The four precious metals react differently to macroeconomic factors
(1888PressRelease) September 11, 2011 - MIAMI, FL - True, though in some ways not so true; the metals all share certain qualities while differing significantly in other ways. All precious metals have an intrinsic value due to their rarity and beauty; they have all been proven to hold their value in the face of economic turmoil; they are all used extensively in the jewelry industry and gold, silver and platinum are also used in bullion coins.
However, they are also very different and behave differently in terms of investment performance. Gold has traditionally been the 'go to' safe haven when the economy is struggling. Having provided the standard against which all other currencies were measured for centuries, gold was also used as currency itself for hundreds of years. It is also a traditional gift for special occasions in many cultures, especially Middle-Eastern and Asian, ensuring strong seasonal demand from those countries.
Silver has also served as a currency for centuries and shares many of gold's attributes. Known as 'poor man's gold' it provides a more accessible entry point into the precious metals market while enjoying some of the safe-haven investment demand that gold has. However, silver now sees more than half of its demand coming from industry, which makes it more dependent on the strength of the economy. As such, it may not see the gains that gold experiences when there is a downturn in the economy though, conversely, it is often dragged upward with gold, benefiting from the same macroeconomic factors.
Platinum, normally the most expensive and possibly rarest metal of the four, is widely used in the jewelry industry also. Supplies are rare and demand is generally high, enabling platinum to maintain its position as the metal with the highest value. But platinum is also heavily dependent on industry, the automotive industry in particular, so that the gains it sees from investment demand during times of economic uncertainty may be negated by the corresponding drop in industrial demand.
Palladium is the 'newest' metal and tends to be linked to platinum, sharing its use in the auto industry. It lacks the history of the other three metals, having been discovered a little over a century ago.
Bill Hionas runs Pan American Metals of Miami, a precious metals brokerage located in Miami, Florida and offering specialized advice to clients interested in investing in precious metals bullion.
About Bill Hionas:
Bill Hionas is CEO of Pan American Metals of Miami, LLC, a group of traders, investors and brokers who combine many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.
Website: http://www.billhionas.com; http://www.panamericanmetalsofmiami.com
Press Contact
Debbie Bailey
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.billhionas.com; http://www.panamericanmetalsofmiami.com
The four precious metals react differently to macroeconomic factors 
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