Looking for Gold

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Earlier this week, I posted an article on gold as an alternative form of investment. Gold is one of the oldest and most popular forms of investments and has proven to be an excellent hedge against inflation. In that article, I discussed a few different vehicles that one can use to invest in gold. One of the methods is to invest by buying equity in gold mining  companies. This article looks at the beaten down sector, where some truly great value finds can be uncovered.

Why Gold?

Before we go into the details of which companies, lets first address what the role gold plays in this world. It has been touted by many as a useless barbaric metal that does not serve any purpose. I have to respectfully disagree with such comments as gold has proven to be the safe haven everyone runs to, when shit hits the proverbial fan. In a loose monetary policy environment where asset bubbles are inflated everywhere you look, we are stumbling on the verge of one catastrophe to the next. It is just a matter of time before we hit a new financial crisis.

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Alternative Investments – Gold

Gold

Alternative Investments can provide lucrative returns that are unavailable by investing in the stock or bond market. In earlier posts, we discussed alternative investments in farmland, rooftop solar systemprivate equity, collectibles, and real estate. In this article we discuss investing in another popular form of alternative investment – Gold.

Alternative Investments – Gold

Gold is one of the oldest and most popular forms of investment. Its a precious metal that has proven time and again to be the best hedge against inflation.  However, with the reputation also comes a lot of speculation and volatility. Over the course of last couple of decades, the price of gold has risen and has corrected a bit as seen the following 20-yr chart.

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Chatter Around the World – 106

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

Q2-2015-SP500-EPS

S&P 500 – Estimated vs Actual Earnings Growth

Image Source: FactSet

Let’s dive into the links that caught my attention this week.

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CIBC Dividend Stock Analysis

CIBC

Canadian Imperial Bank of Commerce, or as it is commonly known, CIBC (CM) is one of the Big Five Canadian banks. CIBC is the smallest of the five and has most of its operations in Canada, with a small exposure to the US market. The Canadian banks are regarded as some of the safest financial institutions in the world. The companies have a long track record of being conservative and focused on long-term stability and prosperity.

CIBC has existed as an institution since 1867 and paid dividends since 1868, and makes for a great core position in any investor’s portfolio. There are plenty of headwinds facing the Canadian economy and the banks — including a recession, weak Canadian dollar, possibility of a housing bubble and potential crash, which has lead to very attractive valuation levels for investors looking to initiate or add to their positions. This article takes a closer look at the stock and provides a full dividend stock analysis.

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Recent Buy – Algonquin Power & Utilities Corp

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A fourth purchase in the month of July! This is turning out to be quite an active month for my portfolio. Whenever I make a purchase, I like to share my buys to document and illustrate how I am building my income stream over the course of months/years. My main goal is simply to keep investing at regular intervals and build my passive income over the course of time. In staying true to tradition, here’s another purchase introducing a new holding to my portfolio.

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