Gold-Backed OUNZ Hits $100M As Demand Remains Strong For ETFs

from Kitco NEWS

The gold-backed exchange-traded marketplace continues to highlight unparalleled investor demand for the yellow metal. The latest ETF to make headlines is the Van Eck Merk Gold Trust (NYSE/Arca: OUNZ), sponsored by Merk Investments, which has surpassed $100 million in assets under management (AUM). Axel Merk, president of Merk Investments, told Kitco News that he expects investor demand to remain strong as demand for safe-haven investments continues to grow in a climate of market uncertainty. However, even its impressive $100 million AUM, OUNZ is still dwarfed by GLD which, as of April 13 held assets valued at $32.4 billion. Commenting on gold’s price action, Merk said that expectations of real negative interest rates remains the biggest driver for gold prices. Not only will the Federal Reserve continue to be behind the inflation curve, but continued accommodative interest rates will further erode the U.S. dollar’s purchasing power over the long-term, he added. ‘The only solution policy makers have is to throw more money at the problem,’ he said. ‘That is great for gold but terrible for the U.S. and global economy.’ Merk added, ‘If you think there is a risk of a stronger correction in equities then you should do something about it. You can hold cash and hide it under your pillow, or you can invest in gold.’

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