(1888PressRelease) December 15, 2011 - MIAMI, FL - As the price of gold takes yet another tumble, silver is back in the limelight. Not that silver hasn't dropped slightly, along with other precious metals and most other assets also, but silver bullion could still be the investment of the year. Silver was everyone's darling at the beginning of the year, until April. Investors panicked when silver prices tanked and investment interest has remained relatively slow since.
Despite this, silver not only rallied but held on to that rally, remaining steady for some months now. Is it back to the highs it enjoyed in April? No, but it has not sunk to new lows either and has definitely been less volatile than gold. Silver has both the advantage and disadvantage, depending on your point of view, of benefiting from both investment and industrial demand. In theory, these two opposing forces should cancel one another out. If silver is seen as a hard asset with intrinsic value, a safe haven, then it should rise in price when the economy is in trouble. Industrial demand, however, would be expected to shrink in this situation. On the other hand, when the economy is strong, the reverse would be true; industrial demand would rise and investment demand would fall. As 'poor man's gold', silver enjoys the benefits of gold as insurance and also shares in its physical demand, due to its more affordable price point.
As is the case with other precious metals bullion, silver is in limited supply. Governments may decide to print more money but it is not so easy to mine more silver. Once inflation starts to bite, dollars will become worth less and tangible assets such as bullion will reign supreme.
About us:
Pan American Metals of Miami, LLC is 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
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com