“`html
NEW YORK, February 6, 2026 – Precious metals markets are off to a wild start in 2026, experiencing volatility not seen in decades. Silver, in particular, has seen short-term price swings reach extreme levels, while gold has made sharp, unpredictable moves even after hitting record highs. This turbulence is creating opportunities for investors willing to navigate the choppy waters with structured notes.
Structured Notes Capitalize on Precious Metals Volatility
Table of Contents
These financial instruments offer potential for enhanced yields while managing risk through defined parameters.
- Strategies that profit from volatility-by selling options-are being packaged into structured notes.
- The Phoenix autocallable note tracks gold, silver, and platinum, offering potential early redemption.
- Partial capital protection notes provide a safety net, while Catapult notes offer leveraged upside.
- Investor outlook-from moderately optimistic to strongly bullish-can be aligned with specific note structures.
Strategies that systematically sell volatility-primarily through collecting option premiums-can be packaged into structured notes, offering the potential for enhanced yields while defining risk parameters upfront. Several structures are currently available, each catering to a different risk appetite and market view.
Partial Capital Protection Note with Memory Effect
For a more conservative approach, a partial capital protection note offers 90% capital protection at maturity, combined with a memory coupon feature. This two-year note tracks the worst-performing silver and gold ETFs, with semi-annual observations. Coupons are paid when the worst performer exceeds a predefined trigger level,with missed coupons accumulating for later payment. Three versions are available: a 100% trigger yielding around 17% annually, a 110% trigger offering approximately 21%, and a 120% trigger delivering up to 27%.
This structure is suited for investors with a moderately bullish outlook on precious metals, willing to accept a maximum 10% principal loss in exchange for perhaps high conditional income.The memory mechanism rewards eventual recovery, even after interim declines.
Catapult Note with Leveraged Upside Participation
Investors with a strongly bullish conviction can consider the one-year Catapult note, which provides 90% capital protection alongside leveraged upside potential. The underlying basket includes gold,silver,and aluminum,with a single interim observation after six months. If the worst performer is above 100% at that point, the note redeems early at 110% of principal-equivalent to a 20% annualized return.
Otherwise, it continues to final maturity. At maturity,repayment follows a tiered schedule: 90% if the worst performer falls below 90%,performance-equivalent repayment between 90% and 100%,and 100% plus twice the excess return above 100% if the worst performer exceeds its initial level. This uncapped leveraged participation is especially attractive in scenarios of sustained commodity strength, limiting downside while amplifying gains.
Aligning Structures with Investor Market Views
These notes allow for precise tailoring to different outlooks on precious metals. Moderately optimistic investors may prefer the partial protection memory note for steady conditional income with limited downside. Strongly bullish clients seeking asymmetric payoff can opt for the Catapult’s leveraged upside. The classic Phoenix autocall appeals to those cozy with higher risk for potentially earlier and higher yields. High current volatility supports attractive indicative terms across all structures, though conditions remain sensitive to market levels and can shift rapidly
