Urban: I Am God

Chapter 400 The market is too small

The reason why the Morgan family shorted gold futures was because they discovered a super-giant gold mine with a gold mine reserve of more than 5,000 tons, rich in gold content, and the entire gold mine was within their control.

In fact, the reserves of this gold mine are still conservatively estimated, but with the current detection technology and mining technology, this tonnage is the limit.

You know, because of the particularity of the characteristics of gold, gold mines above 100 tons can be called super-large gold mines, not to mention gold mines with reserves of more than 5,000 tons. If this news comes out, it will definitely affect the The international gold price caused a huge impact.

Under such circumstances, it would be a ghost if the price of gold did not fall.

Therefore, the current Morgan family is not afraid, because futures, although your main operation is very important, but also if you can trigger other hot money and some retail investors to go short with you, it will be easy to form The tide, so that the bulls have no way to contend.

At that time, either the bulls will follow you to short hedge, or they can only hold the margin. Or it is also possible to directly close the position and stop loss.

The so-called hedging is that he was originally long, but he found that he was about to lose money. If he did not want to lose, he would directly short the same. In this way, some short positions and some long positions would form hedging.

Hedging to protect the capital is the practice of people with sufficient funds, and it is only possible to find this general trend earlier, but if you find it later, it will be difficult.

The other is that the strong man breaks his wrist and directly closes the position and stops the loss.

Although a lot of money has entered the bulls now, the Morgan family is also not afraid.

"In this way, since Andrew dares to take orders, all of our funds that were originally prepared to short orders will be shorted, leaving the funds for placing orders as spares." The old man above the host gave another order.

"Yes."

After the meeting, the funds of the Morgan family quickly began to sell short, especially a large number of short orders, but Hu Fei naturally couldn't back down here, and directly took all these short orders.

The two sides quickly established a contract.

"Since our expected goal has been achieved, let's move on to the next step." After all the funds had been entered, John Morgan, the patriarch of the Morgan family, gave an order directly.

Following the order of the patriarch, the Morgan family directly began to contact some reporters and media.

On the afternoon of the same day local time, the Morgan family announced a news that a large gold mine was discovered within the Morgan family’s mining area in the northern mining area of ​​Myanmar. The entire gold mine has a super-rich ore reserve of 5,000 tons and can be mined every year. Close to 200 tons, and all of this gold will be put on the international market.

This news can be said to have caused a huge sensation in the world in an instant. After all, gold mines with more than 5,000 tons of gold reserves are considered super-giant gold mines in the world.

And 200 tons of gold can be mined every year, which means that 200 tons of gold will flow into the market every year. You must know that the annual gold trading volume in the international market may be this number.

And most of the transactions are often when the central banks of various countries start to absorb gold, and such a large number of transactions will appear.

Of course, gold itself is also an important industrial element, and a lot of gold is used in industry alone. But overall, 200 tons of gold is a huge shock to the entire market.

You must know that gold sales in various countries are very stable every year, and now such a large gold mine suddenly appears, the impact is beyond doubt.

The first thing that came out was the international gold futures market. The international gold futures market as a whole can be said to be open 24 hours a day, because the international gold futures market is distributed in various countries, from Asia to Europe to the Americas.

The gold futures market in one country is closed, but the gold futures market in other countries will also open, so there are accounts opened in various gold futures markets around the world, including short and long positions.

And at this moment, with this news, countless short orders in the international gold futures market that opened were immediately popped up, but these short orders were not large and belonged to retail investors.

However, for Hu Fei, these numbers are just a drizzle. All the empty orders come and go, and Hu Fei all came down.

This was the first to react, and then there must be many people who are in the rest area at the moment who haven't reacted yet. In the next few days, there will be countless empty orders pouring out.

But Hu Fei didn't care. The reason is very simple. The gold futures market is too small. If it is a market like crude oil, the global capital capacity is too terrifying, even if Hu Fei's current financial resources really fight against international events, he can't handle it.

However, gold futures are limited by the total amount of international gold and the gold reserves collected by the central banks of various countries. There is not much gold in circulation. Just like the Pearl City Gold Exchange, the annual gold futures trading volume is only 32,000 tons. , Of course, if you count the world, this number will definitely double.

However, the problem is that this figure is a bilateral transaction, that is, you sell 1 ton, I buy 1 ton, and we are one contract, but the transaction volume will be counted as 2 tons.

That is to say, the total annual gold transaction volume in the world is probably less than 300,000 tons, but this number has to be divided by 2, or even more.

Because many transactions are repeated across multiple exchanges, the actual gold transaction volume is only around 120,000 tons throughout the year.

This is the annual transaction volume, and the daily transaction volume is only more than 300 tons. More than 300 tons of gold are still scattered around the world. For Hu Fei, the funds in his hand are enough to buy 20,000 tons of gold.

Don't forget, futures can be leveraged, not too much, 10 times leverage means that Hu Fei can buy 200,000 tons of gold, which is more than the global annual gold trading volume.

What this means is already very clear. Hu Fei can take all the short orders, and all the short orders from the beginning to the end. It is estimated that it is a tragedy now.

After the press conference, the Morgan family paid attention to the futures market for the first time. When they saw countless short orders appearing in the futures market, smiles appeared on their faces.

However, before the smile lasted long, they discovered that almost all the short orders had been taken by the bulls, and looking at the swiftness of the bulls, these short orders could not smash the price of gold at all.

"After 12 hours, let our people start to act." As the commander of Morgan's financial investment, Andrew said directly.

The reason for choosing after 12 hours is naturally to let the news ferment for a while.