Pershing, a subsidiary of BNY Mellon, has introduced BMO Gold Deposit Receipts (GOLDRs), a book-entry solution for clients serving HNW and UHNW investors.
The solution will provide investors with alternative means to invest in gold, outside of traditional exchange traded funds (ETFs) or private storage.
BNY Mellon said that GOLDRs represent an investor's ownership in one ounce of fully-allocated physical gold bullion held at the Royal Canadian Mint. It may be held within a brokerage account.
The bullion is stored in a regulated gold depository backed by the Canadian government without any annual fees, tracking errors or derivatives. It can be easily redeemed for cash at spot market levels twice a day and can be delivered to an investor upon request, it added.
Pershing managing director of trading services John Goodheart said: "This is an innovative solution that has been developed to provide investors with easy access to physical gold; with a number of benefits relative to both private storage and gold tracking ETFs, including no annual fees.
"As markets continue to fluctuate and the geopolitical environment remains unstable, this market-leading solution enables investors to gain convenient and cost-effective access to gold bullion.
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“The ability to hold GOLDRs in a brokerage account also allows advisors to gain a more holistic view over client assets, enabling them to provide more comprehensive investment advice."