A new batch of silver bonds is arriving, offering income-focused investors another high-yield opportunity!

Amid the wave of interest rate cuts, income-focused investors need not worry about a lack of attractive returns, as a new batch of offerings has arrived.$HKGB SBOND 2810(44078.HK)$ This silver bond guarantees an annual interest rate of no less than 3.85%, with the potential to earn nearly double the monthly interest equivalent of Old Age Living Allowance. For investors seeking both capital preservation and stable returns, particularly those prioritizing consistent yields, the silver bond represents a noteworthy investment option.

Silver Bond Subscription Details

Basic Information

This issuance of the silver bond has a three-year tenor with a guaranteed annual interest rate of no less than 3.85%. The minimum subscription amount is HKD 10,000 per lot, with a maximum allocation of HKD 1 million per individual. Interest will be paid semi-annually, ensuring a guaranteed monthly return of over HKD 3,200—approximately equivalent to twice the amount of Old Age Living Allowance.

Eligibility and Subscription Timeline

Eligible subscribers are individuals aged 60 or above (born in 1966 or earlier) who hold a Hong Kong Identity Card. Subscriptions for the silver bond open today, September 15th at 9:00 AM, and close on September 29th at 2:00 PM, with official issuance scheduled for October 10th.

Key Features of Investing in the Silver Bond

Guaranteed Returns

The silver bond's interest rate is linked to inflation, with a guaranteed minimum annual yield of 3.85%. This provides investors with a reliable income stream, ensuring a minimum annual return of 3.85% regardless of market fluctuations.

Low default risk

Silver bonds are issued by the government, which ensures high creditworthiness and extremely low default risk. This makes silver bonds highly suitable for conservative investors, allowing them to invest their funds with confidence, secure stable returns, and avoid concerns about principal loss.

Inflation protection

Government-issued bonds are generally linked to inflation and come with a guaranteed minimum return. If inflation is below 3.85%, the government will still provide investors with a 3.85% return; if inflation reaches 5%, the government will offer a 5% return. For retirees, inflation poses a significant threat as they lack salary income, and high inflation can directly impact their quality of life. Silver bonds protect against inflation and safeguard the purchasing power of their assets, making them an attractive option.

Dr. Zeng Yuan Cang’s Silver Bond Subscription Strategy

Advantages of Silver Bonds

Dr. Zeng Yuan Cang pointed out that the most important benefit of purchasing silver bonds is that there is absolutely no risk of loss, with a 100% capital guarantee. Additionally, the guaranteed return of 3.85% is higher than bank fixed deposits. Bank deposit interest rates fluctuate based on adjustments by the U.S. Federal Reserve, whereas the current yield on silver bonds exceeds that of banks. Therefore, silver bonds are highly attractive to investors seeking risk-free investments.

Application Recommendations

For retirement financial planning, it is essential to include silver bonds in the overall investment portfolio. Dr. Zeng recommends that investors apply for silver bonds whenever possible, aiming to secure larger allocations. He personally applies for silver bonds every time. Based on past experience, although applying for one million will not result in receiving the full amount, he typically receives over 200,000 each time. He currently holds some unexpired silver bonds, having applied annually for amounts exceeding 200,000. Over three years, the cumulative total has reached more than 800,000, which represents a fairly good return.

For example, if allocated a total of 800,000 in silver bonds, even though interest rates may fluctuate—previously at over 4%, with the average interest rate of held silver bonds exceeding 4%—calculating based on a 4% interest rate, 4% multiplied by 800,000 provides substantial returns, offering excellent security for one’s livelihood.