Pan American Metals Of Miami Says Concerns Over Europe Remain Despite Action By Central Banks

(1888PressRelease) Concern over the future of the euro remain despite action by central banks.

MIAMI, FL - This morning's action on the part of five major central banks and the Federal Reserve, coupled with separate action from the People's Bank of China served to boost gold and ease liquidity strains. However, the action did not provide a cure-all for the euro zone problems. A recession is looming in southern Europe, if it has not already arrived. The euro has lost all credibility and even this new move is unlikely to make investors rush to buy bonds from beleaguered countries in southern Europe. Bond yields for both Spain and Italy are close to unsustainable levels.

Traditionally, gold benefits from economic crises but, on this occasion, gold has behaved like an equity and has risen and fallen along with the stock market instead of providing the safety hedge that investors have come to expect from the yellow metal. Gold's rise today only serves to strengthen this link. However, should the action by the central banks initiate inflation, then gold would definitely regain its safe-haven status, as its intrinsic value would provide the only safe refuge.

"The fact that today's actions by the central banks, plus the Federal Reserve and the separate action by China, have caused gold to rise, simply reinforces the fact that gold is acting uncharacteristically, as if it were a risk asset rather than a safe haven," says Bill Hionas of Pan American Metals of Miami. "Concerns over the crisis in the euro zone have certainly not disappeared; those problems will not be solved easily and the future of the euro as a common currency remains uncertain."

Pan American Metals of Miami trades in precious metals bullion: 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

source:

http://www.1888pressrelease.com/pan-american-metals-of-miami-says-concerns-over-europe-remai-pr-354724.html

by: Alberto Stellpflug

POST COMMENT

Surprise Move By Central Banks Boosts Gold Says Pan American Metals Of Miami Pan American Metals Of Miami Says Gold Reaches High Of $1752 On Coordinated Bank Action The Flower Shop In Miami: Where All Of Life's Crossroads Meet Miami Breakout Artist Two Side Poleon Heads To Anchorage Alaska Pan American Metals Of Miami Says Gold Has Consolidated Gains Following Action By Central Banks Silver Forecast Raised For 2012 Says Pan American Metals Of Miami Enjoy The Night In Miami City With The Miami Limos Pan American Metals Of Miami Reports Palladium Making Significant Gains Following Central Banks' Act Palladium Consolidates Impressive Gains Over The Week Says Pan American Metals Of Miami Pan American Metals Of Miami Says Last Week Was Good For Precious Metals Get The Unforgettable Limo Experience Of Miami Limo Top 3 Reasons For Going For Miami Yacht Rental Faqs About Bus Rental Miami