What tax and other issues are there?
I called one of my contacts in Switzerland last night that is very familiar with this fund and Swiss banking financial products. He also specializes in servicing American clients, is a SEC registered financial advisor, and has been in the private banking business for over 20 years.
He stated, once again, that the ZGLD fund should not be bought by Americans. For one reason it is not registered in the states so it is subject to much higher taxation as a foreign investment company. This leads to a lot of risks for people that buy the fund. Secondly the bank does not want to deal with American clients so you are taking risks of buying a product where the issuer doesn't want your business.
Who is "strongly discouraging" it other than you?
I'm just telling you what I know based on what several people inside the industry have told me. Zurich Canton bank is a great institution, but they don't want to deal with American clients. They probably won't even talk to you if they see you are calling from an American area code on your phone.
And again it's still an ETF. So you still have virtually the same ETF risks such as it being in street name, proving ownership, etc. just like the other ones SGOL or PHYS have. So not only are you still stuck with the ETF problems as others, but you have the additional problem of investing in an unregistered product and a bank that to doesn't want your business!