Press Releases
With Gold at Highest Level Since 1988, What Should Investors Do? Guaranteed Linked Note Might Have the Answer
Toronto, Ontario - November 23, 2005
Inflation uncertainties and a host of other driving factors are pushing gold to its highest level in almost two decades. The question for investors is: has gold run its course or are we at the start of a new golden era, not unlike the 1970s? "Whatever the future holds for inflation and the price of gold, our Gold Price Class guaranteed linked note (GLN) offers an ideal gold play - providing the potential for enhanced upside participation along with complete protection on the downside," says Jeffrey O'Brien, President and CEO of ONE Financial.
Gold's current performance recalls its gains during the 1970s. From 1971 to 1980 the price of gold increased from $38 to $786 an ounce, driven primarily by inflation. Today, although inflation is considered tame, the ingredients are ripe for that to change: rising global demand for commodities holds the threat of inflation (and a brand of inflation that cannot be managed by the U.S. central bank). A weaker U.S. dollar means that this currency is a less reliable safe harbour than it once was and gold is the logical alternative. In addition, global demand for gold for use in jewelry is on the rise, up 16% in the first half of 2005.
According to O'Brien, ONE Financial's GLN offers investors several advantages. "While most gold plays available in Canada involve investment in mining firms," he says, "Our Gold Price Class Note is 100% linked to the price of gold bullion, removing any business-specific risk. As well, our automatic daily profit lock-in feature not only guarantees at maturity 100% of the initial investment, but also 100% of any growth the investment achieves at any point throughout the term. What's more, since this note is part of a family of notes, investors can switch between any of the 10 different sector classes of notes at any time in response to changing market conditions."
Gold has very low correlation with most other asset classes, meaning that it is very effective at bringing diversification to a portfolio.
Says O'Brien, "We're excited to bring this innovative investment product to the wealth management marketplace. It offers investors a very secure way to access this important commodity."
GLNs are structured investment products with returns linked to various investments - often growth-oriented - while providing 100% principal protection. GLNs typically provide the opportunity to achieve greater returns than a Guaranteed Investment Contract (GIC) and are usually cashable in a weekly secondary market prior to maturity, unlike most GICs.
This press release was prepared by ONE Financial Corporation. ONE Financial Corporation is focused on providing Canadian investors and their financial advisors with innovative wealth management solutions. Since pioneering the introduction of the first stock market-linked note to all Financial Advisors and their investors across Canada in 2002, ONE Financial has raised more than $250 million in this exciting asset class. The company is headquartered in Toronto, Ontario and is one of Canada's fastest growing investment firms.
Important Information
This press release was prepared by ONE Financial Corporation. ONE Financial Corporation is focused on providing Canadian investors and their financial advisors with innovative wealth management solutions. Since pioneering the introduction of the first stock market-linked note to all Financial Advisors and their investors across Canada in 2002, ONE Financial has raised more than $250 million in this exciting asset class. The company is headquartered in Toronto, Ontario and is one of Canada's fastest growing investment firms. For more information speak to your financial advisor.
