< All Topics
Print

Risk-Sharing

If the market price of gold from the day a CD is issued to the day it matures has increased or decreased, the difference in value will be shared, paid or guaranteed at maturity as follows:

If Gold Has Appreciated in Value against the USD:

• 80% of the Appreciation to the CD holder;
• 20% of the increase in value to the GDTB.
• Redemption Price Formula: [Face Value + 80% of Value Increase].

If Gold Has Depreciated in Value against the USD:

• 100% of the Depreciation to the GDTB, whereby GDTB absorbs any potential loss in value by guaranteeing the return of 100% of the value invested at maturity;
• Redemption Price Formula: [Face Value].

Table of Contents