Whenever I make a purchase, I like to share my buys to document my journey towards financial independence. This latest purchase diverges from the normal buys that I normally pursue, as I shared in this post – Multipronged Approach to Investing. So far, I have relied on companies with growing dividends, but the current market leaves me nervous wanting me to look elsewhere. I started to look at contrarian trades and looking for undervalued assets and decided to make my first move in this space.
One of the assets that have been depressed and currently hated in the investing world are precious metals. Metals such as gold and silver have seen immense downward pressure over the past few years. There are multiple reasons for this, some of which are listed below. Investing in precious metals can take many forms and I have discussed some methodologies here and here. To recount from those articles, investors may choose to invest using bullion (comes with ownership/storage costs), ETFs (paper contracts, loses the point of investing in precious metals) or mining companies (comes with risk, such as exploration risks, management issues, lack of understanding space etc). It is for this reason, I have decided to pursue the precious metals space using a different vehicle: streaming & royalty companies.