Chapter 567: Time to Close the Net!

September 3rd. The gold market on Hong Kong Island was just as bustling as it had been the day before.

As soon as each gold shop opened its doors, crowds of people eager to buy gold gathered outside.

The reason these people were so eager to buy gold wasn’t entirely because Li Yi had led a sweep of Hong Kong Island’s gold shops.

More importantly, people had noticed one thing: since early August, the price of gold had risen by about 70%.

In other words, if you had invested 100 Hong Kong dollars in gold at the beginning of last month, you would now have a profit of 70 dollars—a return on investment that was practically more tempting than robbing a bank.

Furthermore, investing in gold carries lower risk. Unlike the stock market, where shares can become worthless if you get stuck holding them,

But with gold, what you buy is tangible gold; even if its price drops temporarily, it might very well rebound in the future.

This aligns with the mindset of Chinese housewives who believe they can bring down Wall Street in thirty years: as long as gold is available at a low price, we’ll keep buying.

So, even though major gold shops have successively raised their prices by 10% to 15%, they still can’t dampen investors’ enthusiasm.

There are still many people waving their cash and snapping up gold in large quantities.

Of course, the gold merchants and banks on Hong Kong Island are more than happy to see this situation play out.

After all, compared to the price of HK$110 per gram on Hong Kong Island, the international price of gold is only US$500 per ounce, which works out to just HK$87 per gram.

The soaring gold prices have made these gold shops and banks on Hong Kong Island rake in huge profits. While they frantically dump high-priced gold onto the Hong Kong market, they are simultaneously trying to source more low-priced gold from outside.

For them, a 30% profit margin on a single transaction is practically a windfall—only a fool would pass it up.

Some banks have even tapped into their own gold reserves—they had no choice, given just how exorbitant gold prices on Hong Kong Island have become.

As long as international gold prices didn’t skyrocket and they could ensure a steady supply of gold from abroad, they wouldn’t bear any risk.

However, just as all residents and financial institutions on Hong Kong Island were reveling in the sky-high gold prices, the Bear Alliance in the North presented the people of the world with a “gift”—the “Western” military exercises had begun.

The “Western” military exercises, now commonly known as the “81 Exercises,” set numerous records. They were the largest military exercises in human history and the largest-scale military deployment in Europe during the Cold War era.

These exercises can only be described as unprecedented; they were even hailed as “the Bear Alliance’s final blow to the West before its collapse.”

In terms of scale, the exercise mobilized over 100,000 troops, with the Army, Navy, Air Force, and Strategic Rocket Forces conducting joint operations. Targeting Western nations led by the United States in Eastern Europe as a hypothetical enemy, the exercise simulated a War Bear Alliance military campaign to breach West Germany and seize control of Western Europe.

On September 4, the Soviet forces were fully deployed. The mechanized infantry regiments and tank units of the Army alone were equipped with over 4,000 tanks and armored vehicles, with all three generations of main battle tanks—the T-64, T-72, and T-80—making an appearance, and the BTR-80 armored personnel carrier also made its debut.

To achieve a deterrent effect against the “enemy,” prior to the start of the exercises, the Soviet government extended invitations to all foreign diplomatic missions within its borders, inviting ambassadors to bring observers and journalists to observe the maneuvers.

With the exception of missile units, which were kept under wraps, all other weapons and equipment were open to photography.

So, when the exercises began, as the journalists’ cameras swept across the armored formations stretching for kilometers, the Soviet Army’s “steel torrent” sent a chill down the spines of observers from various nations.

The exercises lasted eight days, and each day’s developments made headlines in the majority of countries around the world the following day.

In just eight days, the Bear Alliance silenced the entire world with its formidable military might.

Whether they were “enemies” of the Bear Alliance or neutral nations, upon seeing the endless rows of tanks, armored vehicles, and self-propelled artillery before them, everyone couldn’t help but break out in a cold sweat, holding their breath in fear.

Especially the “Eagle” and its European minions and lackeys—they looked so insignificant in the face of such a torrent of steel. The Bear Alliance used this high-profile “greeting” to make them lose sleep and appetite.

Faced with the Bear Alliance’s blatant display of military might, people all over the world could feel the scent of war in the air.

Amidst the anxiety, those with foresight could not help but begin preparing for a potential war.

Consequently, some quietly converted their cash or savings into hard currency like gold, while others built shelters in their backyards or in the woods, stockpiling large quantities of food inside.

It could be said that the entire world was intimidated by the Bear Alliance’s might.

Consequently, even before the exercises had concluded, global gold prices began to skyrocket.

On September 4, the day the exercises began, the international gold price was only $509 per ounce, but by September 5, it had risen to $520.

On September 6, it reached $535…

By September 9, the figure had soared to $552 per ounce.

By September 11, when the exercise concluded, the international gold price had reached $575 per ounce.

In other words, in just eight days, the international gold price soared by $66 per ounce—more than doubling compared to a month earlier—and the world was stunned by the skyrocketing gold prices.

But Li Yi was not among them!

He knew that although the current international gold price was already high, it had not yet reached this year’s peak.

By the end of October, the international gold price would hit a high of $599, coming within a hair’s breadth of breaking the $600 mark.

But after that, it would plummet all the way down to $270 per ounce.

For Li Yi, however, this price level was perfect for executing his plan to use others to achieve his goals, as it would prevent the Li family and the British-backed conglomerate behind them from sourcing gold at lower prices elsewhere.

After all, with global gold prices having soared to this level, no matter where they went or who they bought from, the price would be higher than the international rate—not lower.

Once the Li family and the British-funded group could no longer secure such large quantities of gold, their misfortune would begin.

So, it was time to close the net!

Without hesitation, Li Yi immediately went to the Li family estate and held a private meeting with Li Futao that lasted several hours.

Early on the morning of September 12, residents of Hong Kong Island woke up to a shocking piece of news: the Lai family’s gold shops had run completely out of gold.

The news was reported by Hong Kong’s renowned *South China Morning Post*, which simply stated that the Lai family’s 36 gold shops across Hong Kong had no gold left to sell.

If that were all, it wouldn’t be so alarming, but the truly frightening part was that the report also provided a detailed analysis of future gold prices.

According to the author’s analysis, current gold prices had far exceeded normal levels and were approaching historic highs; therefore, investors were advised to sell their gold as soon as possible to secure their profits.

Since the analysis seemed reasonable, those who saw the report were somewhat unsettled.

In addition to the South China Morning Post, various local tabloids also covered the story; however, compared to the more credible South China Morning Post, these tabloids were far more explicit in their reporting.

They directly analyzed the potential crisis looming over Lai Family Gold Shop, arguing that the company had raised hundreds of millions of Hong Kong dollars from investors through its “24K Gold Accumulation Plan” when prices were low. Now that gold prices are at such a high level, if investors were to sell off or withdraw their gold on a large scale, Lai Family could face immense pressure.

After all, investors purchased their gold at low prices, but now they would have to sell at high prices—and Lai Family would be responsible for covering the resulting price difference.

According to these tabloids’ estimates, Li’s previously raised at least HK$500 million, and now that sum would require at least HK$1 billion in payouts.

As things stand, it is truly difficult for the Lai family to come up with that much money, and there is a high likelihood of default.

When dozens of gossip tabloids simultaneously reported this news, ordinary people on Hong Kong Island panicked and rushed to Lai’s jewelry stores…

…….