Domain For SALE !!

Contact admin :

Accept SECURE Crypto Escrow

2011-2012 a record airplanes Alaska gold mining Almunium an ounce and Diamond Simulants astra mining Au auction Australian Gold Fields bank banks Banro barrick gold base metal based bauxite BHP Billiton Biggest Miner bigtruck Bitcoin Bitcoin Mining Hardware Blasting Blue Diamonds bullion bullion market Bullion reached a record Bullion rose buying Buying and Selling Diamonds and Gemstones canada mining Canadian investment fund industry canadian miner carbon cassiterite cat caterpillar Central Bank Gold Reserves Central Bank Purchases of Gold Central Fund of Canada Champagne Diamonds Chemical Formula Clarity and Carat weight coin coin gold collected Colour comex new york commodities companies cons Conveying copper Copper Issue 2011-2012 Cost Analysis Country Gold Reserves Crushing Cut Data Mining demand in Europe Diamond Business diamond mine location Diamond Mining Village diamonds dips discovery metals limited discussing Dividend Drilling ductile dumptruck dumptrucks earning Economic Benefits of Electronics Recycling Economic Opportunities Electronic Recycling element Engineering enterprise escort Estimated gold price in 2012 ETF euros FACILITIES AND UTILITIES for E-RECYCLING Ferrous Resources finance financial freeport fund gained gem global gold Gold approaching gold bar Gold Bars gold benefits gold bounces gold bullion Gold bullion prices 2012 gold bullion traders GOLD coin Gold Demand Gold depository services gold exchange gold fields Gold from Computer Parts gold fund gold futures Gold in Industrial Application Gold increase to a record price Gold Investment Gold Investment Product Demand Strong Gold Market GOLD Mining GOLD mining EQUIPMENT Gold Mining Stocks Gold Ore Production Freeport Gold Price Gold price in 2012 gold price per gram usd Gold Price Recovery gold priced Gold Prices in 2012 gold prices per ounce gold purity Gold rush Gold rush discovery Gold spot market price movement Gold Stock looks very attractive for change gold trader gold trading gold worth the risk Gold’s premium goldcorp goldnews goldprices Green Diamonds Hard Disk Computer Hauling held holdings How to Estimate Karat of Gold How to Invest Gold Human Resources Management in New York increase International Regulation invest invest gold invested investing gold investment investor investors Investors are now making a $130 billion bet on gold Iron iron ore Is Gold a Metal? Issue Issues in RECYCLING Japan is the only country that exports gold without being a major producer jewelry Johanesburg South African kinross kiyosaki LEGAL STRUCTURES List Platinum Mines South Africa Loading logistics london gold London’s luxury Magnesium manganese market market gold market value Martin mercury metal metal gold metal mining METAL Refining Metallic metalnews Metals mine mineral minerals Minerals Industry Mining Mining Business Mining Companies mining congress Mining Game mining group mining guide mining news mining occur mining palladium metal Mining Software mining truck miningnews Minnesota and Bechtel Moly Mines Ltd Most Expensive METAL motherboards Mutual Funds of Gold Investments Newmont Mining Corporation (NMC) nickel No Transunion Check Accounts Operations Osmium ounce oz palladium palladium weißgold pan american metals papua Pink Champagne Diamonds Pink Diamonds platinum platinum and palladium Platinum Group Metal Mining Companies platinum mining location precious metal precious metals price price gold bullion Price of Gold Today prices prices gold Prices of GOLD Processing producers production Profit Project pros PT Newmont Nusa Tenggara Indonesia rare reach record Refine Gold from PC Motherboards Refine Silver from Keyboard Computer resource Rhodium prices 2012 rise rising gold sands scrap gold Scrap metal prices Sell selling Shanghai Gold Exchange share silver Silver Coins Minting silver lake resources Silver Mining Companies silver prices Silver prices in 2012 silver standar silvercorp SOCIAL AND ENVIRONMENTAL CHALLENGES spot gold spot gold prices Stainless Steell Steel stock stock market Supply Management taconite tantalum the Comex The International Copper Study Group The World Gold Council the world’s largest miner thin film this year on Timing the gold market tin Titanium tons of bullion GOLD Top Companies in the Precious Metals Top Mining Companies TOP Reasons why GOLD is a GOOD Investment Top Silver Producer 2012 total gold demand trade Trade Gold Trail Transunion Dispute trucks Twin types of diamonds union uranium Urban Mining Value of Diamonds vena resources waste Waste Electrical and Electronic Equipment watertruck what is bitcoin What is Electronic Waste what is mining When is The Best Time To Buy Gold When is the best time to invest in gold White Diamonds Why invest in gold wide wideload worker world gold demand Yellow Diamonds

Gold Dividend Gimmick Means Sell

Gold Resources (GORO): Gold Dividend Gimmick Means Sell

The absurdity brigade has finally arrived. On October 10, 2011, Barron’s reported, in an article titled “Paying Dividends in Gold Instead of Cash: Gimmick or Real Deal?,” that the president of Gold Resources Corp. (GORO) plans to introduce the dividend payments in gold. The president, Jason Reid, spoon fed the standard sub-standard explanation for why such a policy is what investors want. Reid said the following:

“Many investors would rather hold physical gold or silver rather than fiat currencies that will continue to be debased”

Taking a cursory look under the hood of Gold Resources (GORO), we find that there is absolute no reason for a dividend policy to begin with. Considering that we’ve been in a rising gold market since 2000, Gold Resources Corp. (GORO) should at least be able to demonstrate some form of profitability. Unfortunately, not only is GORO absent any profits, it lacks any semblance of fundamental value.

As an example, the price to book ratio is 21 and the price to sales ratio is 23 times in the trailing 12 months. Profit margins, return on equity and return on assets are all in the negative. So where does Gold Resources (GORO) plan to pay for the dividend in gold? We don’t know.

As has been the case in the past, only the least credible and unprofitable gold companies initiate a dividend policy offering payments in the form of gold. Our first warning of dividend payments in gold was in 2009 (found here) and our most recent Seeking Alpha article titled “The Coming Precious Metals Dividend War” detailed what was expected to occur.

The initiation of dividends in the form of gold by Gold Resources (GORO) isn’t the nail in the coffin in the current gold bull run. Instead, it may be an indication of a cyclical or short-term top in the gold market. Even the perceived short-term benefit of receiving gold dividends and a possible rising stock price isn’t enough to offset receiving payments in a debased fiat currency when GORO is ultimately going to become a penny stock.

With so many high quality dividend paying gold stock alternatives like Barrick Gold (ABX), Newmont Mining (NEM) and Agnico-Eagle (AEM), long-term shareholders of Gold Resources (GORO) should sell the stock at their earliest opportunity.