Popularity of the dollar for investors is difficult to rationalize.
(1888PressRelease) December 16, 2011 - MIAMI, FL - The battle between the dollar and gold continues, with the dollar still having the upper hand, for now. The only question is how long will this state of affairs continue? There is little doubt that many investors have been caught up in panic selling, while traders have been forced into selling due to sell stops being triggered and the need to protect profits, and the move has been almost entirely to money markets. Yet money markets have a pathetic rate of return and faith in the dollar seems strange, considering the state of the US economy and its budget deficit. The US debt makes that of European nations seem trivial and no concrete plan has yet emerged to deal with it - just as is the case in Europe. This therefore begs the question: why is the euro falling and the dollar rising?
Granted, unemployment figures released today are more encouraging; however, one wonders if this is a real representation of the situation. Are there really more jobs, or have some long-term unemployed simply stopped claiming benefits? Even if the situation is truly improving, the economy is still a very long way from being able to deal with the budget deficit. Choosing a fiat currency, that could easily be devalued at any moment especially if the Federal Reserve were to approve further quantitative easing, over an asset with intrinsic value such as gold bullion just does not make sense.
"Historically, gold has outperformed every asset, bar oil, in every economic crisis in the last thirty years," says Bill Hionas of Pan American Metals of Miami. "Fleeing to the dollar, which can be devalued just by government firing up the printing presses, just does not make sense."
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.
Debbie Bailey
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com
Popularity of the dollar for investors is difficult to rationalize. 
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