"Many people think that the U.S. dollar is the world currency, but that is actually wrong. Gold is the real world currency. In times of peace, gold reserves are of little significance. Credit currencies prevail. Only in times of war can gold reflect its value.
As for how many dollars to push, it depends on the exchange rate, and the exchange rate is the key point."
...
Hearing this, Han Kongque smiled. At this time, he already knew that this trend was probably instigated by Deng Hui and others.
Now that the U.S. dollar is an international currency, it is the U.S. dollar that is used to trade gold. If the value of gold increases, the U.S. dollar must depreciate. If the U.S. dollar depreciates, the price of gold will naturally rise.
To put it simply, one ounce of gold now costs almost 1,300 US dollars. If the price of gold rises, more US dollars will be needed to buy one ounce of gold. In this way, the US dollar will depreciate invisibly.
What Americans fear most now is that someone will hold a large amount of gold. What do they like most about letting others treat gold as grass instead of treasure?
Since the gold purchased by the People's Bank of China is "only in but not out", this not only surprised Wall Street, but also made the U.S. government very vigilant.
Why should the U.S. government be wary of other countries buying large amounts of gold?
Because the United States hopes that other countries will regard gold as "grass" instead of treating gold as "treasure", a fall in the price of gold is more in line with the interests of the United States than a rise.
Some people may find this statement strange. After all, the United States has the largest gold reserves in the world (more than 8,100 tons). Why does the United States hope that the price of the gold assets it holds will fall?
Isn't this abnormal? In fact, if you know the little-known relationship between gold and the US dollar, you won't find it abnormal.
Since the U.S. led the collapse of the Bretton Woods system in 1971, the "gold standard" has disappeared. The U.S. dollar is no longer linked to gold, which means the U.S. can print U.S. dollars at will, regardless of how much gold it has.
Other countries still have to use the U.S. dollar for international transactions.
Even though various countries were dissatisfied with this, the United States responded by saying: "The dollar is our currency, but it is your problem."
Since the United States has 11 aircraft carrier battle groups, plus a Wall Street team, it is difficult for the world to match its military and financial power. Countries around the world have no special solution for the United States' domineering power except to eat it.
.
Since the U.S. dollar has gained hegemony in the international monetary system over the past 40 years, the U.S. has not only gained seigniorage revenue, making it easier to cope with the balance of payments, but also gained that U.S. companies have no risk of exchange rate changes in external payments, and U.S. financial institutions have greater profit margins.
Wait for the benefits.
In order to continue to seize the above-mentioned benefits, the United States naturally hopes that the price of gold will fall. Even if the price of gold drops to the level of rotten copper, countries will abandon gold and the "gold standard" will never be mentioned again. Only in this way can the international monetary system continue to operate in a stable manner.
The desire for dollar dominance.
Moreover, the United States still has something to fall back on. As long as countries around the world do not increase their gold holdings, the United States will still be the country that holds the most gold. In addition, the United States’ gold accounted for 71.7% of its foreign exchange reserves, while Russia’s is only 8.3%. China only has
A pitiful 1.2%.
Therefore, even if the hegemony of the US dollar is difficult to maintain in the future and the international monetary system returns to the "gold standard", when the currencies of various countries are once again linked to gold, the currency of the United States can still have a strong advantage.
After seeing this, I believe everyone should understand why the U.S. government wants to keep the price of gold as low as possible.
In short, no matter whether the economy is good or bad, gold will move.
In times of economic development, inflation will rise, and buying gold can preserve and appreciate the value of assets.
When the economy is in recession or the international situation is turbulent, gold will be the most ideal safe haven for investors.
"Why are you smiling so treacherously?" Liu Xu looked at Han Peacock playfully.
Han Kongque said: "Don't you think it's interesting to hear it?"
"What's the point? Does it have anything to do with us if gold depreciates or not? Ah! By the way, you have a large amount of gold in your hands, why don't you sell it while the Jin family is still suitable now!" Liu Xu was a little embarrassed.
The way of knowing later.
Han Peacock smiled and said: "It's for sale."
"Selling? What does "selling" mean?" Liu Xu looked at Han Peacock suspiciously.
"Have you finished eating? Let's go home after finishing eating and talk while walking." Han Peacock said with a smile.
Liu Xu said: "Are you speculating in gold?"
Holding Xiaoxiao and Liu Catkin in their arms, they walked slowly. Han Kongque looked at the man selling gold in the distance and said: "We are suppressing the price of gold in order to buy gold at a low price."
"What should we do with those people? Has the gold they sold now been absorbed by you?" Liu Xu asked.
Han Kongque shook his head and said: "We are suppressing gold prices now, and it is impossible to absorb the spot goods in the market. These should be spontaneous actions of domestic merchants."
"Gold is not easy to speculate on. If it is not good, it may lead to fire." Although Liu Xu does not understand finance, he also knows the importance of gold to countries around the world. It is impossible for some big countries to leave such things alone.
Han Kongque said: "Don't worry, we have a plan."
"I'm not worried. At most, you will just lose all your gold." Liu Xu said.
Han Kongque said: "Can you have some confidence in me?"
"Okay, then I wish you success." Liu Xu said.
After sending the catkins away, Han Peacock came to Zeng Yu's dog farm. The traders here were ready to fight as soon as the market opened.
"How is it?" Han Kongque asked when he saw Deng Hui.
Deng Huidao: "It has begun to bear fruit. Several trading centers in the world have begun to be affected. It seems that the price of gold is bound to fall."
"No one is taking advantage of the situation?" Han Peacock said with a smile.
Deng Huidao: "Yesterday was the first wave. Depending on the situation today, it is in everyone's interest for us to suppress the price of gold. No one will cause trouble. If we continue to suppress the price of gold today, maybe someone will help us and short gold futures.
It’s a good way to make some money.”
Han Peacock sneered: "We should steadily sell gold, absorb US dollars, and give them a little surprise when the time comes."
"The market has opened and the price continues to go down." Deng Hui looked at the trading chart and said.
Han Kongque said: "Speed up the shipment speed and give some people some confidence."
Deng Hui thought for a moment and said: "Throw out a thousand lots every ten minutes until the end of the morning transaction."
Han Peacock smiled and said: "You are really generous. One thousand lots is one ton, right? In two and a half hours, that's fifteen tons. In the afternoon, we will throw another twelve tons, and in the evening, we will pick up fifteen tons. In this way, it will be forty-two tons in one day."
, I do it for ten or eight days in a row, I don’t know if anyone will be able to bear it.”
Deng Hui said: "We can sell it like this for twenty days. It depends on the situation. We may be able to sell hundreds of tons in a few days."
"Boss, there's something going on." At this time, someone came over to report.
"What's going on?" Deng Hui asked.
"Someone placed a big sell order before us, a thousand lots," a trader shouted.
Deng Hui thought for a moment and said: "Let out two thousand hands at a time and see the reaction."
"There are another thousand sell orders."
"Lay out two thousand lots and pay attention to the trading volume."
"Trading volume is increasing significantly."
"It seems that we are not the only ones staring at gold. Since they can't help it anymore, we have stimulated and accelerated the process. Since some people want to release more gold, then we will keep it, stop trading, and see what happens.
"
Deng Hui stared at the big screen. Usually, the big guys in the United States manipulate the price of gold and only get three to five hundred tons for fun. This time he has sold two hundred tons. With other follow-ups, there are already short sellers.
Gain momentum.
Now I think that all the major investment banks in the world should have noticed their actions. Now let’s see how those people react.
If panic selling is triggered and gold depreciates rapidly, then the U.S. government will laugh if gold is exchanged for U.S. dollars. In the end, the U.S. dollar is just a waste of paper they print. No one wants gold, but they keep the U.S. dollar and let the U.S. dollar
The effect is magnified, it would be strange if they didn't laugh.
"Someone followed suit, probably an American investment bank."
"They finally couldn't help it anymore. In this case, there is no need for us to continue playing. We just keep an eye on them. If they flinch, we will push them again. If we want to make a move, it's easy. If we want to stop, it depends on what we want."
Yes." Deng Hui became excited.
As long as they are watching, even if others want to bring back the price of gold, they have to wait until they stop suppressing the price of gold before they can start. In this way, Han Kongque and the others, who have a backup plan, will naturally have control in their hands.
On the market, one hundred tons of gold were sold every ten minutes. Such a massive sell-off soon triggered a violent reaction.
By this time, there were no more buying orders, the market was filled with huge selling orders, and the price of gold fluctuated violently.
In just one hour, thousands of tons of gold selling orders accumulated in the market. This mountain came down, directly crushing the buyer's market.
Investors who had completely lost their confidence began to sell short. No one was a fool. If they did not hedge at this time, all long buyers of gold would suffer losses.
The influx of selling orders directly caused the price of gold to begin to plummet.
"There is no suspense anymore. The drop is 5%. I just don't know what will happen tomorrow." Deng Hui said.
The maximum daily price fluctuation limit of gold futures shall not exceed ±5% of the settlement price of the previous trading day, which means that the range of increase or decrease is 5%.
Han Kongque said: "Let it fall. We only have one thousand tons of gold. If we don't cash out all the US dollars, let it continue to fall. When will we run out of gold, we will turn around and go long."
Deng Hui laughed and said: "If it falls by 5% every day, our gold will not be sold so easily."
"Forget it if you can't sell it. No one thought that those people would be so restless." Han Peacock also laughed.