UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended ~~September~~June 30, ~~2013~~2014

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _____________ to _____________

Commission File Number: 001-35029

ETFS ASIAN GOLD TRUST

(Exact name of registrant as specified in its charter)


New York	27-6885194
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)

c/o ETF Securities USA LLC
48 Wall Street, 11th Floor
New York, NY	10005
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(212) 918-4954

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x☒ No o☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x☒ No o☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o☐ Accelerated filer o☐ Non accelerated filer x☐ Smaller reporting company o☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o☐ No x☒

As of ~~November~~August 68, ~~2013~~2014, ETFS Asian Gold Trust had 450,000 ETFS Physical Asian Gold Shares outstanding.

ETFS ASIAN GOLD TRUST

FORM 10-Q

FOR THE QUARTER ENDED ~~SEPTEMBER~~JUNE 30, ~~2013~~2014

INDEX

PART I. FINANCIAL INFORMATION
Item 1.	Condensed Financial Statements (Unaudited)	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1114
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	1317
Item 4.	Controls and Procedures	1317
Item 4T.	Controls and Procedures	1317
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	1418
Item 1.A	Risk Factors	1418
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	1418
Item 3.	Defaults Upon Senior Securities	1418
Item 4.	Mine Safety Disclosures	1418
Item 5.	Other Information	1418
Item 6.	Exhibits	1519
SIGNATURES		16

ETFS ASIAN GOLD TRUST

PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements (Unaudited)

Condensed Statements of ~~Financial~~Assets ~~Condition~~and Liabilities (Unaudited)At June 30, 2014 and December 31, 2013

At September 30, 2013 and December 31, 2012



(Amounts in 000's of US$, except for Share and per Share data)	June 30, 2014 (1)		December 31, 2013 (4)
ASSETS
Investment in gold (cost: June 30, 2014: $53,358; December 31, 2013: $53,463) (2)	$	58,399	$	53,463
Total assets		58,399		53,463

LIABILITIES
Fees payable to Sponsor		19		18
Total Liabilities		19		18

NET ASSETS	$	58,380	$	53,445

ANALYSIS OF NET ASSETS
Total net assets (3)	$	58,380	$	53,445

	September 30, 2013		December 31, 2012 (3)
(1)	Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.
(Amounts in 000's of US$, except for Share data)
(2)	At June 30, 2014, the investment in gold is recorded at the fair value. At December 31, 2013, the investment in gold was recorded at the lower of cost or market value. Refer to note 2.2 for a breakdown of cost and fair value of the investment in gold.
ASSETS
(3)	Net assets at December 31, 2013 represents total liabilities, redeemable Shares and Shareholders’ deficit. Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at June 30, 2014 and December 31, 2013 were 450,000. Net asset value per Share at June 30, 2014 and December 31, 2013 was $129.73 and $118.77, respectively.
Investment in gold (1)	$	59,083	$	71,764
(4)	Derived from audited Statement of Financial Condition as of December 31, 2013. The amounts are those previously reported under non investment company accounting. Refer to Note 2.1 for additional information.
Total assets	$	59,083	$	71,764
LIABILITIES
Fees payable to Sponsor	$	20	$	27
Total liabilities		20		27
REDEEMABLE SHARES AND SHAREHOLDERS' DEFICIT
Shares at redemption value to investors (2)		59,063		82,564
Shareholders' deficit		-		(10,827)
Total liabilities, redeemable Shares & shareholders' deficit	$	59,083	$	71,764

(1)The investment in gold is valued at the lower of cost or market value. Refer to note 2.1 for a breakdown of cost and market value of the investment in gold.

(2)Authorized share capital is unlimited with no par value per Share. Shares issued and outstanding at September 30, 2013 were 450,000 and at December 31, 2012 were 500,000.

(3)Derived from audited statement of financial condition as of December 31, 2012.

See Notes to the Unaudited Condensed Financial Statements

ETFS ASIAN GOLD TRUST

~~Condensed~~Schedule ~~Statements~~ of ~~Operations~~Investments (Unaudited)At June 30, 2014 and December 31, 2013

For the three months ended September 30, 2013 and 2012 the nine months ended September 30, 2013 and 2012



	June 30, 2014
Description	oz	Cost		Fair Value		% of Net Assets (1)
Investment in gold (in 000's of US$, except for oz and percentage data)
Gold	44,409.8	$	53,358	$	58,399	100.03%
Total investment in gold	44,409.8	$	53,358	$	58,399	100.03%


	December 31, 2013
Description	oz	Cost		Fair Value		% of Net Assets (2)
Investment in gold (in 000's of US$, except for oz and percentage data)
Gold	44,496.4	$	53,463	$	53,463	100.03%
Total investment in gold	44,496.4	$	53,463	$	53,463	100.03%

	Three Months		Three Months		Nine Months		Nine Months
(1)	Calculated as investment in gold at fair value divided by net assets, as at June 30, 2014, investment in gold is recorded at fair value. Refer to Note 2.1 for additional information.
	Ended		Ended		Ended		Ended
(2)	Calculated as investment in gold at cost divided by net assets, as at December 31, 2013, investment in gold was recorded at the lower of cost or market value. Refer to Note 2.1 for additional information.
	September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
(Amounts in 000's of US$, except for Share and per Share data)
REVENUES
Value of gold transferred to pay expenses	$	65	$	71	$	217	$	215
Cost of gold transferred to pay expenses		(70)		(62)		(210)		(186)
(Loss) / gain on gold transferred to pay expenses		(5)		9		7		29
Loss on gold distributed for the redemption of Shares		(398)		-		(398)		-
Unrealized gain / (loss) on investment in gold		7,259		-		(5,317)		-
Total gain / (loss) on gold		6,856		9		(5,708)		29
EXPENSES
Sponsor's Fee		66		73		210		217
Total expenses		66		73		210		217
Net gain / (loss) from operations	$	6,790	$	(64)	$	(5,918)	$	(188)
Net gain / (loss) per Share	$	13.76	$	(0.14)	$	(11.89)	$	(0.42)
Weighted average number of Shares		493,478		450,000		497,802		450,000

See Notes to the Unaudited Condensed Financial Statements

ETFS ASIAN GOLD TRUST

Condensed Statements of ~~Cash~~Operations ~~Flows~~ (Unaudited) For the three months ended June 30, 2014 and 2013 and the six months ended June 30, 2014 and 2013

For the three months ended September 30, 2013 and 2012 and nine months ended September 30, 2013 and 2012



	Three Months		Three Months		Six Months		Six Months
	Ended		Ended		Ended		Ended
	June 30, 2014 (1)		June 30, 2013 (2)		June 30, 2014 (1)		June 30, 2013 (2)
(Amounts in 000's of US$, except for Share and per Share data)
EXPENSES
Sponsor's Fee	$	57	$	66	$	112	$	144
Total expenses		57		66		112		144

Net investment loss		(57)		(66)		(112)		(144)

REALIZED AND UNREALIZED GAINS / (LOSSES)
Realized gain on gold transferred to pay expenses		5		3		6		13
Change in unrealized gain / (loss) on investment in gold		1,029		(12,576)		5,041		(12,576)
Total gain / (loss) on gold		1,034		(12,573)		5,047		(12,563)

Change in net assets from operations	$	977	$	(12,639)	$	4,935	$	(12,707)

Net increase / (decrease) in net assets per Share	$	2.17	$	(25.28)	$	10.97	$	(25.41)

Weighted average number of Shares		450,000		500,000		450,000		500,000

	Three Months		Three Months		Nine Months		Nine Months
(1)	Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.
	Ended		Ended		Ended		Ended
(2)	Amounts are those previously reported under non investment company accounting. Refer to Note 2.1 for additional information.
	September 30, 2013		September 30, 2012		September 30, 2013		September 30, 2012
(Amounts in 000's of US$)
INCREASE IN CASH FROM OPERATIONS:
Cash proceeds received from transfer of gold	$	-	$	-	$	-	$	-
Cash expenses paid		-		-		-		-
Increase in cash resulting from operations		-		-		-		-
Cash and cash equivalents at beginning of period		-		-		-		-
Cash and cash equivalents at end of period	$	-	$	-	$	-	$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Value of gold received for creation of Shares	$	-	$	-	$	-	$	-
Value of gold distributed for redemption of Shares - at average cost	$	7,154	$	-	$	7,154	$	-
RECONCILIATION OF NET GAIN / (LOSS) TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Net gain / (loss) from operations	$	6,790	$	(64)	$	(5,918)	$	(188)
Adjustments to reconcile net gain / (loss) to net cash provided by operating activities:
(Increase) / decrease in investment in gold		(35)		62		12,681		186
Increase / (decrease) in fees payable to Sponsor		1		2		(7)		2
Increase / (decrease) in redeemable Shares:
Creations		-		-		-		-
Redemptions		(6,756)		-		(6,756)		-
Net cash provided by operating activities	$	-	$	-	$	-	$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Value of gold transferred to pay expenses	$	65	$	71	$	217	$	215

See Notes to the Unaudited Condensed Financial Statements

ETFS ASIAN GOLD TRUST

Condensed ~~Statement~~Statements of ~~Changes~~Cash inFlows ~~Shareholders’ Deficit~~ (Unaudited) For the ~~nine~~three and six months ended ~~September~~June 30, 2013

	Nine Months
		Three Months		Six Months
	~~Ended~~	Ended		Ended
	September 30, 2013
		June 30, 2013 (1)		June 30, 2013 (1)
(Amounts in 000's of US$)
Shareholders' deficit - opening balance	$	(10,827)
INCREASE IN CASH FROM OPERATIONS:
Net loss for the period		(5,918)
Cash proceeds received from transfer of gold		$	-	$	-
Adjustment of redeemable Shares to redemption value		16,745
Cash expenses paid			-		-
Shareholders' deficit - closing balance	$	-
Increase in cash resulting from operations			-		-
Cash and cash equivalents at beginning of period			-		-
Cash and cash equivalents at end of period		$	-	$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Value of gold received for creation of Shares		$	-	$	-
Value of gold distributed for redemption of Shares - at cost		$	-	$	-
RECONCILIATION OF CHANGE IN NET ASSETS FROM OPERATIONS TO NET CASH PROVIDED BY OPERATING ACTIVITIES:
Change in net assets from operations		$	(12,639)	$	(12,707)
Adjustments to reconcile change in net assets from operations to net cash provided by operating activities:
Decrease in investment in gold			12,646		12,715
Decrease in fees payable to Sponsor			(7)		(8)
Increase / (decrease) in redeemable Shares:
Creations			-		-
Redemptions			-		-
Net cash provided by operating activities		$	-	$	-
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES:
Value of gold transferred to pay expenses		$	73	$	152

(1)	In accordance with Topic 946, Investment Companies, the Trust meets the exemption criteria to exclude a statement of cash flows. Thus one has not been presented for the three and six months ended June 30, 2014. Refer to Note 2.1 for additional information.

See Notes to the Unaudited Condensed Financial Statements

ETFS ASIAN GOLD TRUST

~~Notes~~Condensed toStatement ~~the~~of Changes in Net Assets (Unaudited)For ~~Condensed~~the six ~~Financial~~months ~~Statements~~ended June 30, 2014



	Six Months Ended June 30, 2014 (1)
(Amounts in 000's of US$, except for Share data)	Shares	Amount
Opening balance at December 31, 2013	450,000	$	53,445
Effect of adoption of new accounting principle (see Note 2.1)			-
Net investment loss			(112)
Realized gain on investment in gold			6
Change in unrealized gain on investment in gold			5,041
Creations	-		-
Redemptions	-		-
Closing balance at June 30, 2014	450,000	$	58,380

(1)	Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.

See Notes to the Unaudited Condensed Financial Statements

ETFS ASIAN GOLD TRUST

Financial Highlights (Unaudited)
For the six months ended June 30, 2014



	Three Months		Six Months
	Ended		Ended
	June 30, 2014 (1)		June 30, 2014 (1)
Per Share Performance (for a Share outstanding throughout the entire period)

Net asset value per Share at beginning of period	$	127.56	$	118.77
Income from investment operations:
Net investment loss		(0.13)		(0.25)
Total realized gain and change in unrealized gain on investment in gold		2.30		11.21
Change in net assets from operations		2.17		10.96

Net asset value per Share at end of period	$	129.73	$	129.73

Weighted average number of shares		450,000		450,000

Expense Ratio
Annualized Sponsor's Fee per Share		0.39%		0.39%

Net Investment Loss Ratio
Annualized net investment loss ratio		(0.39)%		(0.39)%

Non-Annualized Total Return		1.70%		9.23%


(1)	Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Refer to Note 2.1 for additional information.

See Notes to the Unaudited Condensed Financial Statements

ETFS ASIAN GOLD TRUST

Notes to the Financial Statements

1. Organization

The ETFS Asian Gold Trust (the “Trust”) is an investment trust formed on January 10, 2011 (the “Date of Inception”) under New York law pursuant to a depositary trust agreement (the “Trust Agreement”) executed by ETF Securities USA LLC (the “Sponsor”) and the Bank of New York Mellon (the “Trustee”) at the time of the Trust’s organization. The Trust holds gold bullion and issues ETFS Physical Asian Gold Shares (“Shares”) (in minimum blocks of 50,000 Shares, also referred to as “Baskets”) in exchange for deposits of gold and distributes gold in connection with the redemption of Baskets. Shares represent units of fractional undivided beneficial interest in and ownership of the Trust which are issued by the Trust. The Sponsor is a Delaware limited liability company and a wholly-owned subsidiary of ETF Securities Limited, a Jersey, Channel Islands based company. The Trust is governed by the Trust Agreement.

The investment objective of the Trust is for the Shares to reflect the performance of the price of gold, less the Trust’s expenses and liabilities. The Trust is designed to provide an individual owner of beneficial interests in the Shares (a “Shareholder”) an opportunity to participate in the gold market through an investment in securities. The fiscal year end for the Trust is December 31.

The accompanying unaudited condensed financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America for interim financial information and with the instructions for the Form 10-Q. In the opinion of the Trust’s management, all adjustments (which ~~include~~consist of normal recurring adjustments) necessary to present fairly the financial position, results of operations ~~and cash flows~~ as of and for the three and ~~nine~~six months ended ~~September~~June 30, ~~2013~~ 2014 and for all periods presented have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed financial statements should be read in conjunction with the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2012~~2013. The results of operations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2013~~ 2014 are not necessarily indicative of the operating results for the full year.

ETFS ASIAN GOLD TRUST

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.

52.1. Basis of Accounting

Since the Trust’s inception, the Sponsor determined that the Trust was not an investment company within the scope of Financial Accounting Standards Board (“FASB”) Codification of Accounting Standards, ASC 946, Financial Services—Investment Companies (“Topic 946”). Consequently, the Trust did not prepare is financial statements applying standards applicable to investment companies in accordance with Topic 946, including recording its investment in gold at “fair value” as defined in Topic 946. Instead, the Trust recorded its investment in gold at the lower of cost or fair value in accordance with ASC 330, Inventory and ASC 270, Interim Reporting.

Following the release of FASB Accounting Standards Update ASU 2013-08, Financial Services—Investments Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements, the Sponsor has re-evaluated whether the Trust falls within scope and has concluded that for reporting purposes, the Trust is classified as an investment company effective January 1, 2014. 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.

As a result of the change in the evaluation of investment company status, the Trust must, from January 1, 2014, present its investment in gold at “fair value” as defined in Topic 946.

The adoption of Topic 946 accounting changed the presentation of the Trust’s financial statements prospectively from January 1, 2014 (the date of the adoption), the most significant aspects of which are as follows:

1.	Presentation of prior year information has been conformed to the current year accounting standards in the Condensed Statement of Assets and Liabilities and Condensed Statement of Operations. A Condensed Statement of Changes in Net Assets is required and has been presented for the six month period ended June 30, 2014.
2.	A Schedule of Investments is required as of June 30, 2014. The Schedule has also been included as of December 31, 2013, for comparative presentation.
3.	Financial Highlights are required for the period ended June 30, 2014.
4.	As the Trust meets the exemption criteria under Topic 946, a cash flow statement is not required for the period ended June 30, 2014. Since the adoption of the new accounting principle is prospective, the prior year statement of cash flows is still presented.
5.	Required disclosures under Topic 820, Fair Value Measurements, have been included in the footnotes to the financial statements as of June 30, 2014. December 31, 2013 disclosures have also been included for comparative purposes.

The quantitative effect of the adoption of investment company accounting is presented below:



	Value at				Gain / (loss)
	December 31, 2013		Value at		as a result of
	at lower of cost		January 1, 2014		change in
(Amounts in 000's of US$)	or market value		at fair value		accounting principle
Investment in gold	$	53,463	$	53,463	$	-

ETFS ASIAN GOLD TRUST

2.1. ~~Valuation~~Significant ofAccounting ~~Gold~~ Policies (continued)

~~Gold is held by JPMorgan Chase Bank, N~~2.A2. Valuation ~~(the “Custodian”), on behalf~~ of the Trust, at its Singapore vaulting premises and is valued, for financial statement purposes, at the lower of cost or market. The cost of gold is determined according to the average cost method and the market value is based on the London PM Fix used to determine the net asset value (the “NAV”) of the Trust. Realized gains and losses on transfers of gold, or gold distributed for the redemption of Shares, are calculated on a trade date basis using average cost. The London PM Fix price for gold is set using the afternoon session of the twice daily fix of the price of gold by five market making members of the London Bullion Market Association at approximately 3:00 PM London Time, on each working day.Gold

~~Once~~The Trust follows the ~~value~~provisions of ~~gold~~ASC ~~has~~820, ~~been~~Fair ~~determined,~~Value ~~the~~Measurements ~~NAV~~and isDisclosures ~~computed~~("ASC by820"). ~~the~~ASC ~~Trustee~~820 byprovides ~~deducting~~guidance ~~all~~for ~~accrued~~determining ~~fees~~fair value and ~~other~~requires ~~liabilities~~increased ofdisclosure regarding the ~~Trust,~~inputs ~~including~~to ~~the~~valuation ~~remuneration~~techniques ~~due~~used to ~~the~~measure ~~Sponsor~~fair ~~(the~~value. ~~“Sponsor’s~~ASC ~~Fee”),~~820 ~~from~~defines ~~the~~ fair value ofas the ~~gold~~price ~~and~~that ~~all~~would ~~other~~be ~~assets~~received ~~held~~to bysell an asset or paid to transfer a liability in an orderly transaction between market participants at the ~~Trust~~measurement date.

Gold is held by JPMorgan Chase Bank, N.A. (the “Custodian”), on behalf of the Trust, at its Singapore vaulting premises and is recorded at fair value. The ~~table~~cost ~~below~~of ~~summarizes~~gold is determined according to the ~~unrealized~~average cost method and the fair value is based on the London PM Fix. Realized gains orand losses on transfers of gold, or gold distributed for the ~~Trust’s~~redemption of Shares, are calculated on a trade date basis using cost. The London PM Fix price for gold ~~holdings~~is asset using the afternoon session of ~~September~~the ~~30,~~twice ~~2013~~daily ~~and~~fix ~~December~~of ~~31,~~the ~~2012~~price of gold by five market making members of the London Bullion Market Association at approximately 3: 00 PM London Time, on each working day.

	September 30, 2013		December 31, 2012
(Amounts in 000's of US$)
Investment in gold - average cost	$	64,400	$	71,764
Unrealized (loss) / gain on investment in gold		(5,317)		10,827
Investment in gold - market value	$	59,083	$	82,591

Once the value of gold has been determined, the NAV is computed by the Trustee by deducting all accrued fees and other liabilities of the Trust, including the remuneration due to the Sponsor (the “Sponsor’s Fee”), from the fair value of the gold and all other assets held by the Trust. The table below summarizes the unrealized gains or losses on the Trust’s gold holdings as of June 30, 2014 and December 31, 2013:

The Trust recognizes the diminution in value of the investment in gold which arises from market declines on an interim basis. Increases in the value of the investment in gold 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.



(Amounts in 000's of US$)	June 30, 2014		December 31, 2013
Investment in gold - cost	$	53,358	$	53,463
Unrealized gain on investment in gold		5,041		-
Investment in gold - fair value	$	58,399	$	53,463

Effective January 1, 2014, the Trust records its investment in gold at fair value and recognizes changes in fair value of the investment in gold as changes in unrealized gains or losses on investment in gold through the Statement of Operations.

Prior to 2014, the Trust recognized the movements in value of the investment in gold arising from market declines on an interim basis. Increases in the value of the investment in gold through market price recoveries in later interim periods of the same fiscal year were recognized in the later interim period. Increases in value recognized on an interim basis were not permitted to exceed the previously recognized diminution in value. Unrealized losses at December 31, 2013 were crystallized as realized losses, and the average cost of gold was written down to market value.

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

~~2.2. Gold Receivable and Payable~~ 9

ETFS ASIAN GOLD TRUST

2. Significant Accounting Policies (continued)

2.2. Valuation of Gold (continued)

Fair Value Hierarchy

Inputs

GAAP establishes a hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The three levels of inputs are as follows:

–	Level 1.	Unadjusted quoted prices in active markets for identical assets or liabilities that the company has the ability to access.
–	Level 2.	Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments and similar data.
–	Level 3.	Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The investment in gold is classified as a level 2 asset, as the Trust’s investment in gold is calculated using third party pricing sources supported by observable, verifiable inputs.

The categorization of the Trust’s assets is as shown below:



(Amounts in 000's of US$)	June 30, 2014		December 31, 2013

Level 2
Investment in gold	$	58,399	$	53,463

There were no re-allocations or transfers between levels during the period.

2.3. Gold Receivable and Payable

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

There was no gold receivable or payable at ~~September~~June 30, ~~2013~~2014 and December 31, ~~2012~~2013.

610

ETFS ASIAN GOLD TRUST

2.3. ~~Creations~~Significant ~~and~~Accounting ~~Redemptions~~Policies ~~of Shares~~ (continued)

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 gold clearing bank~~. Creations ~~An Authorized Participant Agreement is an agreement entered into by each Authorized Participant, the Sponsor~~ and ~~the~~Redemptions ~~Trustee which provides the procedures for the creation and redemption~~ of Baskets and for the delivery of the gold required for such creations and redemptions. An Authorized Participant Unallocated Account is an unallocated gold account, either loco London or loco Singapore, established with the Custodian or a gold clearing bank by an Authorized Participant. Shares

The Trust’s contractual obligation is to create or redeem Baskets with Authorized Participants at set prices on each trading day. These prices are based on an agreed formula published in the prospectus, which is equal to the net asset value of the Trust. 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 gold 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 gold required for such creations and redemptions. An Authorized Participant Unallocated Account is an unallocated gold account, either loco London or loco Singapore, established with the Custodian or a gold 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 gold 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 gold represented by the Baskets created or redeemed can only be settled to the nearest 1/1000th of an ounce. As a result, the value attributed to the creation or redemption of Shares may differ from the value of gold to be delivered or distributed by the Trust. In order to ensure that the correct amount of gold 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 1/1000th of an ounce.

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 gold is exchanged in settlement of a redemption, it is considered a sale of gold 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 gold is exchanged in settlement of a redemption, a realized gain or loss in the amount of the difference between the ~~market~~fair value on the trade date and the historical cost is recorded through the Condensed Statement of Operations.

Changes in the Shares for the ~~nine months ended September 30, 2013 and the~~ year ended December 31, ~~2012~~2013 is ~~are~~ set out below:

	Nine Months			Year
		Year
	~~Ended~~	Ended		~~Ended~~
(Amounts in 000's of US$, except for Share and per Share data)	~~September 30, 2013~~	December 31, 2013		~~December 31, 2012~~
Number of Redeemable Shares
Opening balance		~~500,000~~	500,000		~~450,000~~
Creations		-			50,000
Redemptions			(50,000)
Redemptions		(50,000)			-
Closing balance			450,000
Closing balance		450,000			500,000
Redeemable Shares
Redeemable Shares
Opening balance		$	82,564
Opening balance	$	82,564		$	70,586
Redemptions			(6,756)
Creations		-			8,537
Adjustment to redemption value			(22,363)
Redemptions		(6,756)			-
Closing balance		$	53,445
Adjustment to redemption value		(16,745)			3,441
Redemption value per Share at period end		$	118.77
Closing balance	$	59,063		$	82,564
Redemption value per Share at period end	$	131.25		$	165.13

711

ETFS ASIAN GOLD TRUST

2.4. ~~Revenue~~Significant ~~Recognition~~Accounting ~~Policy~~ Policies (continued)

~~The primary expense of the Trust is the Sponsor’s Fee, which is paid by the Trust through in-kind transfers of gold to the Sponsor~~2. ~~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 gold as necessary to pay these expenses~~5. Revenue ~~When~~Recognition ~~selling gold to pay expenses, the Trustee will endeavor to sell the smallest amounts of gold needed to pay these expenses in order to minimize the Trust’s holdings of assets other than gold.~~Policy

~~Unless~~The ~~otherwise~~primary ~~directed~~expense byof the ~~Sponsor,~~Trust ~~when~~is ~~selling gold~~ the ~~Trustee~~Sponsor’s ~~will~~Fee, ~~endeavor~~which tois ~~sell~~paid atby the ~~price~~Trust ~~established~~through byin-kind ~~the~~transfers ~~London~~of PMgold ~~Fix.~~to ~~The~~the ~~Trustee~~Sponsor. ~~will~~With ~~place~~respect ~~orders~~to ~~with~~expenses ~~dealers~~not ~~(which~~otherwise ~~may~~assumed ~~include~~by the ~~Custodian)~~Sponsor, ~~through which~~ the Trustee ~~expects~~will, toat ~~receive~~ the ~~most~~direction ~~favorable price and execution~~ of ~~orders. The Custodian may be~~ the ~~purchaser~~Sponsor ofor ~~such~~in ~~gold~~its ~~only~~own ifdiscretion, ~~the~~sell ~~sale transaction is made at~~ the ~~next~~Trust’s ~~London~~gold PMas ~~Fix~~necessary orto ~~such~~pay ~~other~~these ~~publicly~~expenses. ~~available~~When ~~price~~selling ~~that~~gold ~~the~~to ~~Sponsor~~pay ~~deems fair~~expenses, inthe ~~each~~Trustee ~~case~~will asendeavor ~~set~~to ~~following~~sell the ~~sale~~smallest ~~order.~~amounts Aof ~~gain~~gold orneeded ~~loss~~to ispay ~~recognized~~these ~~based~~expenses onin ~~the~~order ~~difference~~to ~~between~~minimize the ~~selling~~Trust’s ~~price~~holdings ~~and~~of ~~the~~assets ~~average~~other ~~cost~~than ~~of the~~ gold ~~sold~~. Other ~~Neither~~than the ~~Trustee~~Sponsor’s ~~nor~~Fee, the ~~Sponsor~~Trust ishad ~~liable~~no ~~for~~expenses ~~depreciation~~during orthe ~~loss~~quarter ~~incurred~~ended byJune ~~reason~~30, ~~of any sale~~2014.

2Unless otherwise directed by the Sponsor, when selling gold the Trustee will endeavor to sell at the price established by the London PM Fix.5 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. ~~Income~~The ~~Taxes~~ Custodian may be the purchaser of such gold only if the sale transaction is made at the next London PM Fix or such other publicly available price that the Sponsor deems fair, in each case as set following the sale order. A gain or loss is recognized based on the difference between the selling price and the cost of the gold sold. Neither the Trustee nor the Sponsor is liable for depreciation or loss incurred by reason of any sale.

2.6. 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 ~~September~~June 30, ~~2013~~2014 and December 31, ~~2012~~2013.

2.67. Investment in Gold

Changes in ounces of gold and the respective values for the ~~nine~~six months ended ~~September~~June 30, ~~2013~~2014 and for the year ended December 31, ~~2012~~2013 are set out below:

	Nine Months			Year
		Six Months			Year
	~~Ended~~	Ended		~~Ended~~	Ended
(Amount in 000's of US$, except for ounces data)	September 30, 2013			December 31, 2012
(Amounts in 000's of US$, except for ounces data)		June 30, 2014			December 31, 2013
Ounces of gold
Opening balance		~~49,633.9~~	44,496.4		~~44,845.6~~	49,633.9
Creations		-			4,963.2
Redemptions			-			(4,947.9)
Redemptions		(4,947.9)			-
Transfers of gold to pay expenses			(86.6)			(189.6)
Transfers of gold to pay expenses		(145.2)			(174.9)
Closing balance			44,409.8			44,496.4
Closing balance		44,540.8			49,633.9
Investment in gold
Investment in gold (lower of cost or market)
Opening balance		$	53,463		$	71,764
Opening balance	$	71,764		$	63,475
Redemptions			-			(6,756)
Creations		-			8,537
Realized loss on gold distributed for the redemption of Shares			-			(398)
Redemptions		(7,154)			-
Transfers of gold to pay expenses			(111)			(275)
Transfers of gold to pay expenses		(210)			(248)
Realized gain on gold transferred to pay expenses			6			1
Unrealized loss on investment in gold		(5,317)			-
Realized loss on investment in gold			-			(10,873)
Closing balance	$	59,083		$	71,764
Unrealized gain on investment in gold			5,041			-
Closing balance		$	58,399		$	53,463

812

ETFS ASIAN GOLD TRUST

2.7. ~~Expenses~~Significant Accounting Policies (continued)

2.8. Expenses

The Trust will transfer gold to the Sponsor to pay the Sponsor’s Fee that will accrue daily at an annualized rate equal to 0.39% of the adjusted net asset value (“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 ~~September~~June 30, ~~2013~~2014 and ~~2012~~2013 the Sponsor’s Fee was $6556,~~906~~927 and $7365,~~096~~884, respectively. For the ~~nine~~six months ended ~~September~~June 30, ~~2013~~2014 and ~~2012~~2013 the Sponsor’s Fee was ~~$209,777~~ ~~and~~ $~~216~~111,~~713,~~642 ~~respectively. At September 30, 2013~~ and ~~December 31, 2012, the fees payable to the Sponsor were~~ $20143,~~307 and $27,066, respectively~~871.

~~2.8.~~At ~~Recent~~June ~~Accounting~~30, ~~Pronouncements~~2014 and at December 31, 2013, the fees payable to the Sponsor were $18,753 and $17,740, respectively.

In June 2013, the Financial Accounting Standards Board issued ASU 2013-08, Financial Services – Investments Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements. ASU 2013-08 changes the approach to the investment company assessment, requires non-controlling ownership interests in other investment companies to be measured at fair value, and requires additional disclosures about the investment company's status as an investment company. The amendments are effective for interim and annual reporting periods beginning after December 15, 2013. The Trust is currently evaluating the impact, if any, this pronouncement would have on the financial statements.

2.9. Subsequent Events

In accordance with the provisions set forth in ~~Financial~~FASB ~~Accounting~~ASC ~~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 requiring adjustment to or disclosure in the financial statements were identified.

3. Related Parties

The Sponsor and the Trustee are considered to be related parties to the Trust. The Trustee’s ~~fee~~and isCustodian’s fees are paid by the Sponsor and isare not a separate ~~expense~~expenses of the Trust. The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants orand purchase or sell ~~gold~~Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion. In addition the Trustee and the Custodian and their affiliates may from time to time purchase or ~~Shares~~sell gold directly, for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

At ~~September~~June 30, ~~2013~~2014, the Custodian held 350,000 Shares, 78% of the outstanding Shares of the Trust. Shares indicated as owned were reported on Schedule 13F filed by the Custodian. The Trust is unable to determine whether the Custodian is the beneficial owner of such shares, and if the Custodian is not the ultimate beneficial owner, who such beneficial owners are.

4. Concentration of Risk

The Trust’s sole business activity is the investment in gold, and substantially all the Trust’s assets are holdings of gold which creates a concentration of risk associated with fluctuations in the price of gold. Several factors could affect the price of gold, including: (i) global gold supply and demand, which is influenced by factors such as forward selling by gold producers, purchases made by gold producers to unwind gold hedge positions, central bank purchases and sales, and production and cost levels in major gold-producing countries; (ii) investors’ expectations with respect to the rate of inflation; (iii) currency exchange rates; (iv) interest rates; (v) investment and trading activities of hedge funds and commodity funds; and (vi) global or regional political, economic or financial events and situations. In addition, there is no assurance that gold will maintain its long-term value in terms of purchasing power in the future. In the event that the price of gold declines, the Sponsor expects the value of an investment in the Shares to decline proportionately. Each of these events could have a material effect on the Trust’s financial position and results of operations.

ETFS ASIAN GOLD TRUST

5. Indemnification

Under the Trust’s organizational documents, the Trustee (and its directors, employees and agents) and the Sponsor (and its members, managers, directors, officers, employees and affiliates) are indemnified by the Trust against any liability, cost or expense it incurs without gross negligence, bad faith or willful misconduct on its part and without reckless disregard on its part of its obligations and duties under the Trust’s organizational documents. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred.

1013

ETFS ASIAN GOLD TRUST

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

This information should be read in conjunction with the unaudited condensed financial statements and notes to the unaudited condensed financial statements included in Item 1 of Part 1 of this Form 10-Q. The discussion and analysis that follows may contain forward-looking statements with respect to the Trust’s financial conditions, operations, future performance and business. These statements can be identified by the use of the words “may”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or similar words and phrases. These statements are based upon certain assumptions and analyses the Sponsor has made based on its perception of historical trends, current conditions and expected future developments. Neither the Trust nor the Sponsor is under a duty to update any of the forward looking statements, to conform such statements to actual results or to reflect a change in management’s expectations or predictions.

Introduction

The Trust is a common law trust, formed under the laws of the state of New York on January 10, 2011. The Trust is not managed like a corporation or an active investment vehicle. It does not have any officers, directors, or employees and is administered by the Trustee pursuant to the Trust Agreement. 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. It will not hold or trade in commodity futures contracts, nor is it a commodity pool, or subject to regulation as a commodity pool operator or a commodity trading adviser in connection with issuing Shares.

The Trust holds gold and is expected to issue Baskets in exchange for deposits of gold, and to distribute gold in connection with redemptions of Baskets. Shares issued by the Trust represent units of undivided beneficial interest in and ownership of the Trust. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold, less the Trust’s expenses. The Sponsor believes that, for many investors, the Shares will represent a cost effective investment relative to traditional means of investing in gold.

The Trust issues and redeems Shares only with Authorized Participants in exchange for gold, only in aggregations of 50,000 or integral multiples thereof. A list of current Authorized Participants is available from the Sponsor or the Trustee.

Shares of the Trust trade on the New York Stock Exchange (the “NYSE”) Arca under the symbol “AGOL”.

Valuation of Gold and Computation of Net Asset Value

As of the London PM Fix on each day that the NYSE Arca is open for regular trading or as soon as practicable after 4:00 p.m. New York time on such day, (the “Evaluation Time”) the Trustee values the gold held by the Trust and determines both the ANAV and the NAV of the Trust.

At the Evaluation Time, the Trustee values the Trust’s gold on the basis of that day’s London PM Fix, or, if no London PM Fix is made on such day or has not been announced by the Evaluation Time, the next most recent London gold price (AM or PM) determined prior to the Evaluation Time is used, unless the Sponsor determines that such price is inappropriate as a basis for valuation. In the case this determination is made, the Sponsor will identify an alternative basis for such evaluation to be used by the Trustee.

Once the value of the gold held by the Trust has been determined, the Trustee subtracts all estimated accrued but unpaid fees and other liabilities of the Trust from the total value of the gold and all other assets of the Trust. The resulting figure is the ANAV of the Trust. The ANAV is used to compute the Sponsor’s Fee.

The Trustee then subtracts from the ANAV the amount of Sponsor’s Fees computed for such day to determine the net asset value (“NAV”) of the Trust. The Trustee also determines the NAV per Share by dividing the NAV of the Trust by the number of Shares outstanding as of the close of trading on the NYSE Arca.

1114

ETFS ASIAN GOLD TRUST

The Quarter Ended ~~September~~June 30, ~~2013~~2014

Effective January 1, 2014, the Trust is deemed to be an investment company under generally accepted accounting principles. Accordingly, the Trust adopted the specialized accounting for an investment company as prescribed in Topic 946, Investment Companies. Refer to Note 2.1 of the unaudited condensed financial statements for additional information.

The NAV of the Trust is obtained by subtracting the Trust’s liabilities on any day from the value of the gold owned and receivable by the Trust on that day; the NAV per Share is obtained by dividing the NAV of the Trust on a given day by the number of Shares outstanding on that day.

The Trust’s NAV increased from $5957,~~029~~403,~~762~~951 at ~~June~~March 3031, ~~2013~~2014 to $5958,~~063~~380,~~174~~254 at ~~September~~June 30, ~~2013~~2014, a 01.0670% increase for the quarter. The increase in the Trust’s NAV resulted primarily from an increase in the price per ounce of gold, which rose 111.2880% from $1,~~192~~291.0075 at ~~June~~March 3031, ~~2013~~2014 to $1,~~326~~315.5000 at ~~September 30, 2013 offset by a decrease in outstanding Shares which fell from 500,000 Shares at~~ June 30, ~~2013 to 450,000 Shares at September 30, 2013 a result of 50,000 Shares (1 Basket) being redeemed during the quarter~~2014. ~~No Shares were created during the quarter.~~

~~NAV~~There ~~per~~were ~~Share~~no ~~increased 11.17%~~creations ~~from~~or ~~$118.06~~redemptions atof ~~June~~Shares ~~30,~~during ~~2013~~the toquarter, ~~$131.25~~therefore, both at ~~September~~March 3031, ~~2013.~~2014 ~~The~~and ~~Trust’s~~June ~~NAV per Share rose slightly less than the price per ounce of gold on a percentage basis due to Sponsor’s Fees~~30, ~~which~~2014 there were ~~$65~~450,~~906~~000 ~~for~~Shares ~~the quarter, or 0~~outstanding.~~39% of the Trust’s assets on an annualized basis.~~

~~The~~ NAV per Share ofincreased 1.70% from $~~140~~127.5056 at ~~August~~March 2831, ~~2013~~2014 ~~was~~to ~~the~~$129.73 ~~highest~~at ~~during~~June 30, 2014. The Trust’s NAV per Share rose slightly less than the ~~quarter,~~price ~~compared~~per ~~with~~ounce of gold on a ~~low~~percentage ofbasis due to Sponsor’s Fees, which were $~~120.11~~56,927 atfor ~~July~~the 5quarter, ~~2013~~or 0.39% of the Trust’s assets on an annualized basis.

~~Net~~The ~~gain~~NAV ~~from~~per ~~operations~~Share ~~for~~of ~~the~~$130.90 ~~quarter~~at ~~ended~~April ~~September 30~~14, ~~2013~~2014 was ~~$6,789,728,~~the ~~resulting~~highest ~~from~~during anthe ~~unrealized gain on gold of $7~~quarter,~~259,243, offset~~ bycompared awith ~~net loss of $5,951 on the transfer of gold to pay expenses,~~ a ~~loss~~low of $~~397,658 on gold distributed for the redemption of Shares and Sponsor’s Fees of $65,906~~122.64 ~~Other~~at ~~than~~June ~~the Sponsor’s Fee~~3, ~~the Trust had no expenses during the quarter ended September 30, 2013~~2014.

~~The~~Change ~~nine~~in ~~months~~net assets from operations for the quarter ended ~~September~~June 30, ~~2013~~2014 was $976,302, resulting from a realized gain of $4,648 on the transfer of gold to pay expenses and a change in unrealized gain on investment in gold of $1,028,581, offset by Sponsor’s Fees of $56,927. Other than the Sponsor’s Fee, the Trust had no expenses during the quarter ended June 30, 2014.

~~The~~Prior ~~Trust’s~~to ~~NAV~~the ~~decreased~~adoption ~~from~~of ~~$82~~investment company accounting,~~563,795~~ atthe ~~December~~Trust ~~31,~~recorded ~~2012~~its toinvestment ~~$59,063,174~~in gold at ~~September~~the ~~30,~~lower ~~2013,~~of acost ~~28.46% decrease~~or ~~for~~market ~~the period~~value. Under ~~The~~the ~~decrease~~previous inpresentation ~~the~~and ~~Trust’s~~accounting ~~NAV~~policies, ~~resulted~~the ~~primarily~~net loss from aoperations ~~decrease~~for in the ~~price~~quarter ~~per~~ended ~~ounce~~June ~~of gold~~30, ~~which~~2013 ~~fell 20.28%~~was ~~from~~ $112,~~664.00~~639,307, atresulting ~~December~~from ~~31,~~a ~~2012~~net togain of $12,~~326.50~~640 on atthe ~~September~~transfer ~~30,~~of ~~2013 and~~gold ato ~~decrease~~pay inexpenses, ~~outstanding~~offset ~~Shares~~by ~~which~~an ~~fell~~unrealized ~~from~~loss ~~500,000~~on atgold ~~December~~of 31$12, ~~2013 to 450~~576,~~000~~063 ~~Shares~~and atSponsor’s ~~September~~Fees ~~30,~~of ~~2013~~$65,884. aOther ~~result~~than ofthe 50Sponsor’s Fee,~~000~~ ~~Shares~~the (1Trust ~~Basket)~~had ~~being~~no ~~redeemed~~expenses during the ~~period. No~~quarter ~~Shares~~ended ~~were~~June ~~created~~30, ~~during the period~~2013.

~~NAV~~There ~~per~~was ~~Share~~an ~~decreased 20.52%~~unrealized ~~from~~gain ~~$165.13~~on atinvestment ~~December~~in 31gold in the quarter ended June 30, ~~2012~~2014 compared to ~~$131.25~~an atunrealized ~~September~~loss on investment in gold in the quarter ended June 30, 2013. This ~~The~~change ~~Trust’s~~has ~~NAV~~occurred ~~per~~due ~~Share~~to ~~fell~~the ~~slightly~~adoption ~~more~~of ~~than~~investment ~~the~~company ~~price~~accounting ~~per~~and ~~ounce~~movements in the price of gold onduring the respective quarters. Sponsor’s Fees are calculated as a percentage ~~basis~~of ~~due~~assets. toThe Sponsor’s ~~Fees,~~Fee ~~which~~in ~~were~~the ~~$209~~quarter ended June 30,~~777~~ 2014 was lower than the fee for the ~~period,~~quarter orended ~~0.39%~~June of30, 2013 as the ~~Trust’s~~average assets onwere anlower ~~annualized~~in ~~basis~~June 30, 2014 compared to June 30, 2013.

~~The NAV per Share of $168.08 at January 2, 2013 was the highest during the period, compared with a low of $118.06 at June 28, 2013.~~15

~~Net~~The ~~loss~~Six ~~from~~Months ~~operations~~Ended ~~for~~June ~~the period ended September~~ 30, 2013 was $5,917,629, resulting from a net gain of $6,627 on the transfer of gold to pay expenses, offset by a loss of $397,658 on gold distributed for the redemption of Shares, an unrealized loss on gold of $5,316,821 and Sponsor’s Fees of $209,777. Other than the Sponsor’s Fee, the Trust had no expenses during the period ended September 30, 2013.2014

12The Trust’s NAV increased from $53,444,811 at December 31, 2013 to $58,380,254 at June 30, 2014, a 9.23% increase for the period. The increase in the Trust’s NAV resulted primarily from an increase in the price per ounce of gold, which rose 9.45% from $1,201.50 at December 31, 2013 to $1,315.00 at June 30, 2014.

There were no creations or redemptions of Shares during the period, therefore, both at December 31, 2013 and June 30, 2014 there were 450,000 Shares outstanding.

NAV per Share rose 9.23% from $118.77 at December 31, 2013 to $129.73 at June 30, 2014. The Trust’s NAV per Share rose slightly less than the price per ounce of gold on a percentage basis due to Sponsor’s Fees, which were $111,642 for the period, or 0.39% of the Trust’s assets on an annualized basis.

The NAV per Share of $136.80 at March 14, 2014 was the highest during the period, compared with a low of $120.68 at January 8, 2014.

There was no change in net assets arising from the change in accounting principle (refer to Note 2.1 to the unaudited condensed financial statements) as of January 1, 2014. Change in net assets from operations for the period ended June 30, 2014 was $4,935,442, resulting from a realized gain of $6,561 on the transfer of gold to pay expenses and a change in unrealized gain on investment in gold of $5,040,523, offset by Sponsor’s Fees of $111,642. Other than the Sponsor’s Fee, the Trust had no expenses during the period ended June 30, 2014.

Prior to the adoption of investment company accounting, the Trust recorded its investment in gold at the lower of cost or market value. Under the previous presentation and accounting policies, the net loss from operations for the period ended June 30, 2013 was $12,707,356, resulting from a net gain of $12,578 on the transfer of gold to pay expenses, offset by an unrealized loss on gold of $12,576,063 and Sponsor’s Fees of $143,871. Other than the Sponsor’s Fee, the Trust had no expenses during the period ended June 30, 2013.

There was an unrealized gain on investment in gold in the period ended June 30, 2014 compared to an unrealized loss on investment in gold in the period ended June 30, 2013. This change has occurred due to the adoption of investment company accounting and movements in the price of gold during the respective periods. Sponsor’s Fees are calculated as a percentage of assets. The Sponsor’s Fee in the period ended June 30, 2014 was lower than the fee for the period ended June 30, 2013 as the average assets were lower in June 30, 2014 compared to June 30, 2013.

ETFS ASIAN GOLD TRUST

Liquidity & Capital Resources

The Trust is not aware of any trends, demands, commitments, events or uncertainties that are reasonably likely to result in material changes to its liquidity needs. In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the period covered by this report was the Sponsor’s Fee.

The Trustee will, at the direction of the Sponsor or in its own discretion, sell the Trust’s gold as necessary to pay the Trust’s expenses not otherwise assumed by the Sponsor. The Trustee will not sell gold to pay the Sponsor’s Fee but will pay the Sponsor’s Fee through in-kind transfers of gold to the Sponsor. At ~~September~~June 30, ~~2013~~2014 the Trust did not have any cash balances.

Off-Balance Sheet Arrangements

The Trust has no off-balance sheet arrangements.

Critical Accounting Policies

The unaudited condensed financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these unaudited condensed financial statements relies on estimates and assumptions that impact the Trust’s financial position and results of operations. These estimates and assumptions affect the Trust’s application of accounting policies. In addition, please refer to Note 2.1 to the unaudited condensed financial statements for further discussion of accounting policies.

Effective January 1, 2014, the Trust has adopted the provisions of Topic 946, Investment Companies, and follows specialized accounting. Other than a change in the presentation of the Trust’s financial statements, the most significant change is that the Trust must, from January 1, 2014, record its investment in gold at fair value. Prior to January 1, 2014 the investment in gold was recorded at the lower of cost and market value. As a result of this change, the Trust expects that there will be fluctuations in the value of investments based on changes in the price of gold.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

The Trust maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in its reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Chief Executive Officer and Chief Financial Officer of the Sponsor, and to the audit committee, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of the Chief Executive Officer and the Chief Financial Officer of the Sponsor, the Sponsor conducted an evaluation of the Trust’s disclosure controls and procedures, as defined under Exchange Act Rules 13a-15(e) and ~~15(d)~~15d-15(e). Based on this evaluation, the Chief Executive Officer and the Chief Financial Officer of the Sponsor concluded that, as of ~~September~~June 30, ~~2013~~2014, the Trust’s disclosure controls and procedures were effective.

There have been no changes in the Trust’s or Sponsor’s internal control over financial reporting that occurred during the Trust’s fiscal quarter ended ~~September~~June 30, ~~2013~~2014 that have materially affected, or are reasonably likely to materially affect, the Trust’s or Sponsor’s internal control over financial reporting.

Item 4T. Controls and Procedures

Not applicable.

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ETFS ASIAN GOLD TRUST

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in the Trust’s Annual Report on Form 10-K for the fiscal year ended December 31, ~~2012~~2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 2(a). None.

Item 2(b). Not applicable.

Item 2(c). For the three months ended June ~~September~~ 30, ~~2013~~2014:

0 Baskets were created.

10 Baskets were redeemed.

Period	Total Baskets Redeemed	Total Shares Redeemed	Average Ounces of Gold Per Share
	Total Baskets	Total Shares	Average ounces of
July 2013	-	-	-
Period	Redeemed	Redeemed	gold per Share
August 2013	-	-	-
April 2014	-	-	-
September 2013	1	50,000	0.099
May 2014	-	-	-
Total	1	50,000	0.099
June 2014	-	-	-
	-	-	-

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

None.

Item 5. Other Information

None.

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ETFS ASIAN GOLD TRUST

Item 6. Exhibits

(a)

Exhibits


31.1	Chief Executive Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2	Chief Financial Officer’s Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1	Chief Executive Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2	Chief Financial Officer’s Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	XBRL Instance Document*

101.SCH	XBRL Taxonomy Extension Schema Document*

101.CAL	XBRL Taxonomy Extension Calculation Document*

101.DEF	XBRL Taxonomy Extension Definitions Document*

101.LAB	XBRL Taxonomy Extension Labels Document*

101.PRE	XBRL Taxonomy Extension Presentation Document*

*In accordance with Regulation S-T, the XBRL-related information in Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed to be “furnished” and not “filed.”

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned in the capacities thereunto duly authorized.

8, 2013
	ETF SECURITIES USA LLC
	Sponsor of the ETFS Asian Gold Trust
	(Registrant)
Date: November 8, 2013	/s/ Graham Tuckwell
Date: August 11, 2014	/s/ Graham Tuckwell
	Graham Tuckwell
	President and Chief Executive Officer
	(Principal Executive Officer)
Date: November 8, 2013	/s/ Christopher Foulds
Date: August 11, 2014	/s/ Christopher Foulds
	Christopher Foulds
	Chief Financial Officer and Treasurer
	(Principal Financial Officer and Principal
	Accounting Officer)

*The Registrant is a trust and the persons are signing in their capacities as officers of ETF Securities USA LLC, the Sponsor of the Registrant.

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Filing Compare · ETFS Asian Gold Trust