Reading the risk factors in the prospectus of SIVR Bottom line: - TopicsExpress



          

Reading the risk factors in the prospectus of SIVR Bottom line: ETF Securities is 100% responsible. However: * The Shares and their value could decrease if unanticipated operational or trading problems arise. There may be unanticipated problems or issues with respect to trading of the Shares that could have adverse effect. In addition, the Sponsor’s past experience may not be suitable for solving these problems. * The London Silver Price may prove unreliable. Effective August 15, 2014, the Sponsor intends to utilize the London Silver Price as the benchmark. Prior, the Trust utilized the “London Fix”. The London Fix, which London Silver Market Fixing Ltd. discontinued August 14, 2014, was the price of an ounce of silver as set by three market members of the London Bullion Market Association at approximately 12:00 noon, London time and was widely accepted. The London Silver Price, and the mechanism for its establishment, has no operating history and may, among other things: not behave like the Fix; · create potential NAV or tracking deviation since the Fix used may not correspond exactly to the replacement; · be subject to regulation different than the Fix; · result in delays or errors in the determination of a daily price; · not be as widely accepted as the Fix If the London Silver Price is unreliable, silver may be subject to greater volatility. * If creation and redemption of Baskets (which depend on timely transfers of silver to and by the Custodian) encounters difficulties, the possibility for arbitrage transactions to keep the Shares closely linked to silver may not exist and the Shares may fall. * The liquidity of the Shares may be affected by withdrawal of Authorized Participants. * Under each Authorized Participant Agreement (between the Custodian and an Authorized Participant), the Custodian is not liable for losses suffered by any Authorized Participant or Shareholder that are not the direct result of its gross negligence, fraud or willful default.
Posted on: Wed, 03 Sep 2014 20:51:28 +0000

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