Gold Bullion enables investors to acquire, manage and store physical precious metals. As part of the agreement, CAIS is integrating Gold Bullion’s “execution system” into its alternative investment platform, offering clients access to precious metals. The firm said clients will also retain access to current CAIS features, which comprise funds and products, implementation, integrated reporting and analytics.

The CAIS/Gold Bullion venture comes at a time of heightened interest in the physical ownership of precious metals - as reflected in company launches in this space in recent months - in a sign investors are seeking greater diversification of their financial assets, specifically with regard to "real" assets. 

International Gold Safekeeping Management is one example of this phenomenon: the Texas-based firm launched in February as a network of over ten vaults, providing investors with a place to deposit their precious metals while maintaining 100 per cent individual ownership and control. The UK’s Real Asset Company and BullionVault, which has been around for longer, also cater to this budding market niche.   

“Accessing gold bullion has been difficult for the wealth management community, which is often limited to exchange-traded funds, gold mining stocks or paying high premiums to acquire gold coins,” said Rafay Farooqui, president and co-founder of CAIS.

Meanwhile, figures released by the World Gold Council in February highlighted that global demand for gold rose to an all-time high in 2011 following record investment demand, which exceeded $200 billion for the first time ever, with this figure also representing the highest tonnage level since 1997.

CAIS’s services comprise the purchase of precious metals from a global network of dealers and refiners, including transportation, storage in vaults based around the world, client reporting and quarterly on-site asset verification by an accounting firm.