Claymore Launches Gold Bullion Trust

With governments around the world providing a record amount of economic stimulus, many believe that gold will increase in value significantly as it has historically provided a hedge against inflation.

One problem that gold investors outside the US have is that the US dollar usually drops against other currencies when gold rises. This can offset the gain entirely frustrating some that made the right call only to see the currency loss come into play.

Claymore will hedge their position into Canadian dollars allowing investors to take full advantage of the upside on gold bullion while protecting their investment from currency fluctuations.

Another interesting feature to the offering is that a full warrant exercisable at the issue price will be available to those participating in the new issue allowing investors to magnify their gains should gold rise over the next six months.

The trust will convert to an ETF (Exchange Traded Fund) after six months in the event that the units daily weighted average trading price is a 2%  or more discount to the net asset value. 

Viewing of the preliminary prospectus can be viewed here and closing is scheduled for mid May. Your thoughts and comments are always appreciated.

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