How risky is buying the ETC 'iShares Physical Silver ETC (SSLN)'?
iShares physically-backed Exchange Traded Commodities (iShares Physical ETCs) are series of secured metal-linked debt securities that trade on one or more regulated exchanges and offer investors easily accessible, liquid and transparent exposure to physical precious metals. iShares Physical ETCs provide investors with exposure to the performance of individual precious metals without the need to take physical delivery or trade commodity futures contracts.
The iShares Physical Silver ETC seeks to track the day-to-day movement of the price of silver, less fees, by holding silver bullion. The silver bullion backs the securities issued and is valued daily at the London fix price. The silver bullion is held as allocated silver bars with the custodian, JPMorgan (and/or its sub-custodian). State Street acts as the Trustee. iShares Physical ETCs are exchange traded commodities and are neither funds nor exchange traded funds.
The reason I ask is that I can hold this in my ISA (for those outside the UK, ever year you can invest around £10k and the gains are tax free) whereas I can't hold silver bullion in this.
I imagine the risks are global meltdown then this ETC may become worthless whereas coins/bullion would still have value? Any other risks?