Chapter 837 The third killer move

  In fact, everyone earns more than 50% of the profit, because gold futures is a leveraged transaction, even if the lowest 10% is calculated, the profit they earned during this period exceeded 500%.

  If they increase the leverage through the broker, I am afraid that the return can exceed 1000%, which is definitely a terrifying astronomical figure.

  That is, if they bought gold long contracts with 100 million U.S. dollars in cash and calculated with 20 times leverage, then their contract price at that time was about 2 billion U.S. dollars, and now it has increased by 50%, which is about 3 billion U.S. dollars. After closing the position, he made a profit of 1 billion US dollars, which is exactly 10 times the principal.

  Of course, this operation is almost impossible, because the leverage is too large, the danger is unimaginable, and a slight 5% drop will immediately liquidate the position.

   But no matter what, it is an indisputable fact that everyone has made a lot of money.

  But when they thought of Zhong Shi's operation back then, everyone's joyful mood froze, and they all looked at Zhong Shi with strange expressions.

  When entering the gold market, everyone seemed very hesitant, but Zhong Shi was extraordinarily resolute, and even took out 20 billion U.S. dollars to enter the market. Of course, according to general operations, it is impossible to convert all these funds into contracts, after all, some additional reserves are required. But even if it is calculated on a 50% position, it means that Zhongshi has earned 5 times the profit, or 50 billion US dollars.

  Thinking of this number, everyone couldn't help but go crazy.

  Among those present, Paulson is the only one who can compete with Zhongshi in terms of gold. Because of his aggressive style and his daring to increase leverage, the total income should be between US$20 billion and US$30 billion. But the final problem is that a large part of this part of funds comes from clients’ entrusted management funds, and Paulson can obtain one-fourth to one-fifth of it through his own share and commission. . But these funds of Zhongshi are basically put into his own pocket.

   There is no way to compare!

   "Is there no possibility of another rise?"

   After pondering for a while, Ackerman finally asked unwillingly, "We can escape at the highest point, wouldn't it be better?"

  Accompanied by his question, the eager eyes of several other people also cast their gazes over.

  Although they are fund managers with high professionalism, they are not calm in the face of such great interests. Greedy hearts have the upper hand. This is the weakness of human nature.

   "Of course there is a possibility of continuing to rise!"

Zhong Shi thought for a while, then came to his senses, and said with a smile, "I was negligent on this point. According to my current position, it is obviously impossible to sell it all in a short time, so I plan to close the position now. But you are not the same as me, after all, the positions are different."

"In the third stage, I intend to hype the market's expectations for QE, so that the dollar is bound to fall, and the upward momentum of gold will continue, but the question is how long this momentum may last is hard to predict, maybe a week, Maybe a month. But no matter what, the momentum of gold’s continued rise in the short term should not be reversed. You should choose the timing of closing positions according to your own positions. This is my heartfelt words.”

   "So according to your judgment, how much will the price of gold rise to?"

  Griffin also asked aloud at this time, "The current price is 1,700 US dollars, do you think it is possible to break through 1,800 US dollars or even 1,900 US dollars, maybe 2,000 US dollars is not impossible."

If it can break through to $1,900 or even $2,000, the increase will be close to 100%. All of this will be done in more than a year. The price of gold will not only rise to a record high, but also become the world's most outstanding gold market.

  But at this time, anyone can see the bubbles and risks, even an ordinary speculator.

   But even so, well-known hedge fund managers still expressed optimism about the situation, such as Kenneth Griffin.

   “$2000 is out of the question!”

  Zhong Shi vetoed without hesitation, "The price of 2,000 US dollars an ounce, are you crazy? What is this price supported by? Give me a reason that can convince me!"

   "..."

  Griffin's face flushed immediately, and he mumbled his lips for a long time, but finally he didn't say a word.

  He could naturally understand the meaning of Zhong Shi's words, and the greed in his heart was ruthlessly exposed, which made him feel ashamed rarely.

   "If my speculation is followed, the price of gold will rise to $1,900 at most!"

After pausing for a moment to allow everyone to digest their emotions, Zhong Shi continued, "The combination of short-term positive effects in recent days has given rise to the current skyrocketing gold situation, but these positive effects are short-term effects, and when the market fully meets expectations And after the speculative fever subsides, the price of gold will enter a reasonable adjustment, which no one can deny. The current price has been divorced from the fundamentals, I believe we all have a clear understanding of this. So if you want to continue to hold I don’t object to that, but if it exceeds $1,800, you must consider opening a position.”

   "Not everyone can escape at the highest point! If some bad news breaks out at that time and the trading volume shrinks rapidly, then these positions will be rotten in their hands. Everyone should know this truth better than me!"

  After sternly lecturing everyone, Zhong Shi asked again, "Gentlemen, do you have any questions? If not, let's conclude today's meeting!"

   Undoubtedly, Zhong Shi said these words with some emotions, but at this moment, how could everyone dare to refute, and immediately stood up one by one and left.

   On August 17, the price of gold still rose slightly, but because of the large number of changes in hands during the day, the rapid rise did not last long, and in the end it only rose slightly by $8.7 throughout the day.

   Just that night, a rumor appeared in the market.

  The Federal Reserve is considering implementing the QE3 plan.

  The so-called QE3 is the third quantitative easing policy. At the beginning of 2000, in order to stimulate the economy, the Federal Reserve officially launched the first phase of QE, and then in 2005 they launched the second phase of QE. Now if it is implemented again, it will be the third phase.

  Since 2007, in order to save the real estate market and the U.S. economy, the Federal Reserve and other central banks around the world have repeatedly cut interest rates and injected liquidity into the market. As of today, the U.S. interest rate level has been reduced, approaching 0%. During this period of time, the monetary policy of the United States has entered a vacuum period, but according to the feedback of economic data in the past few months, the momentum of recovery is not as good as originally expected. Therefore, it is imperative to continue monetary policy in the next step.

   But at this point, the Fed is really limited in what it can do.

  So the news that the Fed will implement QE again was immediately hyped by the market. Although there were speculations from all parties, this is not an official statement after all. But this rumor is convincing that at the annual meeting of global central banks on August 24, Bernanke will announce the US plan to implement QE3.

   At the same time, the news also said that the European Central Bank is considering the possibility of implementing QE. Due to the slowdown of European economic growth in the past few months and the lingering dark clouds of the European debt crisis and many other reasons, simply cutting interest rates and injecting liquidity into the market has been unable to revive the economy. The committee of the European Central Bank has held several meetings to discuss the possibility and scale of QE.

   These two pieces of news immediately shook the market.

Originally, this kind of rumor would not have surprised the market too much, but just a few hours before the news spread, the US Federal Reserve’s policy-making meeting originally scheduled for September was postponed, which will be considered by market observers as a The Fed is looking for time to roll out more measures. With the outbreak of these two pieces of news, the speed of the market's trust in these two pieces of news has been greatly accelerated.

  If QE is really going to be implemented, then the Fed is bound to conduct more consultations with Europe and even Asia, which will take time. After all, the game on interest rates is global.

As we all know, once QE is implemented, it means the reduction of long-term interest rates and the increase of liquidity in the market, which reduces the competitiveness of the US dollar to a certain extent, and gold, which is negatively correlated with the trend of the US dollar, is fully positive, so in Stimulated by this news, the price of gold showed an incredible increase the next day.

   On August 18, the price of gold rose again by 28.2 US dollars, an increase of 1.57%.

   This is still due to the large number of transactions in the market, otherwise the speed of gold's rise will be even crazier.

However, it was this rising speed that fueled the irrational atmosphere in the market. On the following August 19, the gold market once again flooded into a large amount of funds. The established speculators don't care about so much, what they do is to buy and buy like crazy. Under the influx of a large amount of off-market funds, the price of gold rose again by US$30.2, breaking through the US$1,850 mark.

  The price rose by more than $50 in two days. This speed is astonishing. Many gold traders said that this is the first time they have seen a similar situation in their careers.

However, this phenomenon of fever has not stopped. On August 22, the price of gold rose again, and almost all the funds from all over the world poured into the gold futures market. At one time, there was a single transaction worth more than 500 million US dollars. However, under the frantic pursuit of funds, these turnover orders were still eaten unscathed, which made many traders feel terrified.

  Yes, it is fear!

Experienced traders have experienced the frenzy in the market, but this is the first time they have encountered such a frenzy. The price of gold rose by more than $100 in three days, and the positive lines rushed out one after another. It is an obvious bubble, but with the continuous support of funds, no one knows when it will end, and no one knows what the market will look like after the tide recedes.

  The price of gold soared again that day by $39.7, closing at 1892 points, only one step away from the 1900 point mark.

   For three consecutive days, the price of gold has risen by more than $100, which has never happened before in history.

On August 23, a historic scene happened. At the opening, the gold price of COMEX stood at 1900, which was a direct increase of $9 from the closing price of the previous day. Even without much effort, the gold price broke through expectations. .

  The market suddenly went crazy!

  Originally, many bulls thought that the bears would set up a little line of defense in this position, but the reality told them that the bears were simply vulnerable, and they couldn’t even snipe at the opening. When massive amounts of funds frantically poured into gold futures again, markets such as silver and platinum were also impacted by the way.

  Just half an hour after the market opened, the price of gold rose again by $11, reaching an astonishing $1912, and it continued to rise, completely turning into a runaway wild horse.

   At this time, the biggest negative in the market finally appeared.

The CBOT Exchange announced that it raised the minimum margin for gold from the previous $4,500 to $5,500, and COMEX announced that it raised the minimum margin for gold speculators from 15% to 22%. Margin ratio.

  The news will be officially implemented tomorrow.

  The frenzy of gold futures even the exchanges can't stand it anymore. In order to resist risks and curb excessive speculation, they had to announce an increase in the minimum margin ratio during the session.

   Thanks to the book friend, he entered her heart and broke my heart, gengsu for the reward! Thank you for your active support. I hope that more book friends can support this book. The author expresses his gratitude~ I will move soon, and there are a lot of trivial things recently, and I will do my best to update things. Don't forget to vote~

  

  

  (end of this chapter)