27 April 2023: Wealth Product Ideas
The Case for Gold Investment
- Central banks globally are increasing their gold reserves due to geopolitical uncertainty.
- The supply-demand balance for gold has shifted to favor higher demand than supply.
- During US economic recessions, holding gold historically yields much higher investment returns than the S&P 500 index.
- Therefore, the outlook for the future performance of gold appears promising.
Payout Scenarios:
- KO Early Redemption: Principal + KO returns (KO event occurs only when the closing price of all underlying securities is higher than the knock-out price)
- Maturity Redemption: Investors receive corresponding interest payments every month, and if no KO event occurs, the payout will be:
- If the final price is higher than or equal to the strike price, investors will receive 100% cash return on their principal, along with the final interest.
- If the final price is lower than the strike price, investors will receive 100% of their principal in the form of shares of the worst-performing stock and will also receive the final interest.
(Source: Bloomberg)
