Gold investors need to ensure their safety belts are buckled tight this week, especially since the forthcoming election could give them a stomach-churning roller coaster ride of volatility. Other key movers for gold will only add to the dips and dives.
“The first week of November will not only see the most anticipated event of the year — the U.S. election, but also the Federal Reserve interest rate decision and some key datasets, including the U.S. employment figures from October,” a Kitco News article explained.
So what’s the best strategy when it comes to gold? Some market experts advise to refrain from being a seller amid all the market uncertainty.
“People that are holding metals absolutely should not be selling into the election,” said Kitco Metals Global Trading Director Peter Hug. “People not holding the metals and who wish to diversify 10%, I would be of the mindset that you would want to put a small amount, about 3% into the election.”
One gold fund to consider holding is the VanEck Merk Gold Trust (OUNZ ). OUNZ seeks to provide investors with an opportunity to invest in gold through the shares and be able to take delivery of physical gold in exchange for those shares, and the Trust’s secondary objective is for the shares to reflect the performance of the price of gold less the expenses of the Trust’s operations.
Each share represents a fractional undivided beneficial interest in the Trust’s net assets. The Trust’s assets consist principally of gold held on the Trust’s behalf in financial institutions for safekeeping.
OUNZ offers investors:
- Deliverability: VanEck Merk Gold Trust 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.
As mentioned, one of the key benefits of OUNZ is the ability to exchange shares of the ETF for physical gold. Per the fund’s website, if you’re 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 Merk Investments LLC (the “Sponsor”).