullion account, either loco London or loco Zurich, established with the Custodian or a Bullion clearing bank by an Authorized Participant.

The creation and redemption of Baskets is only made in exchange for the delivery to the Trust or the distribution by the Trust of the amount of Bullion represented by the Baskets being created or redeemed, the amount of which is based on the combined NAV of the number of Shares included in the Baskets being created or redeemed determined on the day the order to create or redeem Baskets is properly received.

The amount of Bullion represented by the Baskets created or redeemed can only be settled to the nearest 1/1000^thof an ounce per individual metal type. As a result, the value attributed to the creation or redemption of Shares may differ from the value of Bullion to be delivered or distributed by the Trust. In order to ensure that the correct amount of Bullion is available at all times to back the Shares, the Sponsor accepts an adjustment to its management fees in the event of any shortfall or excess. For each transaction, this amount is not more than 1/1000^th of an ounce per individual metal type.

Authorized Participants may, on any business day, place an order with the Trustee to create or redeem one or more Baskets. The typical settlement period for Shares is three business days. In the event of a trade date at period end, where a settlement is pending, a respective account receivable and/or payable will be recorded. When Bullion is exchanged in settlement of a redemption, it is considered a sale of Bullion for financial statement purposes.

The Shares of the Trust are classified as “Redeemable Shares” for financial statement purposes, since they are subject to redemption at the option of Authorized Participants. Outstanding Shares are reflected at redemption value, which represents the maximum obligation (based on NAV per Share), with the difference from historical cost recorded as an offsetting amount to retained earnings. When Bullion is exchanged in settlement of a redemption, a gain or loss in the amount of the difference between the market value on the trade date and the historical cost is recorded through the Condensed Statement of Operations.

Changes in the Shares for the three months ended March 31, 2013 and for the year ended December 31, 2012 are set out below:



	Three Months		Year
	Ended		Ended
(Amounts in 000's of US$, except for Share and per Share data)	March 31, 2013		December 31, 2012
Number of redeemable Shares
Opening balance		2,200,000		2,100,000
Creations		250,000		250,000
Redemptions		-		(150,000)
Closing balance		2,450,000		2,200,000

Redeemable Shares
Opening balance	$	202,243	$	182,586
Creations		23,125		24,100
Redemptions		-		(13,644)
Adjustment to redemption value		(7,177)		9,201
Closing balance	$	218,191	$	202,243

Redemption value per Share at period end	$	89.06	$	91.93

2.4. Revenue Recognition Policy

The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of Bullion to the Sponsor. With respect to expenses not otherwise assumed by the Sponsor, the Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s Bullion as necessary to pay these expenses. When selling Bullion to pay expenses, the Trustee will endeavor to sell the smallest amounts of Bullion needed to pay these expenses in order to minimize the Trust’s holdings of assets other than Bullion.

Unless otherwise directed by the Sponsor, when selling Bullion the Trustee will endeavor to sell at the price established by the London Fix for each metal held by the Trust. The Trustee will place orders with dealers (which may include the Custodian) through which the Trustee expects to receive the most favorable price and execution of orders. The Custodian may be the purchaser of such Bullion only if the sale transaction is made at the London Fix for each metal held by the Trust used by the Trustee to value the Trust’s Bullion. A gain or loss is recognized based on the difference between the selling price and the average cost of the Bullion sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale.

2.5. Income Taxes

The Trust is classified as a “grantor trust” for U.S. federal income tax purposes. As a result, the Trust itself will not be subject to U.S. federal income tax. Instead, the Trust’s income and expenses will “flow through” to the Shareholders, and the Trustee will report the Trust’s proceeds, income, deductions, gains, and losses to the Internal Revenue Service on that basis.

The Sponsor has evaluated whether or not there are uncertain tax positions that require financial statement recognition and has determined that no reserves for uncertain tax positions are required as of March 31, 2013 and December 31, 2012.

2.6. Investment in Bullion

Changes in ounces of Bullion and the respective values for the three months ended March 31, 2013 and for the year ended December 31, 2012 are set out below:



	Three months ended March 31, 2013
(Amounts in 000's of US$, except for ounces data)		Gold		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		65,167.3		2,389,467.4		8,689.0		13,033.4		2,476,357.1
Creations		7,395.7		271,177.3		986.1		1,479.2		281,038.3
Transfers of Bullion to pay expenses		(98.9)		(3,625.6)		(13.2)		(19.8)		(3,757.5)
Closing balance		72,464.1		2,657,019.1		9,661.9		14,492.8		2,753,637.9

Investment in Bullion (lower of cost or market):
Opening balance	$	96,337	$	68,562	$	12,213	$	8,315	$	185,427
Creations		12,167		8,255		1,607		1,096		23,125
Transfers of Bullion to pay expenses		(146)		(104)		(19)		(13)		(282)
Unrealized loss on investment Bullion		-		(617)		-		-		(617)
Closing balance	$	108,358	$	76,096	$	13,801	$	9,398	$	207,653


	Year ended December 31, 2012
(Amounts in 000's of US$, except for ounces data)		Gold		Silver		Platinum		Palladium		Total
Ounces of Bullion:
Opening balance		65,564.1		2,404,018.4		8,741.9		13,112.8		2,491,437.2
Creations		7,415.9		271,916.7		988.8		1,483.2		281,804.6
Redemptions		(7,437.6)		(272,714.5)		(991.7)		(1,487.6)		(282,631.4)
Transfers of Bullion to pay expenses		(375.1)		(13,753.2)		(50.0)		(75.0)		(14,253.3)
Closing balance		65,167.3		2,389,467.4		8,689.0		13,033.4		2,476,357.1

Investment in Bullion (lower of cost or market):
Opening balance	$	95,032	$	67,745	$	12,072	$	8,340	$	183,189
Creations		12,647		8,902		1,582		969		24,100
Redemptions		(10,795)		(7,695)		(1,372)		(947)		(20,809)
Transfers of Bullion to pay expenses		(547)		(390)		(69)		(47)		(1,053)
Closing balance	$	96,337	$	68,562	$	12,213	$	8,315	$	185,427

2.7. Expenses

The Trust will transfer Bullion to the Sponsor to pay the Sponsor’s Fee that will accrue daily at an annualized rate equal to 0.60% of the adjusted net asset value (the “ANAV) of the Trust, paid monthly in arrears.

The Sponsor has agreed to assume administrative and marketing expenses incurred by the Trust, including the Trustee’s monthly fee and out of pocket expenses, the Custodian’s fee and the reimbursement of the Custodian’s expenses, exchange listing fees, United States Securities and Exchange Commission (the “SEC”) registration fees, printing and mailing costs, audit fees and certain legal expenses.

For the three months ended March 31, 2013 and 2012 the Sponsor’s Fee was $314,846 and $296,788, respectively. At March 31, 2013 and at December 31, 2012, the fees payable to the Sponsor were $108,541 and $103,116, respectively.

2.8. Subsequent Events

In accordance with the provisions set forth in Financial Accounting Standards Board Accounting Standards Codification 855-10, Subsequent Events, the Trust’s management has evaluated the possibility of subsequent events existing in the Trust’s financial statements through the filing date. During this period, no material subsequent events were identified.