The Gold Bonds are Coming!

Gold Bonds Coming Soon

The Shanghai Gold Exchange is working together with gold producers, securities brokerage houses and banks in preparation for the launch of gold bonds, the Securities Times reported yesterday.

Gold bonds are issued by gold mining firms and guaranteed by a certain amount of gold they produce within a certain period of time in the future. The interest rate of gold bonds is made up of a basic rate and a floating one. The latter is linked with the gold price of the date of maturity. The maturation of the bonds can be three years, five years or 10 years.

Meanwhile, Shenyin Wanguo Securities Co recently became the first securities company approved as a Shanghai Gold Exchange member. The exchange plans to take in more securities companies in an effort to build an underwriting system for gold bonds issuance.

'As the world's third-largest gold producer, China has a huge potential in gold production. The increasing financial needs of gold producers promise a bright future for gold bonds,' said Song Yuqin, vice manager of the Shanghai Gold Exchange."

For more info visit WAYS2INVEST