Today I increased the portfolio’s Novagold position by 50% to 0.3% of the portfolio.  As Novagold declined about 20% since my initial purchase I have decided to add to the position as I find the stock even more undervalued now. The portfolio’s total exposure to precious metal stocks is now 1.8%.

I still believe that there is significant downside risk to gold, silver and precious metal stocks so I look forward to increasing the portfolio exposure if declines happen. I believe that the total exposure might go up to 5% until a final bottom is formed in this sector.

This post is an update related to the investments in precious metal stocks that I published On February 17, 2012. I bought shares of three gold miners: Gabriel Resources Ltd.  (GBU), Allied Nevada Gold Corp. (ANV) and NovaGold Resources Inc. (NG).  The allocation of capital was: Gabriel Resources Ltd ~ 1.1% of my portfolio, Allied Nevada Gold ~ 0.4%, and Novagold Resources ~ 0.2%. My total exposure to precious metal stocks in the core portfolio was 1.7%.

http://octafinance.com/2012/investment-in-gold-miners-portfolio-holdings/