Cost-conscious buyers will be unwilling to pay a premium for bank-branded gold bars, meaning they are unlikely to affect demand at traditional dealers, 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 products are available to all customers through an Emirates NBD Gold certificate, which can be redeemed at any time. This certificate allows investors to either hold the bar with the bank 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 10g, 50g and 100g 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 competit
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