It's ring fenced against being being bankrupt. So even if ETF securities go bottum up, the security owners are the owners of the bullion held by the custodian. They also have to have an oz of bullion in the vault for every redeenable pref share out there so can't see how they can default as the custodian (HSBC) already have delivery on shareholder behalf. I suppose if war breaks out and the vault is raided you could lose, but I think I'll take my chances on that as there is a better chance of someone walking to your house and stealing all your precious metals right under your nose.
