Posted: 06 Jun 2014 09:10 AM PDT

Reuters reported that positive jobs data from the US and stimulus measures laid out by the ECB.

According to the report:

Spot gold was down 0.4 percent at $1,247.84 an ounce at 1354 GMT, off an earlier high of $1,257.50, while U.S. gold futures for August delivery were down $5.30 an ounce at $1,248.

VTB Capital analyst Andrey Kryuchenkov said:

There can't be a substantial price rebound without any meaningful investor or consumer buying. Major players will remain on the sidelines for now. European investors would be putting money into blue-chip equities, while with improving risk sentiment there is even less incentive to invest in gold.

Click here to view the full report.

Tags: Gold prices, US dollar, US jobs

New Gold ETF OUNZ Offers Something Different to Investors

Posted: 03 Jun 2014 12:03 PM PDT

Gold investing update: A new gold ETF, Merk Gold Trust ETV (NYSE Arca: OUNZ), was launched May 16, 2014.

It seeks to corner an often-neglected part of the investment market: goldbugs who like to hold on to tangible gold.

You see, Merk Funds, the firm behind OUNZ, hopes this new gold ETF will appeal to investors who wish for the opportunity to turn in their exchange-traded fund (ETF) shares for the delivery of actual physical gold bullion, like bars and coins.

OUNZ isn't the first ETF to offer such an option. For instance, SPDR Gold Trust (NYSE Arca: GLD), the world's largest gold-backed ETF, also has a shares-for-gold exchange option.

But Merk has found interesting ways to differentiate OUNZ from the crowd.

Here's how this new gold ETF works - and how its differences might make it precisely the investment you're looking for...

Everything You Want to Know About the New Gold ETF OUNZ

Merk Gold Trust ETV is an exchange-traded fund with shares invested in gold bullion. The shares of this fund are designed to track the price of physical gold bullion, less the expenses needed for Merk Gold Trust to run operations. But that's not the main objective, according to Merk Investments President and Chief Investment Officer Axel Merk.

"For OUNZ, tracking the price of gold is a secondary objective. Our first priority is to allow investors to invest in physical gold through an ETF with the option to take delivery. But that doesn't mean we don't take the secondary objective seriously," Merk wrote in an article he authored about his new gold ETF.

"The most important differentiating factor of OUNZ compared to other products is that investors may request delivery of their gold," Merk reiterated in a phone interview with MarketWatch.

Here's how it actually works: Merk Gold Trust has possession of gold bullion in a vault in London. Investors can purchase pro-rata shares of this gold. When it comes time to exchange the OUNZ shares, investors have the option of receiving actual gold.

OUNZ's delivered gold will be in the form of London bars. Investors may also have the gold exchanged into other currencies, such as:

American Gold Eagle Coins (1 oz)
American Gold Buffalo Coins (1 oz)
Australian bars (1 oz or 10 oz)
Australian Gold Kangaroo Coins (1 oz)
Canadian Gold Maple Leaf Coins (1 oz)

There is one interesting effect of this deliver option: This new gold ETF allows investors to dodge some tax consequences. You see, obtaining delivery of the gold is a non-taxable event - the investor is merely taking possession of the gold that they had purchased as shares from Merk Gold Trust. Compare this to other gold ETFs, where the sale of shares is viewed as a taxable event by the IRS. Barron's describes the taxable event as being just like that of art or coins - all are sales of a collectible and can trigger capital-gains taxes of as high as 28%.

Aside from tax treatment, another difference that sets this new gold ETF apart from other ETFs that also have gold delivery options is the amount of shares investors must own before they can exchange them. GLD, for example, requires investors to have a minimum of 100,000 shares in a lot referred to as a "basket" to be able to exchange the shares for physical gold.

"Because of the size of the baskets (100,000 shares for GLD), individual investors aren't likely to have a position big enough for a redemption," World Gold Council Managing Director Will Rhind said to MarketWatch. "The people who are creating baskets or redeeming shares are generally on the institutional level."

But Merk's new gold ETF only requires investors to have roughly 100 shares to exchange for gold, making a "deliverable gold ETF" option available to non-institutional, smaller-scale investors.

NEXT: With a new, impressive prime minister, and a burgeoning consumer population, this country is setting up an economic miracle...

Related Articles:

ValueWalk: Why I Launched OUNZ, the Deliverable Gold ETF
MarketWatch: Gold ETF Lets Retail Investors Swap Shares for Bars
Barron's: Gold: Do You Want That in ETF Shares or Bars and Coins?

Weekly Round-Up: Gold, Silver, Copper Fall with Positive US Jobs ...

Posted: 06 Jun 2014 11:45 AM PDT

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The gold price was down below $1,250 per ounce today after the dollar index swung back up following a US employment report. It shows that employment did exactly what investors had expected, according to Reuters.

"There can't be a substantial price rebound without any meaningful investor or consumer buying," VTB Capital analyst Andrey Kryuchenkov said to the news outlet. "Major players will remain on the sidelines for now. European investors would be putting money into blue-chip equities, while with improving risk sentiment there is even less incentive to invest in gold."

Specifically, spot gold was down by 0.4 percent, at $1,247.84 an ounce. Reuters places US gold futures for August delivery at $1,248 an ounce, down $5.30.

Spot silver also saw some negative movement, dropping $0.10, or 0.4 percent, to $18.95 an ounce, CME Group reported.

Similarly, copper futures for June delivery on the COMEX fell $0.06, or 1.9 percent, to 3.03 a pound, as per Bloomberg. Meanwhile, London copper declined slightly by $6.78, or 0.1 percent, to hit $6,775.25 a tonne, Reuters reported. Optimism in China is not having as strong an effect as it might due to a probe into metals financing at a major Chinese port.

Finally, Brent crude rose $0.39 to reach $108.79 a barrel, partly due to the European Central Bank's announcement that it is cutting interest rates, another Reuters article states. Investors also predict growing demand for oil in Europe.

Tags: copper price, gold price, oil price, silver price, US economy, US jobs data

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Gold Drops Below $1,250 After US Data | Gold Investing News | How to invest in gold

<b>Gold</b> Drops Below $1,250 After US Data | <b>Gold Investing</b> News | How to invest in gold

Everything You Want to Know About the New Gold ETF OUNZ

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