OUNZ VanEck® Merk® Gold ETF
Fund Description
The VanEck Merk Gold ETF (the “Trust” or “OUNZ”) provides 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.
Overview
Deliverability
VanEck Merk Gold ETF 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.
Expense Ratio
0.25%
Net Assets
$1,165.9mm
Gold Price
$2,652.65
Fund Information
Market Price
$25.61
Time of Last Trade 3:50 pm ET on October 14, 2024
Shares Outstanding
45,534,595
Gold in VanEck Merk Gold ETF (1)
439,578.230 oz
Gold per Share (1)
0.010 oz
Gold per 1,000 Shares (1)
9.654 oz
NAV per Share
$25.6038
Closing Sale Price
$25.61
Closing Mid Bid-Ask Price
$25.605
Premium/Discount to NAV
-0.0133%
Gold per Basket
482.686 oz
Indicative Gold per Basket
482.682 oz
Updated Daily (as of close of business on October 14, 2024)
OUNZ Delivers
Retirement Account
Eligible
Tax Efficiency
With OUNZ, because you own a pro-rata share of the gold, taking delivery of gold is not taxable. You simply take delivery of what you already own. (*)
Gold in OUNZ shares
Your shares correspond to
0.00
oz of gold
Number of Shares
Delivery
Proven record of delivering gold.
Delivery Application
Click to fill-in the short
Delivery Application.
Exchange Fee
No delivery fees for the lower 48 States. For details on fees click here.
Exchange Fee in USD
$0.00
Number of Bars or Coins
Share Submission
Once the investor's Delivery Application is approved, we give a window of up to 7 business days after the approval to submit the shares.
Customer Service
Our experienced team is here to help. Call toll-free at (855)MRK-OUNZ or email.
Allocated Gold
Yes, OUNZ's physical gold is held in a segregated fashion in the name of the Trust. Each investor owns a pro-rata share of OUNZ, and as such holds pro-rata ownership of the Trust's gold. OUNZ's holdings are identified in a weight list of bars published at merkgold.com showing the unique bar number, gross weight, the assay or fineness of each bar and its fine weight.
Internal Controls
OUNZ's internal controls are audited each year.
Reporting
Investors take posession of what they already own; as such, there is no reporting of any gold that is delivered to investors in exchange for shares.
Guiding Principles
When we began the journey to find a better way to hold gold, we worked hard to research all of the known methods. As we were not satisfied with the existing ways to buy and hold gold, we decided to develop our own product. During the creation of our product we uncovered various challenges that arise when one bridges the retail and institutional gold market, including:
- We wanted to design a product robust enough to allow large numbers of investors to have their gold delivered should that need occur. However, we learned that many custodians, have little desire to open their vault on a frequent basis in order to allow investors to take delivery of their gold.
- We held numerous discussions with firms that work only in the gold storage business, not the banking business. While it was enlightening to visit their vaults in the U.S. and abroad, we realized that we could not design an exchange traded product that sufficiently addressed our concerns.
- We learned that some banks that deal in gold are not even aware that they cannot offer allocated gold.
- Some service providers we evaluated did not meet our standards when we performed our due diligence.
We determined the best way to define our goals for this product was to develop “Guiding Principles”. Based upon the process created the U.S. patent office granted us U.S. patent #8,626,641.
VanEck Merk Gold ETF Guiding Principles
To meet its primary objective to provide investors with an opportunity to invest in gold through the shares and to be able to take delivery of physical gold in exchange for their shares, we ("the Sponsor) have structured the Trust along the following principles:
Holding London Bars. To allow investors to invest in gold through the shares, the Trust holds London Bars. When traded in institutional sizes, London Bars typically carry the lowest transaction cost compared to other forms of gold because there is no need to convert London Bars to gold of other specifications or involve a precious metals dealer before a Delivery Applicant takes delivery of London Bars. By contrast, taking delivery of forms of gold other than London Bars typically involves conversion costs (i.e., converting London Bars to physical gold of other specifications) and the assistance of a precious metals dealer. As such, the Trust holds primarily London Bars to facilitate a cost effective process to create and redeem Baskets.
Maintaining Allocated Gold. The Trust will hold 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, not 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.
Taking Delivery of London Bars. Delivery Applicants requesting London Bars will need to submit shares that very closely correspond in Fine Ounces to the median Fine Ounce content of London Bars held by the Trust multiplied by the number of London Bars requested. London Bars are delivered directly from the Custodian. It may not be possible to exactly match the number of shares submitted with the number of Fine Ounces represented by the requested physical gold, requiring the Trust to sell some gold to facilitate the delivery request.
Minimizing the Use of Unallocated Gold. The Trust will need unallocated gold to facilitate transactions with Authorized Participants to exchange gold into different specifications to meet delivery requests from Delivery Applicants of physical gold and to pay Trust expenses not assumed by us, if any. The Custodian only will accept a delivery of gold in exchange for a Basket if it can promptly convert the gold to allocated gold. The Custodian must allocate physical gold to the Trust such that, at the end of each business day, the Trust may hold no more than 430 Fine Ounces, corresponding to the maximum weight of a London Bar, in unallocated gold.
Exchanging Physical Gold for Physical Gold of Different Specifications. To facilitate the ability to exchange shares into physical gold for delivery, we may exchange the Trust’s gold for 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. All gold held by the Trust is valued based upon its Fine Ounce content. While Delivery Applicants may always request London Bars, market conditions may cause us to limit other types of physical gold made available for delivery.
Charging an Exchange Fee. The Exchange Fee varies depending on the type of physical gold a Delivery Applicant would like to take delivery of and reflects costs arising from: reviewing Delivery Applications, coordinating with Delivery Applicants and the Trust’s other service providers, the conversion of London Bars into physical gold to be delivered, and the related expenses of the Trustee and us.
Minimizing Cash Holdings. The Trust is committed to minimizing the use of cash, keeping essentially all assets of the Trust in gold. To achieve this, we have agreed to pay the Trust’s ordinary expenses and to be reimbursed therefor through the issuance of shares to it rather than through receiving cash. The Trust will not normally hold cash, or any other assets besides gold, but may temporarily hold a very limited amount of cash in connection with deliveries of physical gold to Delivery Applicants.
Permitting Investors to Take Delivery of Physical Gold. Delivery Applicants may submit shares to the Trust in exchange for physical gold.
- Delivery Applicants may take delivery of as little as a 1 Ounce Bar, subject to a minimum dollar value that is specified by us from time to time on the Trust’s website. By requiring that the delivery of gold to Delivery Applicants meet certain minimum dollar value criteria, which may change from time to time, sales taxes are not anticipated to be applicable to the delivery of gold to Delivery Applicants. However, if such taxes do apply, they are the sole responsibility of the Delivery Applicant.
- Taking delivery of physical gold is subject to guidelines intended to minimize the amount of cash that will be distributed with physical gold. As a result, investors need to submit shares that correspond very closely to the number of Fine Ounces represented by the gold requested.
The Trust will ship physical gold 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. A conventional shipping carrier may deliver gold to residential addresses. An armored transportation service, which may be required for insurance purposes, will only deliver to trusted, non-residential addresses.
To meet its secondary objective to have the shares reflect the performance of the price of gold, we have structured the Trust as follows:
Transactions with Authorized Participants. By allowing Authorized Participants to directly issue and redeem Baskets with the Trust, Authorized Participants may be able to take advantage of price discrepancies between the Trust’s underlying gold holdings and the value of the shares. As a result of this incentive provided to Authorized Participants, the value of the shares may reflect the performance of the price of gold.
Minimize cash delivery. To minimize the cash portion of delivery by Delivery Applicants of physical gold for their shares, we will only approve Delivery Applications where the number of shares to be submitted leads to a cash portion that is as low as practical in our assessment.
Exchange of Shares for Physical Gold other than London Bars. For physical gold other than London Bars, we will require the submission of shares that correspond in net assets to the number of Fine Ounces contained in the physical gold requested. The number of shares required for submission will typically be the smallest whole number of shares greater than the net assets of the Trust corresponding to the Fine Ounce content of physical gold requested. We may demand that an additional share or shares be submitted when, in our assessment, it facilitates the exchange process, such as when extraordinary Trust expenses may be expected, by reducing the likelihood that the net asset value of the Trust differs on the Share Submission Day from that anticipated by us at the time the Delivery Application is filed, which is in advance of the Share Submission Day.
Exchange of Shares for London Bars. Because London Bars vary in Fine Ounce content between 350 Fine Ounces and 430 Fine Ounces, it may be difficult to obtain a combination of London Bars that closely matches the number of Fine Ounces represented by the shares submitted. Delivery Applicants will need to submit shares that very closely correspond in Fine Ounces to the median Fine Ounce content of London Bars held by the Trust multiplied by the number of London Bars requested.
Any portion of the exchange not delivered in physical gold will be provided in cash.
The shares offer an investment that is:
Easily Accessible and Relatively Cost Efficient. Investors can access the gold market through a traditional brokerage account. We believe that investors will be able to more effectively implement strategic and tactical asset allocation strategies that use gold by using the shares instead of using the traditional means of purchasing, trading and holding gold. Transaction costs related to the shares may also be lower than those associated with the purchase, storage and insurance of physical gold.
Exchange Traded and Transparent. The shares will trade on the NYSE Arca under the symbol “OUNZ,” and will provide investors with an efficient means to implement various investment strategies. Upon effectiveness of the registration statement, of which this Prospectus is a part, the shares will be eligible for margin accounts. The Trust will not hold or employ any derivatives and the shares will be backed by the assets of the Trust. Furthermore, the value of the Trust’s holdings will be reported on the Trust’s website daily.
Minimal Credit Risk. The shares represent an interest in physical gold owned by the Trust (other than up to a maximum of 430 Fine Ounces of gold held in unallocated form) and held in physical custody at the Custodian. Physical gold of the Trust is not subject to borrowing arrangements with third parties. Other than the gold temporarily being held in unallocated form to facilitate the delivery of physical gold to Delivery Applicants, redemptions by Authorized Participants, the exchange of gold to different specifications and the payment of Trust expenses not assumed by us, if any, the Trust’s gold is not subject to counterparty or credit risks. The gold is held in the form of London Bars which is allocated to the Trust Allocated Account and held in the Trust’s name by the Custodian. This contrasts with other financial products that gain exposure to gold through the use of derivatives that may be subject to counterparty and credit risks.
For more information, please also read the OUNZ FAQs.
For the VanEck Merk Gold ETF℠ delivery application, please
click here
Patent
On January 7, 2014, Merk Investments LLC was issued patent #8,626,641 by the United States Patent and Trademark Office for a "Deliverable commodity investment vehicle."
"Never before have investors been able to buy and own gold through an exchange traded product while being able to take delivery of gold in a form suitable for the individual. The U.S. patent office confirms what we do is truly new, innovative and worthy of patent protection. No one before has been able to combine the institutional and retail benefits of holding gold.
The VanEck Merk Gold ETF opens a new interface between the institutional and retail world of owning gold." -- Axel Merk, President and Chief Investment Officer at Merk Investments.
From the patent description: "The invention relates generally to systems and methods for investing in commodities, and more specifically to commodity investment vehicles offering a conversion or delivery feature." Read more...
Market Price: The current price at which shares are bought and sold (reporting subject to approx. 20min delay).
NAV: The dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding.
A Basket is 50,000 Shares. "Indicative" Gold per Basket refers to the projection for the next trading day's basket size.
(1) Gold per Share and Gold in VanEck Merk Gold ETF numbers are net of accrued expenses.
Delivery Fees
The Processing Fees for investors taking delivery of their gold ("Delivery Applicants") are comprised of an Exchange Fee and a Delivery Fee.
Delivery Fee
No Delivery Fee is charged for the delivery of physical gold to destinations in the lower 48 States.
Exchange Fee
The Exchange Fee below is effective October 16, 2024 and supersedes any previously published Exchange Fees, including those in the prospectus:
| Type of Gold Bar | Exchange Fee | Purity | |
|---|---|---|---|
| Fee per Application | Fee per Ounce | ||
| 1oz 2023 Royal Candian Mint Gold Maple Single Source | $500 | $90.00 | 99.99% |
| 1oz Austrian Mint Gold Bar | $500 | $25.00 | 99.99% |
| 1oz Mixed Years Philharmonic Gold | $500 | $22.00 | 99.99% |
| 1kg Kilo Bars | $500 | $15.00 | 99.99% |
| London bars | $4,000 | $0.00 | 95.00% - 99.99% |
Sample Exchange Fees
Exchange Fee
No delivery fees for the lower 48 States. For details on fees click here.
Exchange Fee in USD
$0.00
Number of Bars or Coins
During times of high demand for coins in the market, Processing Fees may be updated frequently and may be updated after the time a Delivery Applicant submits an application before it is pre-approved; in this case, the Delivery Applicant may have to pay a higher Processing Fee to have the Delivery Application pre-approved.
You may also use our online calculator to determine the number of ounces your shares correspond to.
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.
In an effort to keep Exchange Fees predictable, the precious metals dealer will choose coins and bars from inventory
regardless of date. Special requests may be accommodated, but are subject to inventory and may be subject to higher
fees. We would publish the pricing for special requests on this page, making it available to other investors as
well.
Aside from being able to request 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%.
All fees are subject to change upon notice and the Sponsor may waive or reduce the Exchange Fees from time to time.
Ready to take delivery? Please click here.
Taking Delivery
How Many OUNZ Shares
Do You Own
Number of Shares
As of the most recent close of business on Oct 14, 2024, your shares correspond to
0.00
oz of gold
Exchange Fee
No delivery fees for the lower 48 States. For details on fees click here.
Exchange Fee in USD
$0.00
Number of Bars or Coins
Gold Delivery: As Easy As 1-2-3
If you are 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 us (the "Sponsor").
A Delivery Application expresses your non-binding intention to exchange shares for physical gold on the Share Submission Day or within the applicable grace period.
1. Investor files a Delivery Application
A completed and signed Delivery Application must be submitted to us by uploading; by fax to 650-745-7045; or by mail to Merk Investments LLC; Attn: VanEck Merk Gold ETF; 1150 Chestnut St; Menlo Park, CA 94025.
We will only process a Delivery Application once the Processing Fees have been paid. The Processing Fee is due at the time the Delivery Application is submitted to us and is fully refundable until you irrevocably submit your shares to the Trustee. Click here for details on fees.
Once we pre-approve a Delivery Application, we will provide to you (typically by email) a Delivery Applicant Share Submission Form along with the pre-approved Delivery Application. You must submit a completed and signed Delivery Applicant Share Submission Form to your broker (typically done via fax), with the pre-approved Delivery Application attached.
2. Investor instructs their broker to submit their ETF shares to take delivery of their gold
On the Share Submission Day (or within the applicable grace period), your broker shall, in accordance with the instructions in the Delivery Application:
- Complete and sign the second page of the Delivery Applicant Share Submission Form;
- Fax to the Trustee the completed and signed Delivery Applicant Share Submission Form, with the pre-approved Delivery Application attached; and
- Submit OUNZ shares to the Trustee.
The Delivery Application is not binding until shares are delivered to the Trust.
3. Gold sent to Investor
Physical gold will be delivered to a Delivery Applicant based on instructions in the Delivery Application. Once physical gold has been tendered to the courier identified in the Delivery Application, the physical gold cannot be returned and is no longer the responsibility of the Trust, the Trustee, the Custodian, the precious metals dealer or us.
The Trust will ship physical gold to a Delivery Applicant fully insured using accepted business practices for precious metals delivery that may include, amongst others, use of a conventional shipping carrier (e.g., U.S. Postal Service, Federal Express, United Parcel Service); or an armored transportation service.
For additional information, please read the prospectus, as well as the OUNZ FAQ section "When will I receive my gold?"
Let us help you take delivery of the gold you own through OUNZ.
Please visit the OUNZ FAQ; contact us online; or call us at (855)MRK-OUNZ with questions
Responsible Sourcing
OUNZ holds London Bars. A London Bar is a gold bar meeting London Good Delivery Standards. Only gold bars that meet the standard may be delivered to OUNZ. The Good Delivery Standard includes a standard on responsible sourcing:
The London Bullion Market Association's ("LBMA") Responsible Sourcing program is a mandatory independent audit program that verifies the legitimacy of gold supply chains, ensuring sourcing meets international ethical standards: "The Responsible Sourcing Program ensures the continuous improvement of Responsible Sourcing business practices and reassures clients that all of the metal sourced from LBMA Good Delivery Refiners is free from threat financing. The Program follows the five-step due diligence framework set out in the OECD Guidance and requires [Good Delivery] refiners to demonstrate their efforts to combat money laundering, terrorist financing and human rights abuses, and respect the environment globally." For details, including their latest annual report, please see LBMA's Responsible Sourcing resources. In the context of OUNZ, please note:
- Any new gold introduced to the LBMA must abide by the LBMA's Responsible Sourcing Program.
- The LBMA Responsible Sourcing Program was introduced in 2012.
- 100% of gold bars held by OUNZ were refined in 2012 or later.
- Does that mean any gold refined before 2012 was not responsibly sourced? No; miners and refiners had been subject to their own set of rules and regulations. The Responsible Sourcing Program was introduced, in part, to provide streamlined standards. The Responsible Sourcing Program is a continuous improvement program, as lessons from the program are incorporated as the program evolves.
- Does it mean all gold refined after 2012 is sourced responsibly? It means all gold introduced to the LBMA is subject to the LBMA Responsible Sourcing Program. Keep in mind that old London Bars are at times sent back to refineries; as such, a London Bar refined today may include gold that was first mined before 2012.
- If you have any questions or concerns about the responsible sourcing of gold held by OUNZ, please contact us.
For more information, please also read OUNZ's Guiding Principles and the OUNZ FAQs.
FAQ
Yes. To download a VanEck Merk Gold ETF (OUNZ) fact sheet please click the button below.
Yes. Each investor owns a pro-rata share of the VanEck Merk Gold ETF (OUNZ), and as such holds pro-rata ownership of the Trust's gold holdings, corresponding to the number of shares held.
The VanEck Merk Gold ETF (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, we 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 us to limit other types of physical gold made available for delivery.
Please see the Trust's Guiding Principles for a more in-depth discussion.
Yes, investors have the option to take delivery of physical gold in exchange for their shares.
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:
| Type of Gold Bar | Purity |
|---|---|
| 1oz 2023 Royal Candian Mint Gold Maple Single Source | 99.99% |
| 1oz Austrian Mint Gold Bar | 99.99% |
| 1oz Mixed Years Philharmonic Gold | 99.99% |
| 1kg Kilo Bars | 99.99% |
For a listing of commonly requested coins and bars, including applicable Exchange Fees, please click here.
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%.
In an effort to keep Exchange Fees predictable, the precious metals dealer will choose coins and bars from inventory regardless of mint year. Special requests may be accommodated, but are subject to inventory constraints and may be subject to higher fees. As we treat all investors equally, we would publish the pricing for such special requests to this website, making it available to other investors as well.
Delivery Applicants should contact us to discuss delivery method and location. As we discuss in "When will I receive my gold?" below, we can process Delivery Applications the fastest when investors have their gold delivered to the address stated on their brokerage account. We understand that this may not always be practical or possible and will consider any delivery address in the world.
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 us to discuss delivery method and location. We may decline a Delivery Application if no delivery method and location is agreed upon.
For coins and bars other than London Bars, we can process Delivery Applications the 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, we will be notified of the successful share submission late that business day. Typically the next day, we 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 we can process Delivery Applications 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 we pre-approve a Delivery Application. We may decline a Delivery Application if no delivery method and location is agreed upon.
In an effort to achieve the objective of gold deliverability even during times of market stress, we built OUNZ on Guiding Principles. In designing OUNZ, we sought to bridge the institutional and retail world of gold by facilitating a robust delivery process for investors. Our delivery process is an industry first: the U.S. Patent Office has granted us U.S. patent #8,626,641 in which we claim "the system and process are…highly scalable." In other words, the process is designed to handle a high volume of redemption requests regardless of market conditions.
Investors may always request and take delivery of London Bars held by the Trust. Availability of specific coins and bars other than London Bars may be limited, however, the precious metals dealer we are working with has historically been able to provide coins and bars even in challenging supply conditions.
Please use the OUNZ calculator to see how many ounces of gold your shares correspond to.
As of the close of business on October 14, 2024 each share of OUNZ corresponded to 0.00965372 ounces of gold. If you own 100 shares, you have a pro-rata ownership corresponding to 0.965372 ounces of gold in the VanEck Merk Gold ETF.
To minimize the Cash Proceeds of any exchange, the Delivery Application requires that the number of shares submitted closely correspond to the Fine Ounces of physical gold to be delivered.
Please use the OUNZ calculator to see how many shares of OUNZ need to be submitted to take delivery of gold.
In calculating the number of shares that need to be submitted to take delivery of gold in exchange for shares, the following must be considered:
- It is known how much gold 1 share in OUNZ corresponds to as of the close of business of the most recent business day. For example, as of the close of business on October 14, 2024 each share of OUNZ corresponded to 0.00965372 ounces of gold. If you hold 10,000 shares of OUNZ, you have a pro-rata ownership corresponding to 96.5372 ounces of gold in the VanEck Merk Gold ETF.
- On any day, expenses accrue for the Trust. As a result, on the Share Submission Date, your shares correspond to slightly less gold than they do today. Given an expense ratio for OUNZ of 0.25%, if you choose a Share Submission Date 5 calendar days from October 14, 2024,1 and assuming no extraordinary expenses are incurred by the Trust, the same 10,000 shares will then correspond to approximately 10,000 x 0.00965372 * (1 – 0.0025)^(5/366) = 96.533898892747 ounces.
- It is imperative that the gold requested in a Delivery Application does not exceed the value it corresponds to in the shares submitted; at the same time, the Trust's Guiding Principles warrant that we strive to keep Cash Proceeds low. While the expense ratio for OUNZ is known, it is impossible to precisely predict future Net Asset Values; as a result, in this particular example, we would allow a Delivery Application to take delivery of 96 ounces, reflecting a buffer currently set at 0.04%, then rounding down to the nearest whole number of ounces.
1 In leap years, expense accrual are spread over 366 rather than 365 days; also note that this example may pick a weekend or holiday as the Share Submission Date; in practice, only days when the NYSE is open for business are acceptable Share Submission Dates.
The date on which the Delivery Applicant surrenders shares to the Trustee. On this date, the broker irrevocably transfers the shares to the Trustee in accordance with the terms of the pre-approved Delivery Application.
The OUNZ calculator provides possible dates in the near term. Should an investor desire to submit shares at a later date, please revisit the calculator closer to that date.
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.
Please click here to view the current Exchange Fee. All fees are subject to change upon notice; we may waive or reduce the Exchange Fees from time to time.
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. Please call 855-MRK-OUNZ for more details.
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.
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 to us; the fee is fully reimbursable until the Delivery Applicant submits his or her shares to the Trustee.
The estimated cash proceeds is the estimated dollar value difference between the number of shares submitted and the number of shares required to receive the gold ounces requested on the actual share submission date, based on the then prevailing net asset value of shares. In part because the future net asset value cannot be known, the actual cash that you receive may be higher or lower than the estimated cash proceeds. The Cash Proceeds will be transferred to the broker who submitted the Delivery Application on behalf of the applicant.
The Processing Fee is due at the time the Delivery Application is submitted to us and is fully refundable until a Delivery Applicant irrevocably submits his or her shares to the Trustee. All Processing Fees must be wired to us.
Due to Anti-Money Laundering concerns, a Delivery Applicant cannot wire fees from an account other than the account where the OUNZ shares are held.
We reserve the right to decline the Delivery Application for any reason.
Please contact us at (855)MRK-OUNZ with any concerns regarding the delivery of gold in exchange for shares.
Once physical gold has been tendered to the courier identified in the Delivery Application, the physical gold cannot be returned and is no longer the responsibility of the Trust, the Trustee, the Custodian, the precious metals dealer or us.
If you would like to sell gold you received from the Trust, you may contact us if you need help locating a dealer.
