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

About the Author

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  363 Comments

Zoltan
Sep 26, 2011 - 11:00am

first?

First

Silverman
Sep 26, 2011 - 11:02am

Yep.

Yep.

Economical Disaster
Sep 26, 2011 - 11:03am

Kitco

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

zilverreiger
Sep 26, 2011 - 11:06am

digital currency

digital currency exchanger

its not really a gold company right

Michael222
Sep 26, 2011 - 11:09am

London Gold Exchange

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

Pablo
Sep 26, 2011 - 11:09am

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.

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

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

Scary!

mouser
Sep 26, 2011 - 11:10am

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
Sep 26, 2011 - 11:11am

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?

https://www.zerohedge.com/news/five-banks-account-96-250-trillion-outsta...

tko
Sep 26, 2011 - 11:11am

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 :)

Vincent
Sep 26, 2011 - 11:12am

Thanks Turd!

Thanks TF!

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