Chapter 607: Stealing Someone Else’s Business!

After a brief silence, Li Jiuying suddenly asked, “Mr. Li, why do you want to sell gold to the Lin family? Could it be that this batch of gold comes from dubious sources?”

“Not at all. I guarantee it’s high-purity gold with a clear provenance and meeting all purity standards!”

Li Yi then added, “Besides, for a company like yours that deals in gold, even if the gold were of dubious origin, you could launder it once it’s in your hands, couldn’t you?”

“Since you have such gold in your possession, Mr. Li, could you sell some to the Li family? As you know, our shops are running low on stock!” Li Jiuying said.

“It’s too much for you to handle, but I could certainly set some aside for you!” Li Yi replied.

“I wonder how much you have in this shipment?”

“Ten tons!”

“Ten… tons?”

Both Li Jiuying and Li Futao, standing nearby, were stunned. The unit “ton” was usually used here to measure agricultural products or fish catches; applying it to gold was simply staggering!

However, both men were shrewd. Though surprised, they didn’t press for details or inquire about the origin of the gold.

“Mr. Li, I’d like two tons. Is that possible?” Li Jiuying said in a deep voice.

“If I were you, I’d ask for no more than five hundred kilograms to tide me over!” Li Yi said.

“Five hundred kilograms is really a bit too little…”

Li Jiuying quickly caught on and looked at Li Yi. “Mr. Li, are you suggesting the gold price is going to drop?”

“No, it’s going to crash!”

Describing the gold price after November as merely “falling” was clearly inadequate!

It had dropped by a third in less than a month, and in just under three months, it had plummeted to less than half of its peak value. Aside from the word “crash,” Li Yi really couldn’t think of a more fitting term to describe it.

“But… but how is that possible? Although the current rise in gold prices is slow, they’re still going up, and the overall market is stable. How could it possibly ‘crash’?” Li Jiuying frowned.

“I won’t go into the specifics with you. If you trust me, just stockpile a small amount for yourself, and sell the rest to the Lin family!” Li Yi said.

By now, whether it was Li Jiuying, Li Futiao, or Huang Lixing, they all understood Li Yi’s plan. If they could sell these ten tons of gold to the Lin family before the price plummeted, the Lin family would inevitably suffer massive losses when the crash hit.

“Mr. Li, I’m willing to cooperate with your plan, but the Lin family’s strength is well-known. They might not be able to handle all 10 tons of gold you have on hand!” Li Jiuying said.

“Haha, if the Lin family can’t handle it, there are always those foreigners. When the Lin family can’t hold on, they’ll inevitably ask those foreigners for help. To destroy your Li family, I don’t think those foreigners would mind lending money to the Lin family!” Li Yi said.

“That’s true!”

Li Jiuying continued, “But it’ll be hard for me to lure those bastards from the Lin family into the trap all by myself…”

Before he could finish, Li Yi cut him off, saying, “Relying on you alone definitely won’t work, and it’s easy to give yourself away. Old Li will have to step in for this!”

“Me?”

“Right. Find someone you trust to step forward and claim you’re facing financial difficulties and need to sell a batch of gold to tide you over.”

Li Yi then pointed at Li Jiuying and continued, “As for you, pretend you’ve heard rumors and go to make a purchase. If all goes as planned, the Lin family will show up too. When they do, your job is simply to drive up the price!”

Li Futao immediately laughed and said, “I get it. Brother Li Yi, what you’re saying is that this is like an auction: you’re the seller, my men are the auctioneers, Mr. Li is the plant, and the Lin family is the fat sheep we’re going to fleece. Is that the idea?”

“Heh, that’s a spot-on analogy!” Li Yi nodded.

“Mr. Li, when do we start the operation?” asked Li Jiuying.

“Let’s start preparing tomorrow!”

“Yes!”

At that moment, Li Yi spoke again: “If we handle this matter well, the Lin family will be severely weakened, if not completely destroyed. In the future, your Li family’s jewelry stores will remain the strongest in Hong Kong, and your comeback is just around the corner!”

“Thank you for your support, Mr. Li. I won’t dwell on my gratitude—just watch my performance from now on!” Li Jiuying said gratefully.

“They say a long journey tests a horse’s strength, and time reveals a person’s true character. I hope you’re someone who can stand the test!” Li Yi said.

“Understood!”

“Old Huang, send a car to take Mr. Lai home!”

He then looked at Li Jiuying again and said solemnly, “Go home and get some rest. Come dawn, the show begins!”

“Alright…”

After seeing Li Jiuying off, only Li Yi, Li Futiao, and Huang Lixing remained in the room.

With no outsiders present, Li Futiao couldn’t help but ask, “Brother Li Yi, will the gold price really crash?”

“It’s inevitable. If you think about the factors that influence gold prices, it’s clear that under the current conditions, gold can’t possibly maintain such a high price indefinitely!” Li Yi said.

Gold is just like most other commodities—its price fluctuations ultimately depend on supply and demand.

When the general public or central banks around the world buy large amounts of gold, prices rise—sometimes even skyrocket—and conversely, prices fall.

Whether purchased by individuals, central banks, or financial institutions, the purpose of buying gold boils down to two main reasons: pure consumption, or preserving wealth.

Especially during periods of high inflation, gold—with its wealth-preserving properties—has always been the most favored asset for safeguarding wealth.

That’s why, last year, when inflation in the U.S. hit double digits, the price of gold skyrocketed, reaching as high as $800 per ounce at one point.

However, following a series of interest rate hikes by the Federal Reserve this year, inflation has been significantly curbed. The returns generated by bonds and other fixed-income investments now exceed the inflation rate, highlighting the weakness of gold’s non-interest-bearing nature.

Consequently, fewer people are investing in gold, its appeal has suddenly faded, and a price correction is inevitable.

However, no one could have anticipated that following this decline, gold prices would enter a slump lasting as long as 20 years.

Li Futiao paused briefly, carefully analyzing Li Yi’s words.

Although he still didn’t quite understand why Li Yi was so certain that gold prices would crash, out of trust in Li Yi, he nodded and said, “If gold prices really do crash, this might be an opportunity for us!”

“Old Huang, are you thinking of shorting gold?”

“Yes, it’s a rare opportunity!” Li Futiao replied.

Li Yi nodded and said, “I agree to short gold, but I’d prefer not to do it locally on Hong Kong Island!”

“Why is that?” Li Futao asked, puzzled.

“Because I don’t want to smash the pot while I’m eating!”

“???”

Seeing the puzzled look on Li Futao’s face, Li Yi immediately explained, “The stock market is actually like a pool. The funds and assets invested by investors, listed companies, and financial institutions are the water in it, and all of us participants are scooping water from this pool to drink.”

“During a bull market, everyone is willing to pour money into the pool, so the water level rises, and everyone gets a share. Conversely, during a bear market, the water runs low, and no one gets anything!”

“But the water in the pool is limited after all. If we draw too much at once, the pool will be ruined.”

Li Futiao nodded and said, “I see. You’re worried we’ll crash the Hong Kong stock market!”

“Yeah. After the last stock market crash, the Hong Kong stock market can’t take much more turmoil. If we mess with it here this time, even if we don’t crash the market, we’ll deal a severe blow to it. Isn’t that like smashing the pot after you’ve finished eating?” Li Yi said.

“That makes sense. From what you’re saying, you want to take this overseas—is that right?”

“Exactly. I’m planning to head over to the U.S. and have a look around. It’s no good smashing our own pot, but smashing theirs doesn’t seem to weigh on my conscience!” Li Yi said with a laugh.

“Hahaha, then let’s go smash the Thief Eagle’s pot!” Li Fu said with a laugh.

Huang Lixing chimed in, “Count me in!”

“Alright…”

………