Shocking Gas Price Prediction Released… At an industry meeting in Houston, a former Big Oil executive made a shocking prediction. He told the assembly of insiders that gas prices could soon soar as high as “$7 to $8 a gallon.” Smart Americans are getting ready for a “double” in gas prices, and setting themselves up to get rich as gas prices rise.Click here to get the full details. Sponsor Advertisement On a weekly basis, we are nowhere near overbought in silver when you consider the big rally that began in August 2010After briefly touching the $1,740 spot market in mid-morning trading in Hong Kong on Monday, the gold price went into a very shallow decline that ended at $1,640 spot, just before the 8:20 a.m. Eastern Comex open in New York. After that it basically traded sideways until 2:30 p.m. in electronic trading…and then got sold down another five bucks into the 5:15 p.m Eastern time close.Gold closed at $1,724.80 spot…down $10.50 from Friday’s close. Despite the lack of any significant price action, volume was pretty decent at around 115,000 contracts…20,000 of which was transacted before London opened. For that time of day, that’s a lot.Silver price action followed pretty much the same path as gold. The New York low came about 9:10 a.m…and the subsequent rally got sold off the moment that London closed for the day at 4:00 p.m. BST…11:00 a.m. Eastern. Neither the low nor high price tick reported by Kitco are believable.Silver closed at $33.34 spot…down 34 cents from Friday. Net volume was huge at 48,500 contracts…of which 7,000+ came before the London open. Like gold, I would consider a lot of that action to be of the high-frequency trading variety.The dollar index spent the entire Monday trading session working its way higher at glacial speed…and by the end of the day was up about 15 basis points. Like gold and silver, the dollar index action was like watching paint dry.Not surprisingly, the gold stocks opened down a bit…and their highs of the day came shortly after the high in both gold and silver, which was just minutes after the 4:00 p.m. London close…11:00 a.m. in New York. From there, the gold equities drifted lower…and ticked up a bit into the close…but the HUI finished down 1.73%, as there was some obvious profit-taking.The silver stocks didn’t do particularly well, either…and Nick Laird’s Silver Sentiment Index closed down 1.47%.(Click on image to enlarge)The CME’s Daily Delivery Report showed that only 23 silver contracts were posted for delivery tomorrow. ABN Amro was the short/issuer on all of those contracts…and JPMorgan was the long/stopper on 21 of them. The link to that action is here.The GLD ETF showed no change on Monday…and there have been no additions since last Wednesday. But over at SLV, they reported receiving another big shipment of silver…2,228,668 troy ounces to be exact. Since Tuesday of last week, SLV has reported receiving 5.16 million ounces of silver…but is probably owed about double that amount…not including what is owed on their current outstanding short position.The U.S. Mint had a decent sales report yesterday. They sold 9,500 ounces of gold eagles…1,000 one-ounce 24K gold buffaloes…and 310,000 silver eagles.Over at the Comex-approved depositories on Friday, they didn’t report receiving any silver, but shipped 706,515 troy ounces out the door. The link to that activity is here.Nick Laird didn’t have a chart for me today, but instead sent me a photo of this butterfly he took in his back yard late last week…and I just didn’t have room for it in Saturday’s column, so here it is now. It’s a monster and…with a wingspan as high as 150 mm [a bit under 6 inches]…the name implies that, as it goes by the handle of Cairns Birdwing.Since this is my Tuesday column, I have a lot of stories today…and I’m happily leaving the final edit up to you.I’ve known that the silver market has been manipulated by concentrated commercial shorting since 1985, when I started complaining to the CFTC and the silver exchanges (COMEX, and back then, the CBOT). I never imagined it could last this long. Then again, in 1985 I never imagined such a thing as the Internet, or that I would be disseminating information about the silver manipulation on such a thing. It was not remotely possible for me to imagine I would be writing to…and about…the single entity responsible for the manipulation. I never imagined that I would be saying essentially the same thing in 2012 that I said in 1985. – Silver analyst Ted Butler, September 8, 2012I certainly wouldn’t read too much into yesterday’s price action, although I was rather surprised at the large volume associated with what little price activity there was.Nothing much has changed, though. Will we go higher from here, or be presented with an engineered price decline in the not-to-distant future? The answer is unknowable. The precious metals should be priced many orders of magnitude higher than they already are, so there should be nothing stopping prices from continuing to climb…unless JPMorgan et al can or will do something about it in the very short term.Today is the cut-off for Friday’s Commitment of Traders Report…and after last Friday’s big jump in price, I’m not really looking forward to the numbers, although part of Friday’s rally sure looked like short covering of some type, so I may be pleasantly surprised. But that’s not the way I’d bet it, if forced to.Since silver is the most overbought of all four precious metals, I thought that looking at the weekly chart, rather than the daily chart, would put this current rally in more perspective…and it does. As you can see, on a weekly basis, we are nowhere near overbought in silver when you consider the big rally that began in August 2010…and ended with the May 1, 2011 drive-by shooting. Both the RSI and MACD lines are a long way from nosebleed territory. As I keep saying, any sell off here should be considered a buying opportunity…and that’s what I’ll be using it as.(Click on image to enlarge)With all the talk last week about the Bank of India trying to discourage gold sales in that country…along with talk of another tax on gold…I posted the rupee/gold chart in this space a few days back. Now here’s the silver equivalent of that chart…courtesy of Nick Laird, of course.(Click on image to enlarge)For the second day in a row, both silver and gold rallied in early morning trading in the Far East. But, also for the second day in a row, a not-for-profit seller showed up shortly before 11:00 a.m. Hong Kong time…and that was that. The prices of both metals have chopped more or less sideways since then…but both are now rallying now that London has been trading for a bit more than two hours. Volumes in both metals are even higher than they were at this time yesterday. The dollar index fell from 80.38 to 80.15 in a one hour time span starting around 3:20 p.m. Hong Kong time…and ending around 8:20 a.m. in London…and that small drop is evident in the price action during that time period. And as I hit the ‘send’ button at 5:20 a.m. Eastern time, gold is up about nine bucks…and silver is up 35 cents.I haven’t the foggiest as to how today, or even the rest of the week is going to turn out. The FOMC has their upcoming meeting, not that it matters in the grand scheme of things, so I’m ready for just about any eventuality…and will have a perfectly rational explanation if we blast higher from here, or get creamed in the short term.That’s more than enough for today. I hope your Tuesday/Wednesday goes well…and I’ll see you here tomorrow.