Despite some losses Friday, gold prices nevertheless closed around 4% up on the week as a whole.
(1888PressRelease) January 17, 2012 - MIAMI, FL - A gain of 4% in the price of gold is highly impressive in such a short period and it leaves gold close to 15% higher than at this time last year. As a long-term investment it is difficult to see how gold bullion can be surpassed.
Europe has backed off an embargo on Iranian oil for six months, to give countries such as Greece time to accommodate the anticipated decrease in supply, resulting in a sharp fall in the price of oil. Meanwhile, S&P have downgraded France's triple-A credit rating and will almost certainly downgrade Italy's and possibly Austria's also. This action unfortunately nullifies the cautious optimism expressed by ECB President Mario Draghi earlier that there were 'tentative signs of stabilization'.
"The European situation does not have a short-term solution," says Bill Hionas of Pan American Metals of Miami. "The market appears to be reacting to rumors, rumors that change on a daily, if not hourly, basis. One minute the situation in Europe is showing 'signs of stabilization'; the next minute we are seeing the euro in free fall following further downgrades and this leads to a stronger dollar, which, in its turn, puts pressure on the price of gold."
Both gold and silver are forecast to see sharp increases in the coming year with prices in the region of $2000 an ounce for gold and $50 for silver seeming quite realistic. Gold has seen a definite increase in safe-haven buying over the last week as investors consider the long-term macroeconomic outlook.
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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.
Website: http://www.panamericanmetalsofmiami.com
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Despite some losses Friday, gold prices nevertheless closed around 4% up on the week as a whole. 
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