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Saturday, April 30, 2011

Welcome in the house, Sprott Physical Silver Trust ET (PSLV)!

This last Friday, while Prince William was marrying Kate Middleton, I made my first investment in UD dollars! I could not simply ignore the opportunity very much longer. At this time, the Canadian dollars worth more than the US dollars. Never of my life would have thought such thing possible. I proceed with 2 transfers of 1 000$ Canadian dollars in US ones. People had different opinions on this, but personally, I don’t think it this will last for very long. Maybe for a couple of weeks, maybe months, but not for years. But this being my personal opinion of course. Anyhow, when a good opportunity present itself, better to jump on it! And here I am, holding more than 2 000$ in US dollars!

On April 28 (sorry I couldn’t post in real time, but I had been quite busy!), I proceed with my first transfer of 1 000$ CAN into US dollars. The rate was excellent, 0.966, which provide me a very good 1 035.20$ US. On April 29, 2011, I proceed with a second transfers of 1 000$. That time, the rate was of 0.9679, giving me a good 1 033.16$ US, for a total of 2 068.36$ US. Just by transferring some Canadian dollars in US ones, right there, my initial 2 000$ CAN gain an immediate 3.418%! The 68.36$ gain is enough to cover 6 commission fees of 9.99$ at TD Waterhouse. I am still with TD Waterhouse despite some difficulties I had go through with them, but despite all, I will later on explain why I decide to stay with them.

Ok, I know 2 068.36$ US is not that much of money, but this is exactly how this portfolio of mine got built up, by trench of thousands of dollars. On Friday, I invested all the money I could in units of Sprott Physical Silver Trust ET (PSLV). I had been investing in the Sprott Physical Silver Trust UTS (PHS.U-TMX) since November 2010, selling-buying, selling-buying on a regular basis until one day in February 2011, where I had to faced some major currency problems that make me lost close to 300$ in profit. Since that time, I decided to hold the fantastic Sprott Physical Silver Trust UTS (PHS.U-TMX) inside register account only. That’s how I hold some units of Sprott Physical Silver Trust UTS (PHS.U-TMX) in my RRSP and TFSA.

From now on, I will be able to trade the Sprott Physical Silver just the way I use to do, without having to deal with some complicated currency problem. I still do not get why the Sprott Physical Silver Trust UTS (PHS.U) trade in US dollars while being listed to the TMX but hey, that’s how it is. Now is better because I finally hold US dollars and I finally hold the Sprott Physical Silver in his original currency.

The Sprott Physical is really that awesome. It’s something all small investors should go crazy about! Since November 2010, I had a terrific experience with the Sprott Physical Silver. Being able to make good gain on a short basis had been quite an experience. I don’t like oil investment, but whenever it come to make quick gain on silver, I feel more than comfortable with that.

Oil vs silver

From my experience, silver is much more stable in value than what oil is. Sprott Physical Silver Trust UTS (PHS.U) unit value is stable and did not stop growing since November 2010. And I don’t think it’s about to stop anytime soon. The Sprott Physical Silver match my investment way perfectly well because its value is strong and the title, in both Canadian and US market, is not volatile. With oil, it’s totally different. I find oil investment particularly hard to follow and I don’t like it. I don’t like it at all actually.

My goal with my investment in the Sprott Physical Silver Trust ET (PSLV) is quite simple and straight forward: I want to see my investment double in value. From a 2 000$US+ I want a 4 000$US. I am not setting up a specific time frame, but this may happen within the next 3 months or so. I don’t care if it takes longer (or less)... lol... But knowing myself, I may be tempted to sell among the way, just for self-satisfaction. We’ll see what happen.

In his latest book The Idiot Millionaire, despite his bad pick with Power Financial Corporation (PWF) Derek Foster (no, Derek foster is certainly not perfect lol...) has come with some awesome US stock picks. But if Derek Foster is not enough for you as it is for me, Susan Brunner had recently post something interesting about something name Barclays Bank (BCS). Good timing isn’t? This mean that I really have to invest in Barclays, at least a couple of stocks, just for the heck of it. I had been thinking about Yahoo! stocks too.

I have to say, it’s quite tempting to take what I own in US dollars and invest it in 6 different companies (as a symbol of the 68.36$US made in profit just by transferring of currency...). No need to diversify that much a small amount of money (2 000$US), but I find the concept quite interesting, and also, to hold some US companies would just add in diversification. But that may not happen for now because the money is in the Sprott Silver and I can’t wait to see the results.

Believe it or not, my investment in the Sprott Physical Silver Trust ET (PSLV) had bring in a US margin of 1 029.32$. Which mean that I have available 1 029.32$ to invest... or go shopping with in New York. It’s one or the other. However, I don’t plan to invest using US margin money. At this point, I had reached my loan limit. Some TD branches are open on Sunday, so I may try to locate one tomorrow to make a deposit. I currently have a 1 300$ available and I want to make a deposit on my Canadian margin account. I am at more than 37$k on my Canadian margin. I only have left a bit more than 25 000$ available. But good news being that I have a 5 000$ available on my credit line that I can transfer over at anytime in case of a bad market condition. It could sound like a catastrophic plan, but I am aware i had reached my limit and I don’t plan to go deeper into my Canadian margin usage. I even taught about selling my TD and YLO stocks, but no serious selling plan yet had been made. Until the US dollars gain its original value, I plan to transfer all of my saving in US dollars. I hope to build a nice US portfolio by the time I am hitting 31... in August. Watch out because the spring is going to be HOT. Get rich or died trying.


Ron said...

Seems your timing might be off, looks like Eric Sprott sold is 1.6 million trust unit at around 21$.

Sunny said...

I like the investor, but its not like I am following his every move. It's not because his selling his units that it mean that silver is over. Maybe his planning a house purchase lol... The guy is retiring soon.

Anyway, good timing or not, I was quite happy to invest in the Sprott silver in US dollars that last Friday. I have many other investment project in US dollars on the way.

The Mad Ape said...

@ Don yeah but you are only telling half the story and parroting what the mainstream crooks are preaching. Truth be known, Eric sold it and reinvested every cent into undervalued silver equities.

Sprott is the real deal but I recommended selling PSLV on my blog over a week ago when it was at 21 and change. Easy money because I saw the Jackals moving in for an onslaught with their fraudulent trading that began Sunday evening when the Asian markets opened. This war on paper silver is continuing and all that I can say is that PSLV and PHS.U are quickly reaching the point of being undervalued too.

The reason this paper war is happening is because COMEX can deliver phyiscal to contract holders and they are trying to scare people into parting with their physical.

Sorry...ain't gonna work. They can mess with the paper all that they want but at the end of the day markets forces will push silver past $100.

Because of outside influences people can lose with solid ETF's like that from Sprott thus not making quite as attractive as physical.

Bottom line is buy the dip and you will do good and sink these financial terrorists!

The Mad Ape said...

Hey Dividend Girl...I just noticed that you are a fellow NBer.

Maybe you should move back here and we can take over this province and put the Casino Gulag out of business!

Sunny said...

Hi Mad Ape,

I visit your blog, its look nice! I had invested in sprott Silver since November 2010 and it pay off. I was real excited about invetsing in the Us one. But now it look like the title lost in value. I am still holding for now.

Thanks for visiting, fellow NewBee.

Ron said...

As for not saying the whole truth about Sprott reinvesting in other silver equities, it wasn't known when I wrote the comment. But it also shows that he didn't see as much upside on his own ETF's.

I am not a fan of silver or gold as I don't believe all the gloom that everybody else is saying. If the US defaults on their debts, they're won't be nowhere to hide on this market silver and gold included. We've seen this during the financial crisis in 2008, everything went down.

Sunny said...

Wow. I just cannot believe what I had read. It's seem to be you are loosing yourself. Keep in mind that Eric Sprott is an institutional investor. That's why I do not follow him on his moves.

My first stock purchase was of Sprott Inc. (SII) in 2008. So when it come Eric Sprott, I almost saw it all (but only from the day his company became public of course). It's about having confident or not. I hold Sprott Inc. (SII), Sprott Silver in his 2 currencies and the Sprott Canadian Equity Fund. What can I say more? Do I trust Eric Sprott and his firm? I certainly do.

Eric Sprott is working at building his empire. Investing in companies his what he does for a living. As a small investor, you and me, the best thing we have to do to benefit from silver is to invest in PSLV and PHS.U. You can invest in silver companies if you want, but it will be more risky.

Following fantastic gains, nothing better than volatility to keep it down to earth. Appreciate the moment, and PSLV and PHS.U will go up again - one day :0)


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