MORE FROM TODAY'S CASEY'S RESEARCH EMAIL

And then there's this... From Ed Steer: The peak for gold on Thursday was the opening of trading on the Globex in the Far East with the price around $848, and it hit a low of around $829 shortly after London opened. From there, it vacillated either side of $835 until about 9:30 a.m. in New York...just before the London p.m. fix. Then, one of three things happened: 1) a not-for-profit seller dumped a boat load of gold on the market, 2) the dealers pulled their bids, or 3) someone put on a monster short position. Anyway, the result was the same, an almost vertical line on the Kitco chart. It's a thing of beauty, isn't it? (SEE GRAPH POSTED ABOVE THIS ARTICLE) And the Enforcement Division of the CFTC still hasn't found any sign of price management in either the gold or silver market. But the boyz weren't done. As soon as London closed, the rug got pulled out from under gold again. In a hair under two hours, the gold price got slammed for $56. Silver wasn't immune, and its price pattern 'fell' in lock step with gold. From peak to trough, silver was hit for 92 cents. And as badly as gold and silver were hammered, platinum and palladium were even worse...down 7.44% and 9.47% respectively. And rhodium? From a high of over $10,000/oz. a few months back, it's now down to $1,810/oz! The boyz made sure that there was no safe harbour in the precious metals yesterday...only the stock market. Of course the HUI did not join the party. In Wednesday's trading, gold open interest fell 2,085 contracts. And despite silver's monster drop in price on the same day...silver open interest rose 1,142 contracts. Maybe fresh shorts being put on...or maybe not everything was reported. This week's COT report will be out at 3:30 Eastern time this afternoon. Wednesday's info (and silver's big drop) won't be in the COT report until the 24th...neither will gold's swan dive yesterday. It's just like the boyz to stage huge bear raids on the metals the day after the COT cut-off. And guess what...they've been pulling this stunt for years. The GLD ETF was down 9 tonnes (300,000 oz.) yesterday. The SLV was unchanged...but may not be up to date considering Barclays sloppy reporting practices. My bullion dealer had his biggest silver day ever on Wednesday. As I've mentioned before, I don't know how the bullion banks are going to get out of this...the lower the price goes, the more people buy...and the higher the price goes, the more people buy. If that isn't the ultimate Catch-22 situation, I don't know what is. The news was worse than awful yesterday...U.S. industrial output fell 2.8% in September, the biggest decline since December 1974...and the Philly Fed factory activity index crashed from +3.8 in September to -37.5 in October. This must be why they ramped the Dow and killed the precious metals. The worse the news...the more the boyz hit the precious metals...and the higher the $US goes. Both LIBOR and the Ted Spread have improved...but they're moving lower at glacial speed. I note in a Reuters story that as of the week ending October 15th, daily bank borrowings from the Fed have risen to $438 billion/day. Here is an unbelievable chart of "Fiat Madness" up to October 16, 2008...