November 28, 2016
New GOLDRs® Provide Investors with Alternative Means to Invest in Gold, Outside of Traditional
JERSEY CITY, N.J.– November 28, 2016– BNY Mellon’s Pershing today announced that they have launched BMO® Gold Deposit Receipts (GOLDRs®), a book-entry solution for investors who want bullion in their brokerage account without experiencing the inconveniences that typically accompany purchasing and storage. GOLDRs represents one of many solutions offered to Pershing clients who are seeking to serve the financial needs of 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 regulated 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 (ETFs).
The solution is the first of its kind to allow bullion to be held in a brokerage account, providing new opportunities for advisors to offer an alternative means for their clients to invest in gold, outside of traditional ETFs or private storage. As part of the offering, bullion can be conveniently redeemed for cash at spot market levels twice a day and can be delivered to an investor upon request. In addition, there are no investment minimums to take advantage of this solution, and investors can 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,” added Goodheart.
About BNY Mellon's Pershing
BNY Mellon’s Pershing and its affiliates provide advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers with a broad suite of global financial business solutions. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody, investment and retirement solutions, technology, enterprise data management, trading services, prime brokerage, managed account technology and operations and business consulting. Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of offices worldwide, Pershing provides business-to-business solutions to clients representing more than seven million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. Professionally advised managed accounts are offered through its affiliate, Lockwood Advisors, Inc., which is an investment adviser registered in the United States under the Investment Advisers Act of 1940. Additional information is available on pershing.com, or follow us on Twitter @Pershing.
About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of June 30, 2020, BNY Mellon had $37.3 trillion in assets under custody and/or administration, and $2.0 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.