The Guarantee Certificate USD Gold Winner 3 enables investors to participate 100% in the positive performance of the gold price up to a maximum of +25% in relation to the starting value. The certificate is suited to safety-oriented investors, who expect the gold price to post at least a moderate rise within in the next five years, and who also wish their investment to be 100% capital protected at the end of the term.
At the initial valuation date the starting value of LBMA Gold Afternoon Fixing Price (03:00 p.m. London BST) as of November 5, 2019 and the cap (125% of the starting value) are determined. At the end of the term the performance of gold is evaluated and one of the following scenarios will apply:
- SCENARIO 1 – Gold price performance is POSITIVE
… and BELOW the cap of 125%
1:1 participation in the index performance, e.g.: gold price +20% → redemption: USD 1,200
… but ABOVE the cap of 125%
Redemption at the maximum amount, e.g.: gold price +50% → redemption: USD 1,250
- SCENARIO 2 – Gold price performance remains UNCHANGED or NEGATIVE
… and thus BELOW 100% of the starting value
100% capital protection applies at the end of the term, e.g.: gold price -50% → redemption: USD 1,000
At the end of the term the investment is 100% capital protected by Raiffeisen Centrobank AG, i.e. during the term price fluctuations may apply, but at the end of the term the investor obtains 100% of the nominal value in any case.
The certificate USD Gold Winner 3 is denominated in USD. If the cash flows from the certificate (repayment) are later converted into another currency, additional risks as well as opportunities arise from possible fluctuations of the currency price in relation to the nominal value.
The issue price amounts to 100% (nominal value USD 1,000) within the subscription period. Further information as well as the Key Information Document can be found on the Product Page.
Capital Protection Certificates – simply explained:
For any additional information you may require do not hesitate to contact us on +43151520484.
The Structured Products Team of Raiffeisen Centrobank