Daily Market Update 9/20/11

GOLD

At 11am PDT, Gold is trading at $1,804.50, up $25.00 per ounce on strong trading.

The main reason for today’s gain is the downgrading of Italy’s Banks, and the continued worsening of the Europe PIIGS in general. As usual, pulling money out of the market into a "Safe Haven" like Gold has proven time and again to show strong returns in times of uncertainty, especially now since we are heading into the Holiday and Wedding Seasons around the world, particularly in China and India. With China and India’s combined total of 52% of the world demand last year, their buying power is going to come on strong as we round out the year.

SILVER

Silver is up today $0.26 per ounce at 11am PDT, trading at $40.02 per ounce with good trading volume. Silver is taking its lead from Gold today, but as the holiday seasons approach, we are looking to see an increased global demand for Silver as Gold’s prices increase.

Thomson Reuters GFMS’ Says Silver May Move Toward $50 in 2011 and Gold past $2000 an Ounce

In an interview today with Thomson Reuters GFMS, he discussed that since gold will very likely hit $2,000 an ounce and above by the end of the year, Silver reaching $50 seems extremely likely. You can read the full article at www.mintstategold.com/investor-education/silver_fifty_dollars_in_2011/