Recent Buy – Silver Wheaton Corp

This will be another quick update on my recent purchase. As most are aware, its been a bloodbath in the precious metals space after the interest rate raise. The raise was almost 100% guaranteed, and continued strength in the US$ was also guaranteed. So I was waiting for this event to unfold before I made the next purchase in the precious metals space.

Thanks to a more hawkish note from the Fed — that they will raise interest rates 3 times next year (we’ll see if there is any weight to that…since they also promised us 4 raises this year); there was increased volatility and we saw a mini-correction in bond substitutes such as REITs and precious metals as the US$ surged. The DXY reached a high of 103 post-announcement.

Watching the bloodbath all day, it was too hard to pass up on the opportunity and I decided to buy and add to my Silver Wheaton Corp (SLW) position after it fell 9% on the day.

I bought 100 shares of Silver Wheaton Corp (SLW) at US$17.00. This purchase adds US$24 to my forward dividend income.

However, I decided to use my US$ in the investment account instead of the CAD$, so I have both SLW and SLW.TO currently — but for the most post, I will treat them as the same on this blog going forward.

Silver continues to languish and is currently hovering at the $15-16 handle, which I believe is an extremely attractive price for this chameleon metal — which acts both as a precious metal and as an industrial metal. To read more about the company itself, I will simply link to my original post where I profiled Silver Wheaton.

Recent Buy – Silver Wheaton Corp

Have you made any moves post-rate raise? Share your thoughts below.

2 Recent Buys – SLW, VWOB

A quick update on a couple of recent purchases in my portfolio. Things have been busy, so this post is a couple of weeks late…but better late than never.

Silver Wheaton Corp (SLW.TO) – added 50 shares @ C$28.50…which it turns out I was too early to pull the trigger. I still see tremendous value and will continue nibbling although I am getting close to a full position on this stock. Not much has changed…the business is sound and the fundamentals are fantastic. In addition, the company announced a great quarter earlier this month followed by a dividend increase of 20% (forward yield is just a shade under 1%). You can read about my original SLW purchase here.

Vanguard Emerging Markets Govt Bond ETF (VWOB) – Ive been interested in emerging market bonds for a while (see this post from May 2015) and finally decided to initiate a position. The fund gives me an exposure to emerging market sovereign bond market and pays approx 4.4% in fixed income going forward. This is only a very tiny position of a few hundred dollars for now as I dip my toes and think more about this position before committing more capital.

Disclosure: Full list of holdings can be found here.

 

Recent Buy – Silver Wheaton Corp

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 pack of DGI 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 sector currently — the resource/materials sector, and more specifically gold and silver.

As part of my first moves, I had initiated positions in two silver-focused companies — a streaming company: Silver Wheaton Corp (SLW.TO) and a mining company: Pan American Silver Corp (PAA.TO). Unless you’ve been living under a rock, I’m sure you have noticed the meteoric rise in silver over the first half of the year. Silver still continues to perform very well and still presents the best investment outlook compared to other options. I reinforced my position by adding more shares last week.

I added to my position in Silver Wheaton Corp (SLW.TO) with 50 shares @ C$31.50. The company yields 0.8% adding US$10 to my annual passive income. Nothing to write home about. But as I mentioned in earlier posts, this move is not about dividends.

I usually present my thesis on why I bought a particular investment security and present the risks associated in the Recent Buys posts. In this case, I will simply link to my last post on Silver Wheaton purchase as nothing has changed as far as the outlook goes since my last purchase.

Recent Buy – Silver Wheaton Corp

Full Disclosure: Long PAA.TO, SLW.TO. My full list of holdings can be found here.

Recent Buy – Silver Wheaton Corp

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.

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