Exclusive: Expert Explains How This Gold ETF Lets You Physically Hold Your Wealth And Why Investors Are Quietly Rushing In

Gold’s latest surge, inspired by China’s safe-haven dash, a declining dollar and a geopolitical situation more knotted than a string of Christmas lights—has investors abuzz. While spot gold jumped 3.03% on Tuesday to $3,414.24, astute gold seekers are digging deeper.

Meet the VanEck Merk Gold ETF OUNZ, the golden child of physically backed ETFs that offer a “just-in-case” delivery feature for those who prefer their portfolios to include physical bullion.

Merk Investments president and CIO Axel Merk told Benzinga that this golden opportunity is not coincidental. “In the current environment, tariffs may well alter the plumbing of the global financial system,” he said, citing increasing anxiety about monetary policy, recession fears and the potential for U.S.–China tariff disruption to divert global financial plumbing. “Add to this a highly leveraged financial system, and we see a growing number of investors turning to gold in anticipation of a range of potential unintended consequences, including pressure on the Federal Reserve to lower interest rates.”

An ETF Containing Actual Gold

What distinguishes OUNZ isn’t merely its paltry 0.25% expense ratio (comparable to iShares Gold Trust IAU, lower than SPDR Gold Trust GLD), but its special benefit: investors can receive physical gold—whether London Bars or Maple Leafs. Merk’s patented conversion process enables these large bullion bars to be converted into investor-friendly coins, making OUNZ the ETF version of an alchemist with excellent logistics.

Year to date, the fund has experienced more than $150 million in inflows, according to Merk, marching in tandem with gold’s rising surge. While not all exchange their ETF shares for glittering coins, six deliveries have already been made this year, primarily by high-net-worth individuals seeking something more tactile than spreadsheets.

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Long-Term Mindset In A Short-Term World

OUNZ is not your typical trader’s sandbox. Most investors go in on its delivery option rather than the action. “Many investors are drawn to OUNZ because of the option to take physical delivery, even if they never exercise it. As a result, OUNZ tends to attract long-term holders rather than short-term traders. This was evident last year when other gold products saw outflows while OUNZ maintained steady inflows. We typically process a few deliveries each month; year-to-date, there have been six,” Merk said, crediting the ETF’s popularity with long-term holders who enjoy converting financial worry into something they can pile in a safe.

Tax-Smart And Apocalypse-Ready?

Receiving delivery of gold via OUNZ is not taxable since you’re technically not claiming anything you don’t already possess. It’s the gold version of grabbing a pizza you’ve already paid for online. Just don’t go for a Krugerrand, though. Its below-95% purity makes it a tax gray area, warns Merk.

Greater Appeal In An Unpredictable World

In the post-pandemic era, investor demand for physical gold has widened. The erstwhile niche “gold bug” segment has mainstreamed, with inflation anxiety and sovereign debt mountains rising. Merk assertively believes this is just the start. And while central banks continue to pile up gold, OUNZ’s inflows are less a product of panic buying and more a function of careful strategy.

However, sound retail interest is driving the success of the ETF. “While demand for OUNZ has increased, we have not seen signs of panic buying. Importantly, coin premiums have not spiked—typically a telltale sign of strong retail engagement. While retail interest has grown, much of the buying has come from institutions. In that sense, central bank gold purchases have not directly influenced retail appetite,” Merk explained.

The Bottom Line

As macro uncertainty simmers, Fed announcements loom and Trump hints at trade agreements, the OUNZ provides more than gold exposure. It provides flexibility, tranquility, and sure, real gold in your pocket if the mood (or market) strikes.

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