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No Happy Ending in Sight for Europe says Pan American Metals of Miami | |
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January 07, 2012 Problems in Europe continue, boosting desire for a safe haven. MIAMI, FL - Europe has not enjoyed the best start to 2012. Despite some stringent austerity measures being passed in different nations, the crisis continues with credit downgrading for some and disappointing bond auctions for others. The ECB stepped in to buy bonds from both Spain and Italy as the cost of borrowing jumped for both nations ahead of auctions planned for next week. Italy's yield has stayed just over 7%, a level that is considered unsustainable in the long term. Meanwhile, Hungary has had its credit rating downgraded by Fitch to junk status. The euro is close to its lowest point in its eleven-year history against the yen following reports of a drop in factory orders for Germany, the region's most successful economy. Certainly, market confidence in the euro is extremely low and recession seems inevitable. Add to this the Iran crisis. If Europe supports sanctions against Iran, countries such as Greece, already beleaguered by intolerable debt loads, will be hit hard by the embargo; Greece gets 30% of its oil from Iran. "Investor confidence in Europe is at an all-time low," says Bill Hionas of Pan American Metals of Miami. "If the continent is not already in recession, then the feeling is that it soon will be and this has been factored in by the markets. Even stronger economies, such as France, have been suffering." Gold has been trading in tandem with the euro but this flies in the face of normal patterns during times of economic crisis. Gold bullion should provide a safe haven against recession and economic uncertainty such as Europe is experiencing. If the situation in Europe worsens, or a country is actually allowed to default, then we should see the price of gold skyrocket. 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.com Website: http://www.panamericanmetalsofmiami.com Source: http://www.1888pressrelease.com/no-happy-ending-in-sight-for-europe-says-pan-american-metals-pr-363834.html |
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