Servias Ministries Blog

The physical parallels the Spiritual and the current gold market is no different.  The current gold market is made up of the paper market which is a manipulated, exploitive, worldly system and a physical market where the actual metal changes hands and is based on “equal weights and measures”, an ounce of gold for a specific price.  In Scripture, gold represents Divine Nature and just as there are counterfeits who would have us believe they are Divinely inspired, the paper market wants to manipulate us into believing it represents the physical market.

The current price in the paper market would have us believe there is no longer high demand for gold.  In the physical market it is just the opposite.  When I went to a local coin dealer Friday to purchase a silver coin for a person who was unable to get a Census coin locally, the dealer indicated that there are no local sellers of gold.  Everyone that walks through his door is a buyer.  There is a substantial lead time for him to acquire more gold through his suppliers.  It is no different around the globe.  Governments and individuals are all buying the physical precious metals at these low prices, thanks to the Western central planners who are trying to manipulate the public by suppressing the price of gold.  Why?  Gold is the best barometer to reflect fiat currency depreciation which is happening at an epic pace.

There has been over $17 Trillion in fiat currency printed since the crisis of 2008 and it has not produced a global recovery.  I have kept you abreast of what I believe to be the most honest representation of the U.S. economy reported by shadowstats.com.  This unprecedented printing of fiat currency will ultimate have to be reconciled.  Historically, it has never ended well and this time it will only end worse be some magnitude.  Mankind has always believed that the current generation was smarter than the previous who failed.  The Great Depression of the 1930’s was the primary focus of study by Ben Bernanke.  His actions are based on what he believes should have been the corrective actions to prevent the Great Depression from happening.  The problem is that the state of all of man’s systems have changed and the remedies of the 1930’s do not necessarily correlate to the remedies needed today.  The systems today are much more complex than the 1930’s.  Computer-based banking, stock trading, communications, etc. is a 1930’s economy on steroids.  Interest rates are at records lows and the global economy is not responding.

Gold prices should be at record highs.  If they were at record highs, nobody would put any of their wealth in the fiat currencies that are backed by nothing but perception.  As a bank depositor, you are an unsecured creditor to that bank.  If the bank goes under and the FDIC or similar insuring agency is overwhelmed with claims, kiss you deposit goodbye.  Plans are being put in place to reclassify your deposits and issuing bank stock if a bank goes under.  That converts a liability to equity and “voila” the bank is back in business.  These are tumultuous times in the financial arena and the average man will be the loser in the end.  The ultra-rich have been stockpiling gold, silver, and other tangible assets as a guard against collapse, insurance of sorts.

The Spiritual warfare has been on the rise lately.  It would indicate a change is at hand.  The Divine always trumps the worldly as will be the case this time as well.  There will be a separating of the sheep and the goats.  At some point the paper market will be separated from the physical market.  When that happens gold will reflect its true value at much higher levels.  Silver will do the same.  I expect silver to move back to its historic ratio to gold:  sixteen to one, a Love ratio.

Interest rates have been at near 0% for four years.  Our elderly who have saved for retirement all their lives have paid dearly for the greed of a few.  The central planners have tried to compensate by inflating the stock market and reward people for taking risks with their retirement funds.  People who invest in the stock market are subject to the large hedge fund managers who have enough cash to move a stock down for a quick derivative profit.  Right now, dividend stocks are the preferred stocks in that their return on investment exceeds the savings rate by multiples but the risks are also multiples versus a standard savings account… until Cyprus came along.  There is no safety in the current system.  The current system is set up to fail.

What is the solution?  Focus on your calling.  Our Heavenly Father supports your calling and will ultimately provide you the resources to meet that calling.  HE expects you to grow in faith, to listen to HIM, and to walk in Love.  If you are weak in those areas, then pursue a greater understanding by meditating on the Word day and night.  By practicing the revelation you receive.  Become Love.  Sacrifice your “self” on the altar.  Be a blessing to those around you.  There are needs all over your country that can be met by those who listen to Our Heavenly Father.  These are times of great change and we should expect that Our Heavenly Father will bring forth deliverance from Mystery Babylon as it falls.  HE will not leave a vacuum but will fill it with HIS Glory.  The time of judgment of greed and avarice must run its course.  The flesh must consume itself as the lusts become fully exposed just as Sodom and Gomorrah.  The Sons of GOD have been in an extended training program that is surely bringing them into full maturity.

The elderly will continue to suffer and this will be offset by those who are called to assist them.  The greed of Wall Street will continue until its judgment has fully come.  We must be sensitive to the leading of the Holy Spirit.  Those with financial callings will be empowered to attract funds and resources to support the Kingdom.  The waters can be treacherous but we have HIS Spirit to guide us to the fullness of our calling.

Socialism is not in the least what it pretends to be. It is not the pioneer of a better and finer world, but the spoiler of what thousands of years of civilization have created. It does not build, it destroys. For destruction is the essence of it. It produces nothing, it only consumes what the social order based on private ownership in the means of production has created.
– Ludwig von Mises (1881-1973) Economist and social philosopher

Selah!

The gold & silver stocks have been bouncing near the bottom of their price range for several weeks now.  Fridays tend to be the takedown day as has been the case for quite some time.  The price of silver acts like the price of gold but on steroids.  Silver is not for the feint of heart although I expect silver to outperform gold percentage-wise over the next 24 months.  Because of silver’s depressed price, more so than gold, its percentage gains should be much higher.  If you invest in silver, make sure your heart is in good condition for the price will take you on a ride similar to a giant roller coaster.

Treasury Secretary Jacob Lew said late Monday he will begin tapping into two government employee retirement funds to buy more time before the U.S. Treasury is faced with the prospect of defaulting on the national debt.  Yes, he will repay the pension funds with interest (lol) when the U.S. lawmakers approve additional deficit spending.  You can be assured that this will not be the last look at pension funds being a source of cash for government bailouts, or bail-ins as the case may be.  After all, you haven’t paid tax on that money so it really isn’t yours yet.  Can’t you see the rationalization that will come out of politicians’ mouths when they look for cash to fund their projects?  Come on now, it is for the greater good.

The bullish sentiment for junior gold miners is at virtually zero, prices for their product are depressed, relatively speaking.  Long-term savvy investors tend to look at these indicators as strong buying opportunities.  Remember when gold was $275 an ounce and silver was $5.50?  How did these guys stay in business then?

“A federal judge recently ruled that if someone has their cell phone turned on, their location data does not deserve protection under the Fourth Amendment, meaning law enforcement can track individuals without a search warrant.”   See: http://rt.com/usa/no-cell-privacy-expectation-399/

Isn’t that fabulous that we are all carrying tracking devices around?  Yes, we even paid for them ourselves.  Now that is efficient.  As for me, I don’t care who knows where I’m at and what I am saying over the phone.  Our Heavenly Father has been tracking my movements for years and listens to every word I speak.  And for that, HE has taken me to the woodshed more than just a few times.  As we pursue the close relationship with Our Heavenly Father we become less concerned about the infringement of our constitutional rights.

The current system will continue to deteriorate for all of man’s systems lead towards death.  History shows us this cycle of imperfection.  Our Heavenly Father’s Kingdom will replace the economic, political, and religious systems currently in place.  They must continue their decline into their fully perverted states.  Men will cling to those systems even though all the clues will point to a more excellent way.  They relate only with the familiar.  The remnant continues its preparation, shedding the worldly weights.  The Census continues until September 14th.

The term “one hour” in Scripture also represents 15 days or 15 years:  1 hour is to 24 hours in a day as 15 days is to 360, or 360 days divided by 24  = 15.  We celebrated the 2,000 birthday of Our Lord Jesus Christ on 9/11/1999 at Port Austin, Michigan.  It has been reckoned to be His 2000th birthday from the Feast of Trumpets in 2 B.C. (He was born on Sept. 29, 2 B.C.) or two millennium, The Church Age.  This September marks the 15th year since the celebration, or one hour in prophetic time.  Two Scriptures come to mind:

To those who are called:

Matthew 26:40   And he cometh unto the disciples, and findeth them asleep, and saith unto Peter, What, could ye not watch (arise, rise up) with me one hour?

To the world:

Revelations 18:19  And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas, that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

Are we roughly 16 months from desolation?

Gold continues to be a tale of two cities.  The paper market shows gold to be in a bear market whereas the physical market continues strong physical demand and indicates the strong bull market is still intact.  Central banks continue to increase their physical inventory of gold reserves.  If gold was out of favor as the mainstream financial media would have us believe, why are central banks dramatically increasing their positions?  They are not optimistic about the future of the U.S. Dollar as a reserve currency.  The Kings of the East continue to gain power in the global marketplace.  They are distancing themselves from the Western control that has exploited them for the last several decades.  China increased its reserves by 20% in the first quarter.

There has been much written about economic changes ahead.  Only Our Heavenly Father knows how all of this complexity will play out.  It is critical to pursue the wisdom from Above.  Our Heavenly Father has given us principles to live by.  The world system would have us throw away all the wisdom contained in Scripture and pursue man’s idea of wealth and safety.  The past financial bubbles are a testimony to man’s inability to preserve wealth.  There is no level playing field in the current financial infrastructure.  The financial markets favor the wealthy and well-connected as does the political environment.  Insiders exploit their positions with impunity.  Meanwhile the masses attempt to make ends meet with inflation eating up the weekly paycheck.

Proverbs 22:7  The rich rules over the poor, And the borrower becomes the lender’s slave. (NASB)

When you are focused on serving the lender, it surely is more challenging to be quiet and hear that still, small voice.

:9  He who is generous will be blessed, For he gives some of his food to the poor.

When you are not highly leveraged, you are able to meet others’ needs instead of serving your leveraged position.

When you possess physical gold and physical silver, you have voted against the current system of fractional banking.  When you pay off your debts, you have freed up your cash flow to respond to unexpected events.  When you remove the complexities, weights, and hindrances from your midst, you allow yourself to become more flexible and agile in responding to the Word of THE LORD.  Let not the cares of this world, and the deceitfulness of riches, and the lusts of other things entering in prevent you from being fruitful for the Kingdom.

Gold and silver are “bridge” items between now and the fulfillment of the Kingdom.  These precious metals are useful for storing value until we no longer have use for them, the point at which the Kingdom has replaced the world system.  Our Heavenly Father established their characteristics and value among men.  There is no evidence that Adam had need of these metals prior to the fall.  Jesus was able to rally the required assets as the need arose.  He saw no need for precious metals other than to meet the obligations at hand.  When the Kingdom Economy comes forth, Our Heavenly Father will fully reveal the details of how exchange of value will work in a fully righteous system.  Until then, reduce your exposure to the current system’s snares.

The average person cannot take the following steps since you have to be extremely large, highly funded, and well connected to play the game.  Most of us don’t understand the mechanics of this complex market.  However that does not prevent the bad guys from exploiting the complexity.  Lack of transparency and regulation allow these unrighteous acts to continue each and every day.  The one thing they are not counting on is the fact that Our Heavenly Father fully understands their actions and intent AND is tracking it all as the Day of Reconciliation approaches.  Their lawlessness does have ramifications.

The elites are using the current paper system to loot the gold out of the GLD Exchange Traded Fund (ETF).  How?

Step 1   Investment bank shorts the Comex futures market for gold to push the price of gold down.  GLD tracks this market by design.  Comex affects the London fix price of gold.

Step 2   The investment bank then buys shares of GLD at the discounted gold price.

Step 3   Present the lots of 100,000 shares of GLD (+- $14 million) to Bank of NY Mellon (the Trustee for GLD).

Step 4   Bank of NY Mellon must cancel the shares then instructs HSBC London to release the gold to the investment bank.

Step 5   The investment bank covers their short position from Step 1 at a profit.

Since the Fed uses the investment bank to manage gold prices downward, the investment bank can loot the gold held in HSBC on behalf of the GLD ETF with impunity.  They can either hold the gold at the discounted price or sell it in the Asian market and make a profit based on the physical price differential.

Thousands of investors have been given exposure to the price of gold by this investment vehicle as described below.  However the investment banks have figured out how to skim money and profit off of the average investor in gold.  Without investors being informed and in unity, this fraudulent behavior will continue.

SPDR^® Gold Shares

Ticker: GLD

Trustee:  Bank of New York

Marketing Agent:  State Street Global Markets, LLC

Custodian:  HSBC Bank USA, N.A.

Shares Outstanding:  346.20 M

Total Net Assets:  $46,480.38 M

Key Benefits:

• Accessibility: Lowers many of the barriers associated with investing in gold.
• Cost efficiency: Costs of ownership are limited to an expense ratio of 0.40% plus the costs of buying and selling shares.
• Transparency: As with other ETFs, price, NAV, and detailed performance information for SPDR Gold Shares are available daily online.
• Liquidity: GLD shares are listed on the New York Stock Exchange Arca electronic exchange and can be bought and sold throughout the trading day through an ordinary brokerage account. GLD is the world’s largest gold ETF and the second-largest of all ETFs.
• Backing by physical gold: GLD shares track the spot price of gold because they are backed solely by physical gold bullion held in a vault in London, the world hub of gold bullion trading.

The following interview provides another view of how gold demand is broken down:

The only group that is negative on gold is the short-term trader/investor.  This includes the agents of the Fed such as Goldman Sachs.  Is the tail wagging the dog?

Notice what the average cost to mine gold is- $1,200 to $1,300 per ounce.  Do you think gold miners will sell their product at a loss at any significant volume?  Thus you can see why my bottom number is in the $1,250 range for a short term dip.  What do you think will happen to the share price if gold skyrockets to $3,500 per ounce?

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I wrote last week of the expected takedown of gold as early as Friday, maybe Monday.  It appears that the central planners have figured out that a quick smackdown will be met with immediate increased buying in the physical market.  A slow decline causes investors to deal with sustained emotions of loss.  How much pain can one take?  The offset is the belief that the current environment is only temporary and that requires commitment.

The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange. Not restricted to Baltic Sea countries, the index provides "an assessment of the price of moving the major raw materials by sea. Taking in 23 shipping routes measured on a timecharter basis, the index covers Handysize, Supramax, Panamax, and Capesize dry bulk carriers carrying a range of commodities including coal, iron ore and grain."

The BDI has never recovered from the 2008 slide.  This ought to tell us that the stock markets around the globe do not represent consumer demand for products.

Source: http://www.bloomberg.com/quote/BDIY:IND/chart

If the markets reflected true demand for goods, they would be down well over 50% of their current levels.  The central banks continue to “goose” the numbers hoping that consumers will be convinced of a real recovery but that is not happening.  23% unemployment in the U.S. is a constant reminder that all is not well.  The BDI is not a popular index by the media so it has no focus placed on it by central planners.  Instead, gold & silver continue to be where the battles are being fought.  The mainstream media accommodates those who want to depress the price and this has been the case for the last twelve years.  The markets have a serious disconnect with main street reality.

Interest rate suppression has caused investors to chase returns.  Junk bonds are now yielding 5%.  In 2008 junk bond yields were 20%.  There is no way that a high risk bond should yield only 5%!

Gold buying volumes in China year over year are up four to five times.  India is also a big purchaser.  And the price of gold is declining?  During the last smackdown there was the sudden appearance of a naked short sell order for 400 tons of gold.  Who has 400 tons of gold?  Goldman Sachs put the order in.  This should be investigated but I seriously doubt that anyone will take the “perp walk”.  These acts by central planners indicates desperation at the highest levels.

“The stock averages are over-bought, over-valued, over-loved and at record highs.  Margin debt is sky-high, showing that there is a great deal of speculation built into this market.” says Richard Russell, a seasoned investment newsletter writer.  I agree.

Power Consumption in China is no longer on a growth pattern:

If their economic engine isn’t supporting global growth, who is?  This virtual reality being promoted in the markets cannot last indefinitely.  When the curtain is finally pulled back, I would not want to be on the wrong side of the gold & silver market.  The foundation of the shell game is deceit and a slight of hand where your eyes are misled by distraction.  We are in the midst of a “super bubble” and the inside of the bubble looks calm… until it bursts.