Merk Investments enters ETP space with launch of deliverable Merk Gold Trust

May 19th, 2014 | By | Category: Commodities

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Merk Investments has made its first foray into the exchange-traded products business with the launch of a deliverable gold ETP: the Merk Gold Trust (OUNZ).

Merk Investments enters ETP space with launch of deliverable Merk Gold Trust (OUNZ)

Axel Merk, President and Chief Investment Officer of Merk Investments.

Listed on the NYSE Arca, the ETP provides US-based investors with the opportunity to buy and hold gold through an exchange-traded vehicle with the option to take delivery of physical gold if and when desired.

The ETP holds gold bullion as allocated “London Bars” vaulted in London. Shareholders in the ETP own a pro-rata share of the gold held by the trust.

Typically, taking delivery of physical gold is not a taxable event, as investors are merely taking possession of what they already own: their gold.

Axel Merk, President and Chief Investment Officer of Merk Investments, said: “We believe we have revolutionized commodity investing by bridging the world between institutional and individual investors. Gold investing will never be the same, as investors may now buy gold with the ease of an ETF, but also have the option to take delivery of their gold when they want, where they want, in the form they want.”

He added: “By creating an open-end exchange-traded product, we make OUNZ available to all investors. Even if investors currently don’t plan to take advantage of the opportunity to exchange their shares for gold, investors may appreciate that they have the option to take delivery of their gold should they change their mind. To serve investors in OUNZ, we have created a highly scalable and robust delivery process. We are thrilled to announce that the US Patent office agrees that our process is truly innovative by granting a patent on the delivery process.”

James Machuga, Merk’s Vice President for Advisor Services, commented: “We believe OUNZ will not only be embraced by retail investors, but gives advisors and institutional investors the opportunity to assure their clients that their gold is deliverable.”

The product has an expense ratio of 0.40%.

European investors looking for an ETP with convertibility to physical gold could consider the Gold Bullion Securities (GBSS) from ETF Securities. This ETP, which is listed on the London Stock Exchange, Deutsche Börse, Borsa Italiana and NYSE Euronext, provides investors a simple, cost-efficient and secure way to gain investment exposure to the gold market while also offering investors the ability to exchange their security holdings for actual physical gold bullion coins – specifically Sovereigns and Britannias – produced by the United Kingdom’s Royal Mint.

Merk Gold Trust (OUNZ) conversion/delivery process.

Merk Gold Trust (OUNZ) conversion/delivery process.

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