Wednesday Morning Silver and Gold Update for 11/16/11.....Peter R....Southern Trust Metals, Inc.

Good morning everyone,

Global stock markets are lower across the board in the wake of comments made by European Commission President Jose Manuel Barroso who is warning that the Euro zone now faces a "systemic crisis" that will require deeper commitments by all member countries in order to overcome the current debt crisis......Here we go again!.....Asian stocks fell by an average of  1.2%......European markets are down by .5%.....The Dow looks about 85 points lower at the open....In currency trading the Euro continues to slide with the loss of another 81/100ths of cent against the U.S. Dollar....Last trade $1.3466.....Here is the problem in a nutshell....Europe is teetering on the verge of financial chaos with Italy the current whipping boy....Should Italy wind up defaulting on it's debt the bulk of European banks which hold massive amounts of Italian debt will suddenly become under capitalized and face potential insolvency....U.S. banks have huge exposure to these European banks....The contagion would send our markets reeling and raise the specter of recessions abroad and domestically.....It is imperative that the European governments and central bank act quickly; as Mr. Barroso warns....Meanwhile the metals are only mildly lower caught between the cross currents of a stronger U.S. Dollar, and a growing appetite for safe haven assets....Silver is $34.43 off 14 cents.....Gold sits at $1776.00 down $5.00.....Palladium is $13.00 lower and changing hands at $658.00.....Platinum is $1637.00 down $8.00.....Over in the energy markets the price of Oil is also facing cross currents.....Traders are caught between European concerns on one hand, and the pending release of the Weekly Oil Inventories on the other....Last trade $98.90 down 47 cents per barrel.....As for the economic calendar; traders await today's release of the Consumer Price Index (retail inflation) where the estimate calls for 0% rise in prices versus last month's rise of .3%....Too much inflation is not good, but the potential for deflation is even worse.....Today's calendar also includes Industrial Production which calls for a gain of .4% versus .2%; a good comparison.....Traders have lots to think about, but Europe will remain the key.....That's it....Call for strategies.....
Peter R.....Southern Trust Metals, Inc.
Toll free 1-877-448-0080

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