VanEck Merk Gold Trust (OUNZ) stands out from traditional bullion-backed exchange traded funds by providing investors with physical delivery of their investment. This unique feature differentiates OUNZ from its competition and allows investors to convert London Bars into one-ounce coins or bars of any denomination at redemption time.
Physically held
OUNZ was created more than nine years ago as the first-of-its-kind ETF of its kind, offering investors who prioritize physical delivery of gold an opportunity to physically take possession of their investments.
OUNZ holds physical gold that is fully allocated by a Custodian and not mixed in with depositor funds or assets. Investors can access it through an official weight list published by the Trust that displays individual bar numbers, gross weight and assay or fineness information.
Investors who prefer physical delivery may submit requests to the Trust for London bars vaulted in London or smaller gold coins and bars in denominations desired by them. To facilitate this, Merk Investments LLC developed a process which converts London bars into coins and bars that meet individual investors’ preferences – plus delivery fees are capped at 0.45% of net asset value of ETF.
Tax-efficient
The Opportunity Zone (OZ) incentive, established by TCJA, offers many advantages to investors. Capital gains invested in qualified opportunity funds (QOFs) may be deferred until either they sell them before 2026 or they’re permanently excluded from taxation when held for at least 10 years.
OZ investments offer many advantages, yet it is crucial that investors understand its rules and regulations – including state-specific ones which could significantly diminish after-tax return potential of an OZ investment.
OUNZ stands out from other gold ETFs by providing investors with the ability to redeem their shares for physical delivery of gold – an unparalleled feature that sets it apart. In order to do this, OUNZ uses its own proprietary process which converts London Bars into coins and bars in denominations preferred by investors allowing physical redemption of investment without incurring tax liabilities.
Long-term outlook
OUNZ stands out from other deliverable gold ETFs by enabling investors to redeem their shares for physical gold – making this ETF stand out from competitors on the market. They can request delivery of London bars vaulted in London as well as smaller denominations of American Buffalo coins – with no taxable event created when redeeming shares – making this product truly special!
As inflation fears and global economic unpredictability linger on, gold remains an attractive safe-haven asset. Investors with long-term investment horizons should consider OUNZ as an opportunity to gain exposure to gold prices; investors should note however that OUNZ does not generate income and may experience market fluctuations and price fluctuations.
