Merk Investments close to launch redeemable gold ETF -filing

Tue Apr 9, 2013 3:48pm EDT

* Merk Gold Trust to invest in London bars, Am. Eagle coins

* Fund will be listed on NYSE Arca under symbol "OUNZ"

NEW YORK, April 9 (Reuters) - Merk Investments is close to launching a gold-backed exchange-traded fund that offers investors the option to take physical delivery of gold bullion, its regulatory filing with the U.S. Securities and Exchange Commission showed.

The California-based firm said in the amended registration filing that Merk Gold Trust will be listed under the ticker symbol "OUNZ" on the New York Stock Exchange Arca platform.

The filing did not specify when exactly the fund will be launched. Funds tend to start trading shortly after they amend their registration filings to provide more current details. Merk cannot comment because the firm is under the SEC's quiet period prior to the launch.

Merk Investments, founded by Axel Merk, now runs several mutual funds that invest in currencies and gold whose value tends to rise the U.S. dollar drops.

The Merk Gold Trust will offer investors exposure to physical gold through investments in London Good Delivery Bars, other gold bars with at least 99.5 percent purity, and American Gold Eagle coins, the filing said.

Investors who wish to redeem shares to take physical delivery can do so by paying the Trust processing fees, the filing said.

Currently, Canada's Sprott Inc operates a basket of precious metals exchange-traded funds that allow investors to redeem their shares for physical metals. In March, U.S. asset manager Van Eck Global filed to start two redeemable gold and silver ETFs.