| In the past decade, we had witnessed the rapid, profound, and ongoing development of Chinese economy. As the household accumulation of financial resources, the need of wealth management captured people's attention. Personal financial services are becoming one of the promising operations for modern commercial banks. As one of newly designed financing instruments, gold linked structured notes have experienced a massive boom in China. One of the reasons for their appeal is that gold linked structured notes offer the joint benefits of fixed rate notes with gold. However, the hidden risks which are of primary importance to investors did not received deserved attention.Concerning all above factors, this article attempted to shed some light on gold linked structured notes based on some researches. The unique array of features of these notes was provided in both academic and practical way. A pricing model was then used to analyze the performance. It is founded that gold linked structured notes do offer a preferable option to deposits in yield. Besides, comparisons to other structured notes and other golden investments were addressed. Finally, this article provided a sight at what the gold linked structured note brings to the micro-mechanism and macrostructure. Some improvements were suggested at the end of this article. |
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