Wednesday, August 20, 2014

Frustration with iBonds

Well, I got the standard allocation of HKD20,000 in the latest issue of HKSAR Government iBonds. It's a trivial sum and the only reason I bother is that it's better than leaving cash in the bank and it only takes a few clicks of the mouse to subscribe.

But I wish, really wish, I could park a lot more of my cash balance in iBonds. Unfortunately, I don't think it's going to happen.

Mrs Traineeinvestor goes shopping

Mrs Traineeinvestor (aka my better 99%) purchased a carparking space yesterday. While the price of carparks is (IMHO) very expensive, in relative terms, she got a very good deal. Carparks in our building rarely come on the market - the last transaction was in 2013 at $X and the vendor of the only one currently offered is asking $X+25%. Mrs Traineeinvestor's purchase was in a good building in the same area at about half $X.

While I still view the price paid as high, current changes in the neighbourhood will likely make the supply shortage even more accute in the not too distant future.

The net yield on gross cost is about 2.2% - not great but better than bank deposits.

Silver purchased

In the quest for a little more portfolio diversification, I added a little more silver to the portfolio yesterday. I paid the equivalent of USD19.83 per oz.