The BNY Mellon subsidiary is offering an alternative means of investing in the precious metal, outside of traditional ETFs or private storage.

Pershing has launched BMO Gold Deposit Receipts (GOLDRs), a book-entry solution for clients servicing the high net worth and ultra-high net worth investors.

GOLDRs, which may be held within a brokerage account, represent an investor's ownership in one ounce of fully-allocated physical gold bullion held at the Royal Canadian Mint. The bullion is stored in a gold depository backed by the Canadian government, with no annual fees, tracking errors or derivatives that may be found in gold-tracking exchange-traded funds.

The first of its kind to allow bullion to be held in a brokerage account, GOLDRs is aimed at investors who want bullion in their brokerage account without experiencing the inconveniences that typically accompany purchasing and storage, Pershing said in a statement.

Investors will have the option of redeeming bullion for cash at spot market levels twice a day. They may purchase gold bullion in quantities as small as a single ounce on the spot market.

“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,” said John Goodheart, managing director of trading services at Pershing.

“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. 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.”