Singing a Different Tune
If the price of a commodity does not fluctuate dramatically in the international market, it will be difficult for investors who want to make huge profits in a short period of time to profit. However, this is actually a good thing for long-term investors.
As the time span of data collection becomes longer, it becomes possible to roughly analyze the overall trend of future prices. Coupled with the use of hedging methods to avoid conventional risks, this is not an unacceptable situation if annual returns are not a primary concern.
Some foundations even believe that this is the perfect market, where everything is predictable, everything can be predicted, and all risks are under control.
But never forget that capitalists' desire for enormous profits will never be satisfied.
Stable prices may be friendly to some, but not to others.
Lin Qi took out a newspaper. "This is a report published by the South Mechanical Research Institute two days ago. They have overcome a major hurdle and will be able to increase the Copper Mine's output by at least 25%!"
The newspaper was in Lin Qi's hand. He handed it to the people around him, and soon everyone present had seen the newspaper. There was indeed such a news story, and it was even published in the 《Federal Daily》.
This is a semi-official Federal newspaper, known for its rigor and rarely publishes fake news, unless... they give too much.
Of course, Lin Qi wouldn't tell the people here how much money he paid for this news story.
"It has not only generated a great response within the Federal, but some other countries have also sent delegations hoping to introduce this technology. As this technology becomes more widespread, the price of Copper Mine ore will continue to decline."
People always talk about the market, and the word "market" confuses many laymen, but to put it simply, it is nothing more than the change in the relationship between supply and demand.
If more people buy a product but fewer people sell it, the price will naturally rise due to the bidding mechanism.
Conversely, if fewer people buy a product but more and more people sell it, then the price will decrease.
No matter what kind of product it is, it cannot escape the essence of supply and demand and competition. The reason why people are confused is simply that many interfering factors have been artificially added to the supply and demand relationship.
Political, military, geographical, climatic, and time factors can make things seem confusing, but in reality, it's not that complicated.
The newspaper that Lin Qi presented made it clear to people that once the world's Copper Mine ore production increases significantly, if demand does not increase, then the price of Copper Mine ore will fall, and the price of finished copper will also fall because the price of raw materials will decrease.
Some businessmen suddenly realized what was happening. A few apologized and went to the adjacent phone room to contact their traders to check the world price of copper and the price of Copper Mine ore—these are not the same thing. Copper is refined copper, and it is divided into many categories according to its copper content. Copper Mine ore is raw material, and it is also divided into many categories.
As people come and go, in another market that revolves around numbers, one futures account after another begins to engage in intensive trading, with their general content being quite similar: Short Selling Copper Mine ore!
The emergence of Short Selling signals within the Bayer Federation immediately attracted the close attention of more capitalists. When they learned some of the details from certain rumors, they also began to build positions to Short Selling Copper Mine ore.
So many people are doing it, so it must be the right thing to do. Moreover, for futures trading worldwide, the degree of capital participation is a very important factor influencing prices.
Regardless of the relationships involved, they all ultimately revolve around supply and demand, or buying and selling.
The emergence of a large number of short positions within the Federal quickly influenced the direction of global futures markets.
According to the current regulations of the world's futures exchanges, data is updated every fifteen minutes. The reason for this fifteen-minute interval is due to the current backwardness of communication methods.
Actually, things are much better now than before. Before the advent of telephones and radios, data updates took anywhere from half a day to several days.
The international futures market at that time was the most magical. As long as you were fast, some merchants could outpace prices by relying on "speed". As long as they arrived at the trading port before the ships announced the updated prices, they could make more money steadily with their advanced information.
There were even people impersonating brokers to spread false information; it was truly an absurd era, but also quite amusing.
However, this kind of thing no longer happens now; at least, merchants can't outrun telephone cables or radio waves.
The empty market in the Bayer Federation put some pressure and shadow on the global Copper Mine ore market. Just over an hour after Lin Qi and his group held their salon, the price of Copper Mine ore in the world saw another slight decline.
Once the invention of the South Mechanical Research Institute is proven true, the 25% increase in production would be enough to cause another Jumping off buildings drop in current Copper Mine ore prices, but until then, the impact will not be significant. (The extent and speed of the news spread.)
Capital is always profit-driven. To avoid risks, some Hedge Fund have begun to reassess the future trend of Copper Mine ore and establish new hedging positions.
Just when many people were bearish on Copper Mine ore, an account that had not been active before started going long on Copper Mine ore, and on a significant scale.
People don't pay much attention to this unusual phenomenon. For many, whether it's futures, stocks, or other investments, they don't know much about them. They treat this financial game as a gambling game.
There will always be a few speculators who are unwilling to give up and place their bets on the point with the highest return. It's like when the Federal Industrial Index crashed, there were still people buying heavily. There will always be people who gamble.
If you lose the gamble, you may lose everything, but if you win, you can own the whole world.
People don't care about this account because it comes from Lin Qi. In fact, he's not only active in the futures market, but he also has an account in the international foreign exchange market.
This time, he again took a different approach than others, and he started Short Selling Vladimir.
With the stabilization of the Amelia Region and the performance of the Gefra in this war, they are now actively expanding the guéfra's international influence. Since the end of the war, the price of the guéfra has been rising and has become one of the world's most influential currencies.
Many people believe that the franc may become the main settlement currency in future international monetary transactions, and now, while its price is not high enough, buying in is a sure thing.
However, Lin Qi had a different opinion, and he was not alone in sharing the same view.
Having just finished a seminar on international futures, Lin Qi rushed to another seminar on international foreign exchange trading. As soon as he pushed open the door, he saw Mr. Herbert sitting to one side.
After exchanging nods, the two did not exchange many words. Lin Qi walked to the side and sat down, and a waiter brought him some drinks.
The person expressing his opinion is an economist. In this industry, there are always more fools than smart people, and there are actually very few people who can truly understand these things, but that doesn't stop these wealthy people from getting involved.
They don't need to have their own opinions; they just need to follow those who know what they're doing. That's the simplest way.
The economist was giving a long lecture, trying to explain the relationship between international monetary relations and the international political landscape to a room full of idiots. He was treating the room like a classroom, but unfortunately, he was destined not to receive much attention.
More than these complex concepts, people want to know where to place their bets to generate profits.
Of course, they didn't kick the economist out; they just thought that one day they might need an expert to answer their questions.
When the economist was talking until his throat was dry and he was quite pleased with himself, Lin Qi asked a waiter to bring him some drinks.
The scholar was somewhat surprised, but still politely responded to Lin Qi's gesture of having a drink brought to him, as it was a matter of courtesy.
But just as he was about to take a few sips of his drink and continue talking about his stuff, Lin Qi stood up.
He walked over to the scholar and said, "This gentleman looks a bit tired, so let me share my thoughts." Before the scholar could say anything, Lin Qi simply glanced at him.
With just that one glance, the scholar swallowed back all his words. He hesitated for a moment, but finally sat down on the sofa. He had said enough.
"Is there anyone who doesn't recognize me?" Having gained the upper hand, Lin Qi asked casually, as if it were a joke.
People were chuckling, as if it were a joke, and some even shouted, "Is there anyone who doesn't know Mr. Lin Qi?"
This statement seems to have gained the approval of many people; it's inevitable that people would know Mr. Lin Qi, and it would be strange if they didn't.
Lin Qi nodded slightly in acknowledgment. Once the laughter had subsided, his first words caused people to frown.
"I just heard what this expert next to me said, and some of what he said is very much in line with the development of the situation, but there is one point that I think he is wrong..." He smiled slightly, "The gefra is facing a huge test. If it cannot overcome it, then the idea of making the Gefra an international settlement currency will be hindered!"
This is a very counterintuitive idea, considering that the Gefra had just established themselves as the "core" of the world through political and military means during the World War, and their stable rule in the Amelia Region had also raised people's expectations for the Gefra's future potential.
No one thought that Fra would be hindered and that it would inevitably rise, but Lin Qi gave a completely different opinion.