Federal Reserve’s Promise on Interest Rates Sends Gold Soaring to $1725 says Pan American Metals of Miami

News that interest rates will remain near zero till late 2014 sends commodities soaring.

MIAMI, FL – While investors may well have been waiting for the latest news to come from the Federal Open Market Committee’s meeting, there was likely not a whole lot of nail biting going on. The FOMC was not expected to come out with anything very exciting. It was something of a shock therefore when they came out with a declaration that interest rates would stay near zero through late 2014! Additionally, Chairman Ben Bernanke stated that he was preparing for “large-scale asset purchases” – a nice pseudonym for a further round of quantitative easing.

This news sent assets, precious metals included, soaring as investors went on a buying spree and gold gained $75 overnight. Low interest rates encourage spending and are therefore seen as beneficial to the economy, stimulating growth. At the same time, low rates devalue the dollar and herald inflation; both excellent news for gold prices as investors rush to find a safe haven that has been proven to hold its value and provide them with an inflation hedge.

“The FOMC’s actions may have come as a surprise to many, who did not anticipate such an overt move at this stage,” says Bill Hionas, CEO of Pan American Metals of Miami, a South Florida precious metals company. “Any threat of quantitative easing, in any form, will send gold prices soaring; gold bullion provides wealth protection and cash becomes worthless given interest rates that, in ‘real’ terms, are actually negative.”

Pan American Metals of Miami trades in precious metals bullion: gold, silver, platinum and palladium.

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

Press Contact

Debbie Bailey
Executive Administrator
Pan American Metals of Miami, LLC
Email: dbailey ( @ ) investpanam dot com
Website: http://www.panamericanmetalsofmiami.com


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