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There’s nothing wrong with investing in metals by purchasing the actual metal itself. As a matter of fact, owning stores of gold and silver coins are a common and popular way to speculate on future gold and silver prices. If nothing else, it’s great doomsday insurance.

But forget about speculation — is there any way to invest in natural resources so that you can actually retire on the investment income? And is there any way to generate a passive income from resource investments? The answer is, of course, a big Yes. Through dividend mining stocks.

How to Retire With Dividend Stocks

Retiring with dividend stocks is a fairly simple concept. A dividend stock is a stock that simply pays the owner a small amount of money – typically in the 1-3% range of what the stock is worth. It’s like getting the income that your share in the mining company generated.

For example, let’s say you owned $1,000,000 worth of shares in a billion dollar mining company. If they paid a 3% dividend over the course of the year, that means you would receive $30,000 in cash from the company — cash you could spend on more mining stocks, a new car, or anything. It’s cash.

The cool thing about this is that you earn an income from the stocks — without having to sell off your assets. If you own just raw bullion or coins, this isn’t possible. The only way to make money with physical assets is by selling them — and selling enough that you actually sell more than you spent. Otherwise, it decreases your buying power for other things in life.

How to Automatically Reinvest Dividends

You can automatically set your dividend stocks to take all the earnings and just buy more of the same stock. This way every penny you put into the stock goes to increasing the base worth of all the stocks — which means once you flip the switch from “reinvest” to “gimme my money”, you can have even more dividend income.

That said, to automatically reinvest the dividends, just contact your broker and talk to him about it. Or, if you skip the broker and buy stocks straight from the company itself, talk to the company about it. They’ll give you the next instructions for automatic dividend reinvesting.

In the end, dividend investing is a great choice. Dividend investing with mining stocks is even a better choice, for reasons I’ve already written about in the past. Mining stocks are secure, lucrative, and a great way to get involved in the coming commodity boom. And they just might be able to fund your retirement.