Only a brainwashed SORO cultist would relinquish conrol of their shares in order to get a cute little coin.
My favorite part of this scheme...."Shareholders interested in participating will be required to hold their shares directly with the Company's transfer agent, Computershare. This may entail moving shares from a brokerage account to Computershare by the Direct Registration System (DRS)."
So when SORO reports their yearly rain delay, you can't sell. Or when SORO releases news of their yearly reduction in estimates, you can't sell. Brilliant maneuver by the Reid family, create a system where the Reids can exit their shares well before their goldbug shareholders. Wrongadeus is lubing up right now ready to hand over his shares to Birdie Bill and his 19th hole gang.
<<They are desperate to get the El Rey fiasco out of the headlines.>>
I don't think GORO is important enough to garner any headlines, regardless of whether they are good or bad. No one is talking about El Rey. Not industry rags, or blogs. The only place it is in active discussion is here on this message board.
I admit disappointment on El Rey, but it's not the kind of event you are making it out to be. I'd certainly rather deal with opposition from the residents, than with poor grade, or unfeasible extraction.
One must wonder if the hiring of the new COO is made with an eye on working with the locales to get El Rey back on track.
>>You ignore the fact that many longs, your truly included, have GORO shares locked up in IRA or SEP type accounts<<
These shares aren't being loaned out to shorts anyway. You boasted about that for two weeks back in August.
In other words, these shares won't negatively affect shorts at all.
I'm pretty sure everyone has known for quite some time that a dividend in-kind program would require share registration in the investor's name. So this is no surprise.
The real question is who will be participating in this program? As I suspect this hurdle does keep a number of parties from participating. Further, I've always questioned how many institutional investors could partake in the program -- and suspect very few because of difficulty in managing physical metal in the face of redemptions and fund issuance.
Initially it will probably be mostly retail shareholders, particularly long-term holders, and those that want to lock-up a core position (with trading shares remaining at a brokerage).
That said, I think this is the kind of program that will grow over time. It may start small, but could gain traction over the next few years.
Whatever anyone says, this is a pretty interesting development. And it certainly doesn't hurt shareholders to give them the option to participate.
"But realistically, how private investors will forfeit margin to participate?"
You ignore the fact that many longs, your truly included, have GORO shares locked up in IRA or SEP type accounts, where shares are not marginable. Those long-term view accounts are ideal for moving over to the transfer agent. I have already been reinvesting my dividends in both my principal accounts. I will wait to see the details on the premium for the purchase of the coins. It sounds like it is going to be a reasonable price, since management is not looking to make this a profit center.
2012 - Year of the Longs!
Maybe a few funds will participate, allowing their goldbug investors to feel special knowing they have a few coins under lock and key. But realistically, how private investors will forfeit margin to participate? Those that do will be selling margined shares.....doubt the sale of shares will hurt shorts...gotta laugh there Wrongadeus. And how about Hochschild....I suspect their significant dividends are used to pay bills and fund other projects. If they really wanted a vault of PM, they'd be filling their treasury with with their own product...which they are not.
Bottom line...this is a Gimmick....and investors that want to pay a triple premium to buy SORO over significantly cheaper silver producers....have at it. Wrongadeus says that Jason says that Canadians are impatiently lining up to buy SORO....valuations be damned. Those crazy Canucks....they want to buy $1 Billion in silver for $1.5 billion. Here's hoping the Canadians can put and end to year two of this dead money succubus
The basher idiots are really trying to play the fear card big time. Engy's last one "There is a negative financial turn in the process here." sounds like he got it from his weekly Ouija board session! Or maybe it was one of the fortune cookies from all that Chinese take-out he has been ordering on the weekends while doing his non-stop "research" on GORO.
2012 - Year of the Longs!
I try to keep it positive....or Wrongadeus will weep again. It will take alot of balls to relinquish control of your entire nest egg and I assume Wrongadeus is balled up in the fetal position making the decision if to forfeit both margin and liquidity for the privilege of paying fees to a new stock holding company and bullion holding company...not to mention the costs SORO will attach due to minting costs.