“On Friday, June 6, 2014, I conducted an on-site inspection of the Trust’s gold at the London vault of JPMorgan Chase Bank, N.A. (“Custodian”). My inspection included a complete count of the gold bars held in the Trust allocated account.
“At the time of my inspection, 84 gold bars were held by the Custodian on behalf of the Trust on an allocated basis. This included two gold bars that had been scheduled for delivery that day as part of a pending share creation.
“In total, according to the records of the Custodian, 34,137.432 fine troy ounces of gold were held on an allocated basis. The gold bars weighed between 385.547 and 429.139 fine ounces of gold with a purity between 99.75 percent and 99.99 percent. These records are consistent with those of Bank of New York Mellon (the “Trustee”) and my inspection.”
The thought of standing in a vault filled with gold bars is impressive. Bitcoin somehow misses that “turn-on” value! And, most notably, this is gold specifically allocated to the ETF, and ultimately its shareholders — not the property of a large global bank.
Merk has previously launched a range of foreign-currency mutual funds, designed to allow diversification out of the dollar and into foreign currencies. (Full disclosure: I have been a long-time shareholder in the Merk Hard Currency Fund, since it was started in 2005.)
And in 2011, they launched an equity fund with a “currency overlay”, the Merk Currency Enhanced U.S. Equity Fund. It was designed to take advantage of the possibility — since realized — that all the global money printing might very well also push up equity prices.
The new Merk Gold Trust completes the creation of financial products that allow American investors to easily diversify their exposure to the U.S. dollar with a portion of their money.
Yes, the dollar, along with the U.S stock market, have actually been the best performers in the past few years, as fearful global money rushed to America despite our debt problems and slow economic growth. All those newly created fed dollars, plus the rush to a safe haven, have certainly been the major forces behind the soaring stock market.
America is seen as the “least-worst” place to store your wealth — and that is likely to continue for some time. But just as you always want to take out some “insurance” on the things you value most, you might want to take on a small “hedge” against the future buying power of the dollar.
That’s the role of gold in your portfolio. And now you have a new, more sophisticated way to buy it. That’s the Savage Truth.
COPYRIGHT 2014 TERRY SAVAGE PRODUCTIONS
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