Extraordinary Genius - Chapter 548 – Discussion of the Gold Market with Fu Rongqi
The next day, Feng Yu received the calls from Li Zekai and Fu Guangwei. Both had accepted his suggestion to send their people to each other companies for training. Both had also expressed that they will not make things difficult for the staffs.
Feng Yu was satisfied with their attitude. That’s right. This way we can all make money together happily. What’s the fun of making those schemes?
Feng Yu had nothing to do in the day, and he attended some classes. Among the lessons he attended, one of them was Professor Liang’s class. Professor Liang was really an expert on economics. Feng Yu had learned a lot in his lesson.
Professor Liang was able to use the simplest way to let his students understand his lesson. He was different from other lecturers where they would use complicated words and jargons. Maybe this was to show that they were knowledgeable and had a high standard. However, their students will not really understand what they were teaching.
After lessons, Feng Yu noticed that someone had paged him. He took out his handphone, but it was low batt. The battery life of handphones now was too short. The handphone was fully charged in the morning, and it was fully depleted before the end of the day! The battery factory’s construction was too slow. This was mainly because of the pollution prevention measures that slowed everything down. Feng Yu felt that he should get his R&D departments to help him develop a bigger capacity battery for him first.
Feng Yu found a telephone booth and returned the call.
“Hello, I’m Feng Yu. Who is this?”
“Nephew Feng. I’m your Uncle Qi. Are you free tonight to have dinner at my place? It’s been a while since we chatted.”
Fu Rongqi? He was inviting me over to his house for dinner? Does he have something to discuss with me?
“No problem. I will go over in a while.”
Feng Yu walked to the carpark and asked Old Chen to open up the boot. He took out a bottle of red wine. This was the gifts he prepared. He does not want to keep going to the malls to buy wine every time he was invited.
“Nephew Feng, you are here. Come and take a seat. The food is ready.”
During dinner, Fu Rongqi asked about Tai Hua Supermarket Enterprise and Feng Yu gave him some simple answers. He knew that Fu Rongqi called him over was not to invest in Tai Hua Supermarket Enterprise. It must be some other matters.
Half an hour later, the dinner was over, and Fu Rongqi invited Feng Yu to have tea in his study.
“Nephew Feng, other than the Supermarket, what else are you busy with?”
“Classes.” Feng Yu replied. He was still a student. Other than lessons, what else can he be busy with?
Fu Rongqi was stunned. Classes? He remembered that Feng Yu was still studying at Hong Kong University. But this was not what he wants to know. He was referring to businesses.
“Other than classes? Have you been monitoring the international financial market?” Fu Rongqi asked.
“International financial market? I have been following the news. What’s wrong? Uncle Qi have good information?” Feng Yu asked curiously.
Fu Rongqi does not have any information. He only wanted to ask if Feng Yu have any excellent information which he can follow to make some money. The recent forex market was quite stable, and he did not make much money from it. The gold prices had fallen a while ago, and he also did not make money from that. Luckily, he still has some other businesses which helped him make some profits.
“I also do not have any good information. I only wanted to ask you if you have any forecast or analysis for us to discuss.” Fu Rongqi replied directly.
Feng Yu also understood what Fu Rongqi wanted. He also has the intention to show what he was capable of, to Fu Rongqi. He needs to Fu Rongqi trust. This way, Fu Rongqi would be on his side to deal with the international speculators in 1997.
“Uncle Qi, what have you been busy with recently? Maybe I can give you some of my inputs.”
No matter if it was Gold, oil or stock markets. Feng Yu could remember the future trends from the Financial charts from his previous life. Coupled with his experiences, he was able to make accurate predictions.
“Recently, I have been investing in Gold Futures. But a while ago, gold prices had fallen. Although I did not make any losses, I did not make profits.” Fu Rongqi was not ashamed to let Feng Yu know about this. The Futures market was unpredictable, and he had used high leverage to invest. No making losses was already an achievement.
“Do you have the recent few months’ charts?”
“Yes.” Fu Rongqi immediately took out the charts he had prepared, for Feng Yu.
Feng Yu took a look at the charts and knew about the situation. He remembered that at the end of 1993, the gold prices will rise to nearly 400 USD/ ounce. Now, the prices were at about 360 USD / ounce. If you continue to bet on the price rising, there will inevitably be profits.
At the start of the year, the gold prices were only about 330 USD. In July, it reaches more than 400 USD, and then, it fell sharply to 343 USD. It will rise slightly to 370 USD and then fall back to around 360 USD. Feng Yu guessed that all the money Fu Rongqi made in the first half of the year were lost during this period.
“Uncle Qi, tomorrow I will be making some investments in Gold. I will be betting it on rising.” Feng Yu put down the charts and looked at Fu Rongqi.
“You think it will rise? Why?”
“Because of the international markets. These few years, the US stock market has been bullish, and this should continue for the next few years. Many people will make profits from the stock market, and some of them will invest their profits into Gold to avoid risk! If you want to be safer, you can invest in the US stock market now. You should be able to make some profits.”
Fu Rongqi nodded. Most of his investments were also in the US stock markets. Feng Yu’s analysis was the same as him. But the stock market was too slow. Although it will continue to rise, the profits were much lesser than futures.
Fu Rongqi and his second brother had bought some land parcels in Hong Kong this year. As such, he does not have lots of available funds. He had to take out some of his funds from the US stock market.
Fu Rongqi also had some other businesses. This was to lower his risk from losing all his wealth in the financial market if there was a crisis. His companies will help him tide over the financial crisis. But Fu Rongqi still prefers to do trading in the financial market. The money was fast, and he was more familiar with it.
If Fu Rongqi had believed Feng Yu and used high leverage to Short oil during the Gulf war, he would be Hong Kong’s wealthiest person now.
The Fu Family was Hong Kong’s influential family, but Fu Rongqi’s father had split his assets to him and his brothers. Although he had gotten most of the inheritance, he can only be Hong Kong’s 4th wealthiest person.
If the brothers combined their wealth, Fu Rongqi was the wealthiest person in Hong Kong. But since the assets were split to the 4 brothers, they became 4 individuals. Nevertheless, Fu Rongqi was still the head of the family.
Fu Rongqi wanted to become one of the top 3 richest men in Hong Kong. He even wanted to pull Superman Li down from his number 1 position. Financial market was the only place where he can make his dreams come true.
Fu Rongqi’s analysis was pointing to the Gold prices continue to rise, but some of his team members think otherwise. They felt that the gold prices will continue to fluctuate, and it was not a good idea to speculate in Gold. This was why Fu Rongqi called Feng Yu. After all, Feng Yu had made accurate predictions of the oil prices during the Gulf war and was an expert in his eyes!
“Then how much do you think the gold prices will reach at the end of the year?”
“At least 380 USD. It might even reach 390 USD.” Feng Yu replied confidently.
According to Fu Rongqi’s analysis, 380 USD was the highest. Feng Yu’s analysis was even 10 USD higher! This made him firmly believe that Gold will surely reach 380 USD at the end of the year.
This time, Fu Rongqi decided to make a big bet with Feng Yu!