Christine Swanson

Monday, March 21, 2011

Improving Gold Equity Dividends May Trigger Revaluations

Tim Wood submits:

Gold equity investors have been cheered by recent company promises to improve dividends. The pledges have been underwritten by thickening margins, especially over the last 18 months, as gold prices outpaced input costs for the first time in several years.

[Click all to enlarge]

Being in the business of literally pulling cash out of the ground means that precious metal miners must pay higher and high dividends to maintain their claim as an option on bullion prices that is more attractive than merely physical gold.

To halt the filching of market share by exchange-traded gold, equities have no option but to return to an era of princely dividends; one reminiscent of what South African gold stocks yielded in the 1970s.

There is evidence that the new mood on dividends is no mere flash in the pan. We foresee precious metal dividends becoming this decade?s equivalent of last decade?s anti-hedging movement


Complete Story »

Jamie Lynn Sigler Stacy Keibler Rihanna America Ferrera Haylie Duff

Christine Swanson at 11:24 PM
Share

No comments:

Post a Comment

‹
›
Home
View web version

About Me

Christine Swanson
View my complete profile
Powered by Blogger.