Recent Buy – B2Gold Corp

Another transaction in my portfolio last week. Gold prices have been taking a hit lately and I see a good buying opportunity, even though I am sitting at full positions in most of my gold equities. However, the valuation looked attractive enough for me to add more and possibly trade around my core position.

Last week I added to my B2Gold Corp (BTG)(BTO.TO) position. In this particular case, I decided to buy the US-listed stock — ticker: BTG; but to keep things simple, I will treat it as the BTO.TO in my portfolio page, as it is the same company. I bought 500 shares of B2Gold (BTG) @ US$2.93.

B2Gold is one of the larger junior mining companies. The Fekola project is arguably one of best gold mines going into production this year — and is slotted to produce upto 50,000 oz of gold to begin with before ramping up next year. For the most part, I think investors are under appreciating the size of this project and the potential of B2Gold. The management is fantastic and has a proven track record of building and producing gold mines in the past. This is the same team the built and sold Bema Gold (that’s where the ‘2’ in B2Gold comes from) to Kinross Gold in 2007 for $3B.

This is my 4th purchase of B2Gold shares (see purchases #1, #2, and #3). I now hold a sizeable position in B2Gold, making it one of my largest holding in the portfolio. Once the share prices recover after this slump in metal prices, I might swing trade a bit or write covered calls to take some profits. But I will not be forcing any moves just for the sake of it. For the long haul, I am happy holding the shares as we are still early in the gold bull market.

Full Disclosure: Long BTO.TO, BTG. Our full list of holdings is available here.

Recent Sell – New Gold Inc

NGD

This will be another quick update on a sale in my portfolio.

Last week I shared opening a new position in New Gold Inc (NGD.TO). I saw an opportunity after the stock price was down 35% after management announced delays in Rainy River project and shortfall in liquidity. The stock was over-punished and I figured it was due for a quick bounce. Right after I bought, New Gold stock bounced 10% which was good but I wanted to see how management was going to navigate going forward.

Yesterday, it was announced that the company was selling its 4% gold stream in the El Morro project to Goldcorp (GG) for $65M. This is a much better deal for Goldcorp than New Gold. However, it seems that investors in NGD like the news (uncertainty is a bigger evil than bad deals, it seems) and the stock price popped further. I decided to cash out and take my profits after holding the stock for just a few days.

To summarize: I sold 1,000 shares and closed my position in New Gold Inc (NGD.TO) @ C$3.95.

Total profit: $511 (14.86%)

Holding period: 8 days

Full disclosure: Our full list of holdings is available here.

2 Recent Buys – CU, NGD

Some quick updates for the recent moves in my portfolio. I made a few purchases in January that I never got around to documenting, so here it is.

I made the following purchases in January 2017

  • 100 shares of Canadian Utilities Ltd (CU.TO) + 1 STO covered call
  • 1,000 shares of New Gold Inc (NGD.TO) *New position*
  • + New portfolio for my daughter – details coming soon in a separate post

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Why Gold?

Gold — It is the oldest form of currency, universally accepted by the human species across the world in different cultures and different eras of civilization. This shiny metal has always been attractive by one and all for a variety of reasons. But we are in interesting times….and while we get more educated and complicate our monetary system, the more people tend to forget what gold even is. Is it a currency? A commodity? Or as some claim, is it a pet rock (Hint: No)? In this article, I visit and present a few reason to own gold.

Money vs Currency

Over the past few months, I have been spending a lot of time reading and learning about gold and its place in human history and our current monetary system. Our present state has become overly complicated where central bankers control every little aspect of our lives through the currency. The fiat currency is only a piece of paper, a promise from the government that the value you hold in your hand is worth something. We can argue all day long about which paper is stronger than other forms of paper from around the world, but the point is just that — its a piece of paper that is worth something today but may not be worth the same tomorrow. In fact, that is the hope — that it is worth less tomorrow.

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3 Recent Buys – PAAS, FNV, NMI

Whenever I make a purchase, I like to share my buys to document my journey towards financial independence. As regular readers are aware, I have broken from the DGI pack and sold some of my investments to move to a cash position. I shared details on my motivation to do so in this post. In that post, I have indicated that I am bullish only on one type of investment currently — hard asset, and more specifically gold and silver.

Earlier in the month, during the Chinese national holidays of Golden Week, the gold and silver market saw significant pullbacks — thanks to the paper traders and shorts having a field day week. It was a great opportunity for investors like me to load up on some gold/silver equities at a discount. I managed to pull trigger on three such instances. One incremental addition to an existing position and two new stocks for my portfolio.

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