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