Gold has historically provided wealth protection in times of economic turmoil.
(1888PressRelease) October 14, 2011 - MIAMI, FL - As investors regard the ups and downs of the precious metals bullion market with nervousness, and occasionally outright fear, it is worth reminding ourselves of a little history, bearing in mind that history, as we all know, has a habit of repeating itself.
Gold, for example, has historically outperformed other assets, reliably and consistently. Frank Holmes, head of US Global Investors, gives an excellent illustration of this in a recent article. Mr. Holmes shows how a $100 million portfolio with a strong diversification into gold has minimized losses and protected wealth during five out of six recent economic disasters. The evidence is indisputable.
"Owning gold bullion or coins has provided investors with wealth protection for decades," says Bill Hionas. "Gold is portable, with a high value to weight ratio, and easily traded. It has an intrinsic value and offers a shield against both inflation and recession."
The white metals have also experienced a strong increase in investment demand over the last decade. While gold offers more of a safe haven, the dependence of the white metals on the industrial sector means that they gain when the economy is stronger.
Additionally, platinum has considerable 'rarity' value. Sources of raw platinum ore are located mainly in South Africa, which has experienced labor shortages and wage issues. Referring to history again, it is unlikely that platinum's current price, which is lower than gold, will continue for long. In the past, platinum has almost always traded at a premium to gold and we can only anticipate that this situation will shortly be restored.
For more information on investing in precious metals bullion please see www.billhionas.com
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