- Products & Services
- Knowledge Base
MIAMI, FL, May 26, 2011 /24-7PressRelease/ -- Of all the precious metals, gold is arguably the most popular, with a long history of being a reliable resource in any time of crisis. For centuries many currencies were backed by gold. There have been rumors recently that the US government may sell off some of its gold supplies to reduce its debt. These rumors have spawned a number of articles pointing out the extreme inadvisability of such a move. Warren Bevan, in his 'Precious Metal Stock Review Newsletter 'of May 18, points out that - even if the US owns all the gold it claims to - selling it would only cover the debt for 64 days. Clearly as a strategy for debt reduction this makes about as much sense as selling the household furniture to pay off your credit card. In fact Gordon Brown, when Chancellor of the Exchequer of the UK, notoriously did exactly that, selling off 60% of the UK's gold reserves ten years ago - at historically low prices, a disastrous move by anyone's reckoning. Warren Bevan suggests that the next super power will be the nation with the most gold. So what should the average investor take from this? Gold will never cease to have value, a value that provides a hedge against any devaluation in currency. If governments should hold on to their gold reserves at any price, then maybe that is not bad advice for individual investors also.
"Precious metals bullion is a unique financial instrument," says Bill Hionas of Pan American Metals of Miami. "Investors are purchasing a true physical holding in a precious metal.... an item that has held the test of time."
Certainly the bullion market has been comparatively volatile over the last few weeks, and there has been profit-taking on the part of some investors. Nevertheless, the outlook remains strong; in fact, the first quarter of the year showed demand for gold 11% up from the same period last year, with demand from the jewelry industry rising 7%. At the same time, total global supply declined.
Pan American Metals showed gold at $1494 an ounce Thursday, marginally below the $1500 benchmark.
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. PAMOM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.
Pan American Metals of Miami, LLC
# # #