News that the European Union would take further steps to support the Euro and help Greece caused many investors to breathe a sigh of relief.
(1888PressRelease) October 03, 2011 - MIAMI, FL - The world breathed a collective sigh of relief today as the news broke that Greece would receive further bail out funds and Chancellor Merkel had succeeded in persuading her coalition government to support Greece, allowing the euro to survive, for now at least.
It remains to be seen how gold prices will react to the news though a stronger euro does equal a slightly weaker dollar, generally supportive to gold. It is worth remembering that gold, in company with other precious metals bullion, is not susceptible to debt crises such as we have seen in the US recently and are still seeing in Europe. Gold and silver do not have debts; they are pure assets and still deserving of safe haven status. Despite the metals' recent volatility, they are still stable compared with many other assets, especially fiat currencies.
"Macroeconomic factors still strongly support a further rally in gold," says Bill Hionas of Pan American Metals of Miami. "Even if the European crisis is averted for now, we still expect to see a strong rebound."
Although there is relief at the outcome of the European situation, just as there was relief at the outcome of the US debt crisis, we should consider that these solutions are short-term; politicians are basically authorizing themselves to throw more money at debt issues, hardly a sound long-term solution.
Precious metals bullion, like any commodity, is also subject to the laws of supply and demand. Supply is limited and mining is costly; demand, on the other hand, remains high.
About us:
Pan American Metals of Miami, LLC is a group of traders, investors and account executives 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.
News that the European Union would take further steps to support the Euro and help Greece caused many investors to breathe a sigh of relief. 
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