With Dubai gold prices holding firm near Dh383 per gram for 22K gold, major banks across the UAE are stepping up their efforts to attract retail customers to open ‘gold accounts.’ This strategic push comes as banks position these accounts as a cost-effective alternative to traditional gold jewelry purchases, emphasizing the opportunity to invest directly in pure gold amid a bullish market outlook.
Banks believe a growing number of investors are reconsidering their approach to gold, shifting away from jewelry—which involves additional making and craftsmanship charges—and towards gold accounts that provide a purer, more liquid form of investment. Sources within the banking sector report a noticeable rise in existing retail account holders opting to diversify their portfolios by adding gold investment accounts this year.
“We are actively encouraging customers to set up gold accounts as they offer better value and flexibility,” said a senior banker. “Instead of spending extra on making charges when buying jewelry, customers can invest in gold accounts where the returns track the actual market price of gold.”
These gold accounts allow customers to invest in and hold allocated physical gold with ease, often accompanied by features such as the ability to buy or sell gold digitally, making them attractive for both seasoned investors and newcomers.
Market analysts note that the sustained strength in gold prices—fueled by global economic uncertainties, inflation fears, and geopolitical tensions—has increased demand for investment-grade gold, making such accounts more appealing.
As gold prices continue to hover near peak levels, UAE banks are capitalizing on this momentum to expand their gold investment offerings, aiming to capture a larger share of retail investors’ funds. For consumers, this represents an opportunity to invest in gold more efficiently and potentially benefit from future price appreciation without the premiums typically associated with jewelry.
