abrdn Precious Metals Basket ETF Trust (GLTR) risk factors, FY2024 10-K

RISKS RELATED TO BULLION

1. 01The 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 in the Shares
2. 02The price of physical Bullion, and the value of the Shares, has been highly volatile and could continue to be subject to wide fluctuations in response to various factors. See “Overview of the Bullion Industry” for discussion of the fluctuation of Bullion prices
3. 03A decline in the automobile industry may have the effect of causing a decline in the prices of platinum and palladium and a corresponding decline in the price of Shares
4. 04Crises may motivate large-scale sales of gold, silver, platinum or palladium which could decrease the price of such Bullion and adversely affect an investment in the Shares
5. 05The price of Bullion may be affected by the sale of ETVs tracking the gold, silver, platinum or palladium markets

RISKS RELATED TO THE SHARES

1. 06The Shares and their value could decrease if unanticipated operational or trading problems arise
2. 07Discrepancies, disruptions or unreliability of the LBMA Gold Price PM, the LBMA Silver Price, or the LBMA Price PM could impact the value of the Trust’s Bullion and the market price of the Shares
3. 08If the process of creation and redemption of Baskets encounters any unanticipated difficulties, the possibility for arbitrage transactions intended to keep the price of the Shares closely linked to the prices of the underlying Bullion may not exist and, as a result, the price of the Shares may fall
4. 09A possible “short squeeze” due to a sudden increase in demand of Shares that largely exceeds supply may lead to price volatility in the Shares
5. 10The liquidity of the Shares may be affected by the withdrawal from participation of one or more Authorized Participants
6. 11Shareholders 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
7. 12The Trust may be required to terminate and liquidate at a time that is disadvantageous to Shareholders
8. 13The lack of an active trading market for the Shares may result in losses on investment at the time of disposition of the Shares
9. 14Shareholders do not have the rights enjoyed by investors in certain other vehicles
10. 15An investment in the Shares may be adversely affected by competition from other methods of investing in Bullion
11. 16The sale of the Trust’s Bullion to pay expenses not assumed by the Sponsor, or unexpected liabilities affecting the Trust, at a time of low Bullion prices could adversely affect the value of the Shares
12. 17The value of the Shares will be adversely affected if the Trust is required to indemnify the Sponsor or the Trustee under the Trust Agreement
13. 18The Shares may trade at a price which is at, above or below the NAV per Share and any discount or premium in the trading price relative to the NAV per Share may widen as a result of non-concurrent trading hours between the NYSE Arca and London, Zurich and COMEX
14. 19Purchasing activity in the platinum and palladium markets associated with Basket creations or selling activity following Basket redemptions may affect the prices of platinum and palladium and Share trading prices. These price changes may adversely affect an investment in the Shares

RISKS RELATED TO THE CUSTODY OF BULLION

1. 20The Trust’s Bullion may be subject to loss, damage, theft or restriction on access
2. 21The Trust’s lack of insurance protection and the Shareholders’ limited rights of legal recourse against the Trust, the Trustee, the Sponsor, the Custodian and any sub-custodian exposes the Trust and its Shareholders to the risk of loss of the Trust’s Bullion for which no person is liable
3. 22The Custodian’s limited liability under the Custody Agreements and English law may impair the ability of the Trust to recover losses concerning its Bullion and any recovery may be limited, even in the event of fraud, to the market value of the Bullion at the time the fraud is discovered
4. 23The obligations of the Custodian are governed by English law, which may frustrate the Trust in attempting to seek legal redress against the Custodian or any sub-custodian concerning its Bullion
5. 24The Trust may not have adequate sources of recovery if its Bullion is lost, damaged, stolen or destroyed
6. 25Because the Trustee does not, and the Custodian has limited obligations to, oversee or monitor the activities of sub-custodians who may hold the Trust’s Bullion, failure by the sub-custodians to exercise due care in the safekeeping of the Trust’s Bullion could result in a loss to the Trust
7. 26The obligations of any sub-custodian of the Trust’s Bullion are not determined by contractual arrangements but by LBMA and LPPM rules and London market customs and practices, which may prevent the Trust’s recovery of damages for losses on its Bullion custodied with sub-custodians
8. 27Physical Bullion allocated to the Trust in connection with the creation of a Basket may not meet the Good Delivery Standards and, if a Basket is issued against such Bullion, the Trust may suffer a loss

GENERAL RISKS

1. 28War and other geopolitical events in eastern Europe, including but not limited to Russia and Ukraine, may cause volatility in commodity prices including precious metals prices. These events are unpredictable and may lead to extended periods of price volatility
2. 29The Trust may be negatively impacted by the effects of the spread of illnesses or other public health emergencies on the global economy and the markets and service providers relevant to the performance of the Trust
3. 30Potential conflicts of interest may arise among the Sponsor or its affiliates and the Trust