VanEck Merk Gold Trust (OUNZ)
OUNZ provides investors with a simple and cost-efficient means of buying and holding gold bullion. Through Merk Investments LLC’s innovative process, investors may take physical delivery when exiting their positions in OUNZ.
Each share of OUNZ represents pro rata ownership of 0.967558 fine ounces of physical gold held by the Trust in London Bars allocated form with their Custodian.
What is OUNZ?
VanEck Merk Gold Trust (OUNZ), introduced as an exchange traded fund (ETF), has long been recognized for enabling investors to take physical delivery of gold when exiting positions.
Investors have several options when it comes to receiving physical gold, including one-ounce bars and coins. At OUNZ Trust’s Custodian we hold London Bars separately – never mixing them with assets held for other investors – keeping your gold safe!
OUNZ Exchange Fee covers the costs associated with exchanging London Bars held by the Trust into smaller one-ounce gold coins or bars that investors prefer for physical delivery, reflecting any premium they typically trade at over spot prices.
How is OUNZ traded?
OUNZ shares can be bought and sold through the NYSE Arca just like any other securities such as stocks or bonds.
The Exchange Fee covers the costs associated with exchanging OUNZ shares into gold bars held in London Bar form in our vault, while Delivery Fee reflects those costs associated with converting London Bars into smaller coins or larger bars if investors wish to receive them that way.
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How does OUNZ deliver physical gold?
OUNZ provides an efficient and cost-effective means of accessing gold. However, unlike its peers, OUNZ gives its investors the ability to exchange shares for physical gold bullion at any time they so choose.
At delivery time, London Bars can be converted to gold coins or smaller bars for immediate sale, ensuring Good Delivery status and marketability in professional bullion markets.
When an investor wishes to take physical delivery, all that’s necessary is for them to submit a Delivery Application with their broker and the Trust will send their physical bullion. Note: the Trust only delivers gold to trusted non-residential addresses and requires that the number of shares submitted correspond closely with the median Fine Ounce content per London Bar held by them multiplied by how many are requested for delivery; any exchange that’s not in gold will be provided in cash similar to what an investor would get when selling shares in traditional bullion-backed ETFs.