Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Stock Dividends Are Getting Physical Paid in Gold and Silver

Commodities / Gold and Silver 2012 Mar 14, 2012 - 07:59 PM GMT

By: Eric_McWhinnie

Commodities

Gold often receives criticism from investors such as Warren Buffett for not producing a yield. This claim often falls on deaf ears because proven gold miners such as Newmont Mining Corp. and AngloGold Ashanti both pay a dividend north of 2 percent. However, the downside to these dividends is that they are paid in a fiat currency, somewhat defeating the intentions of gold investors. A new dividend program seeks to change this process by giving investors the choice to receive dividends in the form of physical bullion, instead of paper or electronic dollars.


Earlier this week, Gold Bullion International announced a new service called The GBI Physical Dividend Program. The program allows publicly-traded companies to pay dividends to shareholders in the form of physical precious metals. The first company to participate in the program is Gold Resource Corp., which has 100 percent interest in six high-grade gold and silver properties in Mexico’s southern state of Oaxaca. The Colorado based company is scheduled to launch its gold and silver dividend program in April. On Monday, GBI’s chief executive officer, Savneet Singh, said, “There is an increasing demand by both institutional and retail investors to own physical precious metals. The program we announced today makes this a seamless and simple process for listed companies and their shareholders.”

Gold Resource Corp.’s default dividend payment will be cash, but shareholders will have the ability to convert it into Double Eagle one ounce fine gold or silver rounds, made by the miner. The company’s supply of Double Eagles will be held at GBI. “A convenient and easy way of delivering precious metals dividends to shareholders has been a long-term goal of our company,” explained Jason Reid, President of Gold Resource Corp. Shareholders that convert cash dividends into physical metal may store their bullion within GBI’s insured and audited storage facilities (for a fee), take direct delivery of their precious metals or direct the metals to be shipped to a vault of their choice. If shareholders do not accumulate enough dividends to convert into gold or silver rounds, they can roll their cash balance into the next month until enough is accrued for conversion.

The dividend conversion price will be set at the London PM Fix on the company’s record date of dividend distribution. Shareholders are required to direct their individual bullion account for desired gold and silver allocation by midnight EST the day before the record date. Shareholders interested in converting their cash dividend into precious metals will also be required to hold their shares directly with Gold Resource Corp.’s transfer agent, Computershare. Meaning, investors may have to move shares from their brokerage account to Computershare by the Direct Registration System. Once the move is complete, shareholders will be able to open a Gold Resource Corp. on-line individual bullion account with GBI so they can manage their dividends. The process requires a little time and effort, but after the MF Global disaster, investors should be more than willing to move their shares away from brokers.

The new dividend program paves the way for more miners to follow suit. As the longevity of fiat currencies come under increasing pressure, more shareholders will recognize the benefits of gold and silver. Singh added that the new program can be “replicated by other publicly-traded companies and provides investors a choice in how they receive their dividends. The process we provide is safe, easy and secure, fully insured and audited quarterly.”

For more analysis on our support levels and ranges for gold and silver, consider a free 14-day trial to our acclaimed Gold & Silver Investment Newsletter.

By Eric_McWhinnie

http://wallstcheatsheet.com

Wall St. Cheat Sheet : Only days after the S&P 500 crashed to the depths of hell at 666, the Hoffman brothers launched Wall St. Cheat Sheet: one of the fastest growing financial media sites on the web. Like a samurai, our mission is to cut through the bull and bear shit with extraordinary insights, a fresh voice, and razor-sharp wit. We provide the highest quality education and information for active investors, financial professionals, and entrepreneurs.

© 2012 Copyright Eric McWhinnie - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in