An Interesting Development

363
Mon, Sep 26, 2011 - 10:58am

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

https://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.

Keep the faith and keep stacking. TF

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Canadub
Sep 27, 2011 - 1:55am

@Romanoff

In order to be worried, you would have to believe we have been through the "mania" stage already. Ask yourself, have we been through the mania stage? IMO, all the talk so far has been about a bubble. Bubble this, bubble that. Even my friends who trade... its a bubble bro, f*ck that sh*t, buy apple bro. Isn't the mania phase talk supposed to be your cab driver telling you he's buying his third house on this trade? That's when you bail, when idiots are telling you how much money they've made.... so you can sell, and steal it from them!! hah, hah, hah. That being said, this trade ain't for profit, yo. When we realize the success of this trade, lifes gonna suck... and life doesn't suck yet! Sit back, stack, and find a safer trade than this BS.

SkyezzJustin
Sep 27, 2011 - 1:20am

deleted

Deleted

germanycircus
Sep 27, 2011 - 1:04am

We saw 1500 and 26 for seconds...

We saw 1550 and 26 for seconds in the middle of the night. They stole the pudding, but I think they're covered, and I think they're done. We should buy the fizz while the margins hold it down for now.

Seoul_StackerGreen Lantern
Sep 26, 2011 - 11:55pm
badScooter
Sep 26, 2011 - 11:21pm

psychos

I think those researchers ought to study some politicians...seems like they'd score pretty high on that psycho test, as a class

Green Lantern
Sep 26, 2011 - 11:00pm

BTW, after this last week, I

BTW, after this last week, I am not encouraging friends to buy gold and silver. I do however encourage them to do it if they make the inquiry. After reading all the psychological projection upon the current metal guru's, I thought shit, if my friend had taken my adivice and went out and bought a boat load of silver, he'd be pissed at me. And then I'd have to go into a big long speech about debt spending, manipulation and goverments. I'm too old for that shit. I'm not handing out pamphlets converting anybody. However, I will hand out blankets to the homeless.

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Green Lanterndos pesos
Sep 26, 2011 - 10:53pm

Re: Can Somebody Explain?

I can't answer your questions but can provide my observations.

I have been hearing forever that their will be a mania period in gold and silver. However, nobody seems to know how that tipping point will be triggered. I don't see people at work running to cash out their 401 k plans for silver and gold. I do see a shit load of pawn shops opening and advertising they buy gold at good prices. As well as individuals sponsoring these parties where people sell their gold. If I have a party , it's going to be to educate people DON"T SELL YOUR GOLD. The Average American knows little about investing. I'm talking about white collar and even upper level executive management. They fork their money over to some money manager who gives them investing recommendations.

It could be that the mania will come from institutional investors. I suspect that when we get closer to the demise of the dollar or at least the same proximity as the Euro is at the moment, it may be too late for the masses to get into it. If gold is anywhere between 5 and 10 grand, I can't see people taking the last of their savings account and buying gold. The preparation has to be done now. I'd like to hear from Europeans who fear the demise of the Euro while we are experiencing a huge correction in PM's. As the guy on BBC said this morning, they are going to the dollar.

I too saw in the past week people going to the LCS and selling their gold and silver at a loss due to fear. That absolutely makes no sense that one day you think it is a good investment and then all of a sudden you are in a panic because it is going down. It means you were never educated in the reason for stacking and that your decision to buy some gold and silver coins wasn't predicated on anything except making some profit. Go buy IBM if that's your motivation.

I wouldn't mind if PM's totally collapsed forever. That would mean that we now live in a prosperous land led by wise politicians with plentiful resources and jobs. Under those conditions, where wealth could be recreated, I'd say fine. But that ain't the case so no matter what PM"s do in a short term bearish trend, they are the ticket to the promised land.

Rufanufcpnscarlet
Sep 26, 2011 - 10:43pm

@cpnscalret

So what does the central bank do with the bad debt? This is the bit I have never really understood. I mean if Central Banks are like the parents and commercial banks are their children, they can just come along and give them potty training with free fiat whenever the commercial banks have a little accident? Where does the used toilet paper go once its with the Central or Reserve Banks? Don't tell me they go to our governments and tell them they must exchange the used toilet paper for clean stuff by increasing taxes? I'm starting to understand this stuff now I think! So governments looking for new toilet paper to give to Central Banks reduce spending, and raise taxes to meet the demands of the Reserve Banks (the elite) thus giving the average joe nothing to wipe his arse with, just for the fact their children shat their pants....Mmmm seems somewhat unfair that really doesnt it? So the ever increasing taxes and reduced spending of government decreases economic activity and we all go circling around the toilet bowl together until something has to give. At which point governments get really desperate and start confiscating real assets from real people, so they can meet the demands of the bullying parents of the bad children, and thus it goes on and on! Coool Now I get it!

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