Pan American Metals of Miami says Gold May be Acting as a Safe Haven in Light of Fears About Iran

Top Quote Concerns that Iran could be making nuclear weapons have contributed to a rise in the price of gold. End Quote
  • (1888PressRelease) January 04, 2012 - MIAMI, FL - Some market watchers attribute gold's strong rebound to fear resulting from reports that Iran has produced a nuclear fuel rod and may be covertly making nuclear weapons. The US has warships in the area and there has been saber rattling on both sides as Iran threatens to close the Strait of Hormuz, a major shipping route for oil from the Persian Gulf while the US and Europe threaten sanctions. A rise in the price of gold as a reaction to this news would suggest that gold bullion has regained its safe-haven status. Traditionally, gold has offered a safe haven in times of political upset. Recently, however, gold has been acting out of character, following the euro and behaving more like a risk asset. Yet, once there is any hint of real concern, we see a sharp rise in the price of the yellow metal.

    Of course, there are other reasons for gold's gains. The dollar is falling against the euro and bargain hunters were out in force during the price dip in late December, forcing the price back up again. A substantial rise in price will likely trigger some selling and profit taking so it is possible that there will be a slight correction before gold heads even higher.

    "Gold has provided the safe haven of choice for decades and its recent behavior has been out of character," says Bill Hionas of Pan American Metals of Miami. "It has taken just the slightest hint of trouble for investors to take refuge in gold bullion once again."

    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.


    Press Contact

    Debbie Bailey
    Executive Administrator
    Pan American Metals of Miami, LLC
    Email: dbailey ( @ ) investpanam dot com

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