Daily Market Update 9/22/11

GOLD

At 11am PDT, Gold is trading at $1,737.20, down $44.30 per ounce on very heavy trading.

In today’s market, the word of the day is "Margin Call". With the Global Banking crisis and liquidity problems this is not negative for gold. What we are seeing today is a temporary gold selling, because of margin calls in the worlds equity markets. Gold is still the ultimate "Safe Haven" when we are having a banking and financial crisis. Now more than ever, we see Europe and Great Britain recapitalizing their banks because of the Eurozone sovereign debt problems. We are also seeing the dollar stronger today, mainly because when compared to Europe, we look strong. However, in the long run the dollar is growing weaker.

Here are some key financial numbers that prove how strong Gold is and why our economy and our dollar will continue to weaken. We see this as a bullish note, especially since Gold continues to stay above the $1700 level.

THE UNITED STATES BY THE NUMBERS

Total Debt                                           $14,742 Billion

Debt to GDP Ratio                             99%  (And Rising!)

2011 Total Budget                              $3,820 Billion (Est.)

2011 Total Revenue                           $2,170 Billion (Est.)

2011 Total Deficit                             $1,650 Billion (Est.)

SILVER

Silver is down today $3.31 per ounce at 11am PDT, trading at $36.41 per ounce with heavy trading volume. Today, Silver, more so than Gold, has been a victim of margin calls. With the European Markets having this financial crisis, Silver, as usual, corrected more than Gold. As other markets opened, including the US, several traders were hit with some fairly substantial margin calls. This forced out the weak hands and gave Silver the correction we see today. However, even with this happening Silver is showing support around the $36 level which is a very strong sign.