Alaska Gold Rush Diary

Chapter 173 Discussion on the Problem of Gold Hoarding

Chapter 174 Discussion on the Problem of Gold Hoarding

As everyone ate and chatted, the topic gradually shifted to the current situation of rising gold prices.

"In just over a month, the price of gold has risen by more than $100."

"Yes, who could have imagined that the price of gold would rise to over $2400 per ounce?"

"I really didn't expect this," James exclaimed. "Gold prices have been very stable over the years, and this is the first time I've experienced such a surge in gold prices."

"I think this is an opportunity for us gold prospectors. We might consider stockpiling some gold and waiting for the price to continue to rise," Zhou Xin said.

As gold prospectors, everyone here has an income that is closely related to gold.

The rise in gold prices is naturally a good thing for them.

Moreover, Zhou Xin has always believed that gold prices will only continue to rise in the next year or two.

It was precisely because of his optimism about gold prices that he decided to store half of his gold harvest.

However, the seasoned gold prospectors in front of him had different opinions.

“No, Mr. Zhou,” Blair shook his head, “perhaps this is not an opportunity, but a trap.”

"That's right," James, one of the most authoritative figures in the Gold Rush Guild, chimed in. "I've been dealing with gold for so many years, and it's not uncommon for gold prices to rise occasionally, but never as dramatically as this time."

He took a sip of lemonade and continued, "According to past patterns, after a period of sharp rise in gold prices, they often fall back to their original levels very quickly. This is why gold prices have remained relatively stable for so many years."

One gold prospector agreed, "That's right, it's actually a bit like stocks, except the price is much more stable."

"While the analogy isn't perfect, the principle is the same," James said. "If you hoard a lot of gold, and it crashes next year, you'll miss the chance to buy at the peak."

"That makes sense. That's why we gold prospectors don't hoard gold. We dig it up and sell it in the same season. That's the safest way."

The other gold prospectors also agreed with this view.

"Mr. Zhou, you're not really thinking about hoarding gold, are you?" James asked.

Zhou Xin nodded, but concealed the amount of gold he had hoarded.

"I've already stockpiled some gold. I have a feeling that the price of gold will continue to rise in the next few years, so I think you should really consider stockpiling some as well."

To everyone's surprise, they all shook their heads and offered him advice.

"Mr. Zhou, I admit you are indeed very lucky, better than any gold prospector in Anchorage, but you still lack some experience. Even the most experienced gold prospectors would not choose to hoard the gold they have harvested."

"That's right," Blair nodded repeatedly. "We must sell all the gold we've harvested while the price is still high. Only converting it into US dollars is the safest option."

“Shin, what they said makes a lot of sense,” James added. “We’ve been dealing with gold for half our lives, and we know the upper limit of its value. It can’t keep rising like a good stock.”

With so many experienced gold prospectors offering such advice, an ordinary person would surely have wavered or even agreed with them.

But Zhou Xin did not change his opinion at all; he was convinced that the price of gold would rise sharply.

He wasn't sure how high it would go, but he felt it would at least be no less than $3000 per ounce.

In this scenario, every extra ounce of gold you accumulate now means you could earn an extra six or seven hundred dollars in the future.

He originally intended to advise the people present, but unexpectedly he was taught a lesson instead.

He stopped insisting, after all, everyone has their own ideas and judgments.

He then smiled and said, "Thank you all for reminding me. I will carefully consider this matter."

"What are you still hesitating about?" Blair said anxiously, as if he could already see Zhou Xin losing money. "Listen to us, when this gold rush season ends, sell all the gold you've harvested, and don't keep a single coin on you."

Zhou Xin knew she meant well, so he could only nod and say, "Okay."

Of course, none of the seasoned gold prospectors present, including Zhou Xin, could have imagined that the price of gold would rise to such outrageous levels in the future.

After lunch, the visitors took their leave. In most of their minds, the legendary newcomer image of Zhou Xin had been completely shattered. Now, in their eyes, Zhou Xin was just a lucky rookie.

Only James and Audrey still maintained their respect for him, especially Audrey, who actually had more confidence in Zhou Xin than before she came.

"Mr. Zhou, you are an excellent gold prospector. I hope we will have the opportunity to cooperate in the future."

As Audrey spoke, she smiled and extended her hand to Zhou Xin.

Zhou Xin shook hands with her in a friendly manner and smiled, "There will definitely be opportunities. Maybe one day I will consider renting a piece of land from Mr. Stanton to build a mine."

He had his mind on the 150 million acres of land belonging to the beautiful woman's grandfather, and given Audrey's attitude, he thought she might give him a discount later.

Audrey seemed pleased with his answer: "Then I look forward to that day."

She truly didn't care about land rent or anything like that, as long as it helped her grandfather fulfill his wish.

After everyone left, Edward said to Zhou Xin, "Are you really going to listen to them and sell all the gold you've hoarded?"

""

Only a few official members knew that Zhou Xin had hoarded half of the gold; Old Kent and Bowman were unaware of it.

Zhou Xin shook his head: "Let's continue with our previous strategy. I trust my judgment."

Edward nodded, said nothing more, and went back to work at the gold mine.

He trusted Zhou Xin completely. Even though the gold prospectors' advice had shaken him, he ultimately chose to believe Zhou Xin.

After all, Zhou Xin always managed to bring unexpected gains to their gold-mining team with his wisdom and courage.

Like Edward, Alo and Zhang Jianing also have absolute trust in Zhou Xin.

As the backbone of the gold mining team, they all agreed that as long as they followed Zhou Xin and did things according to his ideas, they would definitely get good results in the end.

When it came to gold mining, they were willing to blindly follow Zhou Xin's lead.

"Do you think," Zhang Jianing said, linking her arm with Zhou Xin's, a strange expression on her face, "is there any possibility that what Edward said at the dinner table might come true?"

Zhou Xin's heart skipped a beat, but she chose to play dumb: "What did he say? I don't think I remember."

Zhang Jianing pouted and said reproachfully, "It was what he said about Miss Audrey possibly falling in love with you!"

"You're overthinking it. She's a super-landlord with 150 million acres of land. Why would she be interested in me?"

Zhang Jianing persisted: "What if she takes a liking to you?"

Zhou Xin feigned a thoughtful expression: "Then I'll have to think about it carefully—"

Seeing Zhang Jianing's face darken, he picked her up and laughed loudly, "Don't worry, I have no interest in becoming a landlord."