Spinning Gold Into Dollars

 

As an example, suppose you purchased a $10,000 Gold Bullion CD that has a "base price" of $470. Then, over the next five years, the price of gold rises and falls but generally has an upward trend. Those prices are measured at fixed six-month intervals, and let's say the price of gold averages $618 on those 10 dates. Then, at maturity, your $10,000 CD would be worth $13,100.

If the price of gold results in an average of less than $470 an ounce during those 10 observation dates, you'll get back your original $10,000 investment at maturity in five years.

Special note. These CDs are not liquid, and money can be withdrawn only if the owner dies. And in that case, there is no guarantee of principal protection. They are not suited for tax-deferred accounts, such as IRAs.

The first series of MarketSafe gold bullion-linked CDs will be issued Oct. 25, with subsequent series issued every month. For more information and a detailed explanation of the risks and guarantees, go to www.Everbank.com.

They've finally found a way to turn paper dollars into gold. And that's The Savage Truth.

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Terry Savage is an expert on personal finance and also appears as a commentator on national television on issues related to investing and the financial markets. Savage's personal finance column by the Chicago Sun-Times is nationally syndicated, and she released her fourth book, The Savage Number: How Money Do You Need? in June 2005. Savage also was the first woman trader on the Chicago Board Options Exchange and is a registered investment adviser for stocks and futures. A Phi Beta Kappa graduate of the University of Michigan, Savage currently serves as a director of the Chicago Mercantile Exchange Corp. She also has served on the boards of the McDonald's and Pennzoil corporations.

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