Make Kitco Your Homepage

Gold and silver indexed notes reality - what are they?

Commentaries & Views

Be the first to know when a new trade signal is out! Click here to sign up for e-mail notifications.

CPM Group's Jeffrey Christian, discusses some of the issues surrounding commodities indexed notes issued by major banks, explaining what they are, why they are popular with institutional investment fund management companies, and more. The video discusses the reality that most investors in such derivatives would not buy precious metals directly, and explains some of the reasons. The discussion also puts the size of precious metals derivatives into context. It gives some past examples of CPM-structured investment notes and managed accounts. It discusses the growth in precious metals derivatives’ notional value in relation to the increase in prices of the underlying silver, platinum, and palladium, and discusses the possibility that some of the derivatives being included in the OCC’s data on commodities derivatives may be mis-labeled, and actually be equity indexed derivatives.

Click here to watch the video.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.