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Gold on the rise: Realize profits & participate with capital protection

Wednesday, 31 May 2023 Reading time : 2 minutes

Gold price close to record high
In May 2023, the gold price only just missed its record mark from 2021. Although the price has come down somewhat in the meantime, gold remains comparatively expensive. It is and will probably remain a popular instrument with which investors hedge against uncertainties in the financial markets and the real economy. Especially when inflation rises and the outlook becomes gloomier, gold has a good reputation for portfolio diversification, but even the most popular precious metal is not immune to price declines - in the last few years, the price of gold has fallen each time after some steep price increases, sometimes by double-digit percentages. So far, it has never been able to stabilize at over USD 2,000 per ounce, the same is true for the last attempt: the intermezzos in April and May above USD 2,000 remained short-lived despite record-breaking price increases. Nevertheless, those who had bought at the beginning of 2023 can look forward to a good return.


Capital protection over 100%, full participation
This is why it may now be worthwhile to take profits and hedge part of the portfolio with a capital protection certificate on gold. It allows 100% participation in the performance of the ZKB Gold ETF, which is fully physically backed. If the upper barrier of 120% is exceeded during the term - which would currently correspond to a price of approx. USD 2,350 per ounce - investors not only receive the full capital invested back at maturity: the capital is CHF protected to 101% - regardless of how the gold price develops, the certificate generates at least 1% return.


Capital Protection Certificate on ZKB Gold ETF (CHF)

  • 101% capital protection
  • 100% participation
  • 120% knock-out
  • 2 years maturity
  • Termsheet

Capital Protection Certificate on ZKB Gold ETF (USD)

  • 104% capital protection
  • 100% participation
  • 130% knock-out
  • 2 years maturity
  • Termsheet

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