Are There Any Chumps Still Holding GLD?

March 1, 2014

In 2013; we saw a series of momentous and unprecedented events. It started in March with “the Cyprus Steal”, as the Western banking crime syndicate pushed our Puppet Governments to introduce (and rubber-stamp) a new form of financial crime – the “bail-in”.

This then triggered a series of unprecedented events in the gold market. First, the Cyprus Steal alerted big-money players in our markets that no holdings of any form of paper, financial asset  were safe, any longer. This caused the Smart Money to commence the largest exodus ever from the Banksters’ paper-called-gold market.

The biggest of the “bullion-ETF” fraud-funds, the infamous SPDR Gold Trust (or “GLD”) saw the greatest collapse, with total holdings of this dubious paper plunging by roughly 40% from its peak. This unprecedented collapse in ETF-holdings came despite reports that the Banksters themselves had bought millions of units of their own fraud-funds – forced to do so in order to stave-off the total collapse of the entire paper-called-gold market.

Naturally, with the One Bank’s fraud-funds collapsing at the same time that demand for real gold was skyrocketing around the world; this has created some awkward moments for the Corporate media propaganda machine. It responded as it usually does in such situations: by telling much bigger lies.

As global demand for real gold spiked to its highest level on record; the Liars in the Corporate Media were calling this “a bear market” for gold. It pretended that the massive sell-off of paper in the paper-called-market was actually a sell-off of “gold” – despite the fact that Comex inventory numbers proved there was no gold being sold in the New York fraud markets.

As even the drones of the mainstream media can comprehend; if gold-holders were selling their gold (on a net basis), then gold inventories would have (must have) gone up. In fact; Comex inventories collapsed last spring, and at the fastest pace on record. Ipso facto; with inventories falling rapidly, then people were buying gold (and selling paper)  – on a net basis – and in huge quantities.

In hilarious fashion; the Corporate media even attempted to depict the forced accumulation (by the Banksters) of millions of units of their own, fraudulent paper-called-gold as going “net long on gold”. This silly lie fooled most (other) analysts in the sector, mainstream and non-mainstream alike.

This mass-exodus out of the One Bank’s gold fraud-funds suited its own agenda of price-suppression in many respects. Because the paper-called-gold market is (at least) one hundred times as large as the legitimate “gold market”; the flight out of paper dominated the sharp spike in the purchase of the metal itself, causing gold prices to fall even without any further push from the Banksters.

However, whatever temporary advantage which the One Bank derived from the flight out of paper in the Spring of 2013 was more than negated by the many, nasty consequences. Most of these repercussions have been dealt with in previous commentaries. They start with the massive spike in (real) demand, as the flight out of paper created a global “sale” in the gold market. This explosion in demand was so extreme that the One Bank was quickly forced to act – before global inventories completely disappeared.

Through destroying the value of India’s currency, it blackmailed India’s government into a near-total ban on official gold imports, into the market of the nation which has historically imported more gold than any other. But this draconian act of desperation, itself, had further repercussions.

The suppression of legitimate imports into India caused two, extremely worrisome developments (for the One Bank). First it led to an explosion of gold-smuggling, a large blackmarket for gold, and the beginnings of price-decoupling, in the world’s largest gold market.

On top of this; frustrated gold-buyers in India turned to silver, as India broke its own previous record for annual silver imports last year. But all of these serious, banker-negative developments in the gold and silver markets are over-shadowed by an even potentially more devastating problem: the continuing disintegration of the One Bank’s paper-called-gold fraud market.

Thus going all the way back to the summer of last year; we have seen the Corporate media staging a new propaganda campaign. It has been continually calling a “bottom” in the collapse of these fraud funds, in the hope that it would lure new Chumps into that market. However, each time the propaganda machine has crowed about a tiny up-tick in holdings (over a span of a few days, or a week), it has been forced to back-track.

By the end of each month (and despite massive buying by the Banksters, themselves), net holdings continued to decline – until February. While recent media-hype was projecting a large jump in holdings of paper-called-gold; by the time the dust settled at the end of last month, total holdings had risen by a microscopic 4.5 tons.

This amounts to little more than 0.5% of what was sold during the massive purge, a statistically insignificant amount. Furthermore, that tiny increase in total ETF-holdings came despite a 10.5 ton increase in holdings in the SPDR Gold Trust, itself.

With this particular fund being one of the primary tools in the Banksters fraudulent manipulation of the gold market, and given recent reports of the Banksters’ massive accumulation of paper-called-gold; one must suspect that most (all?) of this purchasing came from either the bankers or their surrogates. Without that still-modest surge in holdings; total gold-ETF holdings would have fallen by another 6 tons last month – the 14th consecutive, monthly decline.

Even with the continued, relentless buying by the bankers of millions of units of their own paper-scams in the gold market; the bankers themselves remain unconvinced that the blood-bath is over with respect to paper-called-gold. According to Deutsche Bank (one of the tentacles of the One Bank):

Based on some calculations based on past data and estimates, SPDR Gold Trust may shed 67 tons in holdings over the coming year…

This helps to answer the question posed in the title to this piece, assuming this “prediction” has any validity to it. Are there any Chumps still holding units of GLD? According to Deutsche Bank; yes. At least 67 tons (roughly 10% of what is left) belongs to Chumps who may/will bail-out of this scam, some time during 2014.

Apart from their central role as a tool of manipulation by the bankers; these paper-called-gold funds are the core of the entire, fraudulent, paper bullion market. Even if the One Bank can stave-off its complete annihilation; there are several (banker) negative implications here:

  1. Greater difficulty manipulating prices. The Banksters manipulate markets via leverage. The principal source of gold upon which they leverage their illegal bets and crooked algorithms has been the millions of ounces purchased by the Chumps – and then handed to the One Bank’s tentacles which act as “custodians” for these funds.

  2. Much greater pressure on (dwindling) inventories. The flip-side of so-called “leverage” is that it represents dilution: people who think they are buying “gold”, but who have really just bought more of the bankers’ paper. If gold-buyers are now choosing real gold (in much greater numbers) versus phony/fraudulent paper; this means larger, direct draw-downs from inventories (as we have seen in the Comex).

  3. Price-decoupling. Arguably this is the greatest fear of the One Bank in bullion markets. If the phony paper market keeps shrinking; this means the real gold market will grow in size relative to the One Bank’s world of paper-fraud. At some point; the “tail” will cease to be able to “wag the dog” – and real/legitimate prices for metal will emerge.

Actions have consequences. While regular readers may be sick of hearing this tautology; one must suspect that the One Bank (and its minions) find this truism much more annoying. Will the last Chump to leave GLD please turn out the lights?

Jeff Nielson

www.bullionbullscanada.com

Jeff NielsonJeff Nielson is co-founder and managing partner of Bullion Bulls Canada; a website which provides precious metals commentary, economic analysis, and mining information to readers/investors. Jeff originally came to the precious metals sector as an investor around the middle of last decade, but soon decided this was where he wanted to make the focus of his career. His website is www.bullionbullscanada.com.

A one-ounce gold nugget is rarer than a five-carat diamond.