Reborn Capital Madman

The bigger the business, the more patience is required. The Hunter family's current operation of speculating on silver futures required careful planning for a long time to drag so many people down.

Since Michael Blumenthal had the enthusiasm to run the Bora Company, Gao Xian let him go and waited for the results.

Anyway, the focus of the work right now is not on Bora Company, but on how to safely survive the collapse of this crazy gold and silver market, and then see if there are any unlucky ones with high residual value that can be used for their own purposes.

The New York Mercantile Exchange has issued new restrictions on the use of financial leverage specifically in response to the Hunter brothers' troubles in the silver futures market, which has put a "cap" on the Hunter brothers' hoarding of silver, making it basically impossible for them to continue to do so.

.

In fact, the reason why Gao Xian is so concerned is that, in addition to the recent visible gains and losses, he also has to prepare for a rainy day, that is, to observe how Americans respond to such crises.

At present, Xiangjiang's status as an international financial center has basically been formed. Take the foreign exchange market as an example. According to the non-public data obtained by Gao Yi, last month, that is, in December 1979, every person in Xiangjiang's foreign exchange market

The average trading volume on a trading day reached US$2.5 billion, and the forward foreign exchange held by Hong Kong Banking Industry exceeded US$50 billion.

In addition, gold can be invested to maintain value and fight against inflation. The average daily trading volume of the Xiangjiang gold market has reached more than one million ounces, surpassing Zurich, Switzerland. Its status is second only to the London gold market and the New York gold market, becoming the second largest gold market in the world.

An important part of the fourteen-hour operation cycle, it seems to play the role of pricing in Asia.

This vibrant situation is naturally due to the Hong Kong government's liberalization of financial controls. However, on the other hand, the prevalence of speculation will inevitably lead to great risks. When the market is good, everyone is singing and dancing; when the market is bad,

, the capital just slapped its butt and ran away, leaving a piece of chicken feathers on the ground, caring whether you live or die!

Gao Xian, who is sober-minded, secretly estimates that the Xiangjiang Futures Exchange, which he took the lead in establishing, will almost certainly have a life and death risk in the next few years. That is, if he is not careful, he will be hyped by the Hunter brothers.

Large-scale speculative games like silver futures were dragged down to the ground.

How to not obviously suppress the speculative interest of capital, but also effectively manage the risks caused by speculation, is quite a test of balance.

With this kind of scrutiny, Gao Xian left the United States, stayed at his home in Toronto and Vancouver for a few days, and then returned to Xiangjiang.

In terms of business opportunities and the difficulty of making money, Gao Xian felt that it would be better if Xiangjiang was not ruined. Furthermore, he safeguarded the overall interests of the base and hoped to minimize the huge impact caused by the shock of the global capital market.

Therefore, Gao Xian non-stop interacted with each circle, introducing the intelligence he had collected from the United States, the center of the global capital market. The closest circles, such as the Yi family and the Ma family, directly stated that they would stay away from gold and silver trading; as for other circles, they

It is a hint with varying degrees of subtlety. Gold cannot continue to skyrocket for more than ten years. Be careful and you will be cut off.

Gao Xian really doesn't dare to guarantee how effective a relatively private reminder like this can be.

Because, similar to the well-known Xiangjiang Securities Market, in this era there are four exchanges: the Xiangjiang Stock Exchange, the Far East Exchange, the Gold and Silver Stock Exchange, and the Kowloon Stock Exchange. The Xiangjiang Gold Market is also divided into several parts, consisting of

It consists of the Xiangjiang Gold and Silver Trade Center, the Xiangjiang Futures Exchange, and the local London Gold Market in Xiangjiang.

Among them, Xiangjiang Gold and Silver Trade Center is the oldest, with a history that can be traced back to this century, that is, at the beginning of the 20th century, when the Qing Dynasty was not yet over. It has a large trading volume and outstanding reputation, and it also has a strong local flavor. For example, it has always been

It is traded in units of several Hong Kong dollars per tael of gold. Its current chairman is Hu Hanhui, who founded the Gold and Silver Stock Exchange.

The Heung Kong Futures Exchange was founded by Gao Xian in 1976, and naturally Gao Xian has been serving as the chairman of the Hong Kong Futures Exchange.

With Sir Gao at the helm, the Xiangjiang Futures Exchange, which can be called a newborn calf, must be in line with international standards. For example, the trading unit of gold futures adopts the form of several dollars per ounce, and global commodities such as the New York Mercantile Exchange

Futures exchanges all provide futures trading.

By the way, there is no irreconcilable conflict of interest between the Xiangjiang Futures Exchange, which launches gold futures, and the Xiangjiang Gold and Silver Trading Center, which mainly trades spot gold, and the relationship can be said to be harmonious.

As for the situation of the local London gold market in Hong Kong, it is much more complicated. As the name suggests, this is the "projection" of the London gold market in Hong Kong, a British colony.

After the collapse of the Bretton Woods system, the currencies of developed capitalist countries represented by the US dollar depreciated, and precious metals like gold and commodities such as oil appreciated in value, thus gaining the favor of capital.

In 1974, the Hong Kong government abolished controls on gold; in 1975, the United States, the world's largest economy, abolished controls on gold; in 1978, Asia's largest economy abolished all controls on gold.

control over gold.

It is obvious that the Xiangjiang Gold Market, which has taken the lead in deregulating gold, is extremely attractive to international capital. All kinds of gold merchants, brokerage houses, and investment banks are flocking to the market.

Specifically, in Europe, there are the five major gold merchants in London, UK - Johnson Matthey, Mogada, Luo Fuqi, Wandaji, Jinduoli, Switzerland's Credit Ten Bank, UBS, UBS, Germany's

Deutsche Bank, Generbank; in North America, Scotiabank, Bank of America, Bank of Boston, Bankers Trust, Bank of America, Dean Witter Securities, Merrill Lynch, Morgan Trust, Liberty Bank, Lehman Brothers

,etc.

International investment institutions such as this regard the Xiangjiang Gold Market as a free place for gold trading hedging and arbitrage, regardless of whether it is spot trading or futures trading. Anyway, how to make money is how to make money. This is a big show of their skills.

In addition to using the two local trading platforms in Hong Kong, the Hong Kong Gold and Silver Exchange and the Hong Kong Futures Exchange, they also trade with each other "over the counter", thus forming the Hong Kong local London gold market.

The local London gold market in Hong Kong basically imitates the London gold market in its operation. It adopts a trading method similar to the foreign exchange market. Participants place their buying and selling orders via telegraph. However, there are some differences from the London gold market. For example, the trading time can last as long as

Eighteen hours, starting at 9:30 a.m. local time in Hong Kong, and ending at 3:30 a.m. the next day, when the London gold market closes.

There is a clear difference between the local London gold market in Hong Kong, the Hong Kong gold and silver trade market, and the Hong Kong futures exchange. There is no fixed trading place, and there is no distinction between members and non-members. Any powerful gold merchant, brokerage house or financial institution

Institutions can directly participate in buying and selling by phone or telex. And powerful gold merchants generally conduct transactions in the form of credit lines, that is, for purchases and sales within a certain amount, each other does not need to pay a deposit. Of course, some powerful gold merchants

When trading at a lower level, brokerage houses will charge varying amounts of margin based on individual circumstances. For example, ordinary citizens who participate in the local London gold market have to pay a margin of about 10% to the brokerage house based on each contract.

It is not difficult to imagine that the local London gold market in Xiangjiang operates very freely. You can come and go as you please, which is not generally in line with the taste of international capital.

However, Gao Xian still wanted to plan and stabilize the Xiangjiang gold market to the best of his ability, so as not to damage his vitality during the ups and downs, and thus drag down his own interests.

Therefore, Gao Xian specially communicated with Hu Hanhui, chairman of the Xiangjiang Gold and Silver Trade Center.

Hu Hanhui is a diligent and low-key person. Despite his advanced age, he is still like Gao Xian, like a trapeze artist, traveling around the world to inspect and give speeches to promote the Xiangjiang gold market; at the same time, he is not like still and Xiangjiang Securities.

Li Fuzhao, the chairman of the Far East Exchange who is red-faced in exchange fights, is so sharp that he has always stayed away from the fierce interest disputes in the industry.

"It's not easy to cool down." After understanding Gao Xian's plan, Hu Hanhui said with a troubled expression: "Sir Gao, you must also know how hot the gold market is right now. Almost all analysts swear by it.

The price of gold will soon reach a record high of $875 per ounce, and even many citizens are selling off their gold jewelry collections."

Gao Xian smiled slightly, "Of course there is no problem for ordinary people to take advantage of the high gold price to cash out the gold in their hands, but transactions carried out through financial leverage in the gold market are a big problem. Once the gold market craze subsides, there will be no problem.

It will hurt the vitality of local capital and leave the Hong Kong Gold and Silver Trade Center and the Hong Kong Futures Exchange deserted."

"I also understand that the ebb and flow is an inevitable law, but why is Sir Gao so sure that the turning point of the gold market is around the corner?" Hu Hanhui thought: "International events such as the Iranian hostage crisis and the Soviet invasion of Afghanistan are constantly stimulating the use of gold.

In order to maintain the demand for value, although the Federal Reserve has made rumors that it will tighten monetary policy to regain the strong currency status of the US dollar and increase the discount interest rate, the action is not significant and the effect is not obvious. In contrast, the domestic currency of the United States

The expansion seems to be getting more intense."

Listening to Hu Hanhui's well-founded analysis, Gao Xian secretly sighed. He couldn't do it without explaining. After all, we have only entered the 1980s, and the speed of information dissemination is far less than that of the Internet era, which in turn has made elites outside the United States

We don’t know enough about the new things created by the United States.

To put it simply, the monetary tightening measures adopted by the Federal Reserve under the leadership of Paul Volcker do not only rely on the well-known and straightforward interest rate control, because this method has been proven by facts to both cause pain to the market and destabilize the market.

The effect was not good, so the Federal Reserve began to try to increase reserves. For example, the funds under the management of the Federal Reserve were required to have 8% reserves to achieve the goal of controlling the money supply.

In addition, developed economies like West Germany have long been dissatisfied and angry with the inflation in the United States during the Carter administration, and have exerted pressure that cannot be ignored. If they want us to support the dollar, you Americans must do it effectively.

In order to control inflation effectively, U.S. Treasury Secretary William Miller and Chairman of the U.S. Council of Economic Advisers Charles Schultz had to change their stance and began to support Paul Volcker's monetary tightening proposals.

Gao Xian, who patiently explained in detail, finally said: "Paul Volcker is seeking the White House to revise the government's fiscal budget, so that the Federal Reserve's monetary tightening policy can be coordinated with the federal government's fiscal policy, and the latest information I have received is

, President Carter should start by temporarily controlling personal consumption credit in response to the Federal Reserve’s new monetary tightening policy.”

"Of course I trust Sir Gao's information and Gao Yi's research and analysis." Hu Hanhui, a mature and prudent person, said in a good tone: "In this way, we will convene a meeting with the directors and communicate with the government's financial department."

…

As the saying goes, a man can't move without a head, and a bird can't fly without a head, and if industry leaders like Gao Xian and Hu Hanhui join forces, they can naturally get twice the result with half the effort. What's more, this kind of operation aimed at reducing the risk of excessive use of financial leverage can also easily

There is support from the Hong Kong government.

As a result, the Xiangjiang Gold and Silver Trade Center and the Xiangjiang Futures Exchange soon issued announcements to increase the margin ratio for gold transactions, and reminded investors to pay attention to the risks of the current high-level speculation in gold and to use financial leverage with caution.

It is not difficult to imagine that among the various reactions generated by the gold speculators, there must be many complaints.

When Ye Licheng reported his work to Gao Xian, he mentioned with some annoyance that many gold dealers complained in person or on the phone. Everyone was having a great time speculating on gold, so how could you hold them back?

"Take Johnson Matthey, for example. The resentment is not small." Ye Licheng said depressedly: "They said that they had facilitated Gaoyi's gold trading in London. Why did Sir Gao not reciprocate the favor in Xiangjiang?

Woolen cloth."

"It's really hard to be a good person." Gao Xian was amused, "Look at this, I should do something to appease their fragile and injured hearts."

Ye Licheng heard this interestingly and also laughed, "I think, if possible, boss, you should pick a few important gold merchants to appease them. After all, Gao Yi really needs to make good friends in terms of business internationalization.

.”

Even decades later in the "old script", Johnson Matthey is still a well-known British company. At this stage, in addition to precious metal casting, Johnson Matthey's main business is also through its "Jiangxin Matthey" subsidiary.

"Xinwanfeng Bank" is involved in financial business and occupies a place on the London Gold Exchange. Its position in the industry is indeed very important.

In addition, according to the information obtained by Gao Xian, Johnson Matthey Bank has an unrestrained style, for example, it is also engaged in high-risk loan business. From this point of view, it is not difficult to understand why Johnson Matthey Bank is keen on the current gold speculation and has

I felt that my operations in Xiangjiang were hampered by the new charter of the Xiangjiang Gold and Silver Trade Center and the Xiangjiang Futures Exchange.

"Since Johnson Matthey and others are placing their bets on the continued skyrocketing price of gold, let me appease them." Gao Xian nodded and casually flipped through the calendar on the boss's desk, "This year's Spring Festival is quite late.

, until February 16th.”

"In this way, let Gaoyi's trading department release one thousand gold futures contracts with delivery time in mid-February before the Spring Festival. The price should be set at US$710 per ounce. Let Johnson Matthey take it.

I think these guys’ grievances can be dispelled.”

Ye Licheng felt sweating on his forehead, because after New Year's Day this year, according to Gao Xian's instructions, Gao Yi himself stayed away from gold in his investment strategy. One lot in the Xiangjiang Futures Exchange is one hundred ounces, and one thousand lots is equal to one hundred thousand.

ounce, before the Spring Festival, the price of gold, not to mention reaching a new high, just staying above 800 US dollars, was enough for Gaoyi to lose a lot of money.

"Boss, how about we change the approach?" Ye Licheng suggested with some stuttering.

"Don't worry, if Gao Yi really suffers a loss, I will personally bear full responsibility." Gao Xianyun waved his hand lightly, "This can be regarded as a specific warning line I have drawn for local capital in Xiangjiang."

Seeing that Gao Xian was determined, Ye Licheng had no choice but to take back his words. A boss like Gao Xian who has single-handedly built his own business empire is simply irresistible if he really wants to show his authority.

…

Gold merchants such as Johnson Matthey, who spread all kinds of weird things over there, received the notice from Ye Licheng, and their first reaction was that they didn't believe that Gao Xian was so smart, how could he do such an obvious loss-making transaction?

"Do you want it?" Ye Licheng urged angrily, "In order to dispel your complaints, Sir Gao's sincerity cannot be enough."

"Yes, of course I want it. Only fools don't want it." The gold traders who were speculating on gold were grinning from ear to ear. "Sir Gao is so particular about his work, we have no complaints."

…

At the same time, Gao Xian communicated with Hu Hanhui that the Xiangjiang Gold and Silver Industry Trading Center and the Xiangjiang Futures Exchange would still operate in sync with the global gold market during the Spring Festival.

…

After these news spread, excitement naturally followed. While the media rushed to report it, gold speculators in Xiangjiang were also carefully savoring the hidden meaning.

Of course, the price of gold is the most intuitive indicator, and its upward trend every day has made many of Sir Gao's fans shake their heads. Their idol must have had such smooth sailing that he arbitrarily made such an obvious and low-level mistake.

…

Hu Hanhui sighed softly and reminded kindly: "Sir Gao's courage is unmatched by anyone, but there is no need for Sir Gao to fight with those international gold merchants. The risk is too great."

"It doesn't matter, I know it well. I'm just playing the opponent's game with them, so that these guys understand that Xiangjiang is not a backward place where they can run wild." Gao Xian replied with a relaxed face.

Hu Hanhui also felt that Gao Xian was too arbitrary, but for a big shot like Sir Gao, he could only stop there.

…

On the evening of February 1, 1980, the Hong Kong Gold and Silver Exchange and the Hong Kong Futures Exchange were closed as usual, while the London market had just opened.

Ye Licheng walked in hurriedly and reported with worry: "Boss, this is the latest telex. The London Gold Market quotation has come out, hitting a record high of US$875 per ounce."

Gao Xian laughed, "What are you worried about? There are still more than ten days until the delivery time of those contracts."