subject: Pan American Metals Of Miami Says Gold On Its Way Back As Bargain Hunters Start Buying [print this page] (1888PressRelease) Gold is already starting to bounce back after last week's losses.
MIAMI, FL - At the time of writing, we are already seeing gold start to rebound from last week's devastating slide. Ironically, gold may be the victim of its continued success. As every commodity and asset tumbled, gold was the last to go; if investors need to liquidate then the best-performing assets are the ones to choose first, so gold experienced a considerable sell off. It may well be the very same investors who then turn round and buy back their gold at bargain-basement prices. Certainly the current rally is largely based on buying from bargain hunters.
On the other hand, yesterday, September 26, saw one of the wildest days on the markets since 2008. Not surprisingly this kind of activity leaves investors feeling skittish; many may be waiting on the sidelines to see which way the wind blows before jumping back in.
"There is some concern as to whether gold still represents a safe haven, in light of recent losses," says Bill Hionas of Pan American Metals of Miami. "Investors are understandably nervous, but need to bear in mind that, had gold not previously performed so well, it would not have been seen as the first asset to sell once there was a perceived need for cash."
As concern continues regarding the economic crisis in Europe, the euro also slid strongly against the dollar, leaving the US currency looking very attractive. However, given the lack of confidence voiced by the Federal Reserve in the US economy, one wonders how long the dollar will hold on to its current appeal. As the dollar drops we will see gold begin to shine again.
About us:
Pan American Metals of Miami, LLC is a group of traders, investors and brokers who combine 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.
