Aarons was not at all anxious about the construction of an iron factory in Blackwater City. He was currently chatting with Hackwep in the newly opened Red Letter Bank of the Pabra Group in Blackwater City.
"Heishui City may open an iron factory."
"Ah!?" Hackwep was a little surprised and asked, "A branch of Phoenix Iron Works?"
"Hahaha! It would be great if it was. It's just a group of people working together."
Hakwep rolled his eyes at the other party and shook his head: "...There is a right way to die.".
"Oh? What do you say?"
"Have you ever wondered why Phoenix Iron Works never stopped selling iron ingots during the construction of the railway?"
Aarons grabbed a jelly bean and threw it into his mouth, licked it a few times and shook his head: "No."
"I think it was the Phoenix King's instruction. He deliberately made it easy for everyone to discover that the Phoenix Iron Works has so much iron that it can't be used up."
"What is the use?"
Hackwep looked out the wooden window: "I didn't know before, but I believe that because of our iron trafficking behavior, iron has become a weapon, a weapon that kills people without blood."
Aarons himself was thinking about it. He chewed up the jelly beans and then said, "You mean to cut off the confession?"
It won’t be long now, and once everyone gets used to being able to buy iron ingots at any time, there will be a risk. Once there are signs of insufficient supply, it will immediately cause panic, causing further shortages in the market, and entering a period of price increases and shortages. In the positive feedback stage, the more it goes up, the less it becomes, and the more it goes, the more it goes up, until all practitioners can’t stand it anymore.
Hackwep shook his head: "If Blackwater City wants to build an iron smelting workshop, cutting off the supply will not cause any real harm. At most, there will be short-term price fluctuations, which will stabilize soon. The real focus is on the iron price itself, Blackwater City The larger the scale of the iron smelting workshop, the more dangerous it will put itself."
Aarons thought about this train of thought, his body trembling with fat, and he was frightened.
At this stage, in order to make more money, everyone does not take the initiative to lower the market price, but after the Heishui City Iron Smelting Workshop appears as a competitor, the situation will become different.
Can using slaves lower the price of iron to a point where it can compete with the Phoenix Iron Works?
I'm afraid this gap is not even a tiny bit.
Red Rock City is not the kind of wilderness without traditional blacksmiths. In order to do the business of buying cloth and selling iron, Aarons also knows something about it.
One... no, one blacksmith specializes in smelting iron. Calculating five people, they can barely reach 40 to 60 kilograms.
The efficiency is not low just by looking at the numbers. It seems that you can make a profit by selling one kilogram of iron for one silver coin. After all, there is no such thing as a minimum wage outside.
In fact, this is not the case, because this kind of iron cannot be called an iron ingot at all, and there is no way to sell it on the market. Other blacksmiths have no idea what else is left in it besides iron, and it is completely useless, so they can only Home use.
To make an iron ingot that can be sold, it needs to be reheated several times to make the iron texture more uniform and softer.
This process consumes a lot of fuel and more labor, and the pig iron also weighs less.
The final total is that the cost of one kilogram of iron is two ancient silver coins.
Of course, this is the cost calculated by the free folk blacksmiths. Their main income is not smelting iron, but making iron tools. It is this factor that makes them willing to sell their iron ingots for 3 ancient silver coins per kilogram.
To build a specialized iron smelting workshop in Blackwater City, a large number of slaves must be used, and purchasing fuel and iron ore in bulk can also reduce costs much.
But no matter how it drops, even if it drops below one silver coin, it is impossible to compare with Phoenix Iron Works.
There are only about 400 workers in the ironmaking department of Phoenix Iron Works, which is equivalent to a per capita daily production of 0.3 tons of iron. The efficiency is dozens of times higher. This is the root of their low iron prices.
Aarons still had something good to say for Blackwater City: "After all, Blackwater City has a favorable location. No matter how hard it is to compete with us, it can still sell iron in places that we don't pay attention to."
"The real killer is the exchange rate." Hackwepp gave more tips.
Seeing Aarons's unclear expression, Hackwep, who had changed his job to a banker, explained: "We know that one yuan of Phoenix coins is equivalent to one kilogram of iron. The current exchange rate is 2.5 yuan for one ancient silver coin. If the Phoenix Bank changes The listing price is 3 yuan for an ancient silver coin, what will happen?”
Aarons broke into a cold sweat after hearing this.
The current iron ingots from Phoenix Iron Factory are equivalent to 0.4 ancient silver coins per kilogram, and another 20% reduction means that red stone merchants can transport iron to farther places and ensure a sufficient profit ratio.
"Can this thing be moved at will?"
"Yes, but no." Hackwep didn't know how to explain it for a while. It took him a long time to figure it out.
"Will it work or not?"
Hackwep decided to give an example: "For example, the ancient red stone silver coin is only mainly circulated in Red Stone City. It is kept in small quantities in other areas but is not used as the main circulating currency. This means that the exchange rate of the Phoenix coin and the ancient silver coin is adjusted, and it is only for Red Stone City. The impact is relatively large, and such an adjustment is just a matter of a word from the Phoenix King.
But the Fartel gold and silver coin system is different. It is the current currency of the Orc Kingdom of Fartel and is still being issued. Adjusting its exchange rate will have a greater impact and will be more cautious. "
"Then should we keep more gold and silver coins in our hands?"
The other party shook his head: "Not necessarily. I just talked about the increase in the exchange rate of ancient silver coins. What if it becomes 2 yuan for 1 ancient silver coin?"
"ah?!"
"No matter how it changes, it all depends on the needs of the Phoenix King. When he needs to expand the external influence of the products in his territory, the value of the currency will probably be smaller. And this influence must be converted into the popularity of the Phoenix Coin itself. , you need to make the currency value appear slightly larger.”
Aarons was confused by the big banker. After a while of silence, he asked again: "Did you find another way to make money?"
Hackwep worked well with Aarons before the bank opened. He knew that the other party was relatively reliable and did not shy away from saying: "The gold exchange rate is poor."
"what is that?"
"I can only tell you that gold's status is extraordinary. It is the only thing close to iron in the Phoenix Coin system."
"how do you know?"
"The price, the price of gold and gold coins is obviously inconsistent. Taking out the gold in gold coins and selling it to earn at least half is a typical method to encourage businessmen to exchange gold instead of currency." Hackwep took out a board, "This It’s the Phoenix Bank’s listed price sent urgently by the Pabra Group. Gold is falling, and it’s the only one that’s falling among all the listed items.”
Aarons said bluntly: "I don't understand."
"It means that Phoenix City has accumulated a large amount of gold without knowing it!" Hackwep pointed to the gold column, "It will stop at a certain point, and when it stops, there will inevitably be a large-scale exchange rate Adjustment."
"... Just tell me what I want to exchange for now, and I'll give you 30% of it when it's done."
"Phoenix Coin, if the Phoenix King doesn't fall, it will sooner or later replace all currencies on the market. I mean everything, including gold, silver, copper, and iron money." With the ability of the four-ring mage, the concept is a bit confusing. No need to be long-winded, just go straight to it. Specific to the project, "Don't keep the money you get in exchange. Buy iron as much as possible. No matter how far it is, as long as you don't lose money, you can refinance the gold and silver coins you sell to exchange for money. Also, Red Rock City needs more people to grow food. Although the food price in the Phoenix King territory is stabilized by sugar water, I believe that in order to protect the basic income of farmers, farmers will have a subsidy policy after the exchange rate changes."
Aarons was silenced again. He held his plump chin and thought for a while before asking, "Are you telling me this because you don't have any money?"
Harkwip gave him a wry smile.
It's really not good to know too much. There are obviously many opportunities to make money in front of you, but it requires the use of very huge capital, manpower, and relationship resources. Even Pabra Group cannot eat it alone. It requires the entire Red Rock City. let's move.
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