Monday, August 26, 2013

Growth Portfolio Update: Traded More Oil for Precious Metals

This afternoon I made the following trade in the Growth Port-faux-lio:

This trade is similar to the trade that I made on May 14th which has worked out really well as of today.  CDE and SLW are up 15% and 20% since acquired on May 14th.  CVX is down 4% since then.  The total trade gained about $5,600 which is a gain of $4,600 on CDE and SLW plus avoiding a $1,000 loss on CVX.  

Today's trade is jumping on the bandwagon.  I expect gold prices to break through $1,400 and then gap higher over the next month.  I invested in more PHYS because the trust's premium on gold to net asset value is low.  As gold prices accelerate, the premium should increase as in past rallies which will be icing on the cake.  The port-faux-lio added a small investment in gold miner, Yamana Gold (AUY) in order to get more exposure to gold prices while diversifying from GoldCorp (GG).  

Today's trade moved about 8% of the port-faux-lio's assets from CVX to precious metals.  CVX is now 37% of the total market value, down from 46%

Let's hope this bandwagon is off to the races!

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