Most buyers investing in the precious markets fall into one of two categories.
(1888PressRelease) July 22, 2011 - MIAMI, FL - In terms of investment, there are likely two main types of gold buyers; those who purchase gold as a hedge against inflation with the main goal being wealth protection and those who are speculating and looking to buy - and sell - at the optimum time. This may be an over-simplification but it seems realistic to assume that most investors fit pretty much into one or other of these categories.
Those belonging to the first camp, whose main aim is to protect themselves in the event of serious inflation, deflation or a catastrophic financial or political crisis, will continue to buy gold, and perhaps other precious metals, whenever they can afford it. They may well have other investments but they will not be selling and - as far as possible - they will, presumably, continue to buy, and hoard, their gold bullion. In many ways they may be deemed to be buying insurance policies.
Those belonging to the speculative camp will likely behave in a very different fashion. They are more likely to be experienced investors who like to 'play' the market. They will be planning to buy whenever prices slide and to sell for a quick profit whenever they are deemed to have reached a peak.
This kind of speculative investment does have an effect on the market as record-breaking highs tend to attract profit-taking sell offs that, in turn, bring the price down further. Our first group of investors will not be overly concerned by this, but may be watching for dips in order to buy even more gold at a more attractive price. This group is in it for the long haul and wants to keep as much of its wealth as possible in an investment that is perceived to be safe and inflation proof.
Whatever your reason for investing, a reputable precious metals brokerage can offer advice and help investors achieve their financial dreams. Understanding clients' motivation, together with a solid understanding of the precious metals market, is essential, and Pan American Metals of Miami, under the leadership of Bill Hionas, has a team of brokers standing by to offer advice tailored to the specific needs of each one of their clients.
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.