Investors can now invest in certificates with silver as the underlying asset

Domestic investors on the Zagreb Stock Exchange (ZSE) have been given the opportunity to invest in certificates with silver as the underlying asset for the first time.

This involves one turbo-long and turbo-short certificate, and an additional turbo-short certificate on the DAX has also been introduced. This increases the number of certificates to a total of 27 since trading in certificates on the ZSE was introduced in September last year.

All three new certificates are quoted in kuna, and their issuer is once again Erste Group Bank AG based in Vienna, while Erste Bank acts as the issuer’s representative and liquidity provider for the structured products in question. 

“Silver is an extremely interesting precious metal that is traded globally alongside gold. Its volatility is particularly intriguing, so we believe that both the turbo long and turbo short certificates on silver will be of interest to investors,” emphasized Marko Erdeljac from the Financial Markets Sector of Erste Bank.

In the past seven months, since the possibility of trading certificates on the ZSE was introduced on September 21, 2012, until the beginning of May 2013, the total trading volume of certificates amounted to 135.6 million kuna. The greatest interest was generated by turbo long and turbo short certificates linked to the German stock index DAX, whose turnover reached a total of 65.6 million kuna. 

“The previous trading volume of certificates on the ZSE has shown that there is interest in such products in the domestic capital market and that domestic investors have recognized them as an adequate option when structuring their own investment portfolios. It is certainly important to remind all interested parties in trading certificates to carefully monitor the price movements of the underlying assets and to structure their trades accordingly, keeping in mind that turbo certificates are leveraged products and adjusting their investment size accordingly,” concludes Erdeljac.