Wednesday, January 11, 2017

Recent Buy – Silver Wheaton Corp

This will be another quick update on my recent purchase. As most are aware, its been a bloodbath in the precious metals space after the interest rate raise. The raise was almost 100% guaranteed, and continued strength in the US$ was also guaranteed. So I was waiting for this event to unfold before I made the next purchase in the precious metals space.

Thanks to a more hawkish note from the Fed — that they will raise interest rates 3 times next year (we’ll see if there is any weight to that…since they also promised us 4 raises this year); there was increased volatility and we saw a mini-correction in bond substitutes such as REITs and precious metals as the US$ surged. The DXY reached a high of 103 post-announcement.

Watching the bloodbath all day, it was too hard to pass up on the opportunity and I decided to buy and add to my Silver Wheaton Corp (SLW) position after it fell 9% on the day.

I bought 100 shares of Silver Wheaton Corp (SLW) at US$17.00. This purchase adds US$24 to my forward dividend income.

However, I decided to use my US$ in the investment account instead of the CAD$, so I have both SLW and SLW.TO currently — but for the most post, I will treat them as the same on this blog going forward.
Silver continues to languish and is currently hovering at the $15-16 handle, which I believe is an extremely attractive price for this chameleon metal — which acts both as a precious metal and as an industrial metal. To read more about the company itself, I will simply link to my original post where I profiled Silver Wheaton.

Have you made any moves post-rate raise? Share your thoughts below.

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