An Interesting Development

Below is something that many of us just noticed. Hmmm...:

http://www.londongoldexchange.com/maintenance/

Now, I'm not sure what kind of "operational difficulties" would lead this company to "permanently close for business" but it sure is an interesting development, to say the least. Here's more, from Wikipedia:

"London Gold Exchange is a digital currency exchanger founded in 2001. The London Gold Exchange is owned by LGE International LTD., an offshore company registered in Belize, with offices in London, England and Hong Kong. London Gold Exchange operate 2 franchises, one in the UK and one 'International' which covers everywhere other than the UK. The UK administration office in Central London, with staff based in locations around the UK. The International administration office is in Hong Kong, with staff also operating from mainland China. Technical staff also operate from locations in Australia."

Now, I would sure think that, if you've been in business since 2001, you would have a pretty solid hedge book in place to protect you against sudden downdrafts. Maybe not. Who knows? Maybe those Friday rumors of a "big, European liquidator" had some merit?

At any rate, the damage is done and is continuing to worsen. I don't know anything about this company. However, news of a "gold company" suddenly closing its doors will only serve to further unsettle this market and rattle weaker longs. Therefore, don't be surprised by further weakness as this gets disseminated.

That said, many have asked me to employ the pen and sharpie to discern where all this madness might end. As discussed previously, the 15-minute and hourly charts are completely worthless right now. On the other hand, the weekly chart may provide some clues. If you think (as I do) that the long-term bull market for the PMs remains intact, then you should look for guidance from the long-term charts. The charts below are significant in that the trendlines shown date back to the initiation of Quantitative Easing back in March of 2009. If you expect more easing and QE to infiinity (which I do), then you should expect these trendlines to hold. Perhaps not precisely. It would be foolish to think gold will stop right at 1480, for instance. However, if you're looking for areas to BTBFDIRM (buy the biggest f-ing dip in recent memory), the areas shown below would seem to be a logical starting point.

paper_9-26amgold.jpgpaper_9-26amsilv.jpg

Keep the faith and keep stacking. TF

363 Comments

Zoltan's picture

first?

First

Silverman's picture

Yep.

Yep. 

Economical Disaster's picture

Kitco

went down in the 70's so this is no surprise. I wonder how many people lost their shirt on this scam..

zilverreiger's picture

digital currency

digital currency exchanger

its not really a gold company right

tko's picture

What a crazy weekend.  I

What a crazy weekend.  I noticed the premiums have grown a little even in the past few days.  On Friday I saw 10 oz and 100 oz bars for $2 or so over premium on BullionDirect.  Today the BullionDirect catalog spread was more like $2.50 - $3.  And the Nucleo spread was out of control, with all of the asks still up past $36/oz and the bids down around $29 - $30.  Most of the different types of 100 oz bars that were available late last week on APMEX are now sold out.   Provident still has some low premiums on bars though so I bought into weakness again today.  Their 100 oz bars were less than $1/oz over spot.

Soon I'll have another big shiny doorstop :)

jackmeoff's picture

Sold all of my gold

Just sold my 30.65 oz of gold but got 1675 oz of silver for it. Lets hope the g/s ratio is at a high. I think 57-60 is top but if not I will get buried with my silver.

Michael222's picture

London Gold Exchange

Maybe we hear more from ZeroHedge from this company....

Pablo's picture

Everyone's Hero ScottJ is on the the case

ScottJ is investigating this, I've also sent some info off to Infowars to see if their research staff wants to get to the bottom of it. From what Scott has found out so far, this company used to be (and may still be) a front for the Rothschilds.

I'm starting to think TPTB are working very hard to cover their tracks, world wide.

So I'll also repost this from the end of the other thread:

Speaking of infowars, they've posted an article today (from ZH) about that Fed proposal. Check it out for yourself - this recent RFP from the Federal Reserve - they are setting up a system to identify key bloggers and monitor what they're saying about the Fed.

http://www.infowars.com/the-federal-reserve-plans-to-identify-%E2%80%9Ck...

http://www.scribd.com/doc/66281284/Frbny-Social-Media-Rfp

Scary!

mouser's picture

JPM CEO blasts Canada bank chief

In other words JPM was saying, HEY WE MAKE THE RULES AROUND HERE.  HOW DARE YOU SUGGEST WE SHOULD HOLD 7%  OF  core capital against risk-weighted assets. There probably is not 1 US bank that is at that threshold. The reality is that they are all overleveraged to the nth degree. Basically bankrupt , but kept floating by insane , corrupt accounting rules, that allow them to write off bad debts/toxic paper as assets.

International Tensions Soar: Jamie Dimon, CEO of JP Morgan, Accuses Bank

In case you mistakenly thought there was some semblance of a chance of international accord to address the global financial crisis, please consider Dimon in attack on Canada’s bank chief

Jamie Dimon of JPMorgan Chase launched a tirade at Mark Carney, Bank of Canada governor, in a closed-door meeting in front of more than two dozen bankers and finance officials, underscoring mounting tensions between bankers and officials over financial regulation.

The atmosphere was so bad after the meeting that Lloyd Blankfein, chief executive of Goldman Sachs and head of the Financial Services Forum bankers’ group which arranged the session, emailed the central banker to try to smooth relations, people familiar with the matter said.

On Sunday, 48 hours after the contretemps, Mr Carney delivered a speech to global bankers at the Institute of International Finance, warning them “it is hard to see how backsliding [on implementing new capital rules] would help” the global economy.

“If some institutions feel pressure today, it is because they have done too little for too long, rather than because they are being asked to do too much, too soon,” he said.

Mr Dimon told Mr Carney that many of the rules discriminated against US banks and he was going to continue to use the phrase “anti-American”, first used in a Financial Times interview this month, because it seemed to resonate with people who might be able to modify the reforms.

In his speech, Mr Carney said: “Authorities are increasingly hearing concerns about the pitch of the playing field for Basel III implementation. Everyone is claiming to be a boy scout while accusing others of juvenile delinquency.”

He added: “However, neither merit badges nor detentions will be self-selected but, rather, determined by impartial peer review and mutual oversight.”

Exclusive Response from JP Morgan

The dispute was over rules agreed by the Basel group of international regulators that would force all banks to hold 7 per cent core capital against risk-weighted assets. The biggest face an additional surcharge of up to 2.5 per cent.

Bezalel's picture

Derivative Risk

Is it bad that JPM has $78 trillion in derivative risk? And if it is bad, for whom is it bad? For JPM, or for you and me?

http://www.zerohedge.com/news/five-banks-account-96-250-trillion-outstanding-derivative-exposure-morgan-stanley-sitting-fx-de

Vincent's picture

Thanks Turd!

Thanks TF!

Economical Disaster's picture

JPM is UP

Silver getting trashed, JPM is up, what does that tell you. It has passed  SILVER spot price now

skialta39's picture

Premiums

Last week I purchased 90% coins from providentmetals.com for 9 cents over spot. Go to buy more this morning and notice that it is now 89 cents over spot......lame. But it's not surprising.

Pablo's picture

@Sold all of my gold

Diversification is key, and I'm sticking to my plan, but I'm not going to lie - I was pretty darn tempted to go swap some gold into silver at this ratio, it's so out of whack it's ridiculous. I could swap it out now and swap it back later in a month and end up with 1 or 2 extra oz of gold or something. But I'm sticking to the plan, lest I be buried under my silver as well :)

Velocity's picture

Benny is such a Dull Boy ...except..

Benny was being billed as The Wizard about to come out all guns blazing... instead he was wheeled out in a drab suit and dribbled inannely down his chin something about "rolling over old debt"

Boring Benny had me completely fooled, it was actually a double-bluff

Little did anyone know behind the scenes of Bennys wooden acting the Central Banks had concocted (colluded) to let off the fireworks in a take-down of Gold (and by genetic lineage, Silver) in a huge paper (criminal market rigging) operation 

Benny billed as Wizard, acted on-stage as Mr Drab was being a Wizard afterall

Question is is massive market intervention by Central Bwankers in the Gold market legal?

Are the Regulators who sit, well-paid, on top of hundreds of legal documents, regulations and Laws on rigging and fixing markets going to follow-up this massive Central Bwanker paper-chase and cuff, arrest, Court and jail all the Central Bwankers involved??

...they waisted no time cuffing Dominic Strauss-Khan, how about Ben Bernanke???

And now the carnage is amounting of investors losing $£Billions in a matter of days, including the London Metals Exchange going tits up and job losses amongst the destruction to price, what is anybody going to do about these establishment crooks who use public office for nobodies benefit but their own sick little extremist club???

It is afterall public office and a public duty they are sworn to uphold

Who amongst the public has benefited from The Feds, the Bank of Englands and Bank of Japans bunch of secret-policy tossers in their market rigging/intervention and the absolute carnage that has ensued?

"Price Stability" hahahaha ...rings as hollow as the CME/Crimex snakeoil statements

 
 
 
 
33 and a turd's picture

Derivative Risk

I think this comment I read recently is quite accurate

'If I owe the bank £10 it's my problem. If I owe the bank £10 million it's their problem. If banks owe other banks billions of Pounds it's the Government's problem. If the Government owes trillions of Pounds it's my problem again.'

Economical Disaster's picture

SILVER making a spectacular COMEBACK

29,77 hopefully that was it, it was just a DIGITAL CRASH..

rassillon's picture

Get prepared

Posted by GeneMarchbanks on ZH thread

jackmeoff's picture

@Pablo

yeah its only a short term bet. I figure if I can get trade again at 44-45 then I end up with an extra 9-10 oz of gold. If it goes the wrong way I have my monthly buy which I can use to buy gold with again.

Red Pill's picture

interesting..

http://www.ip-adress.com/whois/londongoldexchange.com

LGE International Ltd
3705 Bank of America Tower
Suite 534
12 Harcourt Road
Central, HK Hong Kong
HK

more info, looks like they (them or their *friends* ) did a bit of forex spamming. 

http://www.webservertalk.com/message1681514.html

vortex's picture

Closed all my puts today. Will be looking to buy Calls soon

Waiting for vol to come down first.

Still think this pattern is going to unfold between now and November when the CB's will go berzerk on the QE² worldwide.

Need confirmation of the closing above 1584 as per Jim/Kenny/Martin advice.

http://profitimes.com/wp-content/uploads/2011/09/Gold-2011.png

http://profitimes.com/wp-content/uploads/2011/09/Gold-19793.png

vvvvv

Marblesonac's picture

locked in some monsters....

at $31.49 for maples.

Glad to get them...

sevin's picture

Nice little rally

Hopefully we can continue to put together some more of these rallies. This thing has gotten way too volatile for anyone to trade. I would love a chance to stack some more at $24.

Michael222's picture

Opinion on this one from CM

Maybe it has already posted before in another thread, but anyone has an opinion on this one from the newest (piece of shit) of Clive Maund:

http://www.clivemaund.com/article.php?art_id=67

snip which sickens me://

We are now entering a deflationary bust phase that politicians have been trying to ringfence since 2008. Now they are outmatched and outflanked and totally out of options, which means that we should see - and it started last week - a broad based commodity and stockmarket crash, and therefore we should expect the worst with regards to silver.

end snip

I hope he is wrong; but he was right this time

any thoughts?

unky's picture

Interesting developement

After shuting down their website when silver was at $26, the largest German coin dealer opened again at $29 silver and then later was nearly out of stock for silver products:

Server problems at $26 silver:

Later, Nearly all silver sold out:

In munich 100s of people were lined up to buy PMs.

Monetaadvisors's picture

$1480 possible or the bottom could be being put in here

While I do agree that $1480 is not out of the question, but just because this company had GOLD in its name it had almost zero to to with gold and setting the price or supply. The company was involved in converting FIAT money to DIGITAL money for a fee of 1-6%. It was a stupid idea and unnecessary as a business entity period. They held no gold sold no gold but like many companies of the dot com era they put GOLD in their name to either lend themselves an air of credibility or because it was trendy. Bottom line is your "sharpie" charts may well prove out correct all though the dive overnight below major support of $1565 and subsequent bounce back may indicate bottoming out here, we shall see especially if the metals close in the $1600 and 28.5-29 range respectively. This would come in the face of stated Margin raises by CME going in to effect today. If the last levered long has finally sold out then it is over , but if there are more that can't take the heat it will move lower. Conversely there has been much shouting and hand waiving over the "strength" of the dollar but after breaching 78.6 once on a short covering spike the DXY has fallen back and then rose to hit 78.50-60 about 25 -30 times over the last few days turned back every time. I don not believe that the strength in the dollar is as strong as it should be and its bounce is more of a function of people getting liquid and some short covering- seems to me that the crowded trade is the dollar as all I hear every where is how it is going to rise. Conversely all you hear is gold is a bubble and has popped, sure it  took a tumble but is well with in the confines of the secular bull market uptrend. Moreover, none of the drivers have really changed as this is not an inflation driven gold bull but instead a currency debasement, economic uncertainty, lack of political leadership and un-payable debt driven bull and nothing on any of those fronts changed. People also don't study history. In a bull market corrections are to be expected and even in the last major gold bull the transition from bull to exponential bull was very similar. In 1975 Gold peaked at $180 and then took a 55% header back to 100, after that completed it started its historic parabolic run. This is the point we are at now clearing out the first part of the run setting up for the mania. So the bottom line is that this non gold company that changed money has no impact on gold other than having gold in its name and the MSM tossing it out there on wild speculation. FWIW.

ceperez's picture

Recommendations????!

Silver now is at $30.47!   

Red Pill's picture

silver..

down $4 and up again $3 in a morning.  this is just madness. 

....squeeeeeeeeeeeeze!

tko's picture

Silver surging now!  Kitco

Silver surging now! 

Kitco has had a hard time keeping its live charts servers loading at a reasonable speed (or at all!)  Have seen a lot of this today: 

Service Unavailable

ScottJ's picture

GLD A Ticking Timebomb????

Interesting Piece of information..... also note GLD's creation..... HMMMMMMMM........... Run on Physical anyone????????

http://www.marketoracle.co.uk/Article14996.html

These revelations should provide a “new filter” through which Rothschild exiting the gold market back in 2004 begins to make a little more sense:

“LONDON, April 14, 2004 (Reuters) - NM Rothschild & Sons Ltd., the London-based unit of investment bank Rothschild [ROT.UL], will withdraw from trading commodities, including gold, in London as it reviews its operations, it said on Wednesday.”

Interestingly, GATA’s Bill Murphy speculated about this back in 2004;

“Why is Rothschild leaving the gold business at this time my colleagues and I conjectured today? Just a guess on my part, but suspect:”

*SOMETHING IS AMISS. THEY KNOW A BIG GOLD SCANDAL IS COMING AND THEY WANT NO PART OF IT. …”

“ROTHSCHILD WANTS OUT BEFORE THE PROVERBIAL "S" HITS THE FAN.” BILL MURPHY, LEMETROPOLE, 4-18-2004

Coincidentally [or perhaps, not?], GLD Began Trading 11/12/2004

In light of what has occurred – regarding the Gold ETF, GLD – after reviewing their prospectus yet again, it becomes pretty clear that GLD was established to purposefully deflect investment dollars away from legitimate gold pursuits and to create a stealth, cesspool / catch-all, slush-fund and a likely destination for many of these “salted tungsten bars” where they would never see the light of day – hidden behind the following legalese “shield” from the law:

...

continued at link above.

--

And your BBC (Reuters -- aka Rothschild influenced news) piece of news that was released to the public in 2004....

http://news.bbc.co.uk/2/hi/business/3628971.stm

Rothschild to leave gold market
Gold bar
It may look shiny, but the profit growth for Rothschild has been dull

NM Rothschild, one of the City's oldest merchant banks, has decided that profit takes precedence over history and is to withdraw from London's gold market.

The move is part of Rothschild's plans to halt all commodities trading out of London as it becomes less profitable.

Last year, the business generated just 2.2% of the bank's income, down from more than 8% five years earlier.

Rothschild's departure will leave a big gap, not least because it hosts the twice-daily gold price fixing.

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