Extraordinary Genius

Chapter 1206 – The frustrated Li Zekai

After New Year’s Day, Feng Yu flew to Hong Kong to check on Wind and Rain Consulting’s investments.

After that incident, Wind and Rain consulting bought gold at around 275 USD and sold them at around 290 USD. Feng Yu remembers from his previous life that the fluctuations are so big.

In this life, London gold reached 294 USD per ounce, but it is more volatile. Most investors are like Feng Yu and settled their contracts once gold went above 290 USD.

Of course, some gamblers settled their contracts at higher prices. But some of them made a mistake. They thought the gold price will go above 300 USD.

Around this time, Wind and Rain Consulting started to bet on the opposite. They started to short gold. Many people are puzzled. During wars, gold prices should rise. Why is Wind and Rain Consulting betting on gold prices to fall?

When the US announced they are sending their troops to Afghanistan, gold prices start to fall, and it fell below 275 USD. This is because most investors felt the US can win easily, and their economy will recover quickly. More people will invest their money in the US stock markets when it happens.

This is the time when the Fu Family, Li Family, and the rest enter. They had missed the first fluctuation. Although Wind and Rain Consulting had not used high leverage, the invested amount is huge. They made several billion USD of profits within two months.

When gold prices fell back to 275 USD, Wind and Rain Consulting started to buy in gold again. This time, Feng Yu told the rest to speculate on the long-term.

Why? Because the war in Afghanistan is not as swift as the US expected, and the US troops faced fierce resistance.

This time, it becomes a real war, which is the troubled times Feng Yu mentioned.

The gold price was fluctuating and showed no signs of rising now. Since gold fell back to 275 USD in early October, it did not rise above 280 USD. It even fell back to 272 USD several times.

He Zhaoji and the rest executed these transactions easily because they did not use high leverage and had hedged. Even if gold fell below 260 USD, they can settle their contracts in time and prevent losses.

But the Li Family, especially Li Zekai, is frustrated.

Li Zekai had entered the gold market when gold is at the peak, 290 USD.

After that, gold dived. If Feng Yu had not asked his men to notify them to hedge, Li Zekai would have lost all his money. But luckily, he did not suffer any losses, but he did not make any money. Also, Superman Li did not lend him any more money to invest in the gold market.

Feng Yu had reminded him that gold prices will be volatile when the US announces they will be sending their troops. It will either rise by a lot or plunged. But Li Zekai bet gold prices on rising.

If Superman Li had not transferred funds to save him, Li Zekai would have suffered massive losses!

The Fu Family had also invested, but Fu Rongqi is one of Asia’s top financial traders. His main business is financial investments, and he has a big and strong team to support him.

The Fu Family had also believed in Feng Yu that gold will rise in the future. But they also knew about the possibility of diving. That’s why the Fu Family hedged against their investments and used low leverage.

Although the Fu Family’s returns are not as high as Wind and Rain Consulting, they made around 400 to 500 million USD with a few billion USD investments.

The Fu Family also felt gold prices will rise, but they will never place all their eggs in one basket. They still invested in other instruments and reserved some emergency funds.

Superman Li told Li Zekai. It’s fine if you want to do financial trading. But you must learn from Feng Yu and set up a team of professionals.

Feng Yu told you gold will rise when the US sent their troops to Afghanistan, but do you know about the details? You only know that gold will rise, and you placed your bets. If Feng Yu had not told you when to short the market, you might not even have the chance to borrow money from me to recover your losses!

During this period, the gold price is fluctuating but did not rise. The Fu Family can afford to wait as Feng Yu said this will be a long term investment.

But Li Zekai is impatient. Gold had raised to almost 290 USD, but why is Wind and Rain Consulting and the Fu Family not settling their contracts?

So, Li Zekai called Feng Yu to ask when he should settle his future contracts. Feng Yu told him that gold will rise above 300 USD and might reach 350 USD this year. But it might take some time. Unless something drastic happens, do not settle the contracts now.

Li Zekai was shocked. What did Feng Yu say? Gold price will rise to 350 USD?! He totally ignored the word, ‘might.’

When Feng Yu comes to Hong Kong, Li Zekai and Fu Guangzheng rushed to Wind and Rain Consulting to meet him.

“Brother Kai, I’m sorry for not making myself clear and caused you to almost suffer a big loss.” Feng Yu apologized. He did not know Li Zekai is so unprofessional and had only hired one broker to help him.

Li Zekai also felt embarrassed. “Brother Feng, I should be thanking you. If you had not reminded me to short the market, I would have lost all my money. Luckily it is only a scare this time. Although I did not make any money, I also did not suffer any losses. At the same time, you reminded me not everyone can trade futures.”

“Hahaha… stop apologizing and thanking each other. Zekai, I think you should just invest your money into my investment or Wind and Rain Consulting. Although we charge a higher commission, we will not risk your money.” Fu Guangzheng laughed.

“Thanks for your advice. I am trying to learn.”

Li Zekai will never let Fu Guangzheng handle his money. He can also get high returns if he invests in other places. Although the Li Family’s company share prices had fallen, their fixed assets’ value is all appreciating, especially China’s ones.

Li Zekai is prideful and will never let Fu Guangzheng invest for him. That would be admitting he is inferior to Fu Guangzheng! He can consider letting Feng Yu invest his money, but he still prefers to do it himself. After all, he can save on the commission. Wind and Rain Consulting charge at least 20% commission!

“To each his own. I understand you want to invest yourself, but you must be more careful this time.” Feng Yu smiled.