Press Release Body: A source close to European-based investment specialist "Private Equity Placement" believes that recent sharp gains in the price of commodities including gold and oil are responsible for corresponding upward movement in the shares of ETFs that track their underlying prices.
The "Private Equity Placement" source suggested that fear among investors meant that priorities had changed to capital preservation and safety. Many analysts, including those at "Private Equity Placement", are concerned that the unprecedented bailout of the market for collateralized debt obligations will stoke serious inflationary pressures.
"Private Equity Placement" are apparently citing the stubbornly high LIBOR rates for 3 month money as an indication that the markets remain unconvinced of the effectiveness of the bailout announced by Hank Paulson recently. ETFs (Exchange Traded Funds) represent an easy way for investors to invest in commodities without the hassle of actually taking delivery or storage.
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