Citibank Bhd's multi-currency gold product, the first in the Malaysian market, allows investors to invest in gold in three currencies - the US dollar, Australian dollar and the euro.
"It allows investors a much simpler way to invest in gold, which is also hassle free as there is no physical gold, no cost and no security risks involved," Citibank head for retail banking, Paul Hodes, told a press conference after the launch of the product in Kuala Lumpur yesterday.
The product allows investors to purchase the commodity in the three currencies, and buy and sell them back on a daily basis or "through a timeframe" if they want the commodity to appreciate more.
However, investors will not be able to obtain the physical gold product through this investment, all they have is the difference that they make from the commodity's pricing, once it appreciates.
There are two accounts that investors can choose from. One is the Citibank gold account, which allows investors to invest in gold directly, and make changes on their investments on daily basis. Another is the Citibank Dual Current Account, for those who want to gain higher interest rate compared with traditional time deposits and are comfortable with a tenure of one month.
Hodes said this product will help diversify its present portfolio of investment products.
"From June 2009 till June this year, we saw a 20 per cent increase in investors investing in our products and we hope that it will increase more within the next year or so," he added.
Also present at the launch was Citibank head for consumer markets, Fabio Fontainha.
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