Bullion Management Services (BMS) has announced that it has been given governmental approval for its plan to sell Canada's first pure bullion open end fund.

The 'Millennium Bullion Fund' invests directly in physical gold, silver and platinum bullion, targeting the precious metals themselves rather than intermediary company shares, certificates or futures contracts.

The fund does not hedge or lease the precious metals, but instead keeps them in a custodial depository.

Nick Barisheff, President of BMS, said he was confident the scheme would be a success, claiming it would afford everyone the chance to exploit the potential of the market.

'We created the Millennium Bullion Fund as an excellent opportunity for Canadians to purchase precious metals and profit from potentially strong capital gains,' he commented.

With the fund Canadians see each dollar invested matched by the organisation's own equal investment in dollar amounts of gold, silver and platinum bullion.

According to BMS the fund represents a 'dramatic departure' from traditional precious metals instruments, because assets consist of real bars of gold, silver and platinum, which are stored in a segregated vault in a major chartered bank.