I Picked Up a Dimensional Travel Machine: Wizard - Chapter 83



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100,000 tons sortie~! (2)
The next day the price of gold was 79% (21% lower), the day after that 80%, the day after that 79%……

This order continued for about ten days.

Naturally, numerous financial institutions that had been beating the ground in regret for not receiving the previous orders were delighted to receive the transaction.

On average, 5,500 tons (USD 212 billion, approximately KRW 251 trillion) of gold is traded daily on the London Gold Exchange alone.

Of course, this figure is more than 600 times the world’s daily gold production of about 8 tons.

About 1.5 million tonnes of gold are traded annually.

Of course, humanity does not have 1.5 million tons of gold.

These are just numbers being traded.

A sells 1 ton of gold to B, who then sells it to C.

If you trade like this 10 times, you will end up trading 10 tons.

How this transaction is possible is similar to the fractional reserve requirement system of banks.

It’s similar to a bank keeping only a portion of deposits as reserves and lending out the rest.

This is because only a portion of the physical (Gold) is left on the exchange and can be loaned or invested.

Therefore, unless the physical owner directly moves the gold from the British Exchange to his own warehouse, the trading of numbers continues.

In any case, the total amount invested in gold futures trading by MF was close to 10 trillion 935.5 billion dollars (1 quadrillion 2,026 trillion won).

This is nearly five times the $2.2 trillion in assets owned by Min-ki.

Of course, the transaction is set at 20% margin with leverage.

Even if you are Min-gi, you cannot make 2.2 trillion dollars in an instant.

This is because MF Pharmaceuticals is an ‘estimated’ asset assuming it was listed.

Thanks to this, all of Min-ki’s shares were provided as collateral.

The world’s major banks gladly accepted shares in MF Energy and MF Pharmaceuticals, the geese that laid golden eggs.

Min-ki’s investment will 100% fail, and the shares he owns will naturally become the bank’s property.

Of course, banks may suffer losses because they suffer huge losses in futures trading.

However, the gift transaction is set at 80%.

Even if there is a loss, it would be around 20% based on the current market price.

So, since the deposit is 20%, it is ‘Teacher Teacher’.

You may suffer a loss of 1-3%, but MF’s stake will remain.

Considering the management premium, 1-3% is not even a risk.

The bank was willing to take this risk.

If the margin was 10%, you might have been worried because it could be cut in half, but it is not a loss because the margin and the reduced gold discount trading rate are the same.

In order to prevent any possible ‘sudden losses’, MF also made friendly inquiries to the London Gold Exchange and the American Futures Association before trading.

If a newly established mining company called ‘MF Gold Company’ discovers a huge gold mine, mines the gold, and trades it directly on an exchange, would this be a violation of the ‘Futures Trading Act’?

In this case, the MF Group company inquired whether the gift trading order placed was valid.

Naturally, around 20 exchanges, futures associations, the Bank for International Settlements, and the International Organization for Securities Commissions around the world responded, saying, “There is no problem. So, you can proceed with trading.”

Rather, it encouraged trading.

The spoils of this huge deal will fall on them too…

< >

“Uh~. Now, we will begin the MF Gold Company Paso Calvaros Gold Mine Development Press Conference.”

“This is CNN’s Thomas. Is this press conference being held by MF Energy CEO Robert A. Mosbacher?”

“Yes, that’s right.”

“So, is ‘MF Gold Company’ a subsidiary of MF Energy?”

“No. It is a company that MF Invest owns 100% of. I am simply giving the presentation on their behalf due to the nature of the work.”

“As far as we know, this mine is almost completely depleted of gold and is no longer profitable. Have you made a groundbreaking discovery? What are the expected reserves and daily production?”

“We, MF Gold Company, purchased an abandoned mine in the Paso Calvaros region of Guatemala and primarily ….. (omitted)….. Based on such excellent technology …… (omitted)….. Therefore, the final confirmed reserves are 100,000 tons. We are extracting these reserves per day…..”

“yes??”

“Huh? I didn’t hear you correctly. How much is the reserve?”

It was quite unusual for a gold mine development press conference to be broadcast live on TV.

This happened because the gift trading conducted by MF was so bizarre that it attracted a lot of attention from the media.

But the reporters and journalists in attendance wondered what they had just heard.

I look around with a blank expression, but everyone has a similar expression.

“Henry Hendrickson from the BBC. Did I hear that correctly? Did you say 100,000 tonnes?”

“Yes, that’s right. The reserves of the Paso Calvaros mine are 100,000 tons. To be exact, 99,998 tons.”

“Uh…uh…uh………”

“Uh…um…”

“I’m Maurice from ABC TV in Australia. Are you really saying that the estimated reserves are 100,000 tonnes?”

“These are not expected reserves, but confirmed reserves.”

“Is that… true? Are you not joking?”

“Yes. Why would I make such a joke here? You’ve gathered so many busy people, and didn’t you say this would be broadcast live on TV?”

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“Can you confirm?”

“Of course. After the basic briefing, you can check it out in the new tunnel we dug. It’s closer than you think.”

“So what is the daily production volume?”

“Uh. I think it could produce about 1,000 tons a day.”

“Huh?? What are you talking about?”

“This is really. What should I say? It’s very profitable. It’s incredible.”

“No. How can you produce 125 times the world’s daily gold production in one day? From this one mine?”

“That’s really gold ore, almost like a gold nugget. Just dig it up and melt it down, and you’re done. Easy, right?”

Many broadcasters attending the press conference were left speechless at the completely incomprehensible story.

Eventually, when he couldn’t explain it in words, CEO Robert personally guided them into the newly dug tunnel, accompanied by three TV cameras, reporters, and journalists.

“Here it is. Look.”

“Gasp~!!!”

“this….”

“Sir, this looks like just a gold bar melted at high temperature and covered over the tunnel. How is this gold ore?”

“What if you ask me that? This is what happens when you dig a new tunnel?”

“No. Does that make sense? Gold ore is usually a mineral that contains a certain percentage of gold, and the streak color is reddish gold with a greenish tint. Or pyrite……”

“What do you want me to do? This is a special environment? Then should I change this back to regular gold ore? It’s different from regular gold? Should I close it? We got lucky and found this vein of gold. It’s really a vein of extremely high purity. What more do you want me to say?”

“Anyone can tell that this is just melted gold and applied to the wall.”

“Then where did that gold come from? Where in the world can you find a gold bar that weighs 100,000 tons, not 10 to 20 tons? Has there ever been an incident of theft of 100,000 tons of gold in recent times or throughout history? The reserves of central banks of each country combined are only about 30,000 tons. Aside from that, who said they lost the gold? Or did we make the gold with a 3D printer? And even if we did, what does that matter? If the composition analysis results are 100% identical to gold, then it’s gold, right?”

“Uh… that’s….”

“Representative Robert A. Mosbacher, if you discovered this gold mine and took a position on the sharp decline in the price of gold and traded futures, wouldn’t that be considered unfair futures trading? Do you think such trading would be acceptable?”

“After contacting about 20 gift exchanges and financial regulators around the world, we received a response that it had nothing to do with anything.”

“Isn’t that an answer you gave without knowing this situation? This is clearly a planned scam. No, sorry. This seems like a planned scenario.”

“As you can see from the exact development log, we made a futures transaction exactly 41 days ago. We purchased this gold mine 25 days ago. We dug a new tunnel 15 days ago. As you can see from the response here, we made inquiries to the futures exchange, financial regulators, etc. 26 days ago.

We made a gift investment and about 10 days later, we found a suitable gold mine and bought this one. In addition to this one, we bought about 15 mines around the world. All the others were failures. Anyway, as confirmed by the information I received from the miner who sold the old Paso Calvaros mine, it was a long time later that we dug this tunnel 71. So how is this a scam?”

“Then what is this?”

“It’s a stroke of luck. Our MF… ahem.”

“This is Lila Concil from Fox TV. I’m not entirely convinced, but let’s just say that. So, going forward, MF Gold Company will be able to produce 1,000 tons a day. Actually, if you look at it, it looks like it could produce 10,000 tons a day if it wanted to. Anyway, do you plan on producing 1,000 tons a day?”

“Yes, I think so.”

“It seems a foregone conclusion that the price of gold will plummet.”

“Well, even now, mankind’s gold consumption is at its peak. Rather, it is insufficient. In science and technology, gold consumption is increasing at an unbelievable rate. And the estimated reserves remaining on Earth are only about 50,000 tons. With the discovery of 100,000 tons of gold in this historic Paso Calvaros gold mine by our MF Gold Company, mankind is taking a new leap forward… (omitted)….”

The world’s media was in an uproar.

Naturally, the financial markets became even more chaotic.

The price of gold on the London Bullion Exchange began to plummet in an instant.

If you produce 1,000 tons at a time, it will be finished in 100 days.

In just 100 days, 35 times the annual production of gold is produced.

Of course, it will take at least some time to prepare for production.

But even a three-year-old child could tell that the time would never pass January 25th, the day when MF had agreed to start trading futures.

MF’s futures trading period is 10 days.

The approximately $11 trillion worth of gold traded on the MF is 13.7 billion ounces, or over 380,000 tonnes.

So, mathematically, MF Gold Company cannot supply all that gold.

Transactions are always made in the following order: A→B→C→D.

However, if 100,000 tons of physical gold were to be released in a short period of about 3 months, the price of gold could be cut by at least half, or even 1/4 to 1/5.

Eventually, the price of gold plummeted to $322 per ounce after MF announced that it would supply gold produced from January 22nd.

This is also the result of calming down by saying that almost all countries in the world are considering reducing production to around 500 tons per day.

“Report it.”

“First of all, MF Gold Company’s 100,000 tons of gold is worth 1.1358 trillion dollars (1,249 trillion won) at yesterday’s price.”

“Hmm. It’s fallen quite a bit. When I first brought it in, it was over 4.5 trillion dollars (5,000 trillion won).”

“This was also blocked to this extent by promising a reduction. It could have fallen to 1/10. Of course, if there is a further reduction in the future, it could rise to around 500 to 600 dollars. We do not consume gold. We can either sell it slowly, or just produce it and store it without selling it.”

“Well, that’s fine. What’s next?”

“We also earned $6.5337 trillion (KRW 7,187 trillion) from gift trading.”

“Wow. You’ve recovered all your losses from the gold price here.”

“There is still room for improvement. We can theoretically earn an additional $5.112 trillion (KRW 5,512 trillion) through insurance plans placed with financial institutions such as insurance companies. However, this is likely to be reduced to about $3 trillion in reality.”

“Why is that?”

“Because most insurance companies will go bankrupt. Even if they collect based on the contract, they will inevitably suffer losses. The exact calculation will be made later. There are no insurance companies that are clearly scheduled to go bankrupt yet. Insurance companies have complicated mutual payment guarantees, etc., so it will probably take some time to get results.”

“Okay. So what is my total assets? As of now.”

“Yes. MF Invest invested $6.5337 trillion in futures on top of the existing $19 billion. $3 trillion in insurance money. A total of $9.5527 trillion. The loans borrowed from pharmaceuticals and energy have been restored. The interest rate has been paid appropriately.

Anyway, MF Pharmaceuticals worth 1.89 trillion dollars, MF Energy worth 360.5 billion dollars, 85% stake, 306.4 billion dollars. MF Gold worth 1.1358 trillion dollars. Adding all of this up, it comes to 12.8849 trillion dollars (14,173 trillion won).”

“Wow~! I’m quite rich.”

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