10-K: abrdn Precious Metals ETF Soars 147% in 2025

The abrdn Precious Metals Basket ETF Trust reported a significant 147.84% increase in Net Asset Value for the fiscal year ended December 31, 2025, driven by strong Bullion price appreciation and increased outstanding shares.

Summary

• The Trust's Net Asset Value (NAV) increased from $1,039,953,142 at December 31, 2024, to $2,577,422,977 at December 31, 2025, representing a 147.84% increase.
• Outstanding Shares in the Trust grew from 9,500,000 at December 31, 2024, to 12,500,000 at December 31, 2025, with 3,500,000 Shares created and 500,000 Shares redeemed during the year.
• The proportionate price of the Bullion held by the Trust (gold, silver, platinum, and palladium) rose 89.50% from $119.23 at December 31, 2024, to $225.94 at December 31, 2025.
• The NAV per Share increased 88.35% from $109.47 at December 31, 2024, to $206.19 at December 31, 2025.
• Net assets from operations for the year ended December 31, 2025, totaled $1,066,234,670.
• The Sponsor's Fee for 2025 was $9,539,023, representing an annualized rate of 0.60% of the Trust's Adjusted Net Asset Value (ANAV).
• Individual precious metal spot prices saw substantial gains in 2025: Gold increased 65% to $4,307.95 per ounce, Silver increased 149% to $71.99 per ounce, Platinum increased 121.8% to $2,027 per ounce, and Palladium increased 72.4% to $1,567 per ounce.
• Bullion inspections were conducted by Bureau Veritas Commodities UK Ltd as of August 4, 2025, and January 5, 2026.

Sentiment

Score: 9

Explanation: StockSavvy.ai views this as highly positive due to exceptional performance across all precious metals, leading to a substantial increase in NAV and NAV per share, driven by strong market demand and favorable geopolitical/economic tailwinds.

Positives

• The Trust experienced a significant 147.84% increase in Net Asset Value and an 88.35% increase in NAV per Share for the fiscal year ended December 31, 2025.
• All underlying precious metals held by the Trust demonstrated strong price performance in 2025: Silver (+149%), Platinum (+121.8%), Palladium (+72.4%), and Gold (+65%).
• There was a net increase of 3,000,000 outstanding shares in 2025, indicating robust investor demand and confidence in the Trust.
• The Trust's investment objective to reflect the performance of physical precious metals was successfully achieved with substantial gains.
• Independent third-party inspections of Bullion holdings were successfully conducted, verifying the physical assets.

Negatives

• The NAV per Share rose slightly less than the proportionate price of the underlying Bullion due to the ongoing 0.60% annualized Sponsor's Fee.
• Bullion held in the Trust's unallocated account and any Authorized Participant's unallocated account is not segregated from the Custodian's assets, posing a risk in the event of the Custodian's insolvency.
• The Trust does not insure its Bullion, and legal recourse against the Custodian and any sub-custodians is limited, potentially exposing the Trust and Shareholders to losses not covered by insurance.
• A possible short squeeze due to a sudden increase in demand for Shares that largely exceeds supply may lead to price volatility in the Shares not directly correlated to Bullion prices.
• The liquidity of the Shares could be adversely affected if one or more Authorized Participants with substantial interests withdraw from participation.

Risks

• The value of the Shares relates directly to the value of the Bullion held by the Trust, and fluctuations in the price of gold, silver, platinum, or palladium could materially adversely affect an investment.
• A change in economic conditions, such as a recession, can adversely affect the price of Bullion due to its use in industrial applications.
• Investors' expectations regarding inflation, currency exchange rates, interest rates, investment and trading activities of hedge funds, and global geopolitical events can influence Bullion prices.
• There is no assurance that gold, silver, platinum, or palladium will maintain their long-term value in terms of purchasing power.
• A significant increase in Bullion hedging activity by producers or a negative view from speculators could cause a decline in world Bullion prices.
• A widening of interest rate differentials between the cost of money and the cost of Bullion could negatively affect Bullion prices.
• A decline in the automobile industry may cause a decline in the prices of platinum and palladium, as autocatalysts account for a significant portion of their demand.
• Crises may motivate large-scale sales of Bullion, which could decrease prices and adversely affect an investment.
• Large redemptions of other exchange-traded vehicles (ETVs) tracking precious metals could negatively affect physical Bullion prices.
• Unanticipated operational or trading problems with the Trust could have a material adverse effect on an investment in the Shares.
• Discrepancies, disruptions, or unreliability of the LBMA Gold Price PM, LBMA Silver Price, or LBMA Price PM could impact the value of the Trust's Bullion and the market price of the Shares.
• If the process of creation and redemption of Baskets encounters unanticipated difficulties, arbitrage opportunities may not exist, and the price of Shares may fall.
• Redemptions could be suspended during periods when the NYSE Arca is closed or trading is suspended, or during emergencies where Bullion delivery, disposal, or evaluation is not practicable.
• Shareholders do not have the protections associated with ownership of shares in an investment company registered under the Investment Company Act of 1940 or the protections afforded by the CEA.
• The Trust may be required to terminate and liquidate at a time that is disadvantageous to Shareholders, such as when Bullion prices are low.
• The lack of an active trading market for the Shares may result in losses on investment at the time of disposition.
• Shareholders have limited rights compared to corporate shareholders, including limited voting and distribution rights.
• Competition from other methods of investing in Bullion could limit the market for the Shares and reduce their liquidity.
• The amount of Bullion represented by each Share will decrease over the life of the Trust due to recurring deliveries of Bullion to pay the Sponsor's Fee and potential sales for other expenses.
• An increase in Trust expenses not assumed by the Sponsor, or unexpected liabilities, will require the Trustee to sell larger amounts of Bullion, leading to a more rapid decrease in Bullion per Share.
• The sale of the Trust's Bullion to pay expenses at a time of low Bullion prices could adversely affect the value of the Shares.
• The Trust may be required to indemnify the Sponsor or the Trustee, potentially leading to asset sales and a reduction in the NAV of the Trust.
• The Shares may trade at a price which is at, above, or below the NAV per Share, and any discount or premium may widen due to non-concurrent trading hours between the NYSE Arca and major Bullion markets.
• Purchasing or selling activity associated with Basket creations or redemptions may affect the prices of platinum and palladium and Share trading prices.
• The Trust's growth and acquisition of large amounts of platinum and palladium could impact the supply and demand of these metals, affecting Share prices in a manner unrelated to other market factors.
• The Trust's Bullion may be subject to loss, damage, theft, or restriction on access, which could adversely affect operations and investment.
• The Trust lacks insurance protection for its Bullion, and the Custodian's liability is limited, potentially exposing the Trust to losses for which no person is liable.
• The Custodian's limited liability under the Custody Agreements and English law may impair the Trust's ability to recover losses, even in the event of fraud, to the market value of the Bullion at discovery.
• The obligations of the Custodian are governed by English law, which may complicate legal redress against the Custodian or sub-custodians in U.S. courts.
• The Trust may not have adequate sources of recovery if its Bullion is lost, damaged, stolen, or destroyed, as responsible parties may lack sufficient financial resources.
• Shareholders and Authorized Participants lack the right to assert claims directly against the Custodian and any sub-custodian under the Custody Agreements.
• The Trustee and Custodian have limited obligations to oversee sub-custodians, and their failure to exercise due care could result in losses.
• Sub-custodian obligations are based on LBMA and LPPM rules and London market customs, not contractual arrangements, which may hinder recovery of damages.
• Physical Bullion allocated to the Trust may not meet Good Delivery Standards, potentially leading to a loss if a Basket is issued against such Bullion.
• Bullion held in unallocated accounts is not segregated from the Custodian's assets, and the Custodian's insolvency could lead to delays and costs in identifying allocated Bullion.
• The Trustee relies on information from the Custodian for Basket issuance, which is subject to confirmation and could be incorrect, leading to discrepancies in Bullion amounts.
• The Trust relies on the information and technology systems of its service providers, which could be adversely affected by interruptions or cybersecurity attacks.
• War, major terrorist attacks, geopolitical events (e.g., Russia-Ukraine conflict), and public health emergencies can cause volatility in Bullion prices, supply chain disruptions, and market access restrictions.
• Governmental and quasi-governmental fiscal and monetary policy changes or their ineffectiveness are likely to increase volatility in the Bullion market.
• Public health emergencies could interfere with the operation of electronic auctions for London Metal Prices or cause closure of futures exchanges, impacting the Trust.
• Potential conflicts of interest may arise among the Sponsor or its affiliates and the Trust, potentially favoring the Sponsor's interests.

Future Outlook

Forward-looking statements are inherently uncertain and subject to various known and unknown risks that could cause actual results to differ materially. The Trust does not commit to publicly revise these statements. The LBMA intends to appoint ICE Benchmark Administration (IBA) to replace the LME as the third-party administrator for LBMA Platinum and Palladium prices in mid-2026. The decision regarding tariffs on critical minerals, including silver, has been delayed into 2026, and revised market forecasts for 2025 and 2026 contributed to palladium's price increase.

Management Comments

• "Forward-looking statements are merely predictions and therefore inherently subject to uncertainties and other factors and involve known and unknown risks that could cause the actual results, performance, levels of activity, or our achievements, or industry results, to be materially different from any future results, performance, levels of activity, or our achievements expressed or implied by such forward-looking statements."
• "The Trust undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events."
• "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."
• "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."

Industry Context

StockSavvy.ai notes that the significant appreciation in precious metals prices in 2025, particularly silver (+149%), platinum (+121.8%), and gold (+65%), reflects a strong flight to safety and inflation hedge narrative amidst global geopolitical tensions and economic uncertainties. The increased central bank demand for gold as a foreign exchange reserve diversifier, especially away from U.S. dollars and Treasuries, aligns with broader de-dollarization trends and concerns over sanctions and tariffs. The surge in silver and platinum prices is further bolstered by industrial demand (photovoltaics for silver, autocatalysts for platinum) and new investment avenues like Chinese insurance companies holding gold and the launch of platinum futures on the Guangzhou Futures Exchange. Palladium's rebound is notable given the waning EV subsidies and renewed focus on internal combustion and hybrid vehicles.

Comparison to Industry Standards

• The Trust's performance, reflecting the underlying precious metals, significantly outperformed traditional equity markets in 2025, which generally saw more moderate gains.
• The 149% increase in silver price in 2025, driven by industrial demand and ETP interest, far exceeds typical returns for broad commodity indices or industrial metals, indicating a unique market dynamic for silver.
• Platinum's 121.8% rally, fueled by Chinese jewelry demand and new futures contracts, suggests a strong re-rating of the metal, potentially positioning it as a more attractive alternative to gold for price-sensitive investors compared to historical trends.
• Central bank gold purchases, noted as a primary motivator for diversification away from U.S. dollars, align with observed trends from institutions like the World Gold Council, which reported significant central bank buying in recent years.
• The reduction in Shares per Basket from 50,000 to 25,000 effective June 18, 2024, aims to enhance accessibility and liquidity for Authorized Participants, a common strategy for ETFs to optimize market efficiency.

Corporate Governance

Related Party Transactions

• The Sponsor and the Trustee are considered related parties to the Trust.
• Affiliates of the Trustee and the Custodian may act as Authorized Participants or purchase/sell Bullion or Shares for their own account, as agents for customers, and for accounts over which they exercise investment discretion.
• The Sponsor's Fee is paid by the Trust through in-kind transfers of Bullion to the Sponsor.

Stakeholder Impact

• Shareholders experienced significant positive returns on their investment due to the substantial increase in precious metal prices, but remain exposed to inherent market volatility and custody risks.
• Authorized Participants benefit from increased creation activity driven by high demand for shares, facilitating their arbitrage strategies, while managing risks associated with Bullion custody and market liquidity.
• The Sponsor (abrdn ETFs Sponsor LLC) benefits from higher Sponsor's Fees due to the increased Net Asset Value of the Trust, while continuing to assume most administrative and marketing expenses.
• The Trustee (The Bank of New York Mellon) continues its role in administering the Trust and processing transactions, with its fees paid by the Sponsor.
• The Custodian (ICBC Standard Bank Plc) benefits from custody fees paid by the Sponsor for the safekeeping of the Trust's Bullion, operating under limited liability provisions.

Next Steps

• The LBMA 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 decision to impose tariffs on critical minerals, including silver, was ultimately delayed into 2026.

Key Dates

Recommendation

The Trust demonstrated exceptional performance in 2025 with a 147.84% increase in NAV and an 88.35% increase in NAV per share, driven by robust gains across all underlying precious metals. This strong momentum, coupled with increasing investor and central bank demand for diversification and inflation hedging, suggests continued upside potential. While risks inherent to commodity investments exist, the current market environment appears highly favorable for precious metals, making this a compelling investment opportunity.

Keywords

Precious Metals, ETF, Gold, Silver, Platinum, Palladium, GLTR, abrdn, SEC Filing, 10-K, Financial Report, Investment, Bullion, Market Analysis, Asset Management, Commodity, Exchange Traded Product, Net Asset Value, Share Performance, Custody, Risk Factors, Market Trends, Geopolitical Risk, Supply and Demand