Ahhh, ain't gold wonderful. Bit not all that glitters is gold.
Take for example, the Everbank MarketSafeSM Gold Bullion CD
A CD made of Gold. Invest by June 20, 2006.
Diversify, seek higher yields, and safely invest in Gold Bullion market returns. You can do it all with the new MarketSafeSM Gold Bullion CD from EverBank®.
This is the latest addition to EverBank's popular line of MarketSafe CDs. You'll enjoy many of the same great features and protections as the rest of the line, including 100% principal protection, market-driven upside potential, no account fees, and FDIC insurance.
A conservative investment with great reward potential, the MarketSafe Gold Bullion CD is a smart new way to invest in the Gold market.
It's really has no relation to a CD in the traditional banking sense.
Stodgy old traditional bank CDs pay a paltry amount of interest for locking up your money for some term. This, on the other hand, appears to be a straight gold play combined with a put at the current price at no cost with FDIC insurance?
So they get the use of your money for the price of a put and a call at the current price. Hmmm?
Thus, to the extent that whatever they earn with your money exceeds the cost of the put and call, they are a "winner".
Why wouldn't I just buy the put and the underlying coins myself?
Plus does the FDIC know they are insuring commodity trades?
AND, having worked on the Street, what about trading partner breaks, market discontinuities, and bankruptcies?
In short, all that glitters isn't, imho.