Darkstone Code

Chapter 372: 0370 Singing a Different Tune



If the price of a commodity in the international market does not fluctuate greatly, it will be difficult for those investors who want to achieve huge profits in a short time to make gains. However, for long-term investors, this is actually a good thing.

As the time span for collecting data becomes longer and longer, it is generally possible to analyze the overall trend of future prices. Coupled with the use of hedging methods to avoid conventional risks, if one does not demand a high annual return rate, this is also an acceptable matter.

Some foundations even believe this is the most perfect market. Everything follows a pattern, everything can be predicted, all risks are under control.

But never forget, the desire of capitalists to pursue huge profits will never be satisfied.

Stable prices may be friendly to some people, but some people do not want to see it.

Lynch took out a newspaper, "This is a report released by the Southern Mechanical Research Institute two days ago. They have broken through a major obstacle, allowing copper mining to increase by at least 25% on the current basis!"

The newspaper was in Lynch's hand, and he passed it to the people around him. Soon, the people present had all read the newspaper; indeed, there was such news, and it was published in the Federation Daily.

This is a semi-official newspaper of the Federation, known for its rigor, and rarely features fake news unless... the price is right.

Of course, Lynch would not tell the people here how much he paid for this news.

"Now it's not only causing a significant response within the Federation, even some other countries have sent delegations hoping to introduce this technology. As this technology becomes popular, the price of copper ore will continue to decrease."

In fact, people always talk about the market. The word market confuses many laymen, but in simple terms, it's just a change in supply and demand.

If more people are buying a commodity but fewer people are selling it, then prices will naturally rise with the auction mechanism.

Conversely, if fewer people are buying a commodity but more people are selling it, then the price will continue to fall.

No matter what commodity, it ultimately cannot escape the essence of supply and demand and the auction mechanism. The reason people are so bewildered is merely that many interference factors are artificially added to the relationship of supply and demand.

Political factors, military factors, geographical factors, climate factors, and time factors, etc. make it confusing, but in reality, it is not complicated.

The newspaper brought out by Lynch made people clearly realize one thing. Once there is a significant increase in global copper ore production, if demand does not increase, then the price of copper ore will decrease, and since the price of raw materials decreases, the price of finished copper will also decrease.

Some merchants immediately realized this, and a few of them directly apologized and went to the next room to contact their traders to check the prices of world copper and copper ore—these two are not the same. Copper is refined copper, divided into many categories according to copper content, and copper ore is a raw material, also divided into many categories.

As some people went in and out, in another market concerned with numbers, one after another futures account began to carry out intensive transactions, and their general content was very similar—shorting copper ore!

Signals of shorting appeared within the Bail Federal, immediately attracting more attention from capitalists. When they learned some of the content from certain grapevines, they also began to build positions to short copper ore.

So many people are doing this, so it must be right, and for the whole world's futures, the level of capital participation is also an important consideration that impacts price.

No matter what relationships are involved, they still cannot leave the supply and demand relationship, that is, the buying and selling relationship.

A large number of short positions appeared in the Federation, which soon affected the direction of the global futures market.

According to the current regulations of the world futures exchange, data is updated every fifteen minutes, and the fifteen-minute interval is also because of the current backward communication methods.

In fact, it is much better now than before. Before the telephone and radio appeared, data updates ranged from half a day to several days.

The international futures market at that time was the most magical. Some merchants could win prices by "speed" as long they arrived at the trading port before the ship announcing updated prices; they could rely on advanced information to make more money steadily.

There were even people impersonating exchange information staff to spread fake news. That was truly an absurd era, but also very interesting.

However, now this kind of thing no longer occurs, at least merchants cannot outrun telephone cables, nor can they outrun radio.

EMPTY trades appearing in Bail Federal brought some pressure and shadows to the global copper ore market, and within the more than an hour that Lynch and these people were holding a salon, the global copper ore price experienced a slight decline again.

Once the invention of the Southern Mechanical Research Institute is proven to be true, a 25% increase in production is enough for the current copper ore price to experience a substantial drop again; but before that, the impact is not huge (the extent and speed of information dissemination).

Capital is always profit-driven. To avoid encountering risks, some hedge funds have also begun to reassess the future trends of copper ore and establish new hedging positions.

When many people were bearish on copper ore, an account that hadn't been active before started to go long on copper ore, and the amount was considerable.

People don't care too much about this unusual phenomenon. For many, whether it's futures or stocks, or other investments, they don't know much. They treat this financial game like a gambling game.

There will always be a few speculators who are unwilling to let go of placing their chips on the point with the highest return rate. It's like when the Federation's industrial index collapsed, some people were still buying in wildly. There will always be someone to gamble.

If you lose the bet, you may have nothing, but if you win, then you'll own the world.

People aren't concerned that this account belongs to Lynch. In fact, not only is his presence felt in the futures market, but he has also established accounts in the international foreign exchange market.

This time, he plays a direction different from others, starting to short the Fla.

As the Amelia Region stabilizes and Gafura's performance in this war, they are currently actively expanding Fla's influence internationally; since the end of the war, the price of Fla has been rising, and it has become one of the world's currencies with considerable weight.

Many people believe that Fla may become the primary settlement currency in future international monetary settlements. Now, taking advantage of its price not being high enough, buying a wave is a surefire profit.

However, Lynch holds a different view, and he is not alone in this perspective.

Having just finished an international futures salon, Lynch rushed non-stop to another salon targeting international foreign exchange trading. As he pushed the door, he saw Mr. Herbert sitting on one side.

After acknowledging each other with a nod, Lynch did not have much language, and he went to sit on one side where a waiter brought him some drinks.

The person expressing his views was an economist. In this industry, there are always more fools than wise people; not many can truly understand these things, but that does not hinder the participation of these wealthy people.

They don't need to have their own views; just following those who understand is enough, which is also the simplest.

This economist was talking freely, organizing the relations between international currency connections and the international political landscape for a room full of fools. He treated it as a classroom, although it's a pity he would not get much attention from the people.

Compared to these complex studies, people want to know more about where to place their chips next to bring them profits.

Of course, they didn't drive this economist away, just thinking that one day when they need insiders to clear up their doubts it might be useful.

When the economist spoke dryly and somewhat comfortably, Lynch had the waiter send him some beverages.

The scholar was somewhat surprised but still politely responded to Lynch's gesture of sending him a drink, which was a form of etiquette.

But just as he was about to take a sip and continue with his discussion, Lynch stood up.

He moved beside the scholar, saying, "This gentleman looks a bit tired, so let me share my thoughts next," not waiting for the scholar to say anything as Lynch just glanced at him.

It was just a glance, and all the words the scholar had in his belly shrank back. He hesitated for a moment, but eventually sat on the sofa, having spoken enough.

"Doesn't anyone not know me?" After gaining speaking rights, Lynch casually asked, as if it were a joke.

People chuckled lightly, as if it was a joke so amusing that someone even shouted, "Is there anyone who doesn't know Mr. Lynch?"

This statement seemed to gain a lot of people's agreement; knowing Mr. Lynch was inevitable, not knowing is problematic.

Lynch nodded slightly in greeting, and as the laughter died down, his first sentence made people frown.

"I just listened to what the expert beside me said. Some of what he said aligns with situational development, but there's one thing I think he got wrong..." he smiled slightly, "Fla is facing a huge test. If it fails to pass, Gafura's pushing it to become an international settlement currency will be hindered!"

This is a view very contrary to the mainstream thought. You should know that Gafura just politically and militarily confirmed their "core" status in the world after the Great War, and the stable governance of the Amelia Region also gives people confidence in Gafura becoming the center of the world, but Lynch presents a completely different viewpoint.


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