HardAssetsInvestor

Written by Drew Voros  |

March 22, 2012

New Program By GBI Converts Any Stock Dividend Into Physical Gold & Silver

Details

Gold Bullion International launches plan that will automatically turn stocks dividends into bullion or coins.

Dividend reinvestment programs traditionally operate by converting that income back into shares of the respective company. But now a program is being introduced that offers a novel way to reinvest those dividends. Gold Bullion International, a New York-based institutional precious metals provider, is beginning a program that will convert the dividend of any stock into physical gold and silver. GBI also offers investors the use of third-party vaults around the world including in locations such as Australia, England, Singapore and Switzerland. HAI Managing Editor Drew Voros recently spoke with GBI’s head of public relations, Blake Estes, to discuss the company’s self-generating hedge to an investor’s equity position.

Hard Assets Investor: Tell me about Gold Bullion International’s dividend program. My understanding is that it allows anybody that has a dividend-paying stock to convert that dividend into physical gold or silver coins.

Blake Estes: You’re exactly right. The program allows investors in public companies to convert their cash dividends to either gold or silver. And it does so where the investor still has complete discretion over the holdings of gold or silver, whether they’re storing in our vaults, or taking delivery of the metals.

HAI: And how is it paid out? Is it paid in coins, bullion or does the investor have a choice?

Estes: In this case, it is gold and silver coins from our partner Gold Resource Corp., whose shareholders are already part of the dividend conversion program as well. Gold Resource will produce the .999 Fine Gold Resource Corp. double eagle gold and silver rounds.

HAI: Just walk me through this a little bit. Say I have Apple stock. I just found out Apple will now issue a quarterly dividend. How would I receive that Apple dividend in a physical gold or silver?

Estes: We have an online platform that allows you to create an account at Gold Bullion International. The investor does have to have that stock holding registered in their name versus a brokerage’s name with the reason being that we need to know how to pay them.

The pricing would be based on a London precious metals fixed rate on the dividend date of record, and then paid out on the dividend payment day.

We have the ability to cater to each client’s individual needs. And it’s going to be based on their preference. Investors can receive conversion in coin, physical gold bullion bars and also silver bullion bars. So it could be either/or depending on the client’s preference.