The Bogus Bullion Etfs

7/31/2019 The Bogus Bullion Etfs

1/51 The Bogus Bullion - ETFs

The precious metals market has been

rocked by the twin bombshells o Andrew

Maguires emergence as a whistle-blower,

along with Jeery Christians stunning

admission that the bullion-banks had

leveraged their dwindling bullion by an

insane 100:1. While there are numerous

repercussions to these revelations, perhaps

nowhere does this news have more o

an impact than with the bankster-rauds

known by the symbols GLD and SLV.

Regular readers are amiliar with mystrident criticisms o these paper-bullion

unds. There are numerous bases or

challenging their legitimacy, but the place

I usually start is to point out that the same

bullion-banks who are the supposed

custodians or all this bullion also

have gigantic short-positions which (by

remarkable coincidence) are very similar in

size to the total (alleged) holdings o GLD

and SLV.

While deenders o these raud-unds

point to audits which suppose prove

that these unds are properly backed, as

I have pointed out beore, those audits

are nothing but a bad joke. There are two

problems. First, while the ETF bullion

may be audited, the short positions o the

bullion-banks are never audited. Thus, all

that has ever been demonstrated by these

audits is that the bullion banks may hold

enough bullion to cover either the short

positions or the custodian agreements.

As I have maintained, time and time again,

it is naivete o the highest order to believe

that i the banksters were given the choiceo honouring their custodian agreements

with the bullion-ETFs or covering their

own short positions that the banksters

would choose to prop-up the bullion-ETFs.

I you dont believe me, ask the clients

o Morgan Stanley: who sued that raud-

actory ater discovering that when they

instructed Morgan Stanley to purchase

bullion or their accounts that it only

pretended to do so.

However, even though Morgan Stanley

only bought pretend-bullion or those

accounts, this didnt stop it rom charging

The Bogus Bullion-ETFs

S P E C I A L B O N U S

Jef Nielson



its customers real storage ees. To believe

that the same banksters who cheat their

own clients without thinking twice would

protect the anonymous third-parties

holding GLD and SLV is merely wishul

thinking.

Secondly, as regular readers know, every

bar o SLV silver is counted as part o

ocial, global inventoriesIn act, roughly 2/3 o total silver

inventories are the supposed bullion-

holdings o SLV. What this means is that

even i there was any, real silver in SLVthat every ounce o that silver has a or

sale sticker on it. This means that even i

SLV conducted an audit every day, that

such an audit would only be valid or a

millisecond: the time it takes or someone

to place a buy order or every ounce o

bullion supposedly held by SLV.

Returning to the custodian agreements,

when I alleged that the bullion-ETFs were

nothing but empty rauds, because the

banksters had never demonstrated that

they had more than hal the gold needed

to cover their massive obligations, keep in

mind what that implies. I the bullion-banks

had merely leveraged their bullion by 2:1,

that alone could make GLD and SLV totally

worthless.

In act, thanks to Jerey Christian o the

CPM Group (the same people who count

SLVs silver as part o ocial inventories),

we now know that the banksters bullion

is leveraged 100:1 - fty times the amount

o leverage required to render GLD and

SLV worthless. While GLD and SLV holders

may have been willing to gamble on the

generosity o bankers when their leverage

was only suspected o being 2:1 (a bad bet,

at the best o times), that world doesnt

exist. In the world o 100:1 bullion-leverage,

it isnt even rational to hope that there is

any bullion backing these unds.

I the banksters had truly, ully-backed GLD

and SLV, then (as a matter o arithmetic)

that would mean that the remainder o

their bullion positions would have to be

leveraged that much more - to somewhere

around 150:1. This proposition becomes all

the more ludicrous when we review some

o my other criticisms o these raud-unds.

To begin with, there are the absurdly low

storage-ees which the bullion-banks

charge GLD and SLV to store its bullion.

We know what the air-market value o

such storage is, through the management

ees charged by the minority o legitimate

bullion-ETFs: who actually hold and store

bullion directly or their unit-holders. Its

many times the near-zero ees charged to

GLD and SLV.

Thus, apart rom all the other reasons

to doubt the legitimacy o these unds,

those dreamers who still believe in their

legitimacy must also believe that the

banksters are subsidizing these unit-holders

- purely out o the goodness o their hearts.



Ill give readers a moment to recover rom

their laughter, because this scenario gets

much more ludicrous.

Its not just that the banksters would be

subsidizing GLD and SLV unit-holders.

These bullion-banks, the holders o the

most-concentrated short positions in the

history o commodities trading would be

subsidizing the entry o millions o longs

into the precious metals market - directly

jeopardizing their massive, short positions.

It would be oolish merely to believe that

the bullion-banks would subsidize GLD andSLV unit-holders, under any circumstances.

However, to suggest that these banksters

would subsidize the entry o millions

o longs, while the banksters are sitting

with gigantic short positions (leveraged

100:1) is truly the defnition o idiocy. In

other words, ar rom these custodian

agreements representing the frst choice

or the banksters to deploy their totally

inadequate amounts o bullion, those

custodian agreements would be the last

place the bankers would choose to start

honouring their leveraged commitments.

Apart rom the bankers not caring about

the millions o (mostly) small investors

holding these raud-unds, a glance at the

prospectus or any o these banker-backed

bullion-ETFs reveals that the und-

managers could hold all sorts o dierent

paper instruments - and pretend that they

represent bullion.

When Jerey Christian blurted-out some

o the most intimate secrets o the bullion-

banks, during his blunder-flled testimony,

among those secrets he touched upon

was the enormous amount o bullion

which is leased: either leased by the

central banks to the bullion-banks, or

leased by the bullion-banks to other

customers.

Who are those other customers? Christian

identifed some o them as electronics

manuacturers and jewelers - consumers

o gold. This is an integral component o

the banksters multi-decade bullion-raud.

Precious metals researchers who have

attempted to sit-through the raudulent

paper trails o the banksters claim that

much o (i not most o) the bullion which

is claimed to be held by Western central

banks are nothing but IOUs or the

countless tons o gold they have leasedto the bullion-banks.

While undoubtedly those bullion-banks

have used-up much o that leased gold

in covering their short positions over the

years (and thus that bullion is gone-or-

good), there is at least some possibility that

a portion o that gold might be recovered

by central banks. Obviously, this is not the

case with gold (and silver) that has been

leased to electronics manuacturers or

jewelers. All their gold has been consumed

in their own manuacturing, and then sold

(in tiny amounts) to countless third-parties.



This is bullion which the bullion-banks

know will be gone orever, the moment

they execute these lease agreements

- yet the bullion remains on their

books as both an asset and as real

metal. Obviously, these so-called lease

agreements are thus raudulent, on their

very surace. They are fnal sales which

have been raudulently portrayed as

loans.

The banksters motivation or engaging

in such rauds is obvious, while the

willingness o end-users to participate in

such rauds is not as immediately apparent.

Presumably, the electronics manuacturers

and jewelers are given a choice by the

bullion-banks: they can buy gold and silver

(at a higher price), or enter into long-term

lease agreements or the metal - at a

signifcant discount. Both parties know the

transactions are shams, but the bullion-banks get to pretend to hold much more

gold and silver than actually exists, while

the end-users get to increase their proft

margins.

Thus, while much o the banksters 100:1

leverage is achieved through the inherently

reckless leverage built into the derivatives

market, another signifcant component o

this bullion-raud is the multitude o lease

agreement Ponzi-schemes. One orm o

those Ponzi-schemes is that the central

bank leases bullion to the bullion-bank,

then the bullion-bank leases that bullion

to a 3rd party, and then that holder leases

the gold to a ourth party, and so on...The

same ounce o gold or silver ends up being

listed as an asset (and real bullion) on

multiple balance sheets.

However, scamming in that manner, is

cumbersome - as you need to continually

add new links to the chain in order

to expand leverage in an ever more-

raudulent manner. Its much easier or the

central banks and the bullion-banks just to

lease the same ounces o gold and silver

over and over and over.

Since the bullion-banks have been allowed

(or decades) to engage in institutionalized

raud in their bullion accounting (i.e.

pretending that a leased bar o bullion is

the same thing as actually holding a bar

o bullion), there is nothing stopping them

rom leasing the same bar o bullion to a

hundred dierent customers.

In my previous critiques o the GLD and

SLV rauds, my only smoking gun was the

raud perpetrated in silver inventories (by

counting privately-held ETF-silver as part

o global inventories), along with a great

deal o circumstantial evidence, along

with a liberal amount o common sense.

However, ollowing Jerey Christians and

Andrew Maguires revelations about the

bullion market (and the bullion-banks), that

evidence is now literally a hundred times

stronger.



We know the banksters have cheated

bullion holders around the world by

selling the same ounce o bullion to

them a hundred times. We know that

the banksters have made bullion-raud

a way o lie. And these same banksters

are the people whom the holders o GLD

and SLV must implicitly trust - or else

their investment is nothing but another

steaming, mound o banker-raud.

As I have stressed in numerous, previous

commentaries, as legitimate investment

vehicles, the bullion-ETFs like GLD

and SLV make no sense at all. We are

supposed to believe that, on a whim, the

massively-short, massively over-leveraged

bullion-banks decided to unnel all o

their dwindling supplies o bullion into

unds where the storage ees are so low

that they are essentially subsidizing the

entry o millions o long investors intothe sector - exponentially increasing both

their leverage, and the pressure on their

massively over-leveraged positions.

Conversely, as a premeditated, deliberate

raud (at least in the eyes o the bullion-

banks), GLD and SLV make perect sense.

These raud-unds vacuumed-up $10s o

billions o investor dollars which would

have otherwise totally depleted their

hoards o bullion. Instead o surging

demand destroying the bullion-banks, they

merely ratcheted-up their leverage another

ten or twenty times - and sold additional,

vast amounts o their worthless paper.

Indeed, this is nothing more than a

variation o the oldest o all banker-scams:

taking the wealth o the little people,

and handing them nothing in return but

worthless scraps o paper with the words

gold or silver written on them. I there

is any surprise or mystery here, its not

the banksters would roll-out this old scam,

yet one more time. Its that there are still

millions o rational adults who, despite the

recent revelations, continue to entrust vast

amounts o their precious wealth to these

obvious shams.

I also cannot avoid mentioning the

majority o commentators, both inside

and outside this sector, who continue

to present these unds to investors as

legitimate investments - with no warnings

or caveats - despite the obvious nature

o these shams. I ask readers to make

note o those analysts who continueto tout these shams, so that you dont

allow yoursel to be misinormed by such

irresponsible sources in the uture.

Not only is the Emperor wearing no

clothes, but these bullion-bank tailors

have clothed a hundred naked Emperors

in their fnery. Fool me once, shame on

you. Fool me a hundred times, shame on

me!

Documents

The Bogus Bullion Etfs