Daily Market Update 9/23/11

GOLD

At 11am PDT, Gold is trading at $1,691.50, down $45.70 per ounce on very heavy trading.

High volatility continues in the world’s stocks, bonds, and precious metal markets.  We have serious liquidity and debt problems with the world’s banks. We are seeing the same heavy selling we saw in September and October of 2008 when the markets suffered financial problems. I wouldn’t be surprised to see a PIIGS country selling gold to the IMF or a BIRC country. This would be short term bearish, but long term bullish. There is talk about the PIIGS countries using gold as collateral for loans or debt issues.  The markets will calm down and hopefully gold will still be cheap compared to the recent highs. As we have repeatedly said, the best way to own gold is to physically put it away. No contracts, options, or leveraged equities because we are now in Phase II of our long term up move in gold and the volatility will continue to increase. $50 & $100 moves will become common on our move to $3,000 per ounce.   

SILVER

Silver is down $5.16 per ounce today, at 11am PDT, trading at $30.62 per ounce with heavy trading volume. Down 15%, Silver is following Gold today and is still a victim of substantial margin calls.  Support levels for Silver are currently around $30.00.  Will these levels hold or will we see more corrections on the horizon? We are looking optimistic based on the amount of buying coming out of the wood work, but obviously only time will tell.