Spinning Gold Into Dollars

It's called the MarketSafe Gold Bullion certificate of deposit. It gives you 100% safety of principal, and FDIC insurance, along with a "market upside payment" that is equal to 100% of the percentage change in the average spot price of gold over the five-year term of the CD!

Here's how the Gold Bullion-linked CD works:

Minimum CD purchase is $1,500.

Term of the CD is five years.

There is a 0% interest rate and APY.

There are no account fees.

The total return is linked to the average price of gold.

There is no interest paid on the CD because your return is linked to the spot price of gold, which is considered the world's closing price for gold daily in terms of U.S. dollars and is established in London at 3 p.m. London time. Your "interest" payment at the end of the CD term is actually considered a "market upside payment" and it is determined by the price of gold on 10 specific, semiannual dates during the five-year term of the CD.

At the end of the five-year term, the amount of your "market upside payment" equals the difference between the average price of gold on those 10 semiannual pricing dates, compared with the price of gold when you purchased the CD.

These CDs will be issued in series, to simplify the pricing process. The first series will come to market Oct. 25, 2005. The base spot price of gold will be established on that date, and the semiannual spot gold pricing observations will be measured against the initial gold price when the CD is issued.

Then, at maturity, you will receive either a guaranteed 100% of your initial deposit (if gold has fallen in price) or 100% of the average gain in gold, whichever is greater.