Gold ETFs May Still Maintain Their Momentum

Investors interested in gaining exposure to the gold miners space can do so through the popular VanEck Vectors Gold Miners ETF (NYSEArca: GDX) and VanEck Vectors Junior Gold Miners ETF (NYSEArca: GDXJ), which track the large mining space and small-cap miners respectively.

Alternatively, Brandon Rakszawski, Product Manager at VanEck Global, pointed to the Van Eck Merk Gold Trust (NYSEArca: OUNZ) as a way to track the price movement of gold bullion. OUNZ differentiates itself by providing investors with the option to take physical delivery of gold bullion in exchange for shares, Rakszawski added.

OUNZ holds up to 430 ounces of unallocated London gold bars stored in London vaults. J.P. Morgan acts as the custodian of the gold. OUNZ gold is periodically audited, with the latest audit performed on August 4, 2016 to make sure that shares line up with physical holdings.

SEE MORE: Gold Miners ETFs Confirm Strength Against Broad Market

Axel Merk, President & CIO of Merk Investments, delved deeper into OUNZ’s structure, explaining that the way investors can exchange OUNZ shares for physical delivery is an easy process. Merk said that investors would simply first file a delivery application, instruct a broker to submit OUNZ shares to take delivery of their gold and then wait for the physical gold to be delivered.


Financial advisors who are interested in learning more about the gold market can watch the webcast here on demand.