The debt crisis in Greece is keeping gold prices firm for now.
(1888PressRelease) June 28, 2011 - MIAMI, FL, - Gold is holding firm in light of Greece's ongoing economic woes. The financial situation in Greece is becoming increasingly concerning with warnings of 'catastrophe' if proposed austerity measures are rejected by the Greek parliament. The situation in Europe has a two-fold effect on the price of gold. On the one hand, the euro is rapidly losing credibility, causing people to sell euros and buy dollars. This causes the US dollar to rise, which tends to make gold less attractive. On the other hand, concerns over euro zone debt help drive investors away from currencies and towards the perceived safe haven of precious metals. The result is that this week starts with gold holding steady at around the $1500 mark.
Interestingly, news from Greece reports many Greek citizens withdrawing their savings and buying gold, due not only to fears about their country's debt crisis but also to concerns about a possible run on banks. This might be seen as a portent of what could happen elsewhere if a similar situation were to occur. Clearly gold is seen as a safety net in terms of economic crisis and it therefore seems reasonable to assume that gold will continue to hold its value or trend upward.
"Prudent buyers are taking advantage of last week's temporary dip in prices," says Bill Hionas of Pan American Metals of Miami (PAMM). "Investor interest and the economic crisis in Greece are both contributing to keep gold prices trending upward."
Demand for gold tends to lead to increased interest in other precious metals also, though silver, platinum and palladium react somewhat differently as they all have considerable industrial demand. However, gold, and to some extent silver, tend to be the preferred choice for safe haven investments in times of economic crisis.
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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.
The debt crisis in Greece is keeping gold prices firm for now. 
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