Blackstone Code-Chapter 370: Playing the Contrarian

If a commodity’s price remains stable in the international market, it becomes difficult for short-term investors to make huge profits. However, for long-term investors, this stability can actually be beneficial.

As data collection spans longer periods, it’s possible to analyze overall future price trends. Using hedging strategies to avoid common risks, accepting moderate returns becomes feasible.

Some funds even consider such stable markets ideal—everything predictable, risks controlled.

But capitalists’ thirst for massive profits is never satisfied.

Stable prices may please some, but others refuse to accept them.

Lynch held up a newspaper. “This report from the Southern Machinery Institute came out two days ago. They’ve broken a technical barrier that will increase copper mining output by at least 25%.”

He handed the paper around; everyone quickly saw the news, published in the Federal Daily—a semi-official paper known for its reliability, rarely printing fake news unless heavily bribed.

“Not only has this caused a big stir within the Federation, but other countries have also sent delegations hoping to adopt this technology. As it spreads, copper ore prices will continue to fall.”

People often talk about the market, a confusing term for many outsiders. Simply put, it’s about supply and demand.

If more people buy a product while fewer sell it, prices rise through bidding.

If fewer buy and more sell, prices fall.

No matter the product, it ultimately boils down to supply, demand, and bidding. What confuses people are the many external factors added artificially—politics, military, geography, climate, time—that create fog around the market, but the core remains simple.

This newspaper made it clear: if global copper ore output rises significantly without a matching increase in demand, prices will drop. Finished copper prices will also fall due to cheaper raw materials.

Several businessmen realized this immediately. Some apologized and went to phone rooms to contact their brokers to check both copper ore and refined copper prices—two very different things.

With people coming and going, futures accounts on the digital market began heavy trading—all shorting copper ore.

Short signals from the Baylor Federation drew intense attention. Once rumors spread, more capitalists started shorting copper ore.

So many were doing it, it had to be right. Capital’s influence on futures pricing is a crucial factor.

Regardless of underlying relations, it still comes down to supply and demand—buying and selling.

The surge of short positions in the Federation soon affected global futures. 𝐟𝚛𝕖𝚎𝕨𝗲𝐛𝚗𝐨𝐯𝐞𝕝.𝐜𝗼𝗺

World futures exchanges update data every fifteen minutes, a delay caused by current communication limits. It’s better than before—before phones and radios, updates could take half a day to several days. Ɽ𝘈₦ŎBƐṡ

Back then, the international futures market was a wild game. Speed was everything; traders who reached ports before price updates could earn big on early information.

Some even spread false info pretending to be exchange messengers—a bizarre but entertaining era.

Now, such tricks no longer work; traders can’t outrun phone lines or radios.

The Baylor Federation’s short selling pressured copper ore prices worldwide. Within an hour of Lynch’s salon, copper ore prices fell slightly again.

If Southern Machinery’s technology proves true, a 25% increase in output could cause a drastic price collapse—but for now, the impact remains limited due to the slow spread of news.

Capital always chases profit. To avoid risks, some hedge funds began reassessing copper ore’s future and building new hedge positions.

While many bet on falling copper ore prices, an inactive account suddenly started going long with large stakes.

Most didn’t care much; for many, futures, stocks, or investments were just gambling.

There are always speculators betting on the highest returns—like those buying heavily when the Federation’s industrial index crashes. Some lose everything; others win the world.

Nobody paid attention to the account—but it belonged to Lynch. He was active not only in futures but also in international forex markets.

This time, his move was different: he started shorting the Gael (Fla).

With the Amellia region stabilizing and Gephra’s wartime performance, they were expanding Gael’s international influence. Since the war’s end, Gael’s value rose steadily, becoming one of the world’s key currencies.

Many believed Gael might become a primary settlement currency in future international trade. Buying now before its value climbs seemed a sure profit.

But Lynch thought differently—and many shared his view.

After finishing an international futures salon, Lynch rushed to another on forex trading. Upon entering, he saw Mr. Herbert seated nearby.

They nodded without much talk. Lynch sat down, and a waiter brought him a drink.

An economist was speaking, treating the room full of fools as his classroom, explaining international monetary relations and geopolitics. Unfortunately, few paid much attention.

People cared less about complex theories and more about where to place their bets for profit.

They didn’t dismiss the economist, just kept him around in case they needed insights later.

As the economist grew dry-throated yet content, Lynch had the waiter bring him another drink.

Surprised but polite, the scholar accepted the gesture.

Just as he was about to take a sip and continue, Lynch stood up.

Lynch walked over to the scholar. “You look a bit tired, sir. Let me share my thoughts next.” Without waiting for a response, he glanced at the scholar.

That single glance was enough. The scholar swallowed his words, hesitated, then sat back down. He’d spoken long enough.

“Does anyone here not know me?” Lynch asked casually, almost joking.

Laughter filled the room, some even shouted, “Is there anyone who doesn’t know Mr. Lynch?”

The sentiment was clear: knowing Lynch was a given; not knowing him would be strange.

Lynch nodded slightly. Once the laughter died down, his first words caused the crowd to frown.

“I just heard the expert beside me, and while much of what he said fits the current situation, I believe he’s wrong about one thing…” A slight smile played on his lips. “The Gael is facing a major test. If it fails, Gephra’s plan to make it the world’s international settlement currency will be blocked.”

This went against the mainstream. Gephra had just emerged from the world war, politically and militarily establishing itself as the world’s core. Its firm control over the Amellia region had boosted hopes for its future.

No one believed Gael would be stopped—it was destined to rise. Yet Lynch offered a completely different view.