Chapter 400 The Market Is Too Small

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 detected gold reserve of more than 5,000 tons and rich 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 special characteristics of gold, a gold mine with a gold mine of more than 100 tons can be called a super-large gold mine, let alone a gold mine with a reserve of more than 5,000 tons. 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 Morgan family is not afraid now, because futures, although it is important for you to mainly operate, but also if you can attract other hot money and some retail investors to short with you, then it is easy to form The tide makes it impossible for the bulls to fight against it.

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

The so-called hedging means that he originally went long, but he found that he was about to lose money. If he didn't want to lose money, he just went short in the same way. In this way, some of them went short and some went long, and hedging would be formed.

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

The other is to cut off the wrist of a strong man and directly close the position and stop the loss.

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

"In this way, since someone in Andrew dares to take the order, then all of our funds that were originally prepared to sell short orders will be shorted, and the funds for selling orders will be reserved." The old man above the main seat ordered again.

"yes."

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

The two parties quickly established a contract.

"Now that we have achieved our expected goal, let's proceed to the next step." When all the funds have been entered, John Morgan, the patriarch of the Morgan family, directly issued an order.

Following the order of the patriarch, the Morgan family directly contacted some reporters and media.

On the afternoon of the local time, the Morgan family announced that a large gold mine was discovered within the mining area of ​​the Morgan family in northern Myanmar. The entire gold mine has a reserve of 5,000 tons of ultra-rich ore and can be mined every year Nearly 200 tons, and these gold will be put on the international market.

This news can be said to have caused a huge sensation all over the world in an instant. After all, a gold mine with more than 5,000 tons of gold reserves is considered a super-giant gold mine 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. We must know that the annual gold trading volume in the international market may be this figure.

Moreover, most of the transactions often come from when the central banks of various countries start to absorb gold, so such a large number of transactions will appear.

certainly,

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

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

The first thing to reflect is 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 America.

The gold futures market in one country is closed, but the gold futures markets 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, following the news, countless empty orders immediately popped up in all the international gold futures markets that opened, but the number of these empty orders was not large, and they all belonged to retail investors.

However, for Hu Fei, these quantities were just a drizzle. Hu Fei got all the empty orders as many as they came.

This is the first to react, and then there must be many people who are in the rest area who have not yet reacted. In the next few days, there will be countless empty orders pouring out.

But Hu Fei doesn't care, the reason is 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 are really struggling with international events, he will not be able to 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 and I buy 1 ton. We are a contract, but the transaction volume will be counted as 2 tons.

That is to say, the combined annual gold trading 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 transactions across multiple exchanges, the actual gold transaction volume is only about 120,000 tons throughout the year.

This is the annual trading volume, and the daily trading 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 hands are enough to buy 20,000 tons of gold.

Don’t forget, futures can be leveraged, and you don’t need too much. If you leverage 10 times, it means that Hu Fei can buy 200,000 tons of gold, which is more than the annual gold trading volume in the world.

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

After the press conference, the Morgan family immediately paid attention to the futures market. When they saw countless empty orders popping up in the futures market, smiles appeared on their faces.

However, before this smile lasted long, they discovered that almost all the short orders had been taken by the bulls, and seeing the speed of the bulls, these short orders could not bring down the price of gold at all.

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

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