May 29, 2009 / 6:14 PM / 10 years ago

Claymore buys 345,000 oz of gold with fund launch

NEW YORK, May 29 (Reuters) - Canada’s Claymore Investments Inc on Friday said it has bought 345,000 ounces of gold bullion at an average price of $959.05 per ounce in conjunction with the launch of its gold bullion fund.

The privately held company, which operates 23 exchange-traded funds (ETFs), said that Claymore Gold Bullion Trust CGL_u.TO began trading on the Toronto Stock Exchange on Thursday.

The trust will automatically convert into an ETF if the fund units trade at a discount to net asset value six months after the closing of its offering, Claymore said.

ETFs back each security issued with physical stocks of a given commodity. They are listed on stock exchanges and offer investors exposure in the underlying commodity without taking delivery.

Gold rose nearly 2 percent on Friday to $976 an ounce, boosted by a falling dollar. (Reporting by Frank Tang; Editing by Christian Wiessner)

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