Pan American Metals of Miami says Gold Price May be Fueled by Distrust of Financiers and Political Leaders

Investors turn to gold because of a lack of trust in politicians and financiers.
  • (1888PressRelease) November 03, 2011 - MIAMI, FL - The future of gold as a safe haven may depend as much on investors' distrust of banks, financiers and political leaders as it does on their trust in the intrinsic value of precious metals.

    It took European leaders weeks to come up with a possible solution to Greece's sovereign debt issues and now there is doubt as to whether Greece will actually accept the bailout. Additionally, there is a meeting of the European Central Bank scheduled for today, November 3, with its new chief, Mario Draghi. All of this is creating an air of considerable uncertainty, to say the least. If the Greece defaults, there are other countries in the EU that could follow; this makes the US dollar more attractive, which is not so good for gold; on the other hand the climate of uncertainty does favor gold as a safe haven.

    The liquidity of the dollar may make it a more attractive choice in the short term but the dollar is subject to its own problems while precious metals hold their value regardless. Nevertheless, precious metals can end up being sold off, along with other commodities, causing short-term losses. The long-term forecast still remains bullish as the need for a reliable and proven safe haven asserts itself.

    "We have seen gold acting out of character recently, moving with other commodities," says Bill Hionas of Pan American Metals of Miami. "In the long term, however, economic uncertainty will favor gold as a safe haven."

    Pan American Metals of Miami, located in Miami Beach, deals in gold, silver, platinum and palladium.

    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.

    Website: http://www.panamericanmetalsofmiami.com

    Press Contact

    Debbie Bailey
    Executive Administrator
    Pan American Metals of Miami, LLC
    Email: dbailey ( @ ) investpanam dot com
    Website: http://www.panamericanmetalsofmiami.com

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