Posted on | July 1, 2013 | 10 Comments
There is a great deal of debate on whether precious metals and associated commodities are solid long-term plays or not. History shows that anything that has a limited supply is always a solid “hold,” so today we’ll talk about stocks that offer dividends in the precious metals and mining sector.
The first stock that comes to mind is called Rio Tinto PLC (RIO.) Based in London, UK, this company engages in finding, mining, and processing mineral resources worldwide. This includes aluminum products and precious metals such as gold, silver, copper, and even diamonds. Currently trading at $41.74, near it’s 52 week low, this is a stock worth looking at for more reasons than a play at getting in low.
RIO offers a fat dividend of $1.83 per share, or what is currently worth 4.5%. This is a hefty dividend to be paid and with the price of gold tanking in recent months, many investors feel the stock is due to rebound.
For anyone looking at getting into precious metals like gold, silver, and even palladium, it’s worth noting that there is a new investment called a “gold ira.” What this essentially does is hold physical gold in a vault (via an authorized custodian or company) but keeps it inside of a long-term (retirement) portfolio. The historical price of gold speaks for itself, and while it is in a recent downturn, there is no question that the majority of people out there feel it will rebound over the coming months in 2013.
One person outlines the process one must take to get started with a gold ira http://www.reviewbank.com/financial-services/gold-ira-investing/ on the aforementioned link. It’s good to know there are reputable companies out there who can turn your abandoned retirement accounts (such as ira’s, 401k’s, etc) into a an account backed by actual bullion. These accounts can be used to invest in not only gold, but many other precious metals.
Or, if you are more of the trading type, you can get involved in this sector by looking at RIO.