An ETF I like to play is HZU.TO...
If the COMEX ever happens to default does anyone know how HZU would react? Does it default and reset to zero? I've read the fine print in the HZU but it's so full of legaleeze it's difficult to understand. I've also called the Horizon staff and they just laugh and say the COMEX could never default.
Any advice would be greatly appreciated.
I trade this one too. The comparable fund in the USA is AGQ and you'll see that name often in Pailin's Trading Corner.
This fund is a derivative of a derivative and holds no silver, and intends to hold no silver.
Strictly a paper play and full of risk should things ever get so ugly.
Google the risks if you want to scare yourself silly.
Regarding the legaleze I don't think anyone truly understands all the implications. Likely not even the fund owners. I have read a lot of opinions and my conclusion is that it would be litigation city to sort out.