Chapter 155 Shorting Gold
Types of gold trading, spot trading, paper gold, gold futures, gold extension and other forms.
What Ye Xiaoxian has to do is short gold futures.
In the words of Chinese people, futures are short-selling, and there is no need for physical gold.
When signing a sales contract, the delivery time is agreed, and only the contract with the same quantity as the previous contract needs to be sold and repurchased before the contract expiration date, that is, the position is closed, and there is no need to truly deliver the real money.
What you earn is the price difference caused by the fluctuation of gold prices within the agreed time. This trading method is what people usually call "gold speculation".
Gold futures contract trading only requires a deposit of about 10% of the trading volume as the investment cost, which is highly leveraged and can use a small amount of funds to promote large-scale transactions.
Gold futures trading can also use leverage provided by banks or securities companies to increase the transaction volume again.
In a more common sense, you have 100,000 yuan. According to the deposit transaction of 10% of gold futures, you can only sign a contract amount of one million, but you can choose leverage provided by a bank or securities company. For example, if you choose 10 times leverage, you can sign a contract amount of ten million for 100,000 yuan.
While the transaction volume is magnified, the risk is also magnified. If there is not enough margin, the gold price may fluctuate slightly.
The result of the liquidation is that the margin paid previously was confiscated by securities companies or banks and lost all their money.
Ye Xiaoxian chose this model, and it was even more crazy, using twenty times leverage to short gold.
The so-called shorting of gold is to sign a contract to sell gold at the current market price or below the market price.
Gold futures also follow the old trading rules. When supply exceeds demand, the price will be lowered, and when demand exceeds supply, the price will be raised.
Short selling means using a large number of selling orders to suppress the price of gold.
When the gold price is suppressed to a certain extent, then purchase gold contracts at a low price to offset the previous sales contract.
To put it bluntly, it is to sell high and buy low.
"First warm up a hundred tons of gold, one thousand hands per minute! Sell it below the market price!"
Ye Xiaoxian issued an order easily, as if he was selling not one hundred tons of gold, but one hundred tons of cabbage.
"One hundred tons of gold, one thousand hands per minute! Sell it below the market price!" The operator repeated Ye Xiaoxian's instructions loudly.
One hand is one kilogram of gold, one thousand hands is one ton of gold, there are ten operators in the big house, ten tons of gold in one minute, and all one hundred tons of gold were sold in ten minutes.
At a price lower than the market, the sell orders were posted and they were instantly bought.
One hundred tons of gold were thrown out without even hearing a sound, and it was swallowed up by the huge international gold market.
"Ok! Continue, one thousand tons of gold, sold at the right price, one thousand hands per minute!" Ye Xiaoxian continued to issue orders.
Zhang Lang’s plan is not as simple as shorting gold.
The Japanese currency still implements the gold standard, and the gold price is suppressed, which means the depreciation of the yen.
The depreciation of the yen is a good thing for the Japanese government. The goods they export become cheaper and can get more export orders.
Of course, Zhang Liang would not kindly help the Japanese.
Ye Xiaoxian's shorting of gold is just for everyone to see on the surface.
In addition, the financial team mobilized from the United States, Britain and Germany is the real killer weapon.
Ye Xiaoxian is shorting gold futures on the spot.
Financial teams from the United States, Britain and Germany are slowly purchasing paper gold and spot gold at low prices.
Spot gold refers to physical gold trading.
Paper gold refers to the paper transaction of gold. Investors' trading records are only reflected in the "gold passbook account" pre-opened by individuals, and do not involve the withdrawal of physical gold.
The received spot gold will be shipped directly back to Hong Kong Ford Bank.
Paper gold can be delivered to Japanese banks through Ford Bank.
This is also the benefit of having its own bank.
Zhang Lang’s idea is to use the money earned from shorting gold futures to acquire spot gold and paper gold from Japanese private gold.
The search for gold from Japanese folk is only one aspect.
There is also a financial team that is specifically responsible for shorting the yen.
As mentioned earlier, the yen implemented a gold standard monetary policy in 1985. The decline in gold prices will naturally lead to the depreciation of the yen.
At this time, you can take advantage of the decline in gold prices to short the yen.
As for shorting the yen, it is equivalent to helping the Japanese government and promoting their economic development.
This is just a wishful thinking of the Japanese. Don’t forget that the United States will force Japan to sign the square agreement in more than two months.
Now the United States has joined forces with the Treasury Secretary of the five governments to put pressure on the Japanese government.
Shorting the yen is actually speculating on the exchange rate between the yen and the US dollar.
The yen will depreciate due to the influence of gold prices, but the US dollar does not implement a gold standard monetary policy.
The US dollar will not be affected by the gold price, but will only be affected by the depreciation of the yen. The depreciation of the yen is equivalent to the appreciation of the US dollar.
The biggest headache for the United States now is that the US dollar is too valuable!
The US dollar is too valuable and is a good thing for the people, but it is not a good thing for the US government and American capitalists.
The value of US dollars means that their production costs are high and their products are not competitive in the international market.
The purpose of the Plaza Agreement is to make the yen appreciate and the US dollar depreciate.
In fact, this trick has been used not only in Japan, but also in China.
In o7 and o8, the exchange rate of RmB against the US dollar rose several times in a row, which was actually an adjustment made under the pressure of the US.
It's a bit too far, so I'll get back to the topic.
Ye Xiaoxian smashed down a thousand tons of gold for the second time, and this time he really heard the sound.
The price of international gold fell in response to the sound.
In 1985, the international gold price has been hovering at the price of 320 US dollars per ounce.
Ye Xiaoxian's 1,100 tons of gold fell, and the international gold price fell directly below the 300 mark.
"It has fallen below 300. The current international gold price is 287 US dollars per ounce!" The operator reported loudly to Ye Xiaoxian.
"Two hundred and eight? Still a little high! Continue, one thousand tons of gold, one thousand hands per minute!" Ye Xiaoxian's smile was very gloomy at this time.
Ye Xiaoxian's actions caused an uproar on major exchanges around the world.
We asked which big shot was operating the gold market.
Ye Xiaoxian and the others had no intention of hiding their identities, so Ye Xiaoxian's information was quickly placed on the desks of various financial institutions.
It was obvious that it was Asian wealthy Zhang Lang operating the gold market. The capital tycoon on Wall Street smelled the bloody smell and rushed forward.
Zhang Lang ranked first in Asia on the latest Forbes rankings of 30 billion US dollars.
Chapter completed!