Despite gold bullion climbing higher, gold mining stocks have been stuck in a trading range for quite some time. During other great gold bullion bull market runs, gold mining stocks paid dividends in gold bullion, I see this practice returning.
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New York, NY (PRWEB) March 27, 2012
Gold Resource Corporation has been paying regular cash dividends, but starting this April, shareholders will have the option to convert their cash dividends into physical gold bullion and/or silver bullion. Michael Lombardi, lead contributor to Profit Confidential, believes that this is an exciting development and he expects many more gold mining stocks to institute such programs in the near future.
In his recent Profit Confidential article, The Next Evolution in Gold Mining Stocks, Lombardi highlights the fact that it has been a frustrating time for investors in gold mining stocks.
“Despite gold bullion climbing higher, gold mining stocks have been stuck in a trading range for quite some time,” says Lombardi. “During other great gold bullion bull market runs, gold mining stocks paid dividends in gold bullion, I see this practice returning.”
Lombardi also believes more companies will hold back supply, as they expect higher prices in the future.
“Endeavour Silver Corp.’s management elected to hold a significant portion of its gold bullion and silver bullion in inventory rather than sell it,” says Lombardi. “Management initiated this action because they believe that gold bullion and silver bullion prices are currently too low.”
Lombardi continues to be a staunch supporter of and believer in gold-related investments. He believes that not only is price appreciation possible with current depressed gold mining stocks’ share prices, but also dividends could, in the near future, be paid out in gold bullion and silver bullion.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold __title__ gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.