As a dividend growth investor, I don’t typically buy a lot of gold and silver. I do hold a small amount of physical bullion and have bought a couple miner stocks in the past with mixed results. Physical bullion doesn’t appeal to normal DG investors as it doesn’t pay a dividend. It’s always worth the same amount, inflation adjusted.
Below is a guest post with an interesting concept that may be of interest to some of my readers.
Is there such a thing as physical gold dividends?
The short answer to that is yes. Investors can get paid with physical gold through Gold Resource Corporation stocks.
Gold Resource Corporation launched its gold and silver dividend program on April 2012. The company’s default dividend is still in fiat currency, but it offers their investors the option to convert their cash to physical gold and/or silver coins called “GRC Double Eagles.” The GRC Double Eagles are one ounce of .999 fine gold coin, and .999 fine silver round.
“A convenient and simple way of delivering precious metal dividends to shareholders has been a long-term goal of the Company,” stated Jason Reid, the President of Gold Resource Corporation.
Gold Resource Corporation is in partnership with Gold Bullion International (GBI) – an institution that provides precious metals. GBI is the organization that manages the conversion of cash dividends to GRC Double Eagles.
The partnership of Gold Resource Corporation and GBI allows investors to have complete control over their cash dividend conversions. Stockholders can either convert their dividends to gold, silver, or just a percentage of their choice for each precious metal. Investors who decide to convert their dividends to physical metal can store their GRC Double Eagles to GBI’s very own storage facility. They may also have their GRC Double Eagles shipped to an address, or request the precious metals to be stored to a vault of their choice.
Interest over the precious metals market have spiked over the last few months due to political unrest in the Middle East and Ukraine. Gold is often used by investors as hedge to inflation or if there’s a looming event that could significantly affect the market. Just a few days ago, BullionVault reported that gold hit a one-week high due to news agencies saying that Russian Troops were fighting with pro-separatists in Easter Ukraine. Events like this will always be unexpected, so precious metals experts advise investors to always consider gold’s value. Gold Resource Corporation’s dividend program is a good option for investors who still haven’t diversified their portfolio yet with gold.