Emirates NBD launches gold certificates

Emirates NBD bank on Thursday launched gold certificates allowing retail and business customers to invest in the gold through any of the bank's branches in the UAE.

The product offers customers a gold certificate issued in lieu of physical gold at international market rates prevailing at the time of purchase, a statement said.

The gold will be spot purchased on behalf of clients as gold bullion in denominations of 0.5kg and its multiples. It will then be stored by the bank through its appointed security firm, The Transguard Group, the Middle East-based security services provider.

Customers can redeem the value of their gold investment at any time, either before or at the end of the maturity period, which can be up to a maximum of 60 months.

Investors have the option to redeem the value of their investment in the form of credit to their account or gold bullion at prevailing market rates at the time of redemption, the statement said.

"The demand for gold has risen enormously both on a regional and global level as a result of the recent period of economic uncertainty. Recent dramatic price increases prove that investor appetite continues to remain high, particularly in this region where gold is considered as a preferred store of value," Jamal Bin Ghalaita, Group Deputy CEO, Emirates NBD said.

"Many residents in the UAE currently prefer to save their accumulated earnings in the form of gold, as it is traditionally considered a relatively safe investment option against fluctuations in global currencies," he said.

"The multicultural population in this region also have a cultural tendency to purchase gold as a popular gift choice to mark important festive and family occasions," he added.