Gold ETF Holdings Rise for 10th Consecutive Month

It’s been a banner year for gold exchange-traded funds (ETFs) and more market uncertainty ahead could keep feeding into more inflows. With Q4 still left to go and gold ETF holdings rising for a 10th consecutive month, gold could set a new record high, according to a article.

Per the article, “bullion is still up 24% so far this year, owing to unprecedented government and central bank stimulus worldwide to revive economies, as it is viewed as a hedge against inflation and a safe haven asset during economic and political uncertainties.”

And with a contentious forthcoming U.S. presidential election, gold is getting even more tailwinds behind it.

“It’s going to move higher, it’s going to be volatile. That’s going to be true for the next month going into the election, it’s going to be true for the two months after the election,” Jeffrey Christian, managing partner of CPM Group, told Reuters.

This all bodes well for funds like the VanEck Merk Gold Trust (OUNZ). OUNZ seeks to provide investors with an opportunity to invest in gold through the shares and be able to take delivery of physical gold in exchange for those shares. The Trust’s secondary objective is for the shares to reflect the performance of the price of gold less the expenses of the Trust’s operations.

OUNZ Chart

OUNZ data by YCharts

Each share represents a fractional undivided beneficial interest in the Trust’s net assets. The Trust’s assets consist principally of gold held on the Trust’s behalf in financial institutions for safekeeping.

OUNZ offers investors:

  • Deliverability: VanEck Merk Gold Trust holds gold bullion in the form of allocated London Bars. It differentiates itself by providing investors with the option to take physical delivery of gold bullion in exchange for their shares.
  • Convertibility: For the purpose of facilitating delivery, Merk has developed a proprietary process for the conversion of London Bars into gold coins and bars in denominations investors may desire.
  • Tax Efficiency: Taking delivery of gold is not a taxable event as investors merely take possession of what they already own: the gold.

As mentioned, one of the key benefits of OUNZ is the ability to exchange shares of the ETF for physical gold. Per the fund’s website, if you’re an “investor interested in taking delivery of physical gold in exchange for your OUNZ shares (Delivery Applicants), you must submit a signed Delivery Application to Merk Investments LLC (the “Sponsor”).

For more market trends, visit ETF Trends.