Ongoing concerns over euro zone debt means the currency is struggling to hold its own against the dollar.
(1888PressRelease) December 20, 2011 - MIAMI, FL - Both Fitch Ratings and Moody's are threatening downgrades of the credit ratings of several European nations, causing the euro to struggle to hold on to the crucial $1.30 level. ECB president Mario Draghi has refused to consider quantitative easing as a possible solution to the ongoing debt crisis in the euro zone. The US dollar has been the winner as investors drop the euro and search for a place of safety to park their cash.
The choice of the dollar as a safe haven continues to be puzzling; the Federal Reserve did not mention quantitative easing at its last meeting of the year but it is by no means off the table. Severely troubled by its own debt problems, which dwarf those of European countries, the US currency is not the most obvious choice for a safe refuge and the urge to liquidate would appear to be a knee-jerk reaction.
Even given the recent losses, gold bullion has gained around 12.5% over the year. The inflation rate in the United States hovers around 3.5%. It would be difficult indeed to find a cash-based investment that would even keep up with the rate of inflation, never mind beat it by 9%. It can only be a matter of time before the current panic abates and sanity returns to the financial markets, at which point gold will rise again.
"The dollar is a strange choice as a safe haven," says Bill Hionas of Pan American Metals of Miami. "Cash investments cannot begin to compete with hard assets like precious metals that have an intrinsic value."
Pan American Metals of Miami offers clients opportunities to purchase precious metals bullion. Both fully funded and leveraged positions are available.
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.
Debbie Bailey
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com
Ongoing concerns over euro zone debt means the currency is struggling to hold its own against the dollar. 
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