On October 24th, Financial Union News (Reporter: Guo Zishuo) reported that gold has experienced multiple rounds of a 'bull market' this year, with international gold prices repeatedly hitting new highs. As of the time of publication, the spot price of gold in London reached a high of $2,737.85 per ounce in intraday trading. The COMEX gold price reached a high of $2,750.4 per ounce in intraday trading. From a wealth management perspective, China Post Wealth Management, CMB Wealth Management, Everbright Wealth Management, Ping An Wealth Management, Minsheng Wealth Management, and many other wealth management companies have successively launched financial products linked to gold or with gold asset allocations.

In the market, the layout of gold by wealth management companies is accelerating. The Financial Union News reporter found that only CMB Wealth Management institution has launched at least 34 financial products linked to gold this year, with 9 launched just last month. Some personnel from stock-holding wealth management companies stated: 'Currently, the market consensus on gold is relatively uniform. The target price of gold has been continuously rising, and everyone feels they are late in entering the market.'

The gold content in the wealth management market is still rising. According to China Wealth Management Network, the number of gold-related wealth management products currently registered is as high as 89, among which 34 gold wealth management products are in the 'waiting for sale' status, with issuing institutions including CMB Wealth Management, China Citic Bank Wealth Management, Everbright Wealth Management, and Ping An Wealth Management.

Aiyawen, a senior analyst at Rong360 Digital Technology Research Institute, told Financial Union News reporters: 'Recently, with the continuous rise in gold prices, many institutions have actively responded by adjusting and increasing their layout of gold assets, accelerating the issuance of financial products linked to gold, and increasing the proportion of gold asset allocations in their investment portfolios.'

The performance of gold-related financial products is strong.

With the strong performance of the gold market, the returns of multiple financial products linked to gold continue to rise. Taking the Sunflower Queer Joy Enjoyment 13th (Gold Auto-trigger Strategy) Fixed Income Class I established by Everbright Wealth Management as an example, as of October 18th, the performance benchmark since the product's establishment is 5.4142%, and the performance benchmark for the last month is 6.1341%.

The cumulative net value of CMB Wealth Management's existing gold-related financial products is greater than 1. For example, as of October 18th, the cumulative net value of the 'Stable Gain Gold Call Double 4TZ' issued by CMB Wealth Management in June is 1.0117, the 'Stable Gain Gold Shark Fin 2nd TZ' issued in July is 1.0107; and the 'Stable Gain Gold Call Touch 1st' issued in August is 1.0125.

A financial institution personnel mentioned that although the price of gold is currently strong, controlling the drawdown risk of financial products linked to gold is also a focus of attention for various financial institutions.

From the perspective of diversified asset allocation, dispersing investments in various assets with low correlation can achieve the objective of controlling drawdowns. A product manager of a financial institution told a reporter from Caixin Media: "The main gold-related financial products currently laid out by the company include two categories, one is structured financial products linked to gold, (these products) have their own limits; the other is multi-asset allocation financial products, which involve allocating various types of assets within the entire portfolio such as gold in fixed-income and equity-weighted products."

Puyi Ratings researcher Huang Yidian told a reporter from Caixin Media that the risk of mainstream gold-related financial products is relatively controllable. The proportion of gold assets in "fixed income + gold" products generally does not exceed 20%, with positions usually around 10%. Due to the relatively low proportion of gold assets, the fluctuation of gold prices has a limited impact on the overall income of the product, making the risk relatively controllable.

Regarding structured financial products tied to gold targets, Huang Yidian believes that besides fixed-income asset allocations, these products also invest in gold-related derivatives such as binary call knockout options, shark fin options, etc. This aligns the product's returns more closely with the movement of gold prices. Some products set profit-taking levels, automatically securing earnings after reaching a certain point, while others use investment returns for gold-related options investment, thereby managing risks relatively effectively. It is recommended that investors evaluate the product's profit and risk potential based on specific options designs.

Expert: Emphasize Diversified Strategies in Gold Layout

In Aiyawen's opinion, when institutions lay out gold-related financial products, they should focus on diversified strategies, balancing risks and returns, and seizing investment opportunities in the gold market. By employing a multi-asset strategy, issuing additional fixed-income assets combined with gold assets in "fixed income +" products, designing structured financial products tied to gold targets, allocating gold assets through gold ETFs or OTC options, providing flexible investment channels. Of course, financial institutions should closely monitor macroeconomic conditions and policy directions when laying out gold-related financial products, such as the Fed's monetary policies, global geopolitical situations, etc., to facilitate timely adjustments to strategies.

Ping An Wealth Management stated in a post yesterday that in the long run, de-dollarization is a long-term trend. With the increased probability of Trump's re-election, more aggressive foreign policy may intensify geopolitical conflicts, and at the same time increase the likelihood of further interest rate cuts by the Fed. Global and Chinese central banks may continue to purchase gold.

"On one hand, it is necessary to guard against market volatility risks, as factors such as the global economic situation, monetary policies, and geopolitical conditions may cause fluctuations in the net asset value of financial products linked to gold. Investors should rationally consider the 'prosperity' scene in financial product yields triggered by the rise in gold prices. The current increase in gold prices does not guarantee continuous increase in the future; a drop in gold prices will result in a decline in product yields," warned Zhao Wei, a Puyi Ratings researcher. "On the other hand, most financial products linked to gold are closed-end products that cannot be subscribed to or redeemed during the duration. Investors should comprehensively consider the liquidity, profitability, and risk of products, and make investment decisions cautiously based on their risk tolerance and investment objectives."