Central banks taking advantage of corrections to buy more gold.
(1888PressRelease) October 31, 2011 - MIAMI, FL - Gold's correction in September attracted large-scale buying by the central banks of some emerging economies. Bolivia, Kazakhstan, Tajikistan and Thailand all added substantial amounts to their gold reserves during the recent dip. This reversal of the more traditional trend, suggests that central banks are sharing the growing distrust for paper currency. It is also likely that any future reduction in price will produce a flurry of buying, pushing the price back up again.
Additionally, the European 'solution' is far from an effective long-term plan. Greece's debt levels will continue to be unsustainable and Italy is also coming under observation with a debt level that is equal to 120% of its GDP. If concerns continue, then we can anticipate an increased demand for gold as a safe haven.
"Macroeconomic factors are strongly underpinning gold on safe-haven demand," says Bill Hionas of Pan American Metals of Miami. "Any future corrections will simply be seen as buying opportunities with investors rushing in to get bargain prices."
Gold was also supported last week by strong physical demand from India at the beginning of the Diwali festival. Interestingly, India reports greater demand for gold coins than for jewelry this year, suggesting a greater interest in the investment value of the traditional gifts. Almost 35 kilograms of gold was sold in just one day in India last Monday. Mumbai saw lines more than five hundred meters long outside many jewelry stores. India is the world's largest buyer of gold bullion.
News broke this morning that the Bank of Japan had sold off the yen, pushing its value down some 4% to protect Japan's exports; this resulted in a rising dollar and a slight fall in the price of gold. Interestingly, although gold did slide, it really didn't slide that far. With the yen taken out of the equation, the dollar remains the only serious alternative to gold as a safe haven.
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.
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
Central banks taking advantage of corrections to buy more gold. 
Satisfied Users & 
Approved Press Releases
Print
Email
Report Spam