Macroeconomic factors support continued rise in precious metal prices.
(1888PressRelease) February 03, 2012 - MIAMI, FL - The meteoric rise of gold and silver during January is strongly underpinned by macroeconomic factors and, as such, it is likely to retain momentum. One of the driving factors behind the rise in the price of gold and silver has been the announcement by the Federal Reserve that it intends to maintain low interest rates till late 2014. Monetary easing leads to the depreciation of fiat currency and ultimately to inflation, which leads in turn to increased investment demand for gold and silver.
With low interest rates, cash savings in the bank become worthless; in fact 'real' interest rates are negative whenever rates are lower than the rate of inflation. Monetary easing therefore serves to devalue fiat currencies, making gold and silver bullion extremely attractive to investors as a place to store wealth.
Physical demand from China has also remained high for both metals; China is the world's second largest net buyer of gold. Seasonal demand due to the Lunar New Year celebrations caused an increase earlier in January but trading was quiet during the one-week holiday that ended a few days ago.
"Monetary policy in both the US and Europe, designed to promote growth, is serving to devalue currencies and is causing investors to look to precious metals bullion as a way to preserve wealth," says Bill Hionas of Pan American Metals of Miami, a South Florida precious metals company. "Investment confidence has returned to the precious metals market and we are likely to see a continuation in the upward trend."
About us:
Pan American Metals of Miami, LLC is a group of 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
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Debbie Bailey
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com
Macroeconomic factors support continued rise in precious metal prices. 
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