VanEck® Merk® Gold Trust seeks to provide investors with a convenient and cost-efficient way to buy and hold gold through an exchange traded product with the option to take physical delivery of gold if and when desired.1
As a unique asset, gold may enhance portfolio diversification, provide attractive appreciation potential, and act as a store of value to hedge against systemic financial and geopolitical risk.
It is important to examine more closely the rationale for gold in an investor’s portfolio and why we believe the case for gold has never been stronger.
Many investors look to gold for its defensive characteristics but are surprised to learn of its impressive return characteristics relative to many major asset classes since the turn of the century. The metal is more than a diversifier or hedging tool.
Source: FactSet, VanEck. Data as of September 2023. U.S. Stocks represented by S&P® 500 Index; U.S. Bonds represented by Bloomberg Barclays U.S. Aggregate Bond Index; Gold ($/oz) represented by LBMA PM Gold Price; U.S. Treasuries represented by the Bloomberg Barclays U.S. 1-3 Year Treasury Bond Index. Past performance is not a guarantee of future results. Index performance is not representative of fund performance. It is not possible to invest directly in an index.
Gold is different from its metal counterparts in a number of ways. Unlike other metals, gold has an extremely narrow industrial application, which means that physical supply is driven by retail and investment demand. While there are certain restraints on other resources, gold production is a specialized industry and may have already peaked. In fact, despite fluctuations in gold prices and exploration spending, gold production and discoveries have been at subdued levels for years. With its global appeal, we believe demand for gold should persist, creating a broadening imbalance that may positively contribute to the long-term gold price.
Source: S&P Global Market Intelligence. Data as of June 2021. Past performance is not a guarantee of future results.
Gold has a proven track record as a potential hedge against systemic risks (as illustrated below) and has served well as a comparatively “safe haven” amid uncertainty.
Source: Bloomberg. Data as of April 2023. “U.S. Stocks” represented by S&P 500 Index. “Gold ($/oz)” represented by LBMA PM Gold Price. “U.S. Treasuries” represented by the Bloomberg U.S. 1-3 Year Treasury Bond Index. Past performance is not a guarantee of future results. Index performance is not representative of fund performance. It is not possible to invest directly in an index.
OUNZ shareholders can request access to their share of gold. Delivery requests of at least one ounce can be submitted for a variety gold coins and bars. Because investors own a pro-rata share of the gold in OUNZ, taking delivery is not taxable. You simply take delivery of what you already own.1, 2
VanEck’s leadership in gold investing extends more than 50 years, encompassing gold stocks and bullion across ETFs and mutual funds. We launched the U.S’s first gold stock fund (INIVX) in 1968 and issued the first gold miners ETF (GDX) in 2006.
Notes: Video first published by Bloomberg on 2/27/19; net assets as of
1Processing fees apply.
2If an investor redeems some or all of its shares in exchange for the underlying gold (including American Gold Eagle Coins) represented by the redeemed shares, the exchange will generally not be a taxable event for the investor (except with respect to any Cash Proceeds). A subsequent sale of the gold received by the investor will be a taxable event. For details, please see "Taxation of U.S. Investors" in the prospectus. A delivery applicant must submit a delivery application and payment for the processing and delivery fees to cover the cost of preparing and transporting the gold.
The delivery of physical gold to applicants may take considerable time and the delay in delivery could result in losses if the price of gold declines. A share submission is irrevocable.
Important Disclosures
VanEck Merck Gold Trust (OUNZ) must be preceded or accompanied by the prospectus. Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus, a copy of which is available at https://www.vaneck.com/us/en/investments/merk-gold-trust-etf-ounz/ounz-prospectus.pdf/. Please read the prospectus carefully before you invest.
The S&P 500 Index consists of 500 widely held common stocks covering the leading industries of the U.S. economy.
Bloomberg 1-3 Year Treasury Bond Index measures U.S. dollar-denominated, fixed-rate, nominal debt issued by the U.S. Treasury with 1-2.999 years to maturity.
Bloomberg U.S. Aggregate Bond Index measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency).
LBMA Gold Price PM is the London Bullion Market Association measure of gold price quoted in U.S. dollars, published at 3pm London time.
The S&P 500® Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Van Eck Associates Corporation. Copyright © 2023 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spglobal.com/spdji/en/. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC. Neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors make any representation or warranty, express or implied, as to the ability of any index to accurately represent the asset class or market sector that it purports to represent and neither S&P Dow Jones Indices LLC, Dow Jones Trademark Holdings LLC, their affiliates nor their third party licensors shall have any liability for any errors, omissions, or interruptions of any index or the data included therein.
Investing involves risk, including possible loss of principal. The Trust is not an investment company registered under the Investment Company Act of 1940 or a commodity pool for the purposes of the Commodity Exchange Act. Shares of the Trust are not subject to the same regulatory requirements as mutual funds. Because shares of the Trust are intended to reflect the price of the gold held in the Trust, the market price of the shares is subject to fluctuations similar to those affecting gold prices. Additionally, shares of the Trust are bought and sold at market price, not at net asset value (“NAV”). Brokerage commissions will reduce returns.
The request for redemption of shares for gold is subject to a number of risks including but not limited to the potential for the price of gold to decline during the time between the submission of the request and delivery. Delivery may take a considerable amount of time depending on your location.
Commodities and commodity-index linked securities may be affected by changes in overall market movements and other factors such as weather, disease, embargoes, or political and regulatory developments, as well as trading activity of speculators and arbitrageurs in the underlying commodities.
Trust shares trade like stocks, are subject to investment risk and will fluctuate in market value. The value of Trust shares relates directly to the value of the gold held by the Trust (less its expenses), and fluctuations in the price of gold could materially and adversely affect an investment in the shares. The price received upon the sale of the shares, which trade at market price, may be more or less than the value of the gold represented by them. The Trust does not generate any income, and as the Trust regularly issues shares to pay for the Sponsor’s ongoing expenses, the amount of gold represented by each Share will decline over time. Investing involves risk, and you could lose money on an investment in the Trust. For a more complete discussion of the risk factors relative to the Trust, carefully read the prospectus. Diversification does not assure a profit or protect against loss.
© 2023 Merk Investments LLC. © 2023 VanEck. All trademarks, service marks or registered trademarks are the property of their respective owners.
The sponsor of the VanEck Merk Gold Trust is Merk Investments LLC (the “Sponsor”). Van Eck Securities Corporation provides marketing services to the VanEck Merk Gold Trust and serves as a Distributor of VanEck mutual funds and ETFs.