Gold and silver

There's sometimes not much to talk about when we're sitting in Ottawa for six weeks. So don't expect daily updates during this time period. 

Also, I'm sure most of you have noticed that there is some kind of glitch occurring with this blog and you're often getting an error message. 

We've made some changes to try to fix it, but haven't quite figured it out yet. Bear with us!

In the meantime, just for the sake of something to talk about, I wanted to bring up the subject of gold and silver and investing. You might have noticed that both assets are having a great year so far, with gold up about 35% and silver up about 40% year since January 1st.

I'm not an investment advisor, so nowhere here am I giving investment advice. However investing our money and researching how and where to invest it is one of my long time hobbies. And I've been a big believer in the precious metals for a long time. I noticed in 2019 when the price of gold started breaking higher after a long period of doing nothing. And I began researching exactly why this is happening, and came to the conclusion back then that the price of gold is going much higher.

And yet, we do not own any physical gold. (We do own a little silver though). I know that the gold miners are the place to be during a bull market in gold. For every 1% that gold and silver gain, their miners tend to gain 2%-3%. So we have been heavy invested in the gold and silver miners which have done exceptionally well for the last year and a half. But despite this big recent rise, they are still very cheap compared to historical standards. 

In the interests of diversification, we also have a professional investment advisor where we keep some money. The problem is that the professional investment industry is very "60/40". What that means is that the typical standard in that business has people trained to put your money in a mix of 60% stocks and 40% bonds. But the bond market is doing terrible, and I think the general stock market (especially in the U.S.) is hugely overvalued. In fact, last December I instructed him to sell everything and put it in a variety of stable Canadian dividend paying stocks. I may have been early on that call, but I don't care. There is going to be a huge correction that will take years to recover from. I can't guess the timing of that, but it's coming and I don't want to be in it. Of course massive liquidity events like that often take down everything to a certain extent, but at least you want to be in whatever will be affected the least and recover the fastest.

Tomorrow, I will share my favorite junior mining stocks and why they are favorites.

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