- Okay, so my recent video
on why I'm selling my physical silver
got a ton of attention.
In fact, it is now one of the top 10 videos on this channel
and it has more dislikes on a single video
than the entire rest of my videos combined.
In fact, it also has 200 comments ranging everything
from people who totally disagree
with me selling my physical silver
to the one guy who completely disagrees
with the kid from Phantom Menace as an adult, that's me.
And it's really odd because for some reason
the people who think, that they should be buying
physical gold and silver
tend to search for the term on YouTube.
Should I buy physical gold and silver?
Which begs the question?
If you're so certain
that you should be buying physical gold and silver
why are you searching for videos
that tell you that you should?
Anyways this videos isn't all about slamming the silver
and gold stackers because I do believe
that there are people that should be buying physical gold
and silver, primarily because they like it
and they enjoy it and if that's you,
awesome, all the power to you.
This video is not for you.
This video is for the people who don't think
that golden and silver is gonna save them
from the coming apocalypse.
But who do see value in holding it in their portfolio?
And today I'm gonna show you
how to buy gold and silver ETFs so that you can hold this
as part of your portfolio.
And also show you a really simple strategy
for knowing when you should buy and sell it.
But before we get into it, do me that favor,
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Okay, so even though I don't think that buying physical gold
and silver is right for me anymore,
I am a subscriber to the Ray Dalio portfolio style
where you have a balanced portfolio of different assets.
And that includes up to 5% of gold and silver.
And in my case, I also have recently added Bitcoin
to that section of my portfolio because Bitcoin, gold,
and silver are all assets that are definitely hedges
against the dollar and against a devaluing dollar
but are also assets that don't necessarily earn an income.
So they're a small portion of my portfolio
that I'm absolutely investing in.
However, they are just that a very small portion
of my portfolio that is a hedge against inflation.
That's it and because this is a portion of my portfolio
that I wanna be able to rebalance easily
and wanna maintain as a small portion of my portfolio.
I've chosen to use ETFs as my method
for investing in gold and silver.
And the way I do that is through Questrade
because Questrade is absolutely awesome
in the fact that you can purchase ETFs for free.
By the way, if you wanna get $50
in free trades from Questrade,
so when you go to rebalance and sell some of your gold
and silver ETS, you can do that by clicking in the link
that I put in the description below.
However, you won't need to worry about using up that $50
when you're buying your ETFs
and getting your portfolio established
because when you're buying ETFs on Questrade
it is absolutely free.
And that is absolutely awesome for this strategy
of building a balanced portfolio using ETFs.
Now gold and silver are really easy assets to play.
And they're really easy assets to invest in.
As long as you don't let emotion get involved
because here's what happens with gold and silver.
Typically, gold and silver don't perform very well
for long periods of time.
They usually perform a vote on par with inflation
and then when recessions hit,
they tend to start to do very very well.
Because people start to get scared
and they start to buy gold and silver based on emotion.
And usually the highest prices for gold and silver
adjust as an economy is coming out of a recession.
And that is typically when people are buying
because they've just lived in the last three, six, nine
or in this case like we're in right now in 2021
the last 12 months of fear.
And as a result, they flocked to gold and silver as again
a hedge against that dollar, that US dollar,
that Canadian dollar, and basically a government collapse
which is the big thing that people worry about
when governments start to spend a ton of money.
And as Warren Buffet says, you should buy things
when people are scared and sell when people are greedy.
And with gold and silver, people are the most greedy
when they're the most fearful
which is usually nearing the end of a recession.
So the end of a recession is typically not the best time
to buy gold and silver or precious metals
but that is often when most people are doing it.
And then what happens?
Well, as the recession starts to ease
and things start to get better in the economy
gold prices go down as other asset classes go up in value
and people end up buying new gold
and silver at a really, really really low price
because they've lost a bunch of money on it
because the economy has gotten better.
So how do we hedge against that emotional buying
and selling of gold and silver?
Well, we quite simply use portfolio balancing
as our means of determining when we should buy and sell.
And here's how you do that.
You basically choose a percentage of your portfolio
that you're going to assign to assets like gold,
silver, and Bitcoin.
For me, it's 5%.
I split that up right now into 1% Bitcoin,
2% gold, and 2% silver.
And I tend to look at my portfolio on a monthly basis.
Some people look at their portfolio quarterly.
I definitely recommend looking at it at least quarterly.
And all you do is when gold, silver
and Bitcoin go above 5% of your assets
or your portfolio value, you start to sell it.
Because you're selling it as the value
of those assets are high relative
to the rest of your portfolio.
And if those assets are less than 5% of your portfolio
then what you do is you start buying.
Because they're cheap relative
to other assets classes in your portfolio.
And by simply making sure that that asset class is only 5%
of your portfolio value, you're always taking emotion out
of the buy and sell decision
because all you're doing is rebalancing.
And over time what you'll find is your positions
in those assets grow but relative to the rest
of your portfolio value.
And you're always buying when they're cheap
and you're always selling when the value is high.
So as we come out of this recession, the value of gold
and silver is going to be higher and higher and higher.
And I'm guessing it will also be the same for Bitcoin.
And as it gets higher and higher
and higher is becoming a greater portion
of my portfolio and I'll start to sell it.
So I'm selling it at the highs
instead of selling it at the lows,
which is when it starts to go down in value.
Now you can also rebalance the different assets
of that asset class.
So I want to keep Bitcoin at 1%,
I want to keep silver at 2%, and I want to keep gold at 2%.
And as they fluctuate in value
I'm gonna rebalance them as well.
Maintaining 1% of my portfolio in Bitcoin
and 2% in gold and silver respectively.
It's a really simple way to manage buying
and selling and making sure
that you're taking the emotion out of the decision.
It is quite simply the simplest way to manage a portfolio.
Now there's a few ETS we liked for this.
And normally I'm a Vanguard fan.
I buy most of my assets and my ETF's in Vanguard funds
but in the case of gold and silver
I have to choose a different ETF
because Vanguard doesn't have those available
at least in Canada.
So what I choose is iShares.
iShares is owned by BlackRock.
They're a really stable company, a really large company
and they've got some of the biggest holdings in the world
of both gold and silver, at least from an ETF perspective.
So I choose iShares and I buy them on the Canadian exchange.
Now, if you wanna use a US exchange
for purchasing an gold or silver ETF,
you can use the symbols IAU for gold
or you can use the symbol SLV for silver.
Now in Canada RBC and iShares have an agreement
that allows similar types of funds
to be available in Canada.
And for gold, I use CGL
which is the iShares gold fund
that is hedged for the Canadian dollar
and for silver, I use SDR.
Now there's also unhedged version of both of these available
on the Canadian stock exchanges.
And that is CGL.C
and SVR.C.
And all that means is that those are not hedged.
The reason you would buy a non-Canadian hedged fund
on an ETF is if you think that the American dollar
is going to get stronger relative to the Canadian dollar.
Now, the nice thing about buying these
on a Canadian exchange is that they are eligible
for your registered accounts.
So your RSPs and your TFSH you can buy the CGL
and the SVR versions of these ETFs
and totally have them completely okay
in your registered accounts, which is awesome.
Again, if you're using them in a TFSA,
they're completely tax-free
at least the gains are completely tax-free.
And if they're in your RSP, they're basically tax deferred
so that when you go to basically liquidate your RSPs
when you're 65 years or older,
then you will start paying taxes at that point.
But the growth on them for now will be tax-free
assuming that you're holding them in a registered account.
If you aren't holding them in a registered account
you may wanna look at buying them on the US exchange.
There are some potential drawbacks to that
but that is completely up to you.
Now, again, you can purchase these ETFs
for free through Questrade and it'll only cost you
about 499 to sell them, which is a great deal.
Again, for $50 in free trades for when you do sell them.
And when you are purchasing other stocks
and investments on Questrade,
just clicking the link down below
and you will get that $50 free.
And for Mogo for purchasing Bitcoin
you can also get free money from them by using the link
that is also in the description below.
And Mogo for reasons that I have posted
in another video here is my go-to for purchasing Bitcoin
and cryptocurrency, primarily because it's easy.
I don't know if you've seen the news
in the last couple of days, but there are a whole bunch
of people who have forgotten their passwords
to access their crypto wallets.
That is not something I have to worry about with Mogo
which is why I purchased through them.
So if you found this video useful
if you now know how to purchase and sell gold
and silver on an ETF, without having to worry
about holding it physically, and you appreciate that
do me that favor, hit that Subscribe button,
hit that notification bell, and please hit that Like button.
So more people like you can see this video
and don't forget about our race to 10,000 subscribers.
We'll see you on the next video. Cheers.