Action by S&P threatens even healthy European economies.
(1888PressRelease) December 07, 2011 - MIAMI, FL - Standard & Poor's threat to downgrade not only the credit rating of all the European nations in the euro zone, including that of France and Germany, but also that of its bailout fund, the EFSF, served to cause a minor panic; the euro slid, the dollar gained, and gold, therefore, slid also. The bad news was somewhat ameliorated by the announcement from French President Sarkozy and German Chancellor Merkel of tough measures to keep rogue nations in line and avoid other euro zone countries from accumulating debt in the future. Their proposals will be voted on at Friday's summit meeting.
The action by S&P seems almost threatening, coming as it does, just as European leaders are entering talks to solve the crisis. The idea of countries such as Germany and Austria being downgraded by the agency seems barely credible yet all members of the common currency are necessarily affected by the staggering debt levels of some of the nations. Ironically, it is this for the very reason that Nicolas Sarkozy and Angela Merkel are so adamantly opposed to the idea of a euro bond.
"Gold is still acting out of character," says Bill Hionas, CEO of Pan American Metals of Miami. "Disturbing news from Europe, with threats of credit downgrades, should be driving investors to buy gold as a safe haven. Instead, it is driving people towards the US dollar while gold moves in tandem with the euro."
The proposals to be voted on this Friday will include stronger fiscal union and legal sanctions for countries that fail to meet budget targets. The announcement of this proposal was sufficient to cause gold to bounce back from earlier daily lows. However, we must wait till the weekend to see if these proposals are accepted.
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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.
Debbie Bailey
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com
Action by S&P threatens even healthy European economies. 
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