OUNZ offers investors more flexibility than GLD or IAU by enabling them to convert their shares to physical gold via its London Bars program, by turning them into coins or bars in denominations they desire for delivery.
The Delivery Application requires that the number of shares submitted closely match the fine ounces of gold to be delivered, so this calculator helps you calculate this amount ahead of your Share Submission Date.
How do I redeem my shares?
OUNZ offers investors similar flexibility as physical gold ETFs such as GLD and IAU by permitting them to redeem their shares for actual physical gold bars – an important feature that alleviates some of the “paper gold” concerns that have dogged these funds.
To redeem OUNZ shares, submit them along with a pre-approved delivery application and choose your Share Submission Date; for best results choose a day when the New York Stock Exchange is open.
After selecting your desired type and quantity of gold (we suggest London Bars), an Exchange Fee must also be paid; this covers the cost of exchanging OUNZ shares into London Bars held in Trust’s vault, or higher premium products like coins/other bars due to delivery cost considerations.
What are the fees?
OUNZ has fees that are comparable to GLD-style gold ETFs; the major distinction is its unique offering of redeeming shares for physical bullion. This alleviates any “paper gold” concerns pertaining to GLD and IAU; giving investors concrete proof that their investment is actually secured by physical metal backing it.
Each share of OUNZ represents 0.00966906 ounces of gold, and you can use this calculator to determine how many OUNZ shares can be redeemed for. This calculator includes both an Exchange Fee for exchanging OUNZ shares into London Bars held by the Trust as well as Delivery Fees that reflect any premium items may trade at relative to spot price of gold – these fees all depend on current gold prices and may change.
How do I take delivery of my gold?
VanEck Merk Gold Trust (OUNZ), when launched in May, set itself apart from established physical-gold ETFs like SPDR Gold Trust (GLD | A-100) and iShares Gold Trust (IAU | A-100). OUNZ offers one key advantage over these rival funds – you can exchange shares for physical gold.
OUNZ offers investors a unique way to take delivery of gold in increments as small as one hundredth of an ounce troy ounce. Simply file a delivery application with their broker, and the fund converts London Bars into bars or coins that they request for delivery.
Investors must pay a fee for this service, with fees depending on the size of their redemptions. The fund’s website outlines these fees in full; payment must be wired in before receiving gold from them. They also provide an easy calculator that helps estimate fees before redeeming.
What are the risks?
GLD and IAU have been subject to accusations that they only own paper gold or less than stated bullion than claimed. OUNZ offers investors more reassurance when redeeming shares – this feature helps assure investors they will actually receive physical bullion when redeeming their shares; however, its minimum redemption amount of 40 ounces means it may not be suitable if short-term redemption plans exist; but considering long-term plans is still worthwhile if short-term redemption plans exist.
VanEck Merk Gold Trust has earned my MarketBeat watchlist’s Green Light due to trading at a discount to its net asset value.
