London Gold Exchange Closes its Doors

Posted on Sep 26, 2011 in Economic News

Kevin Hayden –

Source: Activist Post

It seems that the scandalous financial world has claimed another high-profile casualty: the London Gold Exchange.  An announcement was made on their website claiming, “Due to operational difficulties the London Gold Exchange is permanently closed for business.”

Founded in 2002, their official business was trading digital currencies like c-goldLiberty ReservePecunix and v-money.

No further explanation was given for the “operational difficulties,” nor has there been any indication as to if and how their 100,000 members will be affected.

Hayden’s Note:

First off, don’t assume that this was some massive company or stock exchange-like corporation.  They chose a fancy, official sounding company name (remind you of the Federal Reserve?) but were in reality, a small company that was not an exchange nor did they trade gold – they “traded” digital currencies that other corporations created.  If you understand the derivatives and fiat money ponzi scheme, this company would simply be another tier of the pyramid.  They made profit from the trading of (make-believe) digital currencies based upon the fiat Dollar price of gold which is manipulated by other, larger banks and exchanges.  And you thought derivatives and futures speculation was bad.  

I have a feeling that their concept of “digital gold” was an extremely flawed business proposal to many people in times of physical demand.  Years ago, I was very interested in using digital gold for payments on the internet.  Sounded great.  But that was also when gold was priced at about $650/ounce and was not the talk of every sensible financial guru or pundit.  Unless you have a large, well-oiled company to handle the minute-by-minute changes in metals prices, it’s hard to compete in the gold world, let alone the digital currency world of Bitcoin and similar.  There are likely a dozen reasons why they folded, but my initial assumption would be lack of interest, lack of profit and potential embezzlement.

According to Wikipedia:

The London Gold Exchange was owned by LGE International LTD., an offshore company registered in Belize, with offices in London, England and Hong Kong…  London Gold Exchange operated 2 franchises, one in the UK and one ‘International’ which covered everywhere other than the UK. The UK administration office was in Central London, with staff based in locations around the UK. The International administration office was in Hong Kong, with staff also operating from mainland China. Technical staff also operated from locations in Australia.

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