Is gold a good investment?

Is gold a good investment?

I hold an Emirates NBD bank account since 2012. I have complained to the bank, called them many times, and registered my complaint online with them, but they are not responding. That’s why I thought of seeking help from Gulf News, as many times, I have read about how the newspaper is helping people to resolve these kinds of issues.

My complaint is regarding one of the bank’s products, named Gold Investment Account (online banking), which I opened online when they launched this service in 2013. I invested into it as per their advertisement and after confirming with the bank. I invested when the gold rate was less, then when the gold rate rose, I tried to redeem or sell it back, but I was shocked to the huge price difference between buying and selling gold. Even though the gold price has increased, I am still not able to get what I invested when the gold price was less. I am still getting it for a low price (forget about the profit).

For example, on March 12, the gold rate for 24K was Dh151.50.

So when I tried to buy gold online — one troy ounce or 31.1 grams — they asked me to pay Dh4,678.79. That means Dh150.44 per gram.

When I tried to sell the same 31.1 grams on the same day at the same time, with the same market rate, they were offering to refund me only Dh4,503.02 or Dh144.79 per gram.

So, how they are advertising and telling people it’s a ‘gold investment’ account? What they are doing is taking customers’ money only.

From Mr Deepakkumar Jeswani

Dubai

The management of Emirates NBD responds:

We are pleased to inform you that our Group Customer Experience team contacted Mr Jeswani and provided him with the necessary clarifications regarding his Gold Investment Account.

Please note that the customer has reverted to us seeking further clarifications on his concern and we are currently still addressing his inquiry as appropriate.

We would like to clarify that the Gold Investment Account is similar to any other foreign currency account, which is designated with the currency code ‘XAU’ and denominated in troy ounces. This shows how gold is being traded internationally, therefore the difference in pricing when compared to the local physical gold.

Furthermore, the rates are provided prior to initiating the transfer via online banking, which are the same rates applied whilst the transaction is being performed.

Additionally, Mr Jeswani has also been informed that for any investment in physical gold, Emirates NBD offers Gold Certificates, which are traded at local prices and can be delivered as physical gold.

We would like to reiterate our commitment to providing superior service to our customers and thank Gulf News for the continuous support in providing us with the opportunity to resolve their issues.

(Process initiation: March 22. Response from organisation: March 30. Process completion: April 10.)

Editor’s note: Do you have similar issues that you would like to raise with us? You can write to us at readers@gulfnews.com.