Chapter 930 Everything is caused by international hot money
Although Atlantic Capital, an international hot money giant, has entered the market with a huge amount of funds, it has not changed much history, such as the international crude oil price has risen more fiercely than the original historically, or there are any differences in prices.
In fact, it is precisely because of the intervention of Atlantic Capital that the crude oil futures market has become more stable, and everything is under the control of funds and is developing in an orderly manner according to the original historical development trend.
This is due to Niam Wilson's precise control. When Niam first joined KY Investment Fund, he was poached by his friend Henry because he was very unhappy in Goldman Sachs.
Moreover, when Niam first joined KY Investment Fund, he only served as a director on the board of the twenty-seven American companies that KY Investment Fund invested heavily in holdings. However, Niam had been a senior executive of Goldman Sachs after all, and his own qualities were still very strong. Later, Yang Jing asked him to serve as CEO of KYA Capital, the predecessor of Atlantic Capital, and also served as executive vice president of KY Investment Fund. As a result, he did a very good job.
Later, KY Investment Fund renamed KYA Capital to Atlantic Capital, and was also responsible for speculative actions to harvest the legacy of the former Soviet Union. During the speculative action that lasted for several years, Niam did a very good job. He fully understood Yang Jing's orders and his secret style, and did that speculative action almost seamlessly, so he was appreciated by Yang Jing.
In this speculative action against the global crude oil futures market, Niam once again exerted his style of harvesting the legacy of the former Soviet Union, divided the massive amount of funds into countless small accounts, used an efficient trading team to control these tens of thousands of accounts, and began to secretly establish long positions in major crude oil futures markets around the world.
The international community itself is full of doubts about the Bush administration's preparation for attacking Iraq. In addition, such a huge amount of funds began to slowly support the market, and international crude oil prices immediately began to grow slowly.
Because the funds of Atlantic Capital are too fragmented, it is almost impossible for market monitoring to find Atlantic Capital's funds. They can only monitor that a large amount of international hot money has begun to pour into the international crude oil futures market, but no one can find out the specific source of the funds.
Everything is done by international hot money!
As a result, a large number of long contracts began to appear in the international crude oil futures market, which gradually began to heat up the market. In addition, the Bush administration really took action against Iraq, so after the international oil price surged to $30 per barrel, it never looked back!
However, this speculation on international crude oil prices is a long process that lasts for more than ten years. Although the final returns are amazing, they need to be controlled and endured.
There are also speculative actions against the international gold market.
In fact, the trend of international gold prices is almost the same as that of international crude oil.
After experiencing the ups and downs of the black swan market in 1980, the international gold market entered a big bear market that lasted for more than 20 years. Although the price of gold broke through the $400/ounce level due to the global stock market crash in 1987 and the First Gulf War, it would soon fall back, and fell to a low of $256.4/ounce on June 4, 1999.
The continued decline in gold prices made banks in many countries a little unbearable. So on September 27, 1999, in order to prevent the continued decline of gold prices, the European Central Bank and the fourteen European countries signed a central bank gold sale agreement, also known as the "Washington Agreement". The agreement decided to sell gold in five years, no more than 400 tons per year. Five years later, on September 27, 2004, the second phase of the central bank gold sale agreement was renewed, and two European countries joined the agreement.
This agreement is seen as the beginning of a bull market in the gold market, because international gold prices began to recover after the signing of this agreement.
At the beginning of the century, with the bursting of the Internet bubble and the US financial turmoil caused by the 9/11 incident, US monetary policy was adjusted, significantly lowering the federal funds rate to historical lows to achieve the goal of stimulating economic recovery. Affected by this, gold prices rose to a maximum of around $330 per ounce in 2001.
Then, in 2003, the United States launched the Iraq War, and the Bush administration brazenly took action against Iraq. The price of gold exceeded US$400 per ounce that year. For more than three years, the international gold price has been wandering between US$400 and US$450.
By the beginning of 2006, the US subprime mortgage crisis began to gradually emerge, and international gold prices rose in response. In just five months, international gold prices broke through $500/ounce, and finally reached a high of $725/ounce. Then they began to make technical adjustments and fell to a low of $560/ounce.
But even this price is far beyond the gold price at the beginning of the new century.
By 2007, the US real estate bubble burst, and gold prices accelerated upward under the influence of the subprime mortgage crisis. Before the 2008 financial crisis, international gold prices had already broken through the historical high of $1,000 per ounce, hitting a historical high of $1,032 per ounce.
At this moment, the international gold price plummeted again.
As the US subprime mortgage crisis becomes more and more intense, Bear Stearns, the fifth largest investment bank in the United States, was acquired by **** for $2 per share, Freddie Mac and Fannie Mac were taken over by the government, Merrill Lynch was acquired, Lehman Brothers was forced to go bankrupt, and the global capital market was earthquake. The stock market plummeted, the commodity market plummeted, international oil prices plummeted from $147/barrel to $33.2/barrel, and international gold prices also fell from above $1,000/ounce to around $680/ounce.
But then, in November 2008, the Federal Reserve announced the first round of quantitative easing, that is, the famous QE1 launch, repurchasing about $1.35 trillion in government bonds, mortgage securities and other "toxic assets". The international gold price, like international oil prices, immediately launched a comprehensive upward model. In August 2010, the second round of quantitative easing, that is, before the launch of QE2, gold prices had climbed to around $1,386 per ounce due to the weakening of the US dollar and the Greek crisis.
With the outbreak of the Libyan War in February 2011, on August 5 of the same year, international rating agency Standard & Poor's announced that it would lower the US sovereign credit rating from AAA to AA+, with a negative rating outlook. This is the first time in the history of the United States that the gold price launched the most fierce offensive. In just 20 trading days, gold prices have reached the historical peak of US$1,920 per ounce.
Finally, after touching the high of $1,920, the international gold price began to dive on a high platform...
Looking at the twelve years after entering the new century, the trend of international gold prices is almost the same as that of international oil prices.
However, compared with the international oil prices that have been making efforts since 2003, although the international gold prices have recovered earlier, before 2006, for the Dragon Fund, there is nothing to speculate on international gold prices.
Dragon Fund specializes in speculating on black swan markets, so speculative actions against international gold must be laid out at the end of 2005. Then, like international crude oil, from early 2006 to 2012, international gold prices also experienced two waves of surges and plummeting. This is a good time for Dragon Fund to take action.
And Pacific Capital, controlled by David Anderson, has long been sharpening its knives. Two and a half years after the international crude oil market started, Pacific Capital quietly joined the international gold market with huge capital! Of course, Pacific Capital's huge amount of funds is still "international hot money"...
Chapter completed!