Tuesday, 15th June 2004 (3601 views)

Customers at the National Bank of Dubai are being given the chance to invest in gold products without having to physically buy or store it, for the first time in the Middle East.

The new scheme will see customers issued with a Gold Savings Certificate and since so many people in the UAE are investing in the gold and jewellery sectors, the service is seen as an essential part of economic life.

R. Douglas Dowie, General Manager, National Bank of Dubai told Strategiy: "Gold Saving Certificates provide private and corporate investors a combination of benefits from effective hedging against inflation, portfolio diversification and instant liquidity.

"With Dubai globally recognized as the City of Gold, we are delighted to be the first in the region to offer this product."

Certificates issued for five years, will be available in 500g or 10kg denominations with an annual storage charge of 0.30 per cent and a one-off fee of AED 50.

Investments can be collected at any time in either the cash equivalent or in the gold bars themselves.

The system launched in association with the World Gold Council is set to be popular since research has shown non-paper based gold products stop some people from purchasing the precious metal due to worries about purchasing and storing it.

 

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