Gold bullion has proven a sound investment over the year.
(1888PressRelease) December 19, 2011 - MIAMI, FL - Timing is everything. As fund managers start to balance their portfolios for the end of the year and investors calculate gains and losses, how has gold performed? The answer is, if you bought gold bullion a year ago, as of today's prices, you would have made approximately 12.5%. Not a fortune, arguably, but not too shabby either, and decidedly better than many other investments. Of course, if you bought gold when it was at $1900 you might be less happy with your investment. Nevertheless, if you did buy gold near to its peak, holding on to it is almost certainly the best advice. If market experts are right, then this level will be reached - and breached - at some point next year.
Gold should be regarded as a medium- to long-term investment; speculators may make, or lose, small fortunes but for most investors gold should represent insurance and long-term profits. If those who follow historical trends are correct, then the price of gold should rise some 20% in the coming year. In fact we are already seeing the beginning of a corrective bounce as bargain hunters move in.
"At these prices, gold bullion likely does represent a bargain," says Bill Hionas of Pan American Metals of Miami. "A year from now, investors could be delighted with their foresight and the value of their portfolios."
'Buy low, sell high' is a difficult motto to argue against, yet it may seem counter-intuitive to buy when prices are falling. However, the fundamentals supporting gold remain unchanged; most analysts predict higher prices, even as soon as next week - this could be the perfect time to buy.
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.