Manufacturing Empire in the Valley

Chapter 1196 Proof of Legal Source of Gold
Niu Xiaoqiang nodded slightly: "I really don't know much about the relevant situation, please ask Miss Barbara to continue."

Barbara agreed, and then said: "I just said that banks can use real money as collateral to get more financial support from the Federal Reserve. In fact, this method is also feasible for individuals, but there is no way for individuals to do it directly with the Federal Reserve. Buying and selling needs to be done through a bank as an intermediary, and Citibank is undoubtedly a very suitable intermediary. We have unimaginable energy for ordinary people, Mr. Niu should not doubt this, right?"

Niu Xiaoqiang nodded again: "Naturally, the strength of Citibank is undoubtedly strong. If I use real money as collateral through your bank, how much money can I get?"

Barbara continued: "This kind of mortgage is not equal to buying and selling. Of course, it is almost the same as buying and selling. Specifically, you can mortgage your gold and silver to Citibank first, and Citibank will give you a price higher than the market price." Five times the loan amount, for example, if this batch of gold is worth 1000 million U.S. dollars, you will be able to mortgage a loan of 5000 million U.S. dollars. I just said that this is similar to a direct sale, because this kind of mortgage loan needs to be signed. long years."

Niu Xiaoqiang asked: "How long is the term?"

Barbara gave a slap in the face: "The minimum should not be less than 50 years."

50 years is indeed a long time, almost equal to a person's lifetime.Niu Xiaoqiang asked curiously, "What about 50 years later?"

"After 50 years, you can repay the loan according to the original amount, and then you can get the gold back."

Niu Xiaoqiang snorted: "In other words, the bank bears the risk of currency depreciation within 50 years for me, right?"

Barbara nodded: "It's understandable, because with the continuous development of the economy, currency issuers will issue more currency, and the 50 million US dollars 5000 years ago will definitely be more valuable than the 50 million US dollars 5000 years later. And it’s worth many times that.”

Niu Xiaoqiang couldn't help laughing and said: "If the bank goes bankrupt within 50 years, wouldn't this batch of gold be recovered?"

Barbara shrugged: "There is no way to do this. If you want to get more benefits, you have to take more risks. Mr. Niu, I wonder if you have made up your mind?"

Niu Xiaoqiang is not the leader of the country, nor does he run a bank. Gold and silver are not that important to him. If he can obtain greater practical benefits through the bank, it will be in his immediate interest.

I saw him nodding his head: "I accept your suggestion. I can sign a mortgage agreement with Citibank. I don't know what procedures to go through?"

Barbara showed a happy smile: "Before signing the agreement, you must go through an operation so that the real money in your hand has a legal source certificate. According to the general rules, you need to find an agent in relatively backward Africa or America." , ask the other party to issue relevant certificates, this is mainly for the sake of the situation, no matter whether the certificate is true or not, the bank will not send someone to verify it, if Mr. Niu has someone he can trust, he can ask the other party to help issue a certificate of legal origin. Bank, it is not convenient to come forward at this time, because it will put us directly in the front and lose room for maneuver. If we hide behind, we can intervene when Mr. Niu is in trouble. The bank's usual method, please don't mind Mr. Niu."

What Barbara means is that the bank needs to be superficial, and ordinary people cannot threaten the bank, but competitors are different.

If the bank acts recklessly and its competitors suddenly attack, the bank will be in a disadvantageous position in terms of public opinion.Even if you have a background, the relevant departments have to put on a show under the pressure of public opinion.

Although it may not be able to bring you down, it is still possible to ruin your reputation. At that time, it will affect the customer's perception of you, which in turn will affect the bank's business and cause certain losses to the bank.

If the customers who provide gold are in the front, the bank will have a lot more room to maneuver if something happens.Through their network of relationships, major events can be turned into small ones.

Every country wants gold to flow into its own hands, and so does the Federal Reserve.When problems arise, they will turn a blind eye and close one eye, and even help to calm things down.

In the final analysis, this is the safest way. The major banks have been established for so many years, and they are already very sophisticated.For some potential risks, he is very proficient in avoiding them.

Hearing this, Niu Xiaoqiang couldn't help but think of Smith. Smith was Niu Xiaoqiang's first big customer in his life. Without the heavy truck order that Smith signed that year, Niu Xiaoqiang might have to take a lot of detours if he wants to develop to the current scale.

Smith's family is mining, in addition to oil fields, has a certain influence in Zambia.Furthermore, the two have some friendship, so it would be a very appropriate choice for him to help issue a certificate of the legal source of the gold.

Niu Xiaoqiang nodded slightly when he thought of this: "I don't mind, I will arrange the candidate for the agent as soon as possible, and then I will talk to Miss Barbara."

Barbara smiled and nodded: "We can sign an agreement of intent first. As long as the agreement is signed, Mr. Niu can entrust this batch of gold and silver to us for custody, which can help you avoid risks."

Niu Xiaoqiang nodded happily: "Then let's sign the agreement of intent first. To be honest, it's really not safe to put that batch of gold and silver in my hands. It's safer to leave it to you for safekeeping."

It is really not safe to put this batch of real money in Niu Xiaoqiang's hands. If it is seized by the police, it is absolutely impossible for him to ask for it back.Only by establishing a relationship with Citibank first, can Niu Xiaoqiang avoid this risk through the other party.

The agreement of intent was very simple. After Barbara printed it out, both parties signed their respective names, and that was the end of the matter.With this agreement, there is quite a protective umbrella, and no one can easily snatch this batch of real money.

Barbara stretched out her hand with a smile: "I wish you a happy cooperation."

Niu Xiaoqiang shook hands with her, and then asked curiously: "Miss Barbara, I'm curious about a question, how many practical benefits can Citibank get through this type of transaction?"

If it was someone else, Barbara would probably decline with commercial secrets.But Niu Xiaoqiang was different. Niu Xiaoqiang had already formed an interest alliance with his brother and sister, so there was no need to hide such things from Niu Xiaoqiang.

Barbara smiled and replied: "Citibank has two ways to make profits. The first is to put this batch of gold into the futures market through financial leverage."

(End of this chapter)