(1888PressRelease) Gold skyrockets towards $1700 an ounce.
MIAMI, FL - There seems to be no end in sight for gold's bull run and those analysts who predicted $1700 'by the end of the year' now appear overly cautious as gold broke yet more records, reaching over $1670 today, August 3.
The current run in gold is due mainly to safe-haven buying as fears of a worldwide double-dip recession mount. Far from causing the anticipated collective sigh of relief, the resolution of the US debt crisis seems to have done little to allay fears. If anything the eleventh-hour announcement from Washington has drawn attention away from the US and back to the ongoing issues in Europe. Add to this the fact that many central banks are amassing gold and the stage is set for gold to soar to even dizzier heights. The central banks of emerging market economies such as Korea, Thailand, Mexico and Russia are buying gold at more than double the normal rate as faith in western currencies wanes.
"There is a rush to buy gold at the moment," says Bill Hionas of Pan American Metals of Miami. "People are afraid of debt contagion spreading globally and want to own gold to protect themselves against the possibility of a double-dip recession."
Silver is also holding its ground around the $40 level. In terms of safe-haven buying, silver, historically, will outperform gold, meaning we could soon see silver breaking records also. However, in the event of a global recession, silver could potentially lose some value due to a reduction in industrial demand. For silver it is more of a balancing act between investor interest and industrial demand; nevertheless, silver prices have gained 32% since the beginning of the year and, at present, the silver outlook remains bullish.
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.
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com