Will branded gold bars affect bullion demand at traditional dealers?

The launch of bank-branded gold bars in the UAE is unlikely to affect bullion demand at dealers as cost-conscious buyers will be unwilling to pay a premium for such products and some customers continue to value personal relationships with jewellers, experts say.

Emirates NBD, Dubai’s largest bank by assets, unveiled Emirates NBD Gold, the UAE’s first bank-branded gold bar, for retail customers and investors. The feature is available to all customers through Emirates NBD Gold certificate, which can be redeemed any time. This certificate allows investors to either hold the bar in the bank's custody or have it delivered to them anywhere in the UAE.

Customers can purchase, track and redeem the bars through the ENBD X mobile banking app, with real-time portfolio monitoring available. The product is available in a sealed 10, 50 and 100 gram denominations featuring the bank logo, with each bar coming with a certificate of "authenticity and ownership”, the lender said on Monday.

Concerns over purity

“Branded gold bars from a recognised financial institution help increase transparency, quality assurance and convenience for buyers. This is especially appealing to investors and consumers who may have been hesitant about unbranded alternatives due to concerns over purity and resale value,” says Chandu Siroya, vice chairman of Dubai Jewellery Group and managing director of Siroya Jewellers.

“It could introduce competitive pressure, especially in the investment segment of the market. Consumers who are buying gold primarily as a store of value or investment might increasingly prefer branded bars, as they offer standardised quality and are perceived as easier to trade or liquidate.

“That said, unbranded gold still has a strong place, particularly within traditional jewellery markets and among customers who value personal relationships with jewellers, customised designs, or cultural purchasing practices.”

Similarly, Ashish Vijay, founder and owner, Dubai-based Tiara Gems and Jewellery, notes branded gold will not have a big impact on traditional jewellers as the attached services and benefits from the bank are more premium. Jewellers have the added advantage of selling at a lower price at spot price or closer to spot price, he says.

Emirates NBD unveiled Emirates NBD Gold, the first bank-branded gold bar in the UAE. Image: Emirates NBD

What is branded gold?

Branded gold refers to manufactured gold bars or coins of a certain standard (for example, 24K/999), stamped with the mark and name of a reputable source and is often supplied with certificates, seria