Euro and gold both suffer as financiers eye weaknesses in European plan.
(1888PressRelease) December 14, 2011 - MIAMI, FL - As the initial euphoria over the result of the European summit began to wear off, the weaknesses rather than the strengths of the agreement came into focus. All precious metals opened lower Monday as the euro took a tumble.
It seems likely that the euro may struggle, at least for the remainder of the year, following some disappointing elements that have emerged from the summit. The member countries, with the notable exception of the UK, have agreed on tighter fiscal union but the agreement falls short of a truly decisive and feasible plan to end the crisis. Changes will be implemented over time and enforcing penalties may be difficult. Financiers also wished to see more decisive action to help European banks.
On the plus side, EU members did agree on 200 billion dollars' worth of loans and a Reuters report states that China has 300 billion dollars' worth of investment in the US and Europe.
However, the euro is losing ground, rapidly at present, to the US dollar, which has made gains of around 9% in the last four months. The dollar is the safe haven of choice for investors who are clearly seeking comfort in liquidity. It is a matter of opinion how long this state of affairs will continue.
"The attraction of the dollar as a safe haven may be understandable to a degree," says Bill Hionas of Pan American Metals of Miami. "However, given that the US has its own serious debt issues, there will come a time, quite shortly, when the dollar will lose its attraction and investors will rush back to gold bullion and other precious metals for a hedge against inflation. In times of economic uncertainty, gold has repeatedly proven its worth."
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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
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Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com
Euro and gold both suffer as financiers eye weaknesses in European plan. 
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