HVB Comfort Cap Certificate on Gold – partial guarantee with 50 percent buffer

March 7th, 2009
Currently, the gold price so much in the focus of investors, not as long. If a part of its portfolio assets to the much quoted “safe harbor” would like to confide in, and may be made from a variety of more or less appropriate investment products.
With the currently offered for subscription HVB Comfort Cap-Zertifikat profits of up to a maximum at the full rate rise in the spot price for an ounce of gold within the next four years. In addition, the certificate with a partial guarantee of capital equipment.

The London Gold Market Fixing Ltd. identified gold price of 9.3.09 is used as starting value for the currency-backed certificate serve.

The cap is located at 190 percent of this initial value, participation in a price increase of 100 percent. At 50 percent of the initial value is the barrier.

With an increase in the price of gold investors thus participate in a 1:1 ratio until the cap to the positive performance. If the gold price on the valuation date (4.3.13) against the start value of 80 percent plus, then the repayment of the certificate of 180 Euro. From a gain of 90 percent or more of the cap limits the maximum profit potential, since the certificate even if a price increase of more than 90 percent with 190 Euro will be eradicated.

If the gold price does not go well as expected, then protects the partial capital guarantee against losses. If the gold price during the entire duration never at or below the barrier of 50 percent of the initial value listed, then the certificate at the end with 100 percent of issue price is refunded. If the threshold, however, touched, then the repayment of the certificate with the actual percentage value in the gold price

The HVB Comfort Cap certificate on gold, ISIN: DE000HV5AKG0, run until 11.3.13, 6.3.09 is still up to 100 euros, plus 1.5 per cent initial charge can be drawn.

Certificates Report Conclusion: The HBV comfort cap on gold certificate offers a simple way, a balanced portfolio collected a pinch of gold intended. The limitation of the earnings potential of 90 percent is acceptable offsetting transaction to the partial capital guarantee that losses of up to 50 percent during the period neutralized. Ideally of course, if the barrier only at maturity would be active.

No longer interested in gold?

March 7th, 2009
Man dares so hard his eyes. The precious metal is on the retreat. And this in a consistent motion! It seems as if any interest from the market is diminished. But how can that be? The framework has changed in the last few days, hardly anything changed. About us crucial background to this development we have in the: faded glory of the gold (temporarily) from 27.02. noted. We want to first set aside, because the technical aspects are more and more into the foreground.
The correct scenario is the case under 950 USD final shape. At the 900 USD mark, we expect now the choices for the next few weeks. If there is to break this support zone, which is very likely quite rapidly with lower prices in the range 800 friends. That would be our preferred scenario. Recovery movements are given the short-term oversold market technology at any time, but should be limited to 950 USD to stay.

The AMEX Gold Bugs Index, which we always be in our analysis include gold, is also on very shaky legs. Here is the correction has already clearly advanced. The HUI reached its important support zone 270/265 USD, but initially they could defend. But as long as the index is below 300 USD noted, is the scenario of a continuation of the correction to the USD 245 range most likely.

At present we see no signs that new train in the gold price could. Quite the contrary. If the stabilization of the stock markets continue to move forward, could further pressure on the sector. We currently see more opportunities in other commodity areas. In particular, the metal industry is here, in our view, extremely interesting. But that is the topic for tomorrow.

Gold is a precious metal

March 6th, 2009

Gold is a precious metal, which rarely occurs in pure form, but usually in the form of alloys. It has a high density and is supported by air, moisture, heat and most solvents are not attacked. Because of its uniqueness and its value, gold is a popular hedge against asset forfeiture in times of war or inflation.

Already in ancient gold fascinated the people and it was valued for its rarity, durability and beauty. The Egyptians supported the yellow metal in 2000 BC, the Romans brought their first gold coins issued 50 BC.

Gold can be easily processed and has excellent conductivity of electricity and heat. These properties make the yellow precious metal into an important raw material for industry. Major application areas are the electrical industry and the dental technology, a sector in the gold since 3000 years is used. By far the largest gold-processing industry (75%), however, is the jewelry industry. With the exception of Antarctica (here in decades is an international mining moratorium in force) will be gold supported on all continents. South Africa has 16% market share of main producers.

Currently the world’s gold reserves as high as never before in world history. Unlike other commodities, which are consumed, gold is virtually indestructible. The United States hold the largest reserves (about 8,133 million ounces Tonnen/287), followed by Germany (3,417 Tonnen/120 million ounces) and the specialized agency of the United Nations, the International Monetary Fund (3,217 Tonnen/113 million ounces). France, however, lies in fourth place (2,586 Tonnen/91 million ounces). In March 2008 the price of gold reached the first time a value of more than 1,000 U.S. dollars per ounce. On demand of six years, quadrupled the price of gold almost.

Gold is regarded as safe investments. An investment in gold can be used by a physical as well as buying from the trading of securities shall be made. The purchase of physical gold coins or investment bank is in stores, precious metals and coin possible. These are deposits with banks with high costs, while the trading of securities is often to reduce costs. Investing can be directly on the stock exchange or broker in gold certificates, gold funds and gold ETFs. This is the physical delivery away. It is also possible on gold stocks denominated par bonds, the so-called Xetra-Gold, on the stock to buy. This is how one shares transferable.

London, Zurich, New York and Hong Kong are the main trading places for gold. Trading is the precious earth on the New York Mercantile Exchange (COMEX Division), at the Chicago Board of Trade, on the Euronext / LIFFE, the London Buillon Market, at the Tokyo Commodity Exchange, at the Bolsa de Mercadorias and Futuros and at the Korea Futures Exchange.