Precious metals began a corrective bounce Friday, reducing losses over the week.
(1888PressRelease) December 19, 2011 - MIAMI, FL - All the precious metals began to recover today, with gold up $13 at the time of writing and most analysts predicting higher prices for the coming week. Undoubtedly some of the gains are due to buying by bargain hunters. When bargain hunters move in, it is generally a sign that prices have bottomed out and are not expected to go much lower, if any. Bear in mind that they are buying because they believe they are getting a bargain; prices are low but are expected to rise. If they did not expect prices to rise, then they would not represent a bargain!
As gold pushes back close to $1600, the loss suffered over the week decreases. Sharp corrections have become almost the norm in the last few months; this does not mean the end of the bull market. Macroeconomic factors underpinning gold remain unchanged; the developed world is still drowning in debt, fiat currencies are still suspect. Once the media turns its attention away from Europe and back towards the problems the US government is experiencing in terms of balancing its books, the dollar will fall and gold will rise again.
"We should probably see anything under $1600 for gold as a buying opportunity," says Bill Hionas, CEO of Pan American Metals of Miami. "We can expect to see higher prices, even before the end of the year."
Pan American Metals of Miami trades in precious metals bullion: gold, silver, platinum and palladium.
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.