An Interesting Development

Mon, Sep 26, 2011 - 10:58am

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

About the Author

turd [at] tfmetalsreport [dot] com ()


Sep 26, 2011 - 6:39pm

PM Fall

I little while back I suggested that we could see the Fall season for the metals turn as we have an unusual summer rally.

An October Rally is not likely until the has bottomed out and that could take a little while.

I still believe the expected Fall Rally will disappoint and start late - or non at all. Hopefully we see the bottom on this by late OCT - Early November but one never knows.

We should then start then next leg up and the final phase of the Bull Run!!..


Sep 26, 2011 - 6:34pm

discretion and circumspection

probably spelled that wrong...

Anyway, just wanted to pipe in with my thoughts on 'educating others'. I am very careful about what I say, and to who. Having a Smith & Wesson does not make one bulletproof - check out FerFal for more on that one. Even if it did, I'm not sure I'd want to use it just because the wrong person heard something to suggest my domicile was worth an 'unauthorized visit'. Privileged information tends to "leak" (ask ScottJ about that one!!), and it only takes one sister's-uncle's-brother's-deadbeat friend's-boyfriend finding out about your shiny interests to cause a problem for you - whether you actually have any or not, whether or not you even keep it at home or in an allocated account somewhere. Crim'nals are generally stupid (JPM and GS excepted, of course).

I am considerately more free with my Austrian perspective on the fiscal and monetary foolishness going on, but I take pains not to seem pushy about it. I don't even bother to talk to people who have "OBAMA" bumper stickers.

Um, this is pointless, but fun:

Sep 26, 2011 - 6:33pm

Food for Thought (on how to respond)

Certainly a time, where if someone may of purchased w/ options (prior to the crash);
having time (deferred expiry w/ options) is certainly appreciated. Additionally,
having some dry powder ready to go, is GREATLY appreciated.

Letting go of the concern of your initial position for a moment; not entirely, but -- just enough
to focus on the present opportunities w/ your remaining dry powder, presents certain opportunities.
Plotting out in your mind how most effectively to use the remaining powder/war chest; is important.

-- where do you see it going ? Where will your money be most effective (?) & acting upon it.
-- Blocking out all the chatter, and blog comments & arriving at your own consensus.
--- Take all this stuff in and making a decision to act (or not to act).

>> Options, Futures, Physical. You pick your path, and so on.

Regardless, this is the time to be making some decisions. This is why you didn't use
100% on your initial purchase (right?); and so on. It's time; jumping back in the game
now (or early this AM), or in a week or so. Regardless, if it goes down, now is a good buy time.

It may very well go down as Turd said; so maybe you want to hold back some.. (again).

However, today presented us w/ some good opportunities. Thing is -- if you're down &
you are scared out of the market right now; it's not time to run and hide & lick your wounds
(if you have dry powder, that is). It's time to rise to the occasion and respond effectively.

The difference between reacting & responding, is this: reacting is like, a knee-jerk reaction
that you don't think about. Responding is acting, after thinking and reflecting on the best
approach to take & then implementing your decision. It's yours, you act & you own it.

For what it's worth:

Would of thought the margin hikes would of had a more devastating response today. No?
It seemed somewhat tame, considering. Wow, huh... crazy, wild times we live in...
and I get to live to fight another day (not entirely unscathed) and blog w/ all of you.

Very grateful for the community (& the edit option, lol).

Thank you, all.

Sep 26, 2011 - 6:27pm
Sep 26, 2011 - 6:27pm

Yes, Bernanke and Geithner are working together.

How in the very end of the end game, all the evil players will be turning and blaming each other. Perhaps that is a hint of what we are seeing.

In response to:

Sep 26, 2011 - 6:25pm

@DPH, Awesome. Can you


Awesome. Can you provide a link for us to disseminate the speeches? Thanks for all you do.

Sep 26, 2011 - 6:24pm


I agree with you. But just to clarify I never told them I bought any let alone how much. It was an exhortation for them to buy not an exposure of my stack.

Sep 26, 2011 - 6:23pm
Sep 26, 2011 - 6:18pm

Agreed Justin

Comments have gotten heavy here. Times are straining one another.... I see your points very clearly, and I also see others as well. Nobody here is right in entirety, it is the sum of the aggregate whole in which the true strength is found (Thanks for sharing your perspective).

Bottom line, everything is mixed up.... and paradigms are being dissected, analyzed, and mis-represented in all cases. Just look at my hype over the London Gold Exchange (which I am now under the impression it is a dud)....

When the dust settles, physical gold and silver will be still standing....
And the dollar and our current political paradigm will not....

That is all I feel I know at this point....

Everything else is up in the air.... I guess Socrates was really right....

To know, is to know that you know nothing. That is the meaning of true knowledge.

Sep 26, 2011 - 6:17pm

DPH I do want to thank you

DPH I do want to thank you for your contributions to this blog, you post some really informative stuff.

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