(1888PressRelease)Investor confidence improves as stocks recover.
MIAMI, FL, Gold rallied more strongly today, October 5, in correlation with the stock market, finding some stability in the mid-$1600s. Volatility is likely to remain for a time as investors remain nervous but strong physical demand, particularly from Asia, coupled with concerns over the ongoing European debt crisis, is underpinning gold. Silver and palladium also enjoyed small gains today.
Investor confidence may have taken something of a beating in recent weeks and it is important to remember that gold has totally fulfilled its role as a safe haven. Despite the volatility, gold has still outperformed most major assets and the drop in price is largely a result of liquidation. Brokers keen to show a profit in their clients’ portfolios and investors looking to liquidate in face of economic uncertainty, together caused a sell off in gold, the insurance policy and best-performing asset. Obviously, in an ideal situation, one does not cash in ones insurance policy at the first sign of trouble but for those investors who find themselves suddenly in need of cash, gold offers a readily tradable option.
“Prudent investors will be holding on to their gold bullion, not selling it,” says Bill Hionas of Pan American Metals of Miami. “Ideally investments in physical gold should be kept for wealth protection and insurance against inflation or devaluation of fiat currencies. If anything, investors should be taking advantage of the present low prices to add to their holdings.”
Disappointing economic news both from Europe and the US should continue to boost gold as a safe haven, especially as the euro, in particular, is beginning to look quite shaky.
Pan American Metals of Miami, LLC is a group of traders, investors and account executives 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
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