I share many of your same sentiments regarding the dividend. We have a competitive dividend for this industry and a change here is unnecessary.
Investors who are looking for income can go buy bonds, REITs, Citibank, or a utility. Investors who believe that gold is or is going to become an important alternative currency should buy miners like goldcorp, even with its token dividend. Goldcorp is growing both organically and through acquisitions, which shows a healthy business plan. Another positive for me is cash cost per ounce mined.
I found your India and China comments particularly interesting, since I have long believed that gold is a manipulated market. The f&*#ing central bankers have tarnished gold and silver's images ever since the 1980 run-up. It will backfire on them as economic power shifts to Asia because Chinese and Indian citizens can afford this undervalued gold and will continue to buy it. I believe we are beginning to see this get out of the CB's control as the inventories shift to Asia.
One day, China and India will buy Amerika at pennies on the then-worthless US dollar.
China is openly encouraging their citizens to hoard gold. He who owns the gold, makes the rules...
There are great risks of losing big in bonds, REIT, Citibank or even utilities if we have a deflationary depression. That's why we need a gold miner that is totally commited to pay DIVIDENDS to benefit shareholders, in my opinion.
I'm willing to invest in a gold producer that shows its commitment to benefit shareholders by periodically increasing dividends. It doesn't have to pay high dividends to satisfy me, but it needs to show its commitment to benefit the shareholders by periodically increasing the dividends. In my opinion, investors in general will value such gold producers at very high valuations. And in my opinion, this is how GoldCorp has been enjoying its high valuation. However, if things have changed at GoldCorp, and if investors lose confidence in GoldCorp's commitment to benefit its shareholders, investors will value GoldCorp at a much lower valuation, in my opinion.
And by the way I'm a baby boomer. The oldest of us are now reaching 60. But I think many more are in their mid and late 50s.
It is my belief that large numbers of baby boomers do not see themselves retiring at 65.
Wherher it's because they lost bucks during the bear market, or are more likely to be health conscious than their parents, but also because they may feel that they still have a lot left to contribute to society.
I also think that American Baby boomers were lucky to have a more well rounded education (not withstanding typos here) than those who were the products of the education cuts of the 80s! This makes them valuable employees in general.
I ran an American company in India 30 years ago. In those days they used to say that the assets of the then rising middle class were in the wife's gold bangles. Recently I read some- where that every Indian wedding involves several pounds of gold. And that at least one of the Indian banks recently started selling one ounce (and maybe less)of gold for small investors. I believe that GG itself may a marked numbe of Indian Canadian Investors.
And (as mentioned before) last year, I think maybe on CNBC, they visited a store in Hong that has a whole back room lined with gold. THe store was packed with visiting Chinese tourists. When asked those present expressed a liking for gold and intention to own it.
Wheaton River brought nice assets to the table and GG is not only a Red Lake company now.