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Thursday, August 18, 2011

Welcome Kinross Gold Corp (K) in my portfolio! Adios, Horizons BetaPro COMEX Silver Bear Plus ETF (HZD)!

It wasn’t a difficult or easy decision to make. However, my decision took place a day after Eric Sprott sells some gold asset to reinvest an amount 30 million in silver. See, Eric Sprott had previously sold silver just before the silver crash (in May or April 2011?, I don’t quite remember despite the fact that I had lived the silver crash because I has some investment in silver...). This time, Eric Sprott recent move in silver mean to me that silver will probably keep gaining value. If it’s the case, my investment in Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) would have continued to lose in value... Since my last portfolio update – that was back in July – HZD had lost in value on a regular basis.

I had been holding Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) for a little while now. I got stuck with the investment following a day trading try out. But I have no regret. I never did some day trading before. I made a little bit of money, it was fun. But with HZD, I got stuck with it. I had been holding trying to sell at profit. But fact is that now than ever, silver is on the road for glory.

I like Eric Sprott very much and if he had sell gold to reinvest in silver, well, too me, it mean a big deal.

I sold previously this morning my 400 units of Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) at 4.72$, for an amount of 1 888$. I lost a bit more than 1 000$. It’s not something I could avoid, I needed to go through this to become a better investor. I don’t feel bad about. I like to share everything I do and this had been a big part of my learning experience. Generally speaking, I made and lost money in the market. No one wants to lose money. I am not in to lose money at all! BUT.. so far, my gains always had exceed my capital loss. This is what I focus more on. And I promised to stop investing once my loss will exceed my gains. I am not afraid of the market. The stock market always been good to me and I want to continue to invest. I took this new direction, to invest in blue chips for the next couple months. I did a good investment in TransCana. My next one will be in CNR. I am confident that overall, my gain will exceed my lost. That’s what, I think, all retail investors have to focus on. Making investment mistakes is no big deal (as long of course that the gain exceeds the lost...). I hope that this will eventually help people out there to realize the danger of day trading.

I know this will sound strange. But it does actually feel good not to hold Horizons BetaPro COMEX Silver Bear Plus ETF (HZD) anymore. I was getting tired of it. So thank you, Eric Sprott for selling gold to reinvest your foundation money in silver. I am grateful.

I reinvested the money in not a blue chips, but in something that could help me to rebound from my 1k loss: Kinross Gold Corp (K). I purchased more than 100 stocks at 16.58$. Currently, K trade at 16.36$. I didn’t want to reinvest in PHS.U because its trade in US money. I didn’t want to invest in something I already have. K is being well ranked by analyst, so I taught about giving it a chance to save me. Of course, a 1k gains won’t happen overnight. Especially in this market condition. I am responsible for my bad investments. I am happy of my move. Holding HZD was getting depressing. I am about to turn 31 soon and I want to celebrate while only holding good stuff in my portfolio.

Also, K will pay a dividend in September, for which I qualify. Also, I did not want to sell part of my First Majestic Silver Corp (FR) stocks to invest in Kinross Gold Corp (K). I really like FR. It’s the purest silver producer of Canada. Latest quarter results were really great. I mean, no, I wanted to continue to hold FR for now.

And as always, we’ll see how it goes!


ovidet said...


Nice blog and the concept behind it is quite interesting. Just want to make a quick comment. Since you do have a good number of basic materials and energy stock in your portfolio it might be a good idea to hold some of the Horizon Silver/Gold Bear ETFs for hedging purposes. You do have to keep in mind that some of them like HZD are 2X the performance of the underlying futures they track so the swing can be fairly large.


Rob said...

Hi Sunny:

Glad you dumped HZD. However this post is more to Frank's comment about leveraged ETF's.

What he says isn't entirely accurate. A bigger factor is whether the ETF commodity is in contango or backwardation. Contango is when the futures contracts are higher than the spot price. Backwardation is when the futures contracts are lower than the spot price.

Leveraged ETF's try to attain the leverage by rolling over futures contracts. With silver in backwardation, they are rolling over contracts at a lower futures price which means you will actually get higher than 2X. There is no degradation at all.

When silver goes back to 50 (and I am sure it will), I will actually get higher than 2X.

You were getting the worst of both worlds with HZD. On the wrong end of the primary trend in silver and also backwardation. When playing a bear ETF, you want it to be in contango so you are rolling over into a higher price which you want to go down.

Sunny said...

Hi Ovi,

I had, I believe, previously trade HZD or another one of that type. I actively trade silver under all his forms a couple of weeks ago... I like my PHS.U and the American how. These silver ETF are appealing, but volatile. Anyhow, this is it for now.

Hi Rob,

I am very glade with my move today. I feel much better and I am confident K will be performing well.

Thanks for your contribution.

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.

Sunny said...

I got your idea.

You are sharing your view I had shared mine.

There's a different between gold and being a gold producer. I don't mind giving Kinross Gold Corp a chance.

It had recently (and not 6 months ago) received very good analyst review. So why not try K.

When silver was down a couple a months ago, FR was doing well (silver mine company). The mine and the metal are related, but it's not because the metal is down that the metal producer us down too. Gold will always remains a seek haven. It's always been. At a point, we may assist the same thing for gold that we had see for silver. A crash, but silver did went up again isn't? PHS.U is a killer performer. In case of a gold crash, the same thing will happen.

But once again, to be careful on the different between the metal value and the producer. I read some informative info about the topic and it all make a great deal of sense to me.

My investment in K make a great deal of sense to me.

But as said, we'll see how it goes.

And if I had to declared bankruptcy and loose too much money, you'll see myself stripping my gorgeous me almost 31 somewhere on St-Catherine St. That's all...

It's going to be just fine.. :0)))))

paul said...

Kinross down 4% and Gold going down a good 30 dollars, silver down too! Once market recover, precious metals and any companies that is dealing heavily in gold and silver will go down... The only way to win is the markets tank some more, but this will affect 90% of the portfolio though...

Good luck...

Sunny said...

Kinross may be down of 4%, but at 16.87$, it still exceed my price of purchase. FR is exceeding its original price of purchase too - it's exceeding the 22$ per stock! That,s very good! PHS.UN is still exceeding the 19$ per unit... I mean come on.

I do not only hold gold and silver stuff in my portfolio anyway.

The market is about volatility. If you cannot handle it, simply don't invest. This is a usual market volatility. We are not facing a silver or gold crash at this time. Not at all.

And see, right now, my non-registered portfolio is at 107 851.23$.

Who rock now?

Anonymous said...

What you did is buy a gold stock while gold is at a high instead of waiting for a pullback in gold. Same mistake done with TRP. Whether or not it's trading higher is pointless as it can lose all those profit in a matter of time. The only smart thing we can do is buy a stock when there's a market correction and pay the best price possible. If you don't wait for corrections, you get stocks like NFI, DG.UN and sprott in 2008 that loses half their value. Then you have to wait years for it to reach your cost. This means you held it for years for nothing, so why the rush to buy. All the stocks that you are doing good is because they where bought after the market correction in 2008.

I agree that Kinross should do well but if we have a gold correction which I believe we will, gold stocks will trade lower before going higher as we witnessed yesterday.

Sunny said...

I don't exactly agree with you. I don't understand that willingness to really push me down like that. There's a couple of things you need to get to understand. I purchase TRP when it was at less than 40$. Currently, TRP trade at 41.63$.

My silver investment are currently up. PHS.U is exceeding the 19$ per unit. FR is exceeding the 21$ per stock, I had purchased my stocks at a bit more than 19$... I guess that really piss you off right?

So what you are saying is incorrect. I am rocking all the way. At least with those.

As it comes to SII, DGI.UN, NFI, those are huge dividend payers. SII had been part of my portfolio since 2008. DGI.UN got lower under the impulsion of a stock analyst fool Jeff Parent. If some investors are stupid enough to follow what an idiot of Quebecker has to say about the stock market, it's not my problem. I stick to DGI.UN, its one of my best dividend payer. As for NFI, the restructuring is paying me big in dividend. I am waiting more than 100$ from NFI this September. Those are investments I made because of the return in dividend.

And in September, watch me cashing in 50$ per stock when the Maple Group deal go through.

As for K, its trade at 16.85$,much more than what I had paid for my stocks...


Learn to manage your own business before attacking my now perfect portfolio.

Anonymous said...

You know what's nice about a blog. You have a record of everything. Guess that portfolio wasn't so perfect after all.


Thank you

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