New York, NY (PRWEB) March 28, 2012
In a recent Penny Stock Detectives article, co-editor Danny Esposito notes how, in previous gold bullion bull markets, gold mining stocks paid dividends with actual gold bullion. Esposito is happy to report that one gold mining stock has finally initiated the policy.
?Most investors that invest in gold bullion do so because gold acts as an insurance policy against money printing by central banks around the world,? argues Esposito. ?As such, investors are suspicious of the value of a U.S. dollar, euro, or yen, as are we at Penny Stock Detectives.?
If gold mining stocks are paying dividends with U.S. dollars, euros, or yen, doesn?t this defeat the purpose of investing in gold mining stocks, asks Esposito? He further questions: wouldn?t it be best for these gold mining stocks to pay dividends in gold bullion, in order to keep with the theme of preserving wealth and providing investors with an alternative currency to the U.S. dollar, euro, or yen?
Mining company Gold Resource has been paying regular cash dividends over the last 20 months, but, starting this April, shareholders will have the option to convert their cash dividends into physical gold bullion and/or silver bullion, notes Esposito. This gold mining stock is teaming with a gold bullion dealer to facilitate the opening and management of shareholder bullion accounts. Furthermore, the gold bullion and silver bullion dividend will be created by the company itself: Gold Resource?s ?Double Eagle? one-ounce .999 fine gold bullion rounds and/or one-ounce .999 fine silver bullion rounds.
?This is an exciting development,? says Esposito, ?and I expect many more gold mining stocks to institute such programs in the near future, as the printing presses continue to run non-stop worldwide.?
Endeavour Silver reported record gold bullion and silver bullion production in its latest quarter last month. However, revenues were not strong, because management elected to hold a significant portion of the gold bullion and silver bullion in inventory rather than sell it. Management initiated this action, because they believe that gold bullion and silver bullion prices are currently too low.
As of the end of 2011, this gold mining stock held just under one million ounces of silver bullion and 5,400 ounces of gold bullion in inventory.
There is one insurance policy out there against central bank money printing and that is gold, believes Esposito. The fact that gold mining stocks trade at a deep discount to the actual price of gold bullion makes them, in his opinion, even more attractive to invest in.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $ 10, and the stock market in general.
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