Structured notes linked to gold and/or silver are continuing a run of popularity in the US market with several notes pricing, or set to price, this month.
So far this year, there have been 70 structured notes linked to gold and selling a collective $671m, and eight silver-linked notes selling a total of $132m, according to SRP data.
Another five hybrid notes, those linked to gold and silver, have sold $17m. All together, investors have placed a collective $820m in the products linked to the precious metals amid fears of inflation and a record Federal budget deficit.
On October 1, Goldman Sachs priced $66.5m in commodity-linked trigger notes with a 2.29-year tenor.
HSBC priced a three-year knockout buffer note on 8 October linked to the price of gold which sold nearly $40.3m.
Deutsche Bank is offering a one-year capped knockout note that will price later this week and is also linked to the price of gold.
Morgan Stanley has begun offering a two-year commodity note linked to the price of gold, which is expected to price on 26 October.
Credit Suisse is offering two notes, a three-year buffered accelerated return equity note set to price 26 October linked to the performance of the SPDR Gold Trust ETF and a six-month autocallable note linked to the performance of the iShares Silver ETF which was due to strike yesterday.
At the close of 13 October, gold was trading in excess of $1,370 per ounce, while silver was trading at $24 per ounce.