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Gold fell $6.40 to $792.25 by late trade in Asia before it spiked higher after the US jobs report and rose to see an over 2% gain at as high as $818.75, but it then fell back off for most of the rest of trade and ended with a gain of just 0.1%. Silver fell $0.25 to $12.60 by late trade in Asia before it rose to $13.11 in early New York trade, but it also fell back off for most of the rest of trade and ended near its new session low of $12.06 with a loss of 4.79%.

COT Silver Report - September 5, 2008

A recent posting by Ted Butler analyzing the sudden sale of an additional 27,606 COMEX silver contracts by 2 banks as of August 5th has created renewed interest in the possibility that COMEX silver is manipulated. Not surprising, given a $6.00 collapse in silver concomitant with the placing of this short side bet.

The above adage is well known by precious-metals investors; in fact I used this quote in one of our monthly reports. I recall how many inquiries we received, asking if indeed I thought this summer (2008) would show the pattern similar to most summers for the precious metals. At times I questioned which direction the metals would break, but stated, as mentioned in last week’s column, our analysis forecast a long correction going into August 2008.

Gold and silver rose well over 1% to $815.10 and $13.18 by late trade in Asia before they fell all the way to $793.50 and $12.61 by late morning in New York, but they then rallied back higher in the last couple of hours of trade and ended with losses of just 0.58% and 0.39%.

Gold fell over $15 to as low as $789.15 by late trade in Asia before it rose to see a $3.60 gain at $808.50 by midmorning in New York, but it then fell back off for most of the rest of trade and ended with a loss of 0.2%. Silver fell fifty cents and $12.54 by late trade in Asia before it rose back to about $13 in early New York trade, but it also fell back off into the close and ended with a loss of 1.07%.

Gold fell almost $40 from Friday’s close to as low as $790.60 by early trade in New York today before it rallied nearly 2% off that low into the close, but it still ended with a loss of 2.92%. Silver dropped over a dollar to as low as $12.45 before it also rebounded, but it still closed with a loss of 4.05%.

In the following paragraphs I will outline and explain how a major bank or banks, in likely concert with the U.S. government, pulled off financial shenanigans that will literally take your breath away. This is an outrage that cannot be allowed to stand.