Covered calls and coupon-based structures helping to maintain momentum for gold investors

As the rapid rise in the gold price has eased, structured product creators are launching covered call and coupon-paying structures to revive returns for investors. But arguments over Ucits compliance are stalling widespread use of these more complex investments. Vita Millers reports

After the bull run in gold that started in 2005, the annual percentage increase in the price of the commodity has finally slipped below double digits. While this does not mean gold is any less popular with investors seeking a hedge, diversification or simply a return, it has driven structurers to deliver products that fit the demand. With three-quarters of the $200 billion invested in commodity exchange-traded funds already invested in gold, it is clear the majority of investor interest is