Nov 082014

Precious metals don’t provide a steady stream of income and sometimes require an annual storage fee. However, it could still make sense to invest in them for several reasons. First, the demand for gold in China and India is huge, and central banks all over the world buy them to hedge against political turmoil, hyperinflation, invasion, economic warfare, and environmental disasters – things that can happen at any time. Gold is a proven long-term wealth asset that’s useful when the market is sliding deep into crisis.

Gold is also bought as insurance against fiat currencies. When investors lose confidence in the dollar, gold prices go up and vice versa. Currently the price of gold is wavering at around $1,150 – $1,180 per ounce. Fifty years ago an ounce of gold could be traded for about 13 barrels of crude oil. Back then oil was under $10 U.S. a barrel. Today in 2014 oil costs more than $80 a barrel because the U.S. dollar has lost a lot of value. However an ounce of gold today is still worth about 13 barrels oil. 🙂 People often discuss the strength of one currency against another. But in the long run no fiat currency can keep up with real money and hard assets.


One way investors can get exposure to gold and be paid in precious metal dividends is through physical dividend programs. Dividend programs that involve precious metals allow companies to pay shareholders with physical gold and/or silver rather than cash.

Physical dividend programs usually allow stockholders of participating companies to tailor-fit the dividend payouts. The dividends can be purely precious metals payment, or mixed with cash. Investors may change their dividend payout preference whenever they desire. Endeavor Mining Corporation is one of the mining companies that can pay its investors with physical gold. Neil Woodyer, the company’s CEO, said that paying shareholders with the precious yellow metal is part of Endeavor Mining Corporation’s “crusade in rebuilding investor confidence in the gold sector.”

Physical dividend programs sound interesting. I wonder if there are any companies in Canada that offers it.

Random Useless Fact:

1 ton of discarded cell phones contain more pure gold than 1 ton of newly mined gold ore. (source)

Oct 252012

Read in the local news today that police in metro Vancouver pulled over a car for not having a front license plate. The vehicle turned out to be a 2012 Lamborghini Aventador, which starts at $430,000 Canadian dollars, before taxes. The police soon found out that the 22 year old driver did not have insurance on the car. He was handed a $568 ticket and the Aventador was towed away. (In BC it’s illegal to drive without auto insurance.)

The young driver said he didn’t have enough money to pay for insurance, and complained that the fine was too expensive. I guess the moral of this story is don’t drive without insuring your vehicle. It’s a very irresponsible thing to do and there shouldn’t be any excuse for it. Furthermore, I think driving without a front license place is just asking for attention, I mean cheese and rice, what was he thinking?


But his biggest mistake was not planning ahead financially. He failed to budget by purchasing too much car and not having any money left over to insure it. What he should have done is buy a vehicle under $400,000, and used the extra savings to buy his insurance. Or just forgo luxury cars altogether and buy something more practical. Vancouver is the second most traffic congested city in all of North America. The Aventador’s ability to go from 0 to 60 mph in under 3 seconds might not be very useful around here.

Something tells me that he didn’t earn that car through hard work and sticktoitiveness because if he was bright enough to make that kind of money at his young age then he probably wouldn’t have made those mistakes and gotten his car taken away. Learning about how to legitimately earn, spend, and save money is the only way to properly appreciate the value of it, and respect what you have worked so hard to gain.

Random Useless Fact:  Carolyn Davidson, the creator of the Nike swoosh symbol was initially paid only $35 for her design.