YM778.TV Chapter 143 Crazy Gold Fiasco
[Inside the Achilles Firm]
"Sean, how is it?" Abigail asked a senior trader as soon as he arrived in the room.
"The price of gold plummeted to US$520 an ounce mark in the morning. After the breakthrough, the price of gold stopped rising for a while. Just when the boss, you came, it started to plummet again. The price of gold now reaches US$500 an ounce."
"So quickly, it took 5 days to go from 650 US dollars an ounce to 500 US dollars an ounce. What do you thing the bottom line will be?, Manan, what is your analysis?" Abigail frowned and said.
Previously, They estimated the price to stabilize for a few days before collapsing. But it came a week earlier than expected, which was a good thing, but they lost some of their profit.
Abigail, she was not ready to cut down on any profit. Making money was the reason they were slaving away day and night.
"Boss, according to my analysis, investors from all over the world should have rallied to stop the fall. Many investors who were speculating in gold before and entered the market to raised the price of gold. I guess that they are losing confidence." Manan said.
They need to change their strategy a little.
Abigail looked at the plummeting price of gold and decided not to wait. It didn\'t matter; they were sure that the price would hit a new low soon. But they had to clear their position first, which would weaken the market further.
"Sean, start harvesting now, and it must be finished when it reaches $450 an ounce."
"Received, boss," Sean replied and instructed the rest of the team.
It must be noted that when Samuel asked Abigail to sell London gold futures, the average price of gold was US$600 an ounce. Abigail used 150 million US dollars to hedge the London gold futures worth 7.5 billion US dollars with 50 times leverage.
It was a considerable risk, and Abigail was against the idea at first, but she couldn\'t go against her boss. Samuel had the final say in the matter as the head of the firm.
With the price of gold now plummeting through the 500 dollars ounce mark, the value of this London gold future would reach 9.5 billion dollars.
Samuel asked Abigail to buy it with 500 different accounts in more than 200 banks, but it would be too difficult for such a large gold futures contract to escape.
Abigail was not relieved, so currently, she employed every trader on such trade. A few were left to manage their stock portfolio just in case.
After Abigail gave the order, the order began to be delivered in an orderly manner. Each person was responsible for 5-10 accounts based on their experience, and even Abigail herself entered the operation. It was a hands-on-deck situation.
Seeing everything running well, Abigail breathed a sigh of relief. It was honestly too much for their firm.
"Boss, the 10,000 lots of London gold futures I hold are all delivered, with an average price of 465 US dollars an ounce, and the existing funds in my accounts are 815 million US dollars." one trader reported.
"Chairman, the 13,000 lots of London gold futures I hold have all been delivered, with an average price of 455 US dollars an ounce, and the existing funds in the accounts are 1.6 billion US dollars." another one said.
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The main hall of the firm became a large meeting room for the firm\'s employees. The dedicated telephone line kept ringing, and the employees who answered the phone kept recording the data on paper and then reported the results to their manager.
They would forward the result to Abigail\'s office at regular intervals.
Looking at the statistics showing more and more funds, Abigail\'s mood was getting better and better.
Finally, by 7pm, all the gold futures were traded. All the firm accounts added up to 10.1 billion U.S. dollars, and the gold price also came to 430 U.S. dollars which were lower than expected.
With such a large amount, they were bound to have some impact on the market, and they could do it undetected, which was a plus.
After deducting the capital quota of 7.35 billion U.S. dollars, the security deposit of 150 million U.S. dollars, and bank funding fees, the cumulative net profit of the seed fund was 2.7 billion U.S. dollars.
The firm staff at the scene were overjoyed and proud of their feats. Abigail waved his hand and promised everyone a massive bonus by the end of the week.
She knew Samuel would agree to it, they had been working on this thing for months, and it took a monumental effort, which should be rewarded.
The boss eats meat, and the employees eat soup. She never wanted to starve her subordinate to live a cushy life. They were the backbones of the company.
It was 2 o\'clock in the United States at noon, and London was five hours ahead of New York time. The price of gold futures on the New York Mercantile Exchange continues to plummet, breaking through $450 An ounce at 3 o\'clock in the afternoon.
Many companies that hold gold futures can\'t help themselves. The financial company on the top of Wall Street is already on the way to retreat. They expected a fall because of the dot com bubble, but it dropped too fast for them to capitalize on.
They were not stupid. If the price of gold continues to fall, it will be detrimental to the United States.
The United States would be hit hard, which is not in line with the interests of the United States. Therefore, it is time for the White House to step in. No one knew about the people behind the sudden collapse, but they sure knew it was someone powerful.
Although they all hope that the price of gold futures will rise, they understand that the interests of the different countries are aligned. With a little push, they could change the trajectory while gaining a new position but recover their losses.
It was the golden rule of the financial sector, don\'t threaten the whales because you would be unable to handle what comes next. You might get some wins, but the house always wins in the end.