(1888PressRelease) November 28, 2011 - MIAMI, FL - The gold market has been nothing if not volatile lately. Continually worsening headlines from both sides of the Atlantic have investors understandably very nervous and the market has seen constant swings in the last few months. Volatility, however, can go both ways; just as gold can suddenly swing downwards, it can just as suddenly soar upwards. Traditionally, during times of economic turmoil such as we are currently experiencing, gold has been the go-to investment, acting as a safe haven for wealth protection. One must therefore question just why this is not happening this time and when gold will start acting in character again.
There are a number of reasons why gold has been sold off recently: higher margin calls, the need to cover losses elsewhere and liquidations, to name a few, have all served to put pressure on gold.
The strength of the dollar has also been a major factor in this conundrum; yet the dollar is gaining strength relative to the weakness of the euro, rather than due to strength of a healthy economy. The US debt makes Europe's look like small change, even if its GDP is considerably healthier. Additionally, politicians are unable to agree on a satisfactory way to solve the problem, just as is they are in Europe. One has to wonder just how long the dollar can remain everyone's favorite refuge. If governments continue to 'solve' their debt problems by printing more money, we will see a real need for the tangible value of physical gold bullion and coins.
Bill Hionas runs Pan American Metals of Miami, a precious metals brokerage dealing in gold, silver, platinum and palladium.
About Bill Hionas:
Bill Hionas is CEO of Pan American Metals of Miami, LLC, 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.
Gold can rise as rapidly as it falls. 
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