(1888PressRelease) No definite resolution following Jackson Hole.
MIAMI, FL - Today, August 26, saw the greatly anticipated speech from Federal Reserve Chairman Ben Bernanke at Jackson Hole, Wyoming. Many had expected a third round of quantitative easing but Mr Bernanke was relatively noncommittal, simply reiterating that the tools necessary to stimulate the economy were available if needed. This leaves the door open for further quantitative easing in the near future but maintains the status quo for the time being. The effect on the gold price has been somewhat erratic with gold rallying, falling, and then rallying again. Uncertainty seems to be the word of the day.
What most market analysts do agree on is that the fall in the gold price over the last two or three days has been a necessary and healthy correction. Opinion is, not surprisingly, divided as to whether gold will fall further before rallying. However, the consensus is that the macroeconomic conditions underpinning gold as a safe haven have not changed and there are relatively few safe havens available; Switzerland, for example, is desperately trying to restrain its franc from increasing in strength, with some success as the franc fell today against the euro. While the European debt crisis continues and uncertainty persists regarding the economic recovery in the US, major currencies hold little appeal. Gold, on the other hand, is highly favored as an 'insurance' asset.
"Shrewd investors have been waiting for just such a dip to buy more gold bullion," says Bill Hionas, CEO of Pan American Metals of Miami. "The lower the price, the greater the opportunity for profit."
Pan American Metals of Miami offers clients the opportunity to buy precious metals bullion: gold, silver, platinum and palladium.
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