Gold's late May decline to its lowest levels in four months could mean now is the time to buy shares in SPDR Gold Trust ETF (NYSE Arca: GLD). GLD is down more than 8% since mid-March to a discounted price of $120.65 a share.
That makes the ETF, whose shares have been sought by the likes of world-renowned hedge fund managers, a value buy right now.
But thanks in part to billionaire resource investor Eric Sprott, today's investors can benefit from a dividend payable in physical gold or silver.
Sprott had sent a letter to silver producers, suggesting they reinvest some 25% of their earnings back into silver, rather than in cash at the bank.
That took my earlier discussion about gold and silver dividends to a totally new level: dividends in kind.
These aren't paper profits, but real, hold-in-your-hand gold and silver dividends.
For precious metals investors, these "hard asset" dividends make perfect sense.
Today, one innovative gold and silver producer offers investors the best of both worlds.
Finally: Physical Gold and Silver Dividends
In a bid to gain the "first mover" advantage, Gold Resource Corp. (NYSEAmex: GORO), a low-cost gold producer, is launching a gold and silver dividend program on April 10, 2012.
The company has already paid out $41 million in dividends to its shareholders over the past year and a half.
But now they are offering shareholders a unique option by partnering with Gold Bullion International (GBI). GBI is a New York-based precious metals provider to individual and institutional investors, with storage vaults in New York, Salt Lake City, London, Zurich, Singapore, and Australia.
Essentially, GORO shareholders can elect to convert their cash dividends into Gold Resource Corp. "Double Eagles" consisting of one ounce 0.999 fine gold and/or one ounce 0.999 fine silver rounds.
These "Double Eagles" will be drawn from GORO's physical treasury and placed into the shareholder's "individual bullion account" with GBI.