First company to pay dividends in gold and silver steps forward

Investors have speculated for years that a miner would step forward and start paying dividends in physical gold and silver. Now, investors in Gold Resource Corp. (AMEX:GORO) can do just that.

Investors have speculated for years now that a miner would step forward and start paying dividends in physical gold and silver. It looks like Gold Resource Corp. (AMEX:GORO) is the first to do so. Shareholders in Gold Resource now have the option to take their monthly dividends in physical gold and/or physical silver.

Rather than shelling out bullion bars, shareholders will get Gold Resource Corp.’s “Double Eagle Rounds,” which are pictured to the left. The Double Eagle rounds have an American side and a Mexican side. The American side features an American Eagle with a pick and shovel flying over the mountains of Pikes Peak (where the face of a miner is hidden).

The Mexican side of the coins, pictured at left, pay tribute to the year when Gold Resource Corp. reached commercial production at its Oaxaca Mine in Oaxaca, Mexico. The rounds are cast with a minimum purity of 0.999 percent and are only available only through Gold Resource Corp.’s new dividend program.

More gold and silver dividends on the way?

In order to start paying dividends in gold and silver, Gold Resource Corp. worked with precious metals supplier Gold Bullion International (GBI). GBI will help administer the program and deliver the physical gold and silver to shareholders or store it (for a fee) in GBI’s own insured vaults.

The interesting thing here is that GBI is offering this service to other gold and silver mining companies.

“If the popularity of the program spreads, it could impact future demand for gold and silver,” Investopedia writes.

How to get involved

Getting paid dividends in gold and silver isn’t as simple as buying shares in your Scottrade account, per SFGate.com. You’ll have to hold your Gold Resource Corp. shares with Computershare – GORO’s transfer agent. To do that, you’ve got to transfer your shares to Computershare from your existing brokerage account. Shortly thereafter, you’ll get access to a bullion account with GBI where you’ll be able to administer your account and any future deliveries of gold or silver bullion.

It isn’t a simple process, but that’s probably why its taken so long for a company to start delivering dividends in the form of gold and silver. My guess is there will be a host of companies offering the same service in the years to come. Let’s hope so at least.

Gold Resource Corp. (AMEX:GORO) is one of our top 100 favorite gold mining stocks in our new book The Top 500 Best Gold and Silver Mining Stocks)

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