Mar 302017
 

Recent Purchase – Yellow Media Ltd

Although most of my investments are in blue-chip dividend paying companies, it can be fun sometimes to speculate on smaller companies as well. It’s kind of a risky play, but I recently picked up 120 shares of Yellow Media (TSE:Y.) I paid on average $8.14 per share, plus commission.

The stock is trading at 0.61 Price/Book ratio, so its net assets are worth more than the company. The forward P/E ratio of 11.8 is also quite attractive. The phone book industry is dying, but Yellow Media is transitioning into the digital world. The reason I decided to buy now is because the company just hired a new CFO and the stock has started to go up again. 🙂 It has greatly reduced its debt over the past several years. Although its print business is suffering, it plans to organically grow its digital revenue between 5% to 8% a year. Yellow Media already owns a lot of online content and gets tons of internet traffic. 🙂

I first came across Yellow Media when I read Nelson’s post on The Fool last month. He analysis appears to be sound. I believe (Y) has potential to come back from its current lows. But it’s far from a guarantee. The stock currently trades at about $8/share. In 1 year from now, Yellow Media stock will either grow to over $12/share (50% gain) or drop to something like $6/share. I’m investing because the upside potential outweighs the possible downside for me.

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Oct 222015
 

Purchasing a 100 Oz Silver Bullion

Gold and silver may not be good investments, but I consider them to be a form of currency because they store financial value that can be easily exchanged for goods, services, or other currencies relatively quickly. 🙂

The idea of sitting on cash to stay safe and secure sounds innocent enough. But that’s only if we isolate the discussion to one domestic country. Today the world economy is more connected than ever before. Due to low commodity prices Canada’s economy isn’t as productive as it once was. This drives down the price of our currency because global investors are less confident in our productivity. Over the last year the Loonie has lost 20% of its value relative to the $US.

This affects Canadian’s ability to trade with other countries because it makes importing goods like fruits and gasoline from the U.S. more expensive. 🙁 However, those who held some silver as a substitute for the Canadian currency during this time would have kept most of their purchasing power. That’s because the price of silver has increased 13% over the past 12 months when priced against the Canadian dollar. 😉

So earlier this week on Tuesday I went out to my local bullion dealer and bought a 100 ounce silver bar for $2,241 CAD. The shape reminds me of an iPhone 6 Plus, except the silver is almost 3 times thicker measuring 2 cm (3/4 inch) thick. And it weighs about 3.11 Kg (6.86 lb,) which is literally 18 times the weight of an iPhone 6 plus, lol. Who needs the gym when you can workout at home with silver? 😛

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This highly purified block of silver was produced by the Royal Canadian Mint. The front of the silver bar shows the RCM signature stamp and the year it was produced (2011,) along with a serial number. The bar is also engraved with the weight of silver in it, and the purity of the metal. 🙂 RCM is known for its quality and its brand is recognized worldwide. There is some clear scratching and general wear on the bullion, but nothing too noticeable. Overall I give this purchase 8/10. 🙂 Great product. A+ experience. Would buy again! After taking some pictures I’ve stored the bullion in my safety deposit box at my bank. I don’t plan to sell it until I retire, or run into some kind of emergency.

Last year I blogged some step by step instructions on how to convert one’s wages into physical silver. This 100 oz bar I purchased represents about 4% of my income for this year. So instead of making 100% of my money in Canadian dollars I’ve essentially divested 4% of cash earnings into precious metals. I’ve also converted about 16% of my income this year into U.S. dollars and bought U.S. stocks. 😀 Diversification isn’t only about asset allocation. It’s about a holistic financial perspective, including currency considerations. 😉

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Apr 232013
 

The Arctic Landscape Silver Coin

Earlier this month I purchased the Canada’s Arctic Landscape 2013 Fine Silver coin. It’s a 1 kilogram (2.2lb) 99.99% silver coin made by the Royal Canadian Mint. It can be bought either on the mint.ca directly, or through one of their third party vendors world wide. Either way, you can expect to pay $2,249.95 CAD.  (^_-) I didn’t have any savings, so I borrowed the money from my line of credit. :0) The coin comes with a custom maple wood box lined with flock, and fits in a black cardboard sleeve to protect the box.

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PRESENTATION

The coin itself, which is inclosed in a transparent plastic case, can be set comfortably inside the linings of the wooden box so they can be displayed together. The craftsmanship on the box is top notch and compliments the coin well.

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DESIGN

The image on the Arctic Landscape coin was designed by Canadian artist W. David Ward. The image represents a highly detailed rendition of the Baffin Island at the mouth of the Northwest Passage. On the obverse side of the coin is a portrait of Queen Elizabeth II designed by Susanna Blunt. At 4 inches wide in diameter the coin looks somewhat smaller than a DVD which is 4.7 inches wide. The coin is roughly half an inch thick. Weighing in at exactly 1,000 grams or roughly 32 troy ounces, it’s aboot 32 times the size and weight of the various 1 oz silver coins that are common in circulation.

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VALUE

Based on current commodity pricing 1 kg of silver should cost no more than $1,000. But the price for this coin is $2,250. Why the premium? Unlike bullion, these rare, authentic, un-circulated coins are specially commissioned, proof finished and have a limited mintage. But is all that worth the extra cost over the spot price of silver? I certainly think so. 🙂 Proofs are minted with special dies that have been chemically treated with acid. Furthermore each coin is struck multiple times to force the silver into all the crevices of the die giving the coin more definition and fidelity. 13_04_arcticsilver4 silver coin review

The result is a gorgeous coin that has a very distinct look and feel that can’t be replicated with normal minting practices. For example, when viewed from certain angles the design appears clean, flat, and almost cell shaded like a painting (see image below.) But when viewed from other angles the contrast of the image becomes more dynamic. The water and sky darkens in contrast to the glacier in the foreground, and the surface feels more 3 dimensional. It’s almost like magic. (゜o゜)  (mouse over image below to see the change.) Furthermore, the light reflecting off this coin appears to have a higher range than what most digital displays can output. Pictures like the ones in this post cannot accurately depict its true beauty. The only way to appreciate a proof coin properly is to see it in person. 😉

Only 750 of these Arctic Landscape coins were minted. So today only 1 in roughly 9.3 million people in the world can own this coin. It will become 1 in every 10 million in the future as the population grows making the coin even more rare. From the ingenuity used to craft this coin to the sheer beauty of its design this is truly a work of art.

VERDICT

This beautifully crafted fine silver coin captures the history, heritage, and magnificence of the Arctic landscape. It’s a symbol of Canadian engineering and artistic talent working together to create something truly brilliant. It’s almost like this coin was just mint to be. 😀 The rare mintage (only 750,) and the globally recognized RCM brand make this coin a must have for any collector or enthusiast. I give this coin a perfect 5 out of 5. Delivered as advertised. A+++ product. Great seller. Would buy from again!