The ounce (abbreviated as “oz”) is a unit of weight used in both the United States and Britain, usually equalling 28.349523125 grams or one sixteenth of an avoirdupois pound.
OUNZ is an exchange-traded fund that aims to give investors exposure to the price of gold. The Fund tracks the LBMA Gold Price index less expenses.
How Do I Take Delivery of My Gold?
By purchasing shares of OUNZ, you are effectively holding onto a fractional share of physical gold and can exchange your shares for gold bullion whenever desired.
To take delivery of gold via OUNZ, a Delivery Application should be submitted. This Application reflects your non-binding intention to exchange OUNZ shares for physical gold and instructs your broker to submit your OUNZ shares for exchange at the Trustee in exchange for physical gold.
The Trust will then ship your physical gold to you fully insured via conventional shipping carriers such as United States Postal Service, Federal Express or United Parcel Service; cost for shipment will be deducted from your account in either ounces of silver or grains of gold based on which metal you select to receive.
What is the Process?
If you’re considering ordering gold through OUNZ, the process should be relatively straightforward. Once you know which metal you want and its size specifications, completing an application form should be straightforward.
The app also lets you view how much your delivery will cost; for instance, if you choose to purchase one ounce of gold as coins or bars from us, its delivery costs roughly $90.
Merk’s helpful calculator can give you an accurate estimate of your delivery costs. Once completed, fill out and submit our application; once your shipment arrives in the mail we’re here for any inquiries or help if needed; call or email us with any queries if need be! Until next time happy golding and until then have an amazing day!
How Much Gold Do I Need to Take Delivery of?
Merk’s website offers an easy-to-use calculator that will assist OUNZ shareholders in calculating how many shares to take delivery of. Simply enter in your number of shares, and the calculator will tell you how much gold and in what form.
The minimum denomination for delivery is one ounce coin. Our calculator will also display how many coins need to be redeemed and what their cash proceeds are.
Estimated cash proceeds are calculated based on the prevailing net asset value of your shares on the date that your Delivery Application was submitted and are not guaranteed; actual cash proceeds may differ significantly. Delivery processes are complex and time consuming; therefore we advise completing your Delivery Application ASAP in order to minimize delays and fees associated with its processing. Should any questions arise during this process please reach out directly to either your broker or Trustee for guidance.
What Are the Tax Implications?
Under the Opportunity Zone Tax Incentive, taxpayers may defer capital gains taxes on gains realized from investing in a Qualified Opportunity Fund (QOF) that then invests in qualifying OZ property. A QOF must meet 90% investment standard specified in Internal Revenue Code Section 1400Z-2 and file Form 8996 for filing purposes.
Though the IRS has yet to make its ruling on how the rule applies to individual investors, many experts expect the QOF structure will become the norm for many real estate investments made under this tax regime. Over time, its ancillary benefits – such as tax deferral and eliminating gains – should become increasingly prevalent, increasing after-tax returns over time for OZ investments over time. You are best equipped to determine whether this strategy meets your specific needs.