Chapter 400 The market is too small

The Morgan family shorted gold futures because they had discovered a mega-gold mine with more than 5,000 tonnes of gold reserves and abundant gold content, and the entire mine was under their control. .com

In fact, this gold reserve is still a conservative estimate, but with the current detection technology and mining technology, this tonnage is the limit.

You know, because of the particularity of gold characteristics, gold mines of more than 100 tons can be said to be super-large gold mines, not to mention gold mines with reserves of more than 5,000 tons.

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

Therefore, the current Morgan family is not afraid, because futures such a thing, although it is very important to say that your main operation, but in the same way, if you can trigger other funds and some retail investors to short with you, etc., it is easy to form a wave, so that the bulls have no way to compete.

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

The so-called hedging is that he was originally long, but found that he was about to lose money, and if he didn't want to lose, he would directly short the same, so that part of the short and part of the long, it would form a hedge, short profit, and long loss.

Hedging to preserve capital is the practice of people with sufficient funds, and it is okay to detect this trend early, but if you find it late, 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 now gone into the bulls, the Morgan family is not afraid either.

"In this way, since Andrew has someone who dares to take orders, then all the funds that we were originally going to short orders will be shorted, leaving the funds for smashing orders. The old man on the throne commanded again.

"Yes. ”

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

The two sides quickly established a contract.

"Now that we've achieved our goals, it's time for the next step. When all the funds had been entered, the patriarch of the Morgan family, John Morgan, gave the order directly.

With the order of the patriarch, the Morgan family directly began to contact some journalists and media.

In the afternoon of local time, the Morgan family announced that a large gold mine was discovered within the scope of the Morgan family's mining area in the northern mining area of Myanmar, and the entire gold mine has a reserve of 5,000 tons of ultra-rich ore, and can be mined close to 200 tons per year, and these gold will be put into the international market.

This news can be said to have caused a huge sensation in 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 tonnes of gold can be mined every year, which means that 200 tonnes 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 often come from when the central banks of various countries start to absorb gold, and such a large number of transactions will occur.

Of course, gold itself is also an important industrial element, and there is a lot of gold used in industry alone. Overall, however, 200 tonnes of gold is a huge shock to the entire market.

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

The first reaction is the international gold futures market, which 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 be open, so there are accounts in various gold futures markets around the world, including short and long.

At this moment, with this news, countless short orders in the international gold futures market that opened immediately appeared, but the number of these short orders was not large, and they all belonged to retail investors.

However, these quantities are all drizzle for Hu Fei, and all the empty orders come and go, and Hu Fei has all come down.

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

But Hu Fei didn'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 really resist international events, he will not be able to bear it.

However, gold futures, limited by the total amount of international gold, as well as the gold reserves collected by central banks, there is not much gold in circulation, just like the Pearl City Gold Exchange, the annual gold futures trading volume is only 320,000 tons, of course, if you count the world, this number will definitely increase several times.

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

This means that the world trades less than 300,000 tonnes of gold per year, but that figure is divided by two, or even more.

Because many of the transactions are repeated across multiple exchanges, the actual gold trading volume is only about 120,000 tons for the whole year.

That's the annual trading volume, and the daily trading volume is just over 300 tons. More than 300 tons of gold are still scattered around the world, and for Hu Fei, the funds in his hands 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 world's annual gold trading volume.

What this means, it is already very clear, Hu Fei can eat all the short orders, from beginning to end all the short orders, 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, and when they saw countless short orders popping up on the futures market, a smile appeared on their faces.

It's just that this smile didn't last long, and they found that almost all the short orders had been eaten by the bulls, and looking at the speed of the bulls, these short orders could not smash the price of gold down at all.

"After 12 hours, let's get our people moving. As the commander of Morgan's financial investment, Andrew spoke directly.

The reason why I chose 12 hours later was to let the news ferment for a while.