The Hatton National Bank (HNB) has launched an innovative gold investment account scheme to enable customers wanting to buy gold to hedge against economic and political uncertainties.

"With the relaxation of restrictions on possession and sale of fine gold here, any resident individual is entitled to buy and possess gold as a part of his/her investment portfolio. Under the new scheme that we are providing, you don't have to physically hold the gold you buy. We hold it for you,'' a bank spokesman explained.

HNB Managing Director Reinzie T Wijetillake presenting a token souvenir to a customer who opened a gold investment account at the bank.

Under the new gold investment account scheme, a customer can buy gold denominated in grams and hold it in his account. Such gold may be withdrawn at will or sold back to the bank at the prevailing price.

"The account holder will get a statement at the end of each month indicating the quantity of gold lying to his credit in the account and the Sri Lanka rupee value of such holdings. Joint accounts are also possible,'' the spokesman said.

High net worth individuals who have large sums of investible funds will be offered the opportunity of investing lump sums in gold. This will enable account holders to trade in gold, the HNB spokesman said.

The new scheme enables a gold investment account holder an opportunity of accumulating a gold holding over a period of time without the hassle and risk of physically holding it. Loan facilities will also be made available by the bank against credits in the gold account.

"We are offering this facility through selected branches located within Colombo city limits and some of the other main towns. We were the first privately owned bank to offer pawning facilities through branches in most parts of the country. We also offer two other gold related products, a certificate of gold deposit and a pledge facility against gold,'' the spokesman said.