OUNZVanEck Merk Gold Trust
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.
SponsorMerk Investments LLC
TrusteeBank of New York Mellon
CustodianJPMorgan Chase Bank, N.A.
Marketing AgentVan Eck Securities Corp.
as of 06/22/21
Total Net Assets$477.0M
Who is Merk Investments LLC?
Merk Investments LLC is the sponsor of the VanEck Merk Gold Trust (OUNZ) and arranged for the creation of the Trust and listing of shares of the Trust on the NYSE Arca. Merk Investments LLC interacts with the Trust’s service providers and will also facilitate the review of Delivery Applications and the delivery of physical gold to Delivery Applicants.
When I own the VanEck Merk Gold Trust (OUNZ), do I own gold?
Yes. Each investor owns a pro-rata share of the VanEck Merk Gold Trust (OUNZ), and as such holds pro-rata ownership of the Trust's gold holdings, corresponding to the number of shares held.
What type of gold does the VanEck Merk Gold Trust (OUNZ) hold?
The VanEck Merk Gold Trust (OUNZ) holds London Bars. The Trust holds its London Bars in allocated form in the Trust Allocated Account with the Custodian. The Trust Allocated Account will be used to hold the individually identified bars of gold deposited with the Trust. The physical gold is held in a segregated fashion in the name of the Trust, never commingled with other depositor funds or assets. The Trust has full title to the gold with the Custodian holding it on the Trust’s behalf. Each investor owns a pro-rata share of the Trust, and as such holds pro-rata ownership of the Trust assets, corresponding to the number of shares held. Trust holdings are identified in a weight list of bars published on the Trust’s website showing the unique bar number, gross weight, the assay or fineness of each bar and its fine weight. Credits or debits to the holding will be effected by physical movements of bars to or from the Trust’s physical holding. The Trust’s gold holdings are subject to periodic audits.
The Trust may further hold up to a maximum of 430 ounces of unallocated gold.
To facilitate the ability to exchange shares into physical gold for delivery, Merk Investments LLC may convert the Trust’s gold into gold of different specifications. All gold obtained by the Trust must be without numismatic value and have a minimum fineness (or purity) of 995 parts per 1,000 (99.5%), except that the Trust may also obtain American Gold Eagle Coins (with a minimum fineness of 91.67%) solely for delivery to a Delivery Applicant. While Delivery Applicants may always request London Bars, market conditions may cause Merk to limit other types of physical gold made available for delivery.
Can I take delivery of the gold I own through the VanEck Merk Gold Trust (OUNZ)?
Yes, investors have the option to take delivery of physical gold in exchange for their shares.
What type of gold can I receive?
Aside from the London Bars the Trust holds, investors may take delivery of 1 ounce coins and bars, as well as 10 ounce bars, such as:
|1 oz American Gold Eagle coins||91.67%|
|1 oz American Gold Buffalo coins||99.99%|
|1 oz Australian Gold Kangaroo coins||99.99%|
|1 oz Canadian Gold Maple Leaf coins||99.99%|
|1 oz or 10 oz Australian bars||99.99%|
Formally, aside from being able to take delivery of London Bars, investors may request to have their shares exchanged for other gold bars and coins, without numismatic value, having a minimum fineness (or purity) of 995 parts per 1,000 (99.5%) or, for American Gold Eagle gold coins, with a minimum fineness of 91.67%.
Where and how can I have my gold delivered?
The Trust will ship physical gold fully insured to a Delivery Applicant by a conventional shipping carrier such as the U.S. Postal Service, Federal Express, United Parcel Service or armored transportation service.
Delivery Applicants should be aware that the gold delivered is likely to represent a substantial U.S. dollar value:
- Shipments may be broken down into multiple smaller shipments and possibly shipped on different days to meet insurance requirements of the shipping carrier. A Delivery Applicant can utilize a shipping carrier only if insurance requirements can be met and the Delivery Applicant and we agree on an acceptable delivery destination. A conventional shipping carrier may deliver gold to residential addresses.
- Armored Transportation Service will only deliver to certain trusted locations; an Armored Transportation Service does not deliver to residential addresses. A Delivery Applicant can utilize an armored truck service only if the Delivery Applicant and the Armored Transportation Service agree on an acceptable delivery destination. London Bars will only be transported using Armored Transportation Service.
Delivery Applicants should contact Merk Investments LLC to discuss delivery method and location.
A Delivery Application may be declined if no delivery method and location is agreed upon.
When will I receive my gold?
For coins and bars other than London Bars, Delivery Applications can be processed fastest when investors have their gold delivered to the address stated on their brokerage account. This way, gold coins and bars other than London Bars may be delivered with UPS next day delivery service to your home address. Specifically:
- Assuming shares have been accepted by the Trustee on the Share Submission date, Merk will be notified of the successful share submission late that business day. Typically the next day, Merk will engage in an over the counter transaction with the precious metals dealer to facilitate an exchange of the Trust's gold into coins and bars specified in the Delivery Application. The completion of this exchange typically takes 2 business days. This means gold coins and bars other than London Bars might be handed over to UPS for next day delivery on the third business day after a share submission, allowing the Delivery Applicant to receive their gold on the fourth business day after share submission.
- Note that this timeline may be faster or slower, in part due to the availability of the Delivery Applicant to receive packages.
Investors requesting London Bars need to be aware that London Bars are delivered with an Armored Transportation Service that does not deliver to residential addresses. Armored Transportation Services only deliver to trusted addresses. That means Delivery Applications can be processed faster when the Delivery Address is a familiar address, such as a precious metals depository. For new destinations, a security survey first has to be conducted to ensure the safety of the crew and vehicle. As our own testing has confirmed, such surveys may only take a few business days; however, the delays that can be caused in this process lead us to state in the prospectus that it may take "considerable time" to take delivery of gold. The legwork to agree on a suitable delivery location takes place before Merk pre-approves a Delivery Application. A Delivery Application may be declined if no delivery method and location is agreed upon.
What is the Exchange Fee?
The Exchange Fee covers the cost of exchanging OUNZ shares into gold bars in the form of London Bars which the Trust holds in the vault, as well as the cost of converting London Bars into the gold coins or smaller gold bars that investors may prefer for delivery. The Exchange Fee for gold coins and bars, outside of London Bars, reflects the premium such coins and bars are trading at relative to the spot price of gold.
All fees are subject to change upon notice; we may waive or reduce the Exchange Fees from time to time.
Is there a Delivery Fee?
No Delivery Fee is charged for the delivery of physical gold to destinations in the lower 48 States.
There may be a Delivery Fee to Alaska and Hawaii as well as to countries outside of the United States. This fee covers the cost of preparing and transporting physical gold from the Custodian or the precious metals dealer to the location specified by a Delivery Applicant in its Delivery Application.
What is the Processing Fee?The Processing Fee is comprised of the Exchange Fee and the Delivery Fee.
The Processing Fees must be wired by the Delivery Applicant at the time the Delivery Application is submitted; the fee is fully reimbursable until the Delivery Applicant submits his or her shares to the Trustee.
Can my Delivery Application be denied?
Merk Investments LLC reserves the right to decline the Delivery Application for any reason.