A new way to invest in gold: the Claymore Gold Bullion EFT (CGL)

This Friday, we invested in 200 stocks of Claymore Gold Bullion EFT (CGL). Curious about Claymore Gold Bullion EFT? So am I. Just the world “gold bullion” is kind of catchy. Very attractive and fascinating Claymore Gold Bullion EFT.

More about Claymore Gold Bullion EFT (CGL)

Since May 28, 2009, Claymore provides the chance for investors to have exposure in gold bullion through the Claymore Gold Bullion Trust (CGL.UN). These being done without the high transaction and insurance fee, the handling, storage those are normally associated to gold bullion. While purchasing Claymore Gold Bullion EFT (CGL), if you wonder where in the world is being stored the “physical gold”, well, it’s being stored in the vaults of ScotiaMocatta, a division of the Bank of Nova Scotia. So your gold will be store in a safe place lol.

Ok, so back in 2009, the Claymore Gold Bullion was a Trust, a closed-end fund, which means an .UN investment like we like to name them. At the time, the initial public offering was at $10 per unit, for a total offer of 40,000,000 units. The investment was pretty affordable and basically everyone who had an interest in Claymore Investments and in Gold could invest in the Claymore Gold Bullion Trust. And this is exactly what we like the most about this financial product: its accessibility, not to name also its participation in gold itself. Pretty interesting stuff!

In January 2010, with $816-million under its belt, the Claymore Gold Bullion became an exchange-traded fund (EFT). We never personally invested in an exchange-traded fund before. So let’s hear the experts, see what Claymore Investments had to say regarding EFT: “An ETF is an investment fund that trades throughout the day on stock exchanges during normal trading hours. ETFs combine the advantages of investing in index funds, including diversification and low costs, coupled with the liquidity and flexibility of investing in individual stocks. ETFs offer investors many advantages over other investment vehicles, including enhanced tax efficiency, all day liquidity and complete transparency. ETFs are designed to closely track the holdings and performance of their designated index, whose selection methodology can be either passive or strategic.” Interesting, isn’t?

So the Claymore Gold Bullion changed from Claymore Gold Bullion Trust (CGL.UN) to Claymore Gold Bullion ETF. The hedged common units of the fund than began to be trade on the Toronto Stock Exchange (TSX) under CGL. At the time, it’s seemed like Claymore Investments wanted to make the trading easier for its new gold bullion product. The fact that the Claymore Gold Bullion change from Claymore Gold Bullion Trust (CGL.UN) to Claymore Gold Bullion ETF (CGL) didn’t changed, according to Som Seif, President of Claymore Investments, and the investment objective or investment restrictions of the fund. The name had changes, but it’s always the same good “gold bullion” product. Also, Claymore Gold Bullion EFT (CGL) is the very first physical gold bullion of Canadian ETFs.

This meaning that investors can now invest in Claymore Gold Bullion ETF (CGL) in the same way they invest in stocks over the Toronto Stock Exchange (TSX). Commission fees required by online brokers are the same for EFT as for stocks. Which mean that if like myself, you are a small investor who trade through T D Waterhouse, you will pay 29$ in commission fee in order to make the acquisition of some Claymore Gold Bullion ETF units, not to call them stocks. They are being trade like stocks, but they are not stocks, they are pieces of the reconstitution of an index and, more specifically in this case of the value of gold bullion. Simple and easy as 1-2-3. And good news for small investors likes us: the management fee for the Claymore Gold Bullion is only of 0.50%! Also, just like other stocks, it’s possible to listed options on the Claymore Gold Bullion ETF. This feature had been added on February 19, 2010, for the greatest pleasure of investors.

Investing in EFT allow small investors like ourselves to take advantage of the TSX without assuming all the risks. A large part of our investment portfolio is invested in stocks and units trade on the TSX. So we appreciate the qualities our newest Claymore Gold Bullion ETF acquisition. But be aware, EFT investments are not guaranteed investments. EFT investments are not risk-free investment, but an EFT like the Claymore Gold Bullion EFT can certainly bring a certain stability to an investment portfolio. We could see the EFT a bit like mutual funds, but without the high fees. The Claymore Gold Bullion ETF (CGL) is eligible for registered plans like RRSP, RRIF, RESP, DPSP and TFSA, and also non registered plan.

The Claymore Gold Bullion ETF (CGL) completes our RSP investment acquisitions of today. Earlier this morning, we purchased 200 units of Claymore Gold Bullion ETF (CGL). We pay 10.14$ per units. But here’s your change for purchase Claymore Gold Bullion ETF (CGL) at a cheaper price on Monday maybe, at the opening, since the Claymore Gold Bullion ETF close today at 9.99$. Like other financial products and stocks and units, Claymore Gold Bullion ETF has to face the market volatibility. But good news, no matter what, Claymore Gold Bullion ETF value remains relatively stable. Claymore Gold Bullion ETF lowest value since inspection had been of 9.99$ and the highest had been 10.75$. We add today the Claymore Gold Bullion ETF (CGL) thinking this investment could possibly add value to our investment portfolio. We will follow the progression of our Claymore Gold Bullion ETF (CGL) investment in the next couple of months.

Welcome Claymore, 200 new stocks of Claymore Gold Bullion ETF (CGL) in my RSP investment portfolio

Busy morning, isn't?

Our non RSP stocks and units investment portfolio is currently at 43 650.38$. Pretty strong morning at the TSX.

I also invested this morning in 200 stocks of Claymore Gold Bullion ETF (CGL). I really wanted to make this purchase ASAP! I purchase 200 stocks at 10.16$. I could had wait, since gold goes up and down all the time... But I wanted Claymore right away! Right now!!!! Gold investment is cool.

So..............

Welcome dear Claymore Gold Bullion ETF (CGL) in our investment portfolio!

Welcome EnCana, 100 new stocks of EnCana Corporation (ECA) in my RSP investment portfolio

I did a pretty good deal on this one. I purchased 100 stocks of EnCana Corporation (ECA) at 32.01$! I saw the price of EnCana Corporation (ECA) loosing value. So I set up a purchase order at the maximum price of 32.01$... And it went through! This is a good investment, even if the dividend is a bit low.

EnCana Corporation (ECA), welcome in our portfolio! :)

Welcome Emera, 200 new stocks of Emera Incorporated (EMA) in my RSP investment portfolio

This is it! I just invested in 200 stocks of Emera Incorporated (EMA). The 200 stocks were purchased in 2 blocks of 100 stocks. Don't ask me why. First block was purchased at 24.60$. The second one at 24.61$. Yeah!

Welcome Emera Incorporated (EMA) in our investment portfolio!

My RSP investments for the fiscal year of 2009

Today, something extraordinary happen: Yellow Pages Income Fund (YLO.UN) had exceeded the 6$ per stock! Yellow Pages close the day at 6.03$! That’s very good for our investment portfolio. Also, the fabulous Just Energy Income Fund (JE.UN) who finish the day at an extraordinary 14.28$! Way to go Just Energy Income Fund (JE.UN)!

Also, what I had been waiting for had finally happen: the 10 500$ from my RSP saving account got transferred into my online broker account. The money is there, just waiting for me to take some actions. So new trades are among the way. Very exciting!

We are looking forward to make some new investments. In a way, 10 500$ is not that much money, but it will certainly calm our appetite for trading for a good month or 2…

We previously discuss about the investment we would like to make. We had removed (PM) from the list. Not that PM does not represent a good investment, but fact is, PM seems to be volatile and we are greatly in need of stability and grow in our investment portfolio. Don’t forget about 100 000.00$ assets goal!

A little while ago, I discover Emera Inc. (EMA) by reading a fantastic blog: Money Energy. The blog is full of investment ideas. Since I am from New Brunswick, I always like to invest in Maritimes stocks. And Emera Inc. (EMA) is quite interesting. Pretty stable company. I like Emera. I wanted add on to my portfolio for a very long time now! So here it comes:

Emera Inc. (EMA)
Number of stock: 200
Investment value: 4 920$ + commission fee of 29$ = 4 949$
Annual dividend earning: 226.40$

This one coming from Derek Foster (Stop Working Too: You Still Can!):

EnCana Corporation (ECA)
Number of stock: 100
Investment value: 3 212$ + 29$ = 3 241$
Annual dividend earning: 80$

We now have 2 310$ left. What are we going to do with it? The magic word: GOLD. This next investment won’t pay any dividend, but it will certainly bring great stability to our investment portfolio. I never invested in gold before, so this is pretty exciting:

Claymore Gold Bullion ETF (CGL)
Number of stock: 200
Investment value: 2 028$ + 29$ = 2 057$

So this is probably what’s going to happen!

As you can see, not too much in dividend, but I acquire 2 companies I wanted for a long time and I think I am doing good investments. And that Claymore Gold Bullion is probably going to rock the house!

So those are for my RSP investment. I didn’t place any purchase order yet. I am over-excited. Gonna wait until tomorrow early morning.

Oh no! Pembina Pipeline Income Fund (PIF.UN) cancels its DRIP!

Believe it or not, I call 2 times my broker for the following reason: the dividend earned this month of Pembina Pipeline Income Fund (PIF.UN) didn’t DRIP! How come? The money was lying there in cash in my broker account. I wait almost the whole week and nothing, no DRIP! Awful!

But in 2 times, my broker had no idea of what was going on! The answer I got was something meaning: if it didn’t DRIP, its mean there’s no DRIP. Whatever! But you have to know that in the meantime, I had cancelled my DRIP because I taught I was going to transfer everything at iTrade and I didn’t want any transfer problem among the way. So I left my DRIP cancelled for about 2 weeks or so. Once my RSP loan got refused at Bank of Scotia (BNS), I decide to stay with my current broker because hey, business is business. So I really taught it was because my DRIP had been removed that my dividend of Pembina didn’t DRIP. But this wasn’t the real reason at all! The main reason being that Pembina cancel it’s DRIP! This is a nightmare!

Ok, you might tell yourself: calm down, it’s only a DRIP! Yeah, your kind of right. But did you know: 1 unit of Pembina Pipeline Income Fund (PIF.UN) = 1.56$ in annual dividend? This month, a DRIP would have provided me at least 2 brand new units! And 2 brand new units = 3.12$ in annual dividend money! See where I am coming from?

Anyhow, there will be no more extra unit of Pembina Pipeline Income Fund (PIF.UN) because the company decides to cancel its DRIP program. Kind of sad for us who worked so hard at building a strong investment portfolio. But good news: Pembina Pipeline Income Fund had confirmed a 1.56$ dividend per unit until 2013. It’s very good news for investor. Ok, this means that no dividend increase is being plan for PIF.UN until 2013. But 2013 is just in 3 years from now. And at a 1.56$ annual dividend, PIF.UN is a generous dividend payers. So when it comes to Pembina Pipeline Income Fund (PIF.UN), it’s definitively a hold for me.