Credit: Shutterstock photoGold exchange traded funds have been among the best performing assets of the year as volatility pushed investors toward safer assets and global central banks implemented aggressive monetary policies to support growth and fight deflationary pressures.
On an upcoming webcast this Tuesday, A Golden 2016: Where Does Gold Go from Here? , Imaru Casanova, Senior Analyst at VanEck, Axel Merk, President & CIO of Merk Investments, and Brandon Rakszawski, Product Manager at VanEck Global, will take a look at the currentgold marketconditions and consider ways for investors to diversify into gold for the changing markets ahead.
Investors interested in the gold asset have a number of options available, such as the Van Eck Merk Gold Trust (NYSEArca: OUNZ ) . However, OUNZ is structured a little differently than its competitors.
OUNZ seeks to provide investors with a convenient and cost-efficient way to buy and hold gold through an ETF while also providing investors the option, if they desire, to take physical delivery of the metal. OUNZ is the only ETF that provides its patented, physical gold delivery option.
SEE MORE: Some ETF Traders are Betting on a Gold Rally
Investors have been drawn to OUNZ not only for a simple way to access to gold, but also its unique feature that enables investors to take delivery of their gold. Some investors have elected the option of taking delivery of their gold - deliveries for as little as one ounce may be requested.
Each share of OUNZ is like holding a fractional share of physical gold, so investors are able to exchange shares for gold bullion whenever they desire. One share of OUNZ is the equivalent of 0.0099 ounces of gold, according to Merk Gold.
To make small deliveries possible, London Bars may be exchanged into other coins and bars at the time of delivery. As investors own a pro-rata share of the gold held in OUNZ, taking delivery and/or exchanging the gold into other coins and bars is not a taxable event.
Specifically, an investor would file a Delivery Application, instruct their broker to submit their OUNZ shares to take delivery of gold and wait for the gold delivery.
SEE MORE: Gold Miners ETFs can get Their Groove Back
It should be noted that traders do incur a processing and delivery fee. Investors will have to pay a flat fee per ounce of gold represented by the shares submitted, including $32 per ounce for London bars, $60 per ounce for American Gold Eagles with a minimum $2,500 fee, and $60 per ounce for American Buffalos with a minimum $2,500 fee, according to the prospectus sheet.
Financial advisors who are interested in learning more about thegold marketcan register for the Tuesday, September 13 webcast here .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
This article was provided by our partner Tom Lydon of etftrends.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
