Each individual investor is unique and will behave differently depending on their investment profile.
(1888PressRelease) September 05, 2011 - MIAMI, FL - Investing in precious metals bullion is a unique experience; buyers actually take physical possession of the precious metal they have purchased. Peoples' reasons for owning bullion vary tremendously. For some it is about insurance in the event of a major economic crisis, for others it may have to do with the beauty and rarity of the metal or even the status of owning gold; still more may be owning gold with the idea of selling later, when the price has reached what they feel is likely to be the peak, hopeful that they will make a sizeable profit. Each type of investor will react differently to fluctuations in the market.
Those buying for insurance purposes likely believe that the time will come when major currencies will be valueless and only gold, and possibly silver, will be an acceptable unit of exchange. At the very least they feel that owning gold will help preserve their wealth should the economy collapse. For these people it is sufficient simply to know they own gold and they will want to own as much as they can possibly afford. They will not be looking to sell, no matter how high the price; they will also welcome corrections as perfect buying opportunities.
Those who buy precious metals for their intrinsic value may be like the mythical King Midas, loving the appearance of a beautiful precious metal and also enjoying the prestige it carries - perhaps the Middle Eastern businessman who recently commissioned a yacht plated in gold and platinum would fall into this camp. These investors are not likely to be parting with their gold either, nor will dips in price concern them too much.
The last type of investor is more of a speculator and will be the one anxiously watching the market - worrying if the 'peak' has been reached or if the 'bubble' is about to burst. These investors may worry about each dip, thinking that perhaps they have left it too late to sell. These will possibly be nervous investors who may choose to take profits whenever there is a significant rise in price.
Whatever type of investor you are, you can find reliable advice at Pan American Metals of Miami, led by Bill Hionas.
About us:
Pan American Metals of Miami, LLC is 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.