Extraordinary Genius - Chapter 249 - London Gold Exchange
These few days, Fu Rongjing invested all his available funds into the Forex market. It was a total of over 400 million HKD. This was all his liquid assets, and the settlement date was two months later.
He dreamt about two months later, and his assets will be several folds. From 400 million HKD to 4 billion HKD. Fu Guangzheng tried to persuade him to seek his eldest uncle opinion first and not to invest so much, as it was easy to lose everything in the Forex futures market.
But Fu Rongjing did not listen. He wanted to see Fu Rongqi’s reaction when he learns about how much he had earned from Forex! Fu Rongjing doesn’t even care about his men telling him that Feng Yu had visited the banks and law firm multiple times these few days.
Feng Yu wanted to engage a lawyer to sue him? This is Hong Kong, and his surname is Fu! Lawsuits are for the rich and poor people cannot afford to play this game. Even though Feng Yu was wealthy, but compared to the Fu family, he still has a long way to go!
Fu Rongjing despised Feng Yu, and he was blinded by his greed. If it were Fu Rongqi, he would have seen through Feng Yu’s lies.
During this period, Feng Yu had visited Hong Kong’s London Gold market. He wanted to trade in London Gold futures. This was what he traded most in his previous life.
London gold trading, in broad terms, was the trading of gold stored in London. It was a trading product offered by the London International Financial Futures exchange. The gold was from the underground vault in London, and it was in the form of 400-ounce bricks (about 12.5 kg) and purity of 99.5%.
London Gold trading does not need to use physical gold, and there were no freight, safekeeping, inspection, etc. costs. The investment cost was lesser than the actual transaction of physical gold and can set high leverage. The highest leverage one can set was 100 times, and on the black market, it can be as high as 500 times. This allows the investors to make full use of their limited funds to get the maximum returns.
There was still an advantage for trading London Gold. The trading hours was 24 hours, and there were no breaks in between. Investors can even buy and sell on the same day. London Gold can be considered the most active and most popular “money-generating tool” in the gold trading market.
The money from the Soviet loans was converted to USD, and after all the transaction cost, Feng Yu now has 490 million USD. He intends to invest everything in the London Gold market.
When Feng Yu stepped into Hong Kong’s London Gold exchange, he was swarmed by a group of brokers. They gave Feng Yu their name cards and hope that Feng Yu would engage their services. So, they could get commissions.
Feng Yu rejected all of them. He does not need their services as he, himself, was a professional too. Even if he wanted to engage a broker, he had a target. This broker was a legend in future Hong Kong’s financial world. Feng Yu remembered that this person started by trading gold around this time.
Feng Yu looked at the gold prices, and it was 371 USD/ounce. It was much lower than early last year, where it was 412 USD/ounce. The Soviet Union was currently trying to increase gold prices as the Soviet Union was one of the countries that export gold. They need gold to earn money.
The Soviet Union used to depend on their industries to earn money 10 years ago. But for the last 10 years, their industries declined, and they started to sell gold, oil and other minerals as the government main source of revenue. This showed the failure of the Soviet Union. No country would last by selling their natural resources. This explains the disintegration of the Soviet Union.
Feng Yu remembered the gold prices for the next two years will be suppressed by the US. The gold prices will plunge. It should start around this year October. But Feng Yu could not remember the exact date.
But from now until September, the gold prices will continue to rise and should reach above 390 USD/Ounce.
This was a difference of 20 USD. With almost 500 million USD and with leverage, the returns will be huge.
Feng Yu immediately set up his trading account and start to place his orders. He bought the gold at the current price and set the selling prices from 380 USD to 390 USD. That means that once the gold prices reach this price, it will automatically sell off his gold and the proceeds will be transferred into Feng Yu’s account.
Feng Yu had set many trades to lower his risks. Gold prices were volatile, and the fluctuations could reach up to 10 USD a day. With high leverage, one could lose all his investments if he was not careful. Feng Yu had no time to watch the market and diversifying his trades was the safest way.
Feng Yu placed his orders through different counters, and the amount of his trades differs. From 1 million USD to 10 million USD.
For consecutive few days, Feng Yu kept placing orders for trade, and he did not do any settlements at all. Feng Yu’s actions attracted the attention of many people.
Who is this young man? For the past few days, he’s been placing trades every day. Even if he traded the minimum amount, it would not be a small sum.
Feng Yu look like an individual investor, and other investors approached him to try and exchange views on the market.
But Feng Yu spoke to them in English, and he acts like he did not understand Cantonese. Could this young man come from England? But from his accent, he does not sound like a British. Feng Yu spoke in English, but it was not the London English. Feng Yu used US English, and there was a slight difference.
Feng Yu chatted with the other investors. He wanted to see if there were any talented people around. Hong Kong was a financial hub of Asia, and there were many people in the financial industry. With so many people in the industry, the possibility of talented traders appearing will be high.
After chatting for a while, Feng Yu was disappointed. Maybe those talents did not want to share their thoughts with others. Those who approached Feng Yu were not up to his expectations. Some even claim that the gold prices will continue to fall in the short term. Feng Yu could not find anyone worth recruiting.
After Feng Yu invested all his USD into the Gold futures market, he called Fu Guangzheng to bid his goodbyes. He is returning to Bing City.
When Fu Rongjing knew that Feng Yu had boarded the plane back to Bing City, he asked his men who had been tailing Feng Yu for the past few days: “Where did this brat go to for the past few days?”
“He went to the London Gold Exchange.”
“What? London Gold exchange? Humph! He sure knows how to roam around. Futures exchange, stock exchange. Is he monitoring Hong Kong’s financial markets? Interesting.”
Fu Rongjing did not think much about this. Fu Guangzheng had told him that Feng Yu liked to invest in stocks and had bought a lot in China. Fu Guangzheng had also purchased some shares in China and had said to him that he had made some money from those stocks. Feng Yu must be thinking that there was only limited stocks in China and wants to check out Hong Kong’s stock market.
The current Hong Kong’s stock market was not doing well nor bad. But if someone inexperienced enters the market now, they will suffer heavy losses.
Fu Rongjing was slowly drinking his champagne and thinking about the information Feng Yu gave him. Feng Yu was indeed accurate, and these few days, there was a small increase in Rubles. He had set his settlement date two months away. Two months later, Ruble should reach at least 0.5:1 and with his high leverage, he would get profits of more than 10 times. 400 million Rubles will become 4 billion!
4 billion cash. Even Fu Rongqi does not have so much cash. In the future, I, Fu Rongjing will be the front of the Fu family!