Chapter 32 The Soaring Prices of Chinese Herbal Medicine
At the appointed time, at seven o'clock on Sunday, at the gate of a compound east of the Chinese herbal medicine market in Qiaozhou City, Qu Guangquan saw Huang Xindong.
At that time, there were actually two major trading venues in the Chinese herbal medicine market in Qiaozhou City.
Under the FRP tile shed in the main courtyard is the daily trading place called the trading hall, and the morning market in the east courtyard is called the sample line.
Qiaozhou Chinese herbal medicine market has thousands of years of tradition, the Ming and Qing dynasties were the most prosperous, after the reform and opening up, the traditional power began to appear. Countless Chinese herbal medicine vendors have emerged in Qiaozhou, purchasing and selling Chinese herbal medicines, and the largest Chinese herbal medicine market in the hinterland of the Central Plains has naturally formed in Qiaozhou.
The sample line is a group of traders who collect large tons of goods in various Chinese herbal medicine production areas, take the samples of the large goods they collect to the market, and meet and trade with the buyers who come to purchase large tons of goods.
Buyers are optimistic about the samples, generally will write down their stay in the hotel and hostel in Qiaozhou, write down the number of varieties to be purchased, after the sample line, the supplier will prepare the medicinal materials according to the note left, and send them to those hotels and hostels on the same day.
At that time, buyers in Qiaozhou City came from all over the country, and many hotels and hostels saw the business opportunities and did not charge foreign accommodation fees, but instead charged the scale fees of Qiaozhou sellers, which further promoted the enthusiasm of foreign merchants to purchase Chinese medicinal materials in Qiaozhou.
ββAt least two dollars per pound, the income far exceeds the normal overnight charges of merchants.
In summer, the sample line generally starts at 7 o'clock and ends at 9 o'clock.
When Qu Guangquan and Huang Xindong walked in, it was already crowded and noisy.
"Huang Xindong, why are there so many people in this industry?" Qu Guangquan had also been to the Chinese herbal medicine market several times in his previous life, and he didn't seem to be so lively in his impression.
"You don't know, right now, the medicinal herb shops are going crazy. Huang Xindong took Qu Guangquan's hand and walked to a stall, "Boss, what's the price of Eucommia?"
"How much do you want, where do you live?" the vendor at the booth immediately greeted him with a smile.
"Three hundred catties, I'm in room 217 of the Red Mansion Hotel. "Huang Xindong is very familiar with the trading process.
"The Red Mansion is about the same, the weight is reasonable, give you a minimum price of 19 a kilogram, if you live elsewhere, you will get at least 20. β
"It's too high, I came to pick up the goods last month, and it's only 15. Huang Xindong pretended to be bargaining.
"You say that, I won't give you a bar, I sold a ton of goods last month 14, but I lost money, and I made a few thousand dollars less!" the boss complained.
"It's 16, did the new goods come up for only 8 yuan last year, you earned enough!" Huang Xindong has been in Qiaozhou for two years, and he still knows the market very well.
"No, 19 minimum." The boss simply sat back down at the stall without giving him any room for bargaining.
"This price is too high!" After all, he is a native of Qiaozhou City, Qu Guangquan is still very concerned about the information of Chinese herbal medicines, and he has the impression that the Chinese herbal medicine market in Qiaozhou City in 2016 has risen to its peak again, and Eucommia ulmoides was sold for 15 yuan.
It was 2016, and the price of Eucommia ulmoides in 1988 was even higher than in 2016!
You must know that in 1988, you could buy a small courtyard in a remote location in Qiaozhou for 10,000 yuan, and in 2016, you can buy a square meter and a half.
Huang Xindong looked at Qu Guangquan's surprised look, and asked with a smile: "Do you know what the price of eucommia was when I first came to Qiaozhou in 86?"
Qu Guangquan shook his head.
"2.2 yuan!"
In two years, it has risen nearly 10 times!
"Now you know why there are so many people in the market. As long as you are not a fool, or someone like me who has no guts, the people in the medicinal herb market in the past two years have all made it!" Huang Xindong scratched his hair, "But it's a little late now." I wanted to buy something, but my uncle said it was better not to do it. β
"Well, what your uncle said makes sense!" It is obvious that the medicinal herb market is too manic.
Qu Guangquan and Huang Xindong circled, and firmly believed in this judgment: Banlan root rose from about 2 yuan to 20 yuan, yellow gardenia rose from about 2 yuan to nearly 15 yuan, the price per kilogram of magnolia bark has broken through the 20 yuan mark, and the mountain corn meat has risen to 120 yuan.
In 2016, the price of banyan root was only 18 yuan, gardenia was 23 yuan, magnolia bark was 14 yuan, and the price of mountain corn meat was only 33 yuan!
When Qu Guangquan was about to leave the market, he felt that there was a lot of danger
- This price will definitely collapse, and the market will definitely face a big reshuffle!
There must be a lot of merchants, how to eat it, and how to spit it out!
There is a newsstand in the outer circle of the sample market, and there is a "Qiaozhou City Chinese Herbal Medicine Market Information Newspaper" for sale, 2 yuan a copy, Qu Guangquan bought a copy. Compared with the memories of later generations, Qu Guangquan was thinking, where are the business opportunities in such a market.
The 1988 "price break" document was issued around August, and there will definitely be a new round of price increases. However, with such a high price, it is obvious that it will collapse soon, and if it is an investment, it is no less than taking a chestnut from the fire!
It's not sanity!
Since it can be calculated that the price must collapse, if you are in the West, you can short the market, that is, you can use today's price to bet that the price will fall in the future, but you can make a profit.
However, now it is the mainland Chinese herbal medicine market in the 80s, and there is no such way to play.
Can you find an order now, sign a contract at the current price, and supply it after the autumn?
However, the trading of Chinese herbal medicines is generally a spot transaction, and there is no futures trading.
Qu Guangquan reverse thinking, now the Chinese herbal medicine market is obviously a seller's market, now as long as there is a stock, there is no worry about selling, as long as the price does not exceed the market price, now this situation, that is a rush to buy.
The way to make money in the short and fast is to quickly transfer the supply from the origin of Chinese herbal medicines, and sell it immediately, once the "price break" document is introduced, the price will rise to the peak, and that will be the watershed of everything!
As long as you clear the goods in your hand before the watershed, no matter what you do, you will make a profit, just how much you make a profit.
Qu Guangquan made two decisions, one was to find goods, and the other was to find merchants to do a business similar to futures trading, set prices at the current price, and hand over the goods after the autumn.
Looking for goods, that is to go to the place of origin. What we know now is that the market is very hot in the market of Eucommia, Banlan root, Chuanxiong, Magnolia bark, etc., and finding the source of goods is equivalent to finding the source of money.
"Huang Xindong, how did you buy your uncle's goods, and how did you sell them?" Qu Guangquan was ready to start by learning from Uncle Huang Xindong.
"Well, we generally have suppliers, for example, all the year round Eucommia have left an address for my uncle, my uncle wants goods, so let us go to those people's homes to pull, they often go to my uncle's house, find that the goods are less, and generally take the initiative to send them to the door. Sell, my uncle has a store in Daxing (that is, the Chinese herbal medicine trading center), and customers from other places buy odd goods, because we calculate the price is low, and it is not adulterated, they generally buy it once, and they will come to buy our goods next time. β
It seems that there is no way to learn, and I still have to focus on my studies, and this kind of business has to be tied to the market every day to be able to play.
"Then your uncle, has he never gone out to buy?" Qu Guang did not give up.
"Well, there were two times last year, it seems that I went to a county in Longxi and bought the astragalus received by the procurement station of the county supply and marketing cooperative, angelica, saying that the procurement station can not be maintained now, selling the goods at a low price, and repaying the credit union loan. Huang Xindong recalled.
That is, at this time in 1988, prices were shuanggui, one was the supply-based price strictly required by the state, and the other was the market price that went with the market; generally the state price was relatively low, while the market price was relatively high, and this inevitably caused confusion, and it was necessary to break this situation, so that there was the pain of deepening economic reform and "breaking through the price barrier."
At that time, the acquisition of Chinese herbal medicines is generally the purchase of Chinese herbal medicines by the county medicinal materials companies or supply and marketing cooperatives in accordance with the national unified pricing to purchase Chinese herbal medicines, but after 1985, the state gradually liberalized the control, resulting in many individuals participating in the acquisition, only the price of Chinese herbal medicines rose, and the state-owned companies suffered losses, first of all, the purchase price was low and could not receive the goods, followed by the receipt of the goods, in the past, the state established a set of purchase and sales system, which could be traded out at any time to make a profit.
After the market is liberalized, the trading of Chinese herbal medicines has come to the Chinese herbal medicine market, and if the Chinese herbal medicines collected by the purchasing station are not pulled to the Chinese herbal medicine market to sell, there will be no sales channels. If the purchasing station pulls the goods to the market to sell, because they are state-run, they have to have managers, deputy managers, financial and clerks or salesmen to go to the market together, and as a result, the money for selling goods is not as much as the money spent on collective travel.
Huang Xindong's uncle probably started these purchasing stations after 1988, and he received a lot of goods at low prices, so he made a fortune.
Huang Xindong's words immediately evoked Qu Guangquan's memories that had been sealed for many years, as if he had seen the Cotai Avenue, Qu Guangquan stood up and pulled Huang Xindong over, "I have an idea, Huang Xindong, are you willing to make a fortune with me?"
"Do you need to say that?" Huang Xindong didn't think twice.
"That's good. Resign from your uncle in a few days, I have a big job to do, and I need your full support!" Qu Guangquan's eyes were blazing.
"I-" It was a bit sudden.
"You don't need to make a decision now, come with me today, it's not too late for you to make a decision!" Qu Guangquan fully believed that he could persuade Huang Xindong with practical actions.