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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  363 Comments

ewc58
Sep 26, 2011 - 1:46pm

Pearls before swine....

The Truth. No wonder the BBC dbags were blindsided. They prepare them for most anything. Just not that :-)

Yeah boy, that segment is surely bound for the msm's Memory Hole.

White Hat APB on Alessio! Quick Turk/Sprott/Murphy/Santa, get this kid into a PM Special Forces Safe House. After all, JP Morgan whistleblower Andrew Maguire almost got whacked and his revelations were seen by a much smaller audience, at least initially...

sam johnson
Sep 26, 2011 - 1:47pm

I find it weird that the

I find it weird that the London Gold Exchange is already on Wikipedia as a thing of the past.

AlienEyes Velocity
Sep 26, 2011 - 1:48pm

"Stop Govt and the Banks: Stop Paying Your Taxes"

A fellow I know tried that. He gets out in June, 2017.

His lesson was that this will only work if over 50% do it or the number exceeds three times the current prison space.

Shill
Sep 26, 2011 - 1:49pm

Atlee just added to my Oct 39

Atlee just added to my Oct 39 slv calls full position now...bring it on. :)

I like the volatility its the quickest and easiest money to make. Its just a timing thing, and how greedy one wants or needs to be.

Ferd Torgerson
Sep 26, 2011 - 1:49pm

The Very Last Thing You Want to Do

Is to s***w with the IRS. You’d come closer to making money shorting silver if it falls to $12 per oz. than trying to short the IRS even $1.00 in taxes.

We all have laptops and desktops. The IRS literally has rooms full of high-powered computers to track all sorts of info and databanks to project probable income/expense scenarios for millions of individuals and businesses.

My wife and I owned a small business many years ago. The business side and customer contact was fun (at least with the customers who paid their damn bills). The killer was the countless hours spent making sure we accurately tracked income and expense, paid the proper amount of state sales taxes, paid our employment taxes on time and filed accurate and honest returns to all the taxing entities. In the end, it just was not worth the trouble and we sold the business. We saw others in our community at the time sued by the IRS and state taxing authorities. In two instances, these businesses were forced to close. Just recently in the community where we are now, one of our favorite restaurants was closed. Why? Rumor has it they were not paying their FICA and FUTA taxes.

Below is a book I read many years ago on avoiding the most common mistakes that small business owners make that can cost them thousands. And, no, I don’t believe the author Michael Savage is the same guy with the conservative radio show.

If you are thinking of opening a small business, I strongly recommend this book. It’s hard enough trying to stay out of trouble running an honest business. Thinking you can outsmart the tax people is suicidal. I agree we need to overhaul our tax system. Til that day comes, the smart people will play by the rules.

https://www.amazon.com/Dont-Destroy-Your-Small-Business/dp/0201311453

timpa
Sep 26, 2011 - 1:50pm

American Dream (great stuff) cartoon

The American Dream Film-Full Length
ScottJ
Sep 26, 2011 - 1:52pm

Re: Stopping Paying Taxes

Tax money does not fuel this fire. They have printing presses.... I am not a supporter of this in the current system.

Focus on constructive ideas.... as in how to survive/thrive/and help yourself (by helping others) in the coming days. We are the creators of the future, we must act like it, or who else will? As much as we don't like it, we must play by certain rules, or risk consequences. AlienEyes has your answer above.

TheGoodDoctor
Sep 26, 2011 - 1:54pm

Just remember they are

Just remember they are creating TARP for Europe right now. I heard 3 trillion Euros last night on Bloomberg overnight. (Close to 6 trillion dollars) That is incredible.

Not sure how the dollar currency swaps that the US is offering Europe fit in. But this is going to be a huge amount of money to recapitalize the banks in Europe.

They kept talking about "ring fence".

Also on the ticker they were flashing a story that Merkel was treated for high blood pressure. "No shit, huh?" LOL.

bensgone
Sep 26, 2011 - 1:54pm

I posted a similar chart

I posted a similar chart earlier this month. So this is updated and very revealing as to just how crazy this month of September really has been compared to last September. The comment chart for 2010 was not included because it contained nothing other than options expiry days for that month. Every single item in the comment section of Sept. 2011 profoundly affects the markets.

12 out of 17 trading days are down days, so far this month. Only five up days. Sept. 2010, however, had 12 days up and only 4 days down, one of those days had no change. This clearly shows massive activities, meetings, and changes way, way over that which occurred last September. Clearly, things are heating up dramatically and profound change is happening as we speak. It must be kept in mind that nothing in the financial markets happens by accident. Accidents will only happen, in the grand scheme of things, when TPTB lose the significant control they now exert over the markets globally. Of course there are small events with in the grand context that they don’t manipulate and control, but you can be sure, when it comes to the big stuff they absolutely do keep a very strict control of it.

brad_pitts_betterlooking_brother TheGoodDoctor
Sep 26, 2011 - 2:01pm

merkle recently treated for high blood pressure you say?

so... she's obviously a silver bug too!?!

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