How Does the VanEck Merk Gold Trust (OUNZ) Work?
VanEck Merk Gold Trust (OUNZ) provides investors with a unique opportunity to receive physical delivery of gold bullion upon redemption of shares, with this page detailing this process.
Investors should use the calculator to select an optimal Share Submission Date in order to reduce redemption cash proceeds and costs.
What is OUNZ?
OUNZ stands out as an attractive investment option as the first gold exchange traded fund to offer physical delivery of gold bullion, providing investors with exposure to this yellow metal. One share of OUNZ represents pro rata ownership corresponding to 0.968678 fine ounces held within VanEck Merk Gold Trust.
If you decide to take delivery of your OUNZ shares, an agreed upon “Share Submission Date” must be selected by both you and your broker. In order to minimize cash proceeds in exchange for physical gold you wish to acquire, OUNZ recommends using their calculator as a means of estimating possible dates near term when your shares might be submitted for delivery.
How do I take delivery of my gold?
Assuming delivery of OUNZ shares is a straightforward process. Simply visit their website and click on the calculator link; this will allow you to determine how many shares need to be redeemed to receive physical gold. Once this is clear, fill out and submit the delivery application on the following page.
This form will express your intention to exchange OUNZ shares for physical gold on Share Submission Day (or within any applicable grace period). Once your delivery application has been accepted by the Trustee, instructions will be issued from them for you to give to your broker in order to exchange OUNZ shares for physical gold.
If you wish to receive delivery of different forms of gold than London Bars held by the Trust in its vault, an Exchange Fee may be charged. This fee reflects the cost associated with converting London Bars into forms such as coins or bars that trade at a premium over spot price for gold.
What are the fees associated with taking delivery?
When taking delivery of physical gold, there are certain fees involved in doing so. The Exchange Fee covers the costs associated with exchanging OUNZ shares into London Bars that the Trust holds in their vault and then into coins or smaller bars suitable for delivery. A Delivery Fee covers the expense associated with transporting the physical gold directly to its intended recipient location.
As part of your OUNZ share redemption for delivery, it is crucial that the number of shares submitted match closely the number of Fine Ounces you wish to take delivery of. To assist in this endeavor, we have designed the Share Submission Calculator; it offers potential dates on which you may submit shares for redemption in the near term – please revisit it when close to your submission date!
What are the risks associated with taking delivery?
Aspiring investors considering taking delivery of OUNZ shares must carefully consider all fees related to delivery. The fund website provides a helpful breakdown of these costs as well as an online calculator which allows investors to determine their costs more easily.
To control expenses and minimize fees, investors should submit OUNZ shares that closely correspond to the Fine Ounces they require for delivery. To facilitate this, investors may utilize the OUNZ Delivery Calculator to select an optimal Share Submission Date that coincides with an expected delivery date.
expenses accrue between the Share Submission Date and the delivery of Gold Bars (or coins), such as Exchange Fee and Physical Delivery fees.