As investors around the world flock to gold amid uncertainty on currency trading Emirates NBD has launched a new way for consumers to trade in the precious metal without the need for a huge bank vault.
UAE investors given chance to join the gold rush
Emirates NBD has joined the global rush for investment products which allow investors to store gold as a permanent part of their portfolio without the hassle of owning a bank vault.
Savers will be able to buy certificates for gold bars in denominations of 500 grams by walking into one of the bank's branches.
Unlike some means of investing in gold, such as through derivatives or an exchange-traded fund available in the West, the Gold Certificates purchase physical bars which are held in storage by the bank's security firm, Transguard Group.
"Gold has been gaining traction all over the world and we think it's an important investment for clients to be in," said Jamal bin Ghalaita, deputy chief executive of Emirates NBD.
He stopped short of revealing how much the bank expected to buy and sell on behalf of customers, but he expects "buoyant" demand.
There is no limit on how much the bank is able to trade, as it depends on customers' requirements, the bank said, though a soft launch of the service saw customers buying and selling as much as 50kg per day.
The move could further increase the soaring price of gold, which rose above $1,430 per troy ounce on Tuesday.
The bank hopes that it will be able to access more favourable rates than investors would see by buying the gold directly or through a broker.