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Pan American Metals of Miami Describes Gold As Outperforming All Other Assets Conceivable In Any Economic Scenario
The Real Case for Gold.
- (1888PressRelease) September 05, 2011 - MIAMI, FL - The World Gold Council recently released a white paper, which confirms to a large extent what Bill Hionas has been saying all along-that in just about any conceivable economic scenario, gold continues to outperform all other assets.
Gold The report, The Impact of Inflation and Deflation on the Case for Gold, prepared for the Council by Oxford Economics, diverges from our own analysis generally in degree-we don't think it puts nearly enough weight on the "perfect storm" of global economic and monetary factors platinum brewing on the not-so-far away horizon-conditions we believe are joining to produce Silver the greatest wealth handover in history.
The study observes gold and its past performance under certain conditions such as high oil prices, gold and silver bullion optimistic or adverse real interest rates, the power of the dollar, rise or depreciation. Based Bill Hionas on the notable analysis of gold's performance, the study generates formulas with which to forecast gold's future performance. As "Bill Hionas, Pan American Metals of Miami Pan American Metals of Miami[/url did in its own article, Gold Strong on Safe Haven Buying as August Draws to a Close, the study then claims how gold will do in four potential future scenarios. The only scenario under which, according to the study, gold does not shine is its "Baseline scenario":
• Steady economic recovery in major economies supported by strong emerging market growth
• Easing of financial stress and repair of banking systems
• Modest inflation, gradual normalisation of monetary policy, slight dollar appreciation
--The Impact of Inflation and Deflation on the Case for Gold, Oxford Economics
We at PAMOM refer to this as the "in whose universe?" scenario…
Impacts on Gold Price
Many numerous numbers of economic Miami Beach factors impact the price of gold, the study says, and it has been ceremoniously traded as a commodity since the 17th century. However, as the study also notes, for almost 250 years of recent history, the gold market was constrained under the world monetary system:
"Since the seventeenth century it has been formally traded over the counter in London and by the nineteenth century it underpinned the largest fixed exchange rate system the world has ever known (the Gold Standard). In the twentieth century it was again used as the backbone to a formal exchange rate mechanism (Bretton Woods) but the collapse of the system in the early 1970s left the price to float freely for the first time in over 250 years."
Overall, we deal with; conditions affecting the price of gold have changed dramatically since U.S. President Richard Nixon ended the dollar's redeeming ability in gold. In this moment, we have declared many times, for the first time in history, every single currency on the planet became sanction currency, supported by nothing more viable than buoyancy in the viability of the U.S. dollar. Thanks to Nixon's game-changing action, forecasts of gold's future performance based on its pre-1971 behavior are questionable at best.
The study also looks at the impact of mining production on gold prices: because there are physical limitations on how quickly and how much gold can added to the supply, it's not possible to increase supply to meet increased demand.
Precious metals bullion.
About us:
Pan American Metals of Miami, LLC is a group of traders, investors and brokers who combine 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
Press Contact
Debbie Bailey
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com
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