Goldman Sachs plans buffered commodity-linked notes on gold, silver

By Jennifer Chiou

New York, Aug. 31 - Goldman Sachs Group, Inc. plans to price 0% buffered commodity-linked notes tied to the spot prices of gold and silver, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be due five years after issue.

Gold will have a 60% weight in the basket while silver will carry a 40% weight.

The payout at maturity will be par plus any increase in the basket, subject to a maximum return of 215% to 235%. The exact cap will be set at pricing.

Investors will receive par for losses up to 25% and will share in losses at a rate of 1.3333% per 1% decline beyond the buffer amount.

Goldman, Sachs & Co. is the underwriter.

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