Why would "we" want to down manipulate the price of gold? Simple, since we are inflating the dollar and other currencies so much, a rising price of gold would expose that! This we can not allow!
Let's assume it takes $XXX amount of gold sold on the market to bring price down by $100.
1/ Secure 150% of $XXX in dollars in your margin account. If you are a bank, you can get that money out of thin air, or you can borrow it from the fed. It is a much smaller amount than the Bailout's $700B, so it won't show anywhere, even if paid by the US taxpayers!
2/ Start short selling gold. For each dollar of gold you short sell, you need $1.50 in your margin account. You have that money already!
3/ One month later: Voila! Gold down by $100.
For more details on which banks are doing this, see a previous post:
Smoking Gun - Silver and Gold Prices
Labels|Categories|Tags gold and silver prices