Commodity-linked investment products are a relatively new phenomenon, but product structurers at investment banks say their appeal is set to last. Furthermore, it is a retail trend that is growing in both Europe and Asia.
Singapore-based Stefan Weiser, head of commodities investor sales at Goldman Sachs in Asia, says retail investors are attracted to commodities for two reasons. First, the speculative and tactical opportunities in the market are much stronger than in other markets. Second, divers