Slight pullback in gold price following another record-breaking high.
(1888PressRelease) August 24, 2011 - MIAMI, FL - The price of gold saw a slight correction today; this was hardly unexpected and came only after gold broke through $1900, yet another all-time high in a week or more of broken records. So why the correction now? To a large extent one can blame the speculators. These investors do not want to own gold bullion or gold coins as insurance against an uncertain economic future; they want to make a quick profit. When any commodity rises in price as rapidly as gold has recently, some investors see the opportunity for profit taking and there will inevitably be some sell off.
Additionally there has been some slightly reassuring economic news; better than anticipated manufacturing data from China and Germany boosted stock prices, which tends to cause a corresponding drop in the level of safe haven investments such as precious metals.
Market analysts suspect that any significant drop in price will provide a buying opportunity which will, of course, help to push the price back up again. Certainly there are many investors just waiting for a correction so that they can 'buy the dip'.
"Prudent investors tend to regard precious metals bullion as a medium- to long-term investment," says Bill Hionas of Pan American Metals of Miami. "They are looking to protect themselves in the event of currency devaluation, inflation or even a total economic collapse; they are not necessarily interested in quick profits but want the reassurance of knowing they own an actual precious metal that will hold its value."
Pan American Metals of Miami trades in gold, silver, platinum and palladium bullion.
About us:
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.
Slight pullback in gold price following another record-breaking high. 
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