abrdn Gold ETF Trust (SGOL) risk factors, FY2024 10-K

RISKS RELATED TO GOLD

1. 01The value of the Shares relates directly to the value of the gold held by the Trust and fluctuations in the price of gold could materially adversely affect an investment in the Shares
2. 02In addition, investors should be aware that 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
3. 03Crises may motivate large-scale sales of gold which could decrease the price of gold and adversely affect an investment in the Shares
4. 04The price of gold may be affected by the sale of ETVs tracking the gold markets

RISKS RELATED TO THE SHARES

1. 05The Shares and their value could decrease if unanticipated operational or trading problems arise
2. 06Discrepancies, disruptions or unreliability of the LBMA Gold Price PM could impact the value of the Trust’s gold and the market price of the Shares
3. 07If 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 price of gold may not exist and, as a result, the price of the Shares may fall
4. 08A 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. 09The liquidity of the Shares may be affected by the withdrawal from participation of one or more Authorized Participants
6. 10Shareholders 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. 11The Trust may be required to terminate and liquidate at a time that is disadvantageous to Shareholders
8. 12The lack of an active trading market for the Shares may result in losses on investment at the time of disposition of the Shares
9. 13Shareholders do not have the rights enjoyed by investors in certain other vehicles
10. 14An investment in the Shares may be adversely affected by competition from other methods of investing in gold
11. 15The sale of the Trust’s gold to pay expenses not assumed by the Sponsor, or unexpected liabilities affecting the Trust, at a time of low gold prices could adversely affect the value of the Shares
12. 16The 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. 17The 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. 18Purchasing activity in the gold market associated with the purchase of Baskets from the Trust may cause a temporary increase in the price of gold. This increase may adversely affect an investment in the Shares
15. 19The Fund is subject to responsible sourcing due diligence risk

RISKS RELATED TO THE CUSTODY OF GOLD

1. 20The Trust’s gold 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 gold 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 gold and any recovery may be limited, even in the event of fraud, to the market value of the gold 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 other sub-custodian concerning its gold
5. 24The Trust may not have adequate sources of recovery if its gold 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 gold, failure by the sub-custodians to exercise due care in the safekeeping of the Trust’s gold could result in a loss to the Trust
7. 26The obligations of any sub-custodian of the Trust’s gold are not determined by contractual arrangements but by LBMA rules and London bullion market customs and practices, which may prevent the Trust’s recovery of damages for losses on its gold custodied with sub-custodians
8. 27Gold bullion allocated to the Trust in connection with the creation of a Basket may not meet the London Good Delivery Standards and, if a Basket is issued against such gold, the Trust may suffer a loss

GENERAL RISKS

1. 28The Trust as well as the Sponsor and its service providers are vulnerable to the effects of public health crises, including the ongoing novel coronavirus pandemic
2. 29Potential conflicts of interest may arise among the Sponsor or its affiliates and the Trust