A couple of hours passed since I had sell Horizons BetaPro COMEX Silver Bear Plus ETF (HZD). I do not regret my decision for all the reasons I had explained previously. No regret. Just a release. It feels very great now, despite the fact that I had experiment a capital loss by selling HZD. But the time had come, especially following the move of you know who in you know what.
The TSX losing a great deal of points today. Here are the data for August 18:
Non-registered portfolio value: 107 538$
Money used on margin: 43 524.99$
Money left on margin: 17 129.79$
I am aware the situation could deteriorate. Japan just got hit by another earthquake. Euro zone markets and Asian ones as well had lost again points. Probably today opening will be as ugly as yesterday. I focus on the possibility that things will eventually get better. As long my portfolio don’t get liquidate over a margin call, as long everything remains the same, as long I continue to cash the same good dividend income well, on that case, all the chances of the world will be on my side. I am very curious about how things are going to be for the market opening so if you don’t mind, I am going to bed now :0)
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4 comments:
Hi Sunny:
I feel I must respond to two comments I saw on your blog by "high on dividends". Completely wrong on everything.
High On Dividends said
Since gold is about to crash, so will your K! Just like HZD.
You are way too late to the gold game.....Sorry, but it is true. about 6 months too late. It has nowhere to go but down.
My response - First of all, the gold price has moved up 20% in one month. Is it possible it could correct 10 or 15%? Of course. That is why Sprott moved from gold to silver where the fundamentals at this time look much better. But gold is in a bull market and if it does correct, it gives you a chance to get in at a lower price.
Even if gold corrects, Kinross will not crash. While the gold price is up over 30% this year, the gold shares have really lagged and are actually down from where they were 6 months ago. So you are buying low and will be well rewarded.
K is nothing like HZD. HZD is a bear silver fund which is a bad investment but Kinross is an undervalued gold fund that has been consolidating after purchasing Red Back Mining.
Everyone has a friend like "High On Dividends" We call them the Kiss of Death. As soon as they open their mouth, you know you should do exactly the opposite of what they say.
As a side point, you saved yourself hundreds of dollars with that one trade a day ago.
On friday, Kinross was up 2.5% and HZD was down almost 10%. In fact, the gold shares were the only thing on friday propping the market up while everything else tanked.
Hi Rob,
Some who post here think they know it all. I recognize good advices from the bad ones. And what that high on dividend post was wrong, I reply to him trying to make him or she understand...
I sell HZD because Sprott just recently invested massively in silver. It was clear for me its a signal that silver will continue to gain in value. Back in the days, Sprott has sell silver just before the silver crash. Perfect timing! What a genius! Sprott not always right on things (like that Timminco (TIM) disaster...) but I believe in his skills and take what he does very seriously.
I did the right things by selling HZD even if I had lost 1k. I had lost 1k,but I had money left from HZD to invest in K. If I would have continue to hold HZD, I could have lost more than 1k. If I focus a part of my portfolio on silver and gold as I am doing now, I have great chances to recover very easily from that 1k lost.
I know the difference between the value of gold and silver and the value of their producer (the mines). When silver crash, I read some interesting stuff about the fact that even if silver crash, mines value stocks won't, because they are producer and even if silver/gold value crash, they both remains a necessity, especially silver, as I know now for having reading Sprott very very carefully and other guys. That's why I had invested in FR and the investment doing very well.
I don't have to argue or explain myself and keep repeating the same info for readers like high on dividend and other. For retail investors like myself, it's important to listen to the moment. Do I regret my move of selling HZD No because HZD finished Friday session even lower... And K was among Friday top performer... As you said, the stats are there to support my move.
My sell of HZD was just like YLO: a necessity. I learn from my mistake of TIM, I now take action when I need to and never hesitate to sell when it time. It was time for me to sell HZD and I felt so much better after.
I like my newest investment in K, it bring gold in my non-registered portfolio.
Thanks Rob for supporting my actions :0)
The reason why I am saying that your move is a bad one is because gold is at historic highs - non-inflation indexed -
Gold producers lag actual price of gold. What do you think will happen to the profitability and value of gold producers when, not if, gold tanks? They will crash! Just my opinion, based on history. NO, this time is not different. You are too late to make money on gold producers, and gold itself.
If I am wrong, maybe Rob can enlighten us on how really well the average gold producer's shares fared last time gold crashed? maybe he knows something I do not. I would like to know. :)
History will just repeat itself. No magic there. Gold bulls like Rob, if they do not react very fast, wiill get that kiss of death, and my point will be proven. This last point is a fact.
Your quote
"Some who post here think they know it all. I recognize good advices from the bad ones. And what that high on dividend post was wrong, I reply to him trying to make him or she understand...
I sell HZD because Sprott just recently invested massively in silver. It was clear for me its a signal that silver will continue to gain in value."
Guess you where both wrong...
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