Since GP won't say, my guess is the idea was to explicitly not target capital growth, but a fixed value ('does not mimic spot price') - so you buy in at spot or

Since GP won't say, my guess is the idea was to explicitly not target capital growth, but a fixed value ('does not mimic spot price') - so you buy in at spot or with some some spread, and the dividend pays out by selling the underlying as spot goes up, with some buffer for fees and being able to buy a certain amount as it falls. If the dividend were also a function of volume & prices of (filled) ETF orders, it could tolerate up to 100% loss. But that doesn't account for the 'I said precious metals, not gold' hint.