Thursday 11 February 2016

Cream off some of the gold

I decided to top-slice some of my gold profit today. Not a lot - but enough to make me feel there has been a material advantage to the upswing. I sold the TSG:Trans Siberian Gold shares from my SIPP, as I'd only bought a tiny amount and still had some left over in my normal share account. I sold them at 33.5p which was a 63.3% profit of £134.15 based on an investment of £199.95. The share price was up by 81% but by the time spread and commission are removed, it's reduced to just 63.3%

My reasoning was that I had around £100 from my monthly standing order which was too little to invest in a new share, so by selling this tiny stake now, I'd get £334 to add to it, and loaded another £70 from my bank account to make it up to £500 which is my minimum preferred investment.


The sale has had an impressive effect on my SIPP cash performance - details of that in tomorrow's weekly review.

Now I have the terrible dilemma of what to buy while the markets are rock bottom. So many bargains all over the place - it's so difficult to decide.

Should I take advantage of LLOY:Lloyds Bank being stupidly cheap at 56p?
Should I buy RDW:Redrow, my favorite house builder at crazy 401.9p down 9% from when I thought I had got it cheap?
Maybe now is the time to buy NTBR:Northern Bear, which I still believe is a sound company and at the insulting price of 40p?
Should I get back into UTW:Utilitywise, the company that made me £366 profit and has since slid back by 20p a share for no reason?
Should I top up on UCG:United Carpets, a share that hasn't budged from when I bought it and has been immune to the crash and pays great dividends?
Should I top up on CRL:Crightons, which is only down on the spread but that's 10% - I still love the company and it's also been immune to the crash?

If only I had loads of cash - this is the time to be shopping!

In the meantime the FTSE has crashed 2.4% today so the portfolio has been hammered. Fortunately all the gold mines went up again, and despite harvesting £134 profit, the gold mine profits went up by another £70 to £860 and would have been over £1,000 without the sale. This offset the losses on the rest of the portfolio to just £300 which is less than 1%. Unless something remarkable happens tomorrow, the weekly review will make unhappy reading, but how much worse would it have been without gold?

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