New Code of Conduct to Regulate Gold Savings Schemes & Online Trades

A new Code of Conduct for gold investments, addressing both gold savings schemes offered by retailers and online trading platforms, has been announced. This initiative, led by the World Gold Council (WGC) and supported by stakeholders in the UAE’s gold market, aims to establish transparency and security standards for gold-related investments.

As gold savings programs grow in popularity, particularly those offering "fractional ownership" and monthly investment schemes, the code will bring clarity and assurance to consumers. Under such schemes, consumers can invest monthly, receiving ownership of specific amounts of gold without immediate physical delivery, which has raised some concerns about fund safety.

The code will be developed over the coming months, with the first meeting set to take place at Dubai’s DMCC free zone. Expected to take 6-12 months to finalize, the Code will mirror similar frameworks already in place in countries like India and Singapore.

Recent data from the WGC shows that gold jewelry sales in the UAE declined by 23% in Q3 2024 due to high prices, which are currently nearing $2,800 an ounce. However, gold’s cultural significance remains strong, especially during the Diwali season, as consumers continue to invest in meaningful pieces despite rising costs.