If the price of a commodity did not fluctuate wildly in the international market, it would be difficult for investors who wanted to make a huge profit in a short period of time. However, this was a good thing for long-term investors.
As the time span of data collection increased, the general trend of future prices could be roughly analyzed. Coupled with the use of hedging methods to avoid conventional risks, it was not unacceptable if the annual return was not demanded.
Some foundations even believed that this was the perfect market. Everything was predictable, and all risks were under control.
However, never forget that the desire of capitalists to pursue huge profits would never be satisfied.
A stable price might be friendly to some people, but some people did not want to see it.
Lin Qi took out a newspaper. "This is the report released by the Southern Institute of Mechanical Engineering two days ago. They have broken through a difficult problem and are able to increase the mining capacity of the copper mine by at least 25% on the current basis!"
The newspaper was in Lynch's hands. He handed it to the people around him. Soon, everyone present read the newspaper. There was indeed such a piece of news, and it was published in the Federation Daily.
This was a semi-official newspaper of the Federation. It had always been known for its rigor. It rarely published fake news, unless … the price was too high.
Of course, Lynch would not tell the people here how much he had paid for this piece of news.
"Now, not only has it received a great response in the Federation, but even some other countries have sent delegations, hoping to introduce this technology. With the popularization of this technology, the price of copper ore will continue to drop."
In fact, people always talked about the market. The word market confused many laymen, but to put it bluntly, it was nothing more than a change in the relationship between supply and demand.
If there were more people buying a commodity, but fewer people selling it, the price would naturally rise along with the bidding mechanism.
On the other hand, if there were fewer people buying a commodity, but more and more people selling it, the price would get lower and lower.
No matter what commodity it was, it could not escape the essence of supply and demand and bidding. The reason why people were confused was that there were many artificial factors in the relationship between supply and demand.
Political factors, military factors, geographical factors, climate factors, and time factors all made people confused. But in fact, it wasn't complicated at all.
The newspaper that Lynch took out made people realize that once the world's copper ore production increased significantly, if the demand did not increase, then the price of copper ore would drop. The price of the finished product would also drop because of the drop in the price of the raw material.
Some businessmen suddenly woke up. A few of them directly apologized and went to the phone room next door to contact their traders to check the world's copper price and the price of copper ore. These two were not the same thing. Copper was refined copper, and it was divided into many categories according to the copper content. Copper ore was a raw material, and it was also divided into many categories.
As some people went in and out, in another market about numbers, one after another..............................................
In the Bailey Federation, signals of short copper ore appeared one after another, which immediately attracted the close attention of more capitalists. When they learned some of the contents from some gossip, they also began to short copper ore.
So many people were doing this, so it must be right. And for the whole world's futures market, the degree of capital participation was also a very important consideration.
No matter what kind of relationship was involved, in fact, it was still inseparable from the relationship between supply and demand, which was the relationship between a buyer and a seller.
A large number of empty contracts appeared in the Federation, which quickly affected the trend of the world's futures market.
According to the current rules of the world's futures exchange, the data would be updated every 15 minutes. The reason why there was such a long interval was also because the current communication methods were outdated.
In fact, it was much better now. Before the advent of telephones and radios, the data update was from half a day to a few days.
At that time, the international futures market was the most magical. As long as they were fast, some businessmen could rely on "speed" to outbid the price. As long as they arrived at the trading port before the ship announced the updated price, they could rely on advanced information to make more money.
There were even people who pretended to be informers of the trading house to pass fake information. It was really an absurd era, but it was also very interesting.
But now, this kind of thing no longer happened. At least businessmen couldn't outrun the telephone cable, nor could they outrun the radio.
The appearance of the Bailey Federation's empty contracts brought some pressure and shadow to the world's copper ore. In the hour that Lynch and the others were holding the salon, the world's copper ore price once again fell slightly.
Once the invention of the Southern Mechanical Research Institute was proven to be true, the 25% increase in production was enough to make the current copper ore price plunge again. But before that, the impact wasn't huge.
(The degree and speed of the spread of the news)
Capital was always seeking profit. In order to avoid risk, some hedge funds began to re-evaluate the future copper ore trend and set up new hedges.
Just when a lot of people were looking at copper ore falling, a previously inactive account began to trade copper ore, and it was not a small amount.
People didn't care too much about this unusual phenomenon. For many people, whether it was futures, stocks, or other investments, they didn't know much about them. They treated this kind of financial game as a kind of gambling game.
There would always be a few speculators who would unwillingly place their bets on the highest rate of return. This was just like when the Federal Industrial Index collapsed, there would still be people who would wantonly buy. There would always be people who would gamble.
If you lost the bet, you might lose everything, but if you won the bet, you would have the whole world.
People didn't care about this account because it was from Lynch. In fact, he was not only in the futures market, but also in the international foreign exchange market.
This time, he was playing in a different direction from others. He began to short the fra (fra).
With the stability of the Amelia region, as well as the performance of the Gefra in this war, they were also actively expanding the international influence of fra. Since the end of the war, the price of fra had been rising, and it had become one of the most important currencies in the world.
Many people thought that the fra might become the main settlement currency in international currency delivery in the future. Now that its price was not high enough, it was a surefire way to buy it.
However, Lin Qi had a different opinion, and there were many others who had the same opinion as him.
After finishing a salon about international futures, Lynch rushed to another salon about international foreign exchange trading. As soon as he pushed the door open, he saw Mr. Herbert sitting on the side.
The two nodded to each other and didn't say much. Lynch walked to the side and sat down. The waiter brought him some drinks.
The person who was expressing his opinion was an economist. In this industry, there were always more idiots than smart people. There weren't many people who could really understand these things, but this didn't prevent these rich people from participating.
They didn't need to have their own opinions. They just needed to follow those who understood. This was the simplest way to do it.
The economist was talking loudly. He was sorting out the relationship between international monetary relations and international political patterns for a room full of idiots. He treated this place as a classroom. Unfortunately, he wasn't destined to receive too much attention.
Compared to this complicated knowledge, people were more interested in knowing where to place their chips next to bring them profits.
Of course, they didn't chase the economist away. They just thought that one day, they would need an expert to solve their doubts.
When the economist's mouth was dry and he was a little satisfied, Lynch asked the waiter to bring him some drinks.
The Scholar was a little surprised, but he still politely responded to Lynch's gesture of asking someone to bring him a drink. This was a form of etiquette.
But just as he was about to take a few sips of his drink and continue talking, Lynch stood up.
He walked to the scholar's side. "Sir, you look a little tired. Let me talk about my thoughts."
Before the scholar could say anything, Lynch glanced at him.
With just a glance, the scholar swallowed his words. He hesitated for a moment and finally sat on the sofa. He had talked for a long time.
"Does anyone not know me?"
With the right to speak, Lin Qi asked casually as if he was joking.
People chuckled as if this was a funny joke. Some people even shouted, "Is there anyone who doesn't know Mr. Lynch?"
Many people seemed to agree with this statement. It was a given that they knew Mr. Lynch, but it would be a problem if they didn't.
Lin Qi nodded slightly. When everyone's laughter had almost died down, the first thing he said made everyone frown.
"I just listened to what the expert next to me said. Some of what he said is very consistent with the development of the situation, but I think he is wrong about one thing …" The corner of his mouth twitched slightly. "The Fra is facing a huge test. If it can't overcome it, then Gefra's idea of promoting it as an international currency will be blocked!"
This was a very contrary way of thinking. After all, the Guevra had just established themselves as the "core" of the world through political and military battles. Their stable rule in Amelia also made people think highly of the Guevra's future potential.
No one thought that the Fra would be blocked. It would inevitably rise, but Lynch gave a different opinion.