Gold and Silver Outshine the Equities Market
Stock markets fell in August across North America and Europe in general. 🙁 But there is a silver lining. Precious metal companies managed to do quite well. A couple of months ago I explained why silver is a great investment for 2019, and how it’s more undervalued than gold. I disclosed buying 300 shares of Wheaton Precious Metals (WPM) in July because I thought the price of silver would continue to rise. Thankfully it did. My net worth today is $2,000 higher because of that one investment decision. 🙂 Hurray!
Besides WPM I also own shares in Newmont Goldcorp (NGT.) If I didn’t have so much silver and gold related assets in my portfolio my net worth surely would have dropped in August. But diversification saved the day and I managed to grow my wealth by $4,100.
Gold had been in the dumps for several years since 2013. Its price dipped to a low of US$ 1060/oz in 2016. However things are looking very different now. Since the start of this year gold’s price has grown by 21%. It’s one of the best performing asset classes of 2019 so far, currently trading at $1548/oz. But silver has performed even better at 24% return year to date. The price of silver had a large rally last week and is now sitting at $19.17/oz. 🙂 Precious metals are making a comeback this year, due to more dovish monetary policies worldwide and the uncertainty of the U.S. and China trade war.
Liquid’s Financial Update
*Side Incomes: = $2,700
- Part time job =$900
- Freelance = $400
- Dividends =$1000
- Interest = $400
*Discretionary Spending: = $2,200
- Food = $400
- Miscellaneous = $300
- Interest expense = $1300
*Net Worth: (ΔMoM)
- Total Assets: = $1,372,600 (+600)
- Cash = $7,600 (+2100)
- Canadian stocks = $189,500 (+300)
- U.S. stocks = $135,300 (-1600)
- U.K. stocks = $20,700 (-800)
- Retirement = $134,800 (+200)
- Mortgage Funds = $36,600
- P2P Lending = $36,100 (+400)
- Home = $367,000 (assessed land value)
- Farms = $445,000
- Total Debts: = $389,700 (-3,500)
- Mortgage = $186,900 (-400)
- Farm Loans = $163,400 (-400)
- Margin Loans = $35,400 (-700)
- Line of Credit = $4,000 (-2000)
*Total Net Worth = $982,900 (+$4,100 / +0.4%)
All numbers are in $CDN at 0.75/USD
I have been an advocate of gold and silver since 2011, suggesting everyone should have at least a little bit of each in their portfolios. The value of my 1 kilogram Arctic coin has held up nicely in Canadian dollars. I have been slowly buying more bullion over the years at lower prices than today and stashing them away.