Gold Mining
Dividend Payments
One of the most common ways gold mining companies return capital to their investors is through dividend payments. Many established gold mining companies distribute a portion of their profits to shareholders in the form of dividends. These payments are typically made on a quarterly or annual basis and provide investors with a steady income stream. Dividends are particularly attractive to income-focused investors and those seeking a reliable return on investment.
Share Buybacks
Gold mining companies may also engage in share buybacks, where they repurchase their own shares from the market. This reduces the number of outstanding shares, which can increase the value of the remaining shares and enhance shareholder value. Share buybacks signal to the market that the company believes its shares are undervalued and that it is confident in its financial health. This strategy can provide a capital return to investors by increasing the value of their holdings.
The need to exchange currencies is the primary reason why the forex market is the largest, most liquid financial market in the world. It dwarfs other markets in size, even the stock market, with an average traded value of around U.S. $2,000 billion per day. (The total volume changes all the time, but as of August 2012, the Bank for International Settlements (BIS) reported that the forex market traded in excess of U.S. $4.9 trillion per day.)