When we study the gold market we have to consider what currency we are using to study the movement of gold.
(1888PressRelease) January 10, 2012 - MIAMI, FL - Since gold moves up or down relative to certain currencies, it is worth considering whether it is gold that has risen in price for the last 11 years or fiat currencies that have lost value. At the moment, a stronger dollar results in weaker gold prices, in dollar terms, and vice versa. It should be obvious, therefore, that gold would move inversely to the dollar - if the dollar falls in value then a larger number of dollars is required to buy gold, albeit dollars that have less value. The reverse would also be true; if the dollar rises in value then gold can be bought for a lower dollar amount, making it apparently lose value - in dollar terms.
"Gold bullion has intrinsic value and has been revered by mankind for millennia as the ultimate symbol of wealth," says Bill Hionas of Pan American Metals of Miami. "As such it can represent an alternative currency and one that is greatly desired in times of crisis."
It also follows that gold will provide an excellent hedge against inflation; in an inflationary situation currency becomes worth less and less and commodities of any kind, gold included, become more expensive. Gold therefore outperforms currency during times of inflation. There is a finite supply of gold, there is still gold waiting to be mined but it is not a renewable resource. Central banks, on the other hand, seem to have little problem printing more money. Many market experts are forecasting gold to rise by 25% in the coming year. Unless we see inflation at that level, a highly unlikely scenario, then investors buying gold will clearly come out ahead.
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
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Debbie Bailey
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com
When we study the gold market we have to consider what currency we are using to study the movement of gold. 
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