Precious metals offer a different type of investment vehicle.
(1888PressRelease) October 13, 2011 - MIAMI, FL - Precious metals bullion is a unique financial instrument; it could be compared to buying real estate insofar as the purchaser takes physical possession of the bullion and no part of it can then be sold to anyone else. Additionally, if you are buying real estate for your own personal use, rather than as an investment, the property will generally not pay dividends; the attraction is in pride of ownership and the anticipation of appreciation when it is resold. Precious metals bullion behaves very similarly; one anticipates a rise in price - if and when it is sold - but does not expect dividends in the meanwhile. Pride of ownership is a large factor for some investors in precious metals also; the metals have an intrinsic value due to their rarity and beauty.
Among the precious metals, gold tends to be favored in terms of a safe haven against economic uncertainty and receives by far the most attention from investors and the media. For centuries, gold was accepted as a currency that would hold its value and many investors still see it as such today as it is often operating almost as an alternative currency.
The white metals experience a combination of industrial and investment demand. There is considerable demand for platinum and palladium from the automotive industry while both are also used extensively for jewelry. Platinum is extremely rare and the supply / demand ratio also works in its favor. Platinum has seen a huge increase in investment demand in the last decade.
Silver is the most affordable of the precious metals, earning it the nickname 'poor man's gold'. As such, it offers a similar safe haven to gold, but at a more accessible price point. It is also widely used for jewelry and ornaments. However it does see around 60% of its demand coming from the industrial sector, making it more susceptible to the ups and downs of the global economy.
Bill Hionas runs Pan American Metals of Miami, a precious metals brokerage located in Miami, Florida. PAMOM trades in gold, silver, platinum and palladium.
About Bill Hionas:
Bill Hionas is CEO of Pan American Metals of Miami, LLC, a group of traders, investors and account executives that combines 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.
Debbie Bailey
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.billhionas.com; http://www.panamericanmetalsofmiami.com