Servias Ministries Blog

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.