We are all reborn, who wants to be the richest man?

"Are you saying that they intend to sell some gold in exchange for foreign exchange?"

After talking about the Zhonghua Bookstore, Welch brought Luo Nianzhong another unexpected yet expected news.

I remember there was such a saying on the Internet in the past, that in the 1990s, the rabbit transported 600 tons of gold to the United States for safekeeping.

This statement seemed nonsense to Luo Nianzhong, at least he had not heard any news yet.

However, it is true that gold is shipped to the United States, because most commodities are now priced in US dollars, and the United States needs other countries to use their own hard currencies as a guarantee for trade.

To put it bluntly, this is the collateral, and you have to prove to me that you are capable of conducting various transactions using US dollars.

You said you have it at home, so keep it in the vault.

I'm sorry, the United States won't believe it. I will only believe what you say if you keep it with me.

It's not just rabbits, it's the same in all countries around the world, which is why a lot of gold from various countries is stored in the United States.

"Nowadays, there is a period of rapid development and large-scale imports. Everything requires foreign exchange, so it is not surprising that they are selling a batch of gold."

Luo Nianzhong agreed with Welch's words, so the news was also expected.

Because of the Far East system, the economic development of Rabbit is much better than that of the same period. However, the foreign exchange funds needed for the introduction of various equipment into the country cannot be solved by adding a Far East system. If we want to have sufficient foreign exchange, the whole nation must work together for common development.

"The other party only revealed this matter to me. You still need to send someone to discuss the details."

"Yeah," Luo Nianzhong nodded, "I'll tell Robert to come to Beijing soon."

Gold can be said to be a very special existence in human society. Whether it is now or in ancient times, as long as there is any sign of trouble, everyone will buy gold as soon as possible.

Everyone says that gold is rare, but many people may not have an idea of ​​how rare it is.

Let's put it this way, as of 1993, the total amount of gold known to have been mined in the world was 15 tons.

If we spread it out on a football field, it would only be about 1.2 meters high. Isn't that incredible? Much less than you think?

Jewelry? If you really turn all this gold into money, just look at how much gold a big gold chain can produce.

As early as five or six years ago, when Far East Bank had just been established for two years, Luo Nianzhong ordered the family office and Far East Bank to hoard gold.

Judging from the current situation, the returns from gold are not as good as those from the stock market, and its manipulability is not high either.

In terms of stability, gold cannot be compared with U.S. bonds, but Luo Nianzhong still asked the family office and Far Eastern Bank to set aside part of their profits every year to purchase gold.

The Far East Group’s Bauhinia headquarters is located on the seabed of the east coast, where the Far East Financial vault is located.

Although it is not as big as the world's largest vault located underground on Liberty Street in Manhattan, New York, it is definitely enough.

After so many years, the Far East has purchased and hoarded more than one hundred tons of gold, and the hoarding rate is increasing year by year.

Fortunately, gold is not like oil, where production can be reduced or increased by holding a meeting today or organizing a talk tomorrow. Gold is relatively more market-oriented.

Most gold companies will only mine gold as long as it can make money, and then move on to another mine after mining one.

Everyone knows about the Bretton Woods system, right? Simply put, the currencies of various countries are pegged to the US dollar, and the US dollar is pegged to gold. Each dollar needs to be backed by corresponding gold, and other countries can take their banknotes to the United States to exchange for gold at any time.

Does it sound familiar? Think about it, isn't the Hong Kong dollar similar to the US dollar in this system? The difference is that Hong Kong dollars are exchanged for gold, while Hong Kong dollars are exchanged for US dollars.

So what is the reason for this collapse? It is because of the uncontrollability of gold.

There are only so many gold reserves in the world, but gold is a consumer product, and people in many Asian countries, in particular, like gold, which makes this system unworkable.

If you buy all the gold, what will I use to issue US dollars?

Therefore, it is impossible to peg the US dollar to gold, or to peg a currency with a large circulation to gold. This is not Luo Nianzhong's idea of ​​hoarding gold.

There are several main reasons why he asked people to hoard gold.

The first is to outperform inflation. Gold is not fighting against the inflation of the US dollar, but the inflation of any currency. This is also the reason why major banks hoard gold. Do they buy so much gold just because they like it?

Why do economic powers print money and issue bonds like crazy? How can others trust that you will not devalue your currency? Buying gold is one of the means.

Gold and the US dollar are negatively correlated. Simply put, when the US dollar rises, gold will fall, and when the US dollar falls, gold will rise. This hedges the risks to a certain extent.

Another is risk aversion. If you have one million, would you buy stocks to make you feel at ease or buy gold to make you feel at ease?

It has to be gold, because stocks may make you lose all your money, but gold will not.

But there is a condition here, and that is the time period.

If you extend the gold cycle to fifty years or even longer, gold has indeed outperformed inflation and played a role in resisting inflation and hedging.

But if we pick out a few cycles, we will find that there are cases where the price of gold has been falling for several years or even more than ten years.

Luo Nianzhong is not afraid of these. The Luo family's hoarding of gold must be a long-term and unchanged cycle. This will form a cycle of spending the funds deposited thirty years ago thirty years later, and the currency will not depreciate but appreciate and earn interest.

Luo Nianzhong knows better than anyone what the gold market will be like in 30 years. The price of gold will only become more valuable as time goes by.

The most important reason here is consumers' preference. Whether it is for inheritance reasons, family reasons, demand reasons, etc., at this time no one dares to say that I don't like gold.

Of course, this is not the most important thing. The most important thing is that Luo Nianzhong needs a benchmark.

The US dollar will collapse, this is what Luo Nianzhong has always believed, it is just a matter of time.

During the period when Luo Nianzhong came here, the United States had to pay a large amount of debt interest every year, and it also had to borrow money every year to pay the interest, which was a compound interest.

No matter what method the United States uses to solve the U.S. debt problem, it will lead to one result, that is, the credit of the U.S. dollar will drop sharply. At this time, gold will be the best investment.

If the US dollar really loses its global circulation attribute, except for those major countries that can rely on national credit to support the value of their currency, many countries will have only one way, which is to return to the gold standard.

At this time, whoever has more gold in his hands will undoubtedly have more weight in his voice.

Investing in gold is a slow process, and Luo Nianzhong is also planning for the future.