KGI Research Singapore

Singapore's leading broker offering Futures, FX, Equities and Wealth Management.

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:

  1. 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)
  2. Maturity Redemption: Investors receive corresponding interest payments every month, and if no KO event occurs, the payout will be:
  3. 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.
  4. 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)

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