Market analysts suggest that holders of physical gold control the market.
(1888PressRelease) June 14, 2011 - MIAMI, FL - There are many ways to invest in gold and likely as many different reasons for doing so. Many investors never actually own gold per se at all, but buy options or shares, or trade in ETFs. But the investors who actually drive the market, according to Julian Phillips, writing for The Gold Forecaster, are those who own physical gold, whether in the form of coins or gold bars.
Options do not actually involve gold itself and gold shares may be investments in corporations rather than in physical bullion. Phillips points out that COMEX (Commodities Exchange, Inc.) only sees physical movement in around 5% of its gold transactions and argues that it is those investors, individuals, institutions and governments, who hold large quantities of physical bullion that control the price.
Warren Bevan, writing for www.preciousmetalsstockreview.com, June 13, sees the ownership of physical gold and silver not only as insurance and wealth-protection but also as a form of protest against a US government that seems happy to keep on printing money as it sinks farther and farther into debt.
"Bullion holdings, due to their intrinsic value as a precious metal, provide a level of security not found in most other financial instruments," says Bill Hionas of Pan American Metals of Miami (PAMM). "Investors are purchasing a true physical holding in a precious metal."
It can be argued then, that those investors who are looking to hold physical bullion are concerned with long-term wealth generation and protection, rather than in speculation with the possibility of short-term profits. PAMM offers investors both fully-funded and leveraged positions, with the option to take physical delivery of their gold and silver or to have it placed in a depository for safe-keeping.
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.