The interest in precious metals has grown over the past few years, along with their prices. Demand has risen as central banks, national governments, mutual funds and other investors have bought metals as a hedge against inflation, civil unrest, wars and natural disasters. Some also view gold as insurance against fiat currencies that are backed by nothing more than faith in a country's financial system. As countries like the U.S. have printed money to combat economic problems and deflation, this has driven more interest and investment in precious metals.
Two of the disadvantages of metals are that they provide no income stream and require secure storage. A new dividend program soon to be launched by Gold Bullion International (GBI) will make the metals more attractive as a portfolio asset.
The GBI Physical Dividend Program will provide for payment of dividends in precious metals rather than currency. The service will be available to all publicly traded companies that pay regular dividends. GBI is a leading precious metals supplier with vaults in London, Zurich, New York and Salt Lake City. Its large client base includes institutional asset managers and wealth managers worldwide.
GBI's proprietary program will allow shareholders to customize their dividend payments based on their desired allocation of gold, silver or a combination of both. Once the conversion has occurred, shareholders have the option of taking physical possession, storing in GBI's insured vaults or shipping to a vault of their choice. There's a fee for storage in secure vaults.
Once enrolled in the program, shareholders must select their gold and silver percentages by 12:00 a.m. EST the day prior to the record date. The price is set at the London spot "fix" on the dividend record date.
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