Gold Savings Certificates bolster significant increase in investment to NBD customers

Introduced for the first time by National Bank of Dubai two years ago, the Gold Savings Certificates offer customers safe and reliable options to invest in gold. Seen as an essential part of economic life, the certificates are issued in paper format and offer customers a convenient and easy way to balance their portfolios. Available in 500 gm or 10 kg denominations, the certificates can be purchased with a one-off fee of AED 50 per certificate and an annual storage charge of 0.30%. The certificates are issued for a five-year period from the date of purchase, and allow customers to redeem their investment in either gold bars or the cash equivalent.

"At the National Bank of Dubai, we remain focused on providing simple, unique solutions and clear investment opportunities," stated Alex Richardson, Chief Operations Officer, National Bank of Dubai. "Our aim is to provide a platform for our customers to invest in gold and at the same time, increase their personal wealth through convenient and safe products. We are very pleased with these results and with the sudden escalation of gold prices, look forward to further increasing customer investment in the months ahead."

According to research, investment portfolios that contain gold are generally more robust and better able to cope with market uncertainties than those that don't. Gold improves the stability and predictability of returns and its performance tends to move independently of other investments and key economic indicators.

"NBD's Gold Savings Certificates definitely enhance the profile of Dubai as the City of Gold and are a solution to our finding that there is need for a bullion-banking product in the U.A.E.. Non-paper based gold products are not preferred by customers because of the worries involved in purchasing and storing it. Thanks to National Bank of Dubai, customers will continue to have a safe and reliable method of investment."

stated Moaz Barakat, Managing Director, World Gold Council.

Gold historically, is significantly less volatile than many equity indices and most commodities. In this respect, it tends to behave more like a currency. And simply by reducing portfolio volatility, enhanced returns can be expected. Investors, who include assets with low volatility to their investment portfolio, will also be able to reduce overall risk. Even a small allocation of gold has been proven to significantly improve the consistency of portfolio performance during both stable and unstable financial periods.

And with its recent high returns, gold offers superior diversification with high liquidity and low cost. Besides these numerous benefits, the individual who invests in NBD's Gold Savings Certificates also saves on storage and personal security issues -- all of which once again proves gold's reliability as a metal that partners man in every aspect of his life.