When gold fell below 180 USD per ounce, Lin BaoCheng began paying closer attention to its daily price. He didn't watch the market constantly, instead having Isabella monitor and report to him.
Thus, on the morning of April 7 (Los Angeles time), when gold dropped to 175 USD per ounce, Lin called Wade Thomas to arrange a visit to Goldman Sachs to discuss repayment of his maturing financing.
That afternoon, Lin went with Isabella and his lawyer to Goldman, where Thomas had prepared a meeting room.
Goldman's side also had lawyers and staff present, but Thomas was the one in charge.
Lin spoke: "Thomas, my financing at Goldman was 500 million USD, for six months, at 12% annual interest. That's 6% for half a year — 30 million USD. Correct?"
"That's right," Thomas nodded. "Allen, even though you've used the funds for less than six months, if you repay now, the interest is still calculated as the full 30 million."
"I understand," Lin replied. Longer financing terms had lower rates, but the time was fixed. Otherwise, if he chose a one‑year term but repaid after one month, paying only one month's interest, Goldman would lose. No bank would allow that.
"Thomas, I plan to repay the 30 million interest, then refinance again to continue futures investment."
"So you don't intend to settle?" Thomas asked, surprised. He hadn't expected Lin to continue futures trading — likely still in gold.
"Of course not. Settlement means taxes. Since I'll reinvest, why withdraw funds?" Lin said. He wasn't foolish enough to pay unnecessary U.S. taxes.
"How much financing this time, and for how long?" Thomas asked. He wouldn't discourage Lin — Goldman profited only if Lin invested. Their good relationship was built on that.
"After repaying 30 million, I'll have 170 million left. With five‑times leverage, that's 850 million. But this time I want 1 billion. Any problem?"
At 1 billion, a 17% loss would wipe out Lin's principal. But he believed that margin was sufficient. If gold dropped that far, he could add margin — even selling assets like Asia Television to avoid liquidation.
Still, adding funds was one thing; using 10‑times leverage was another. Lin couldn't guarantee gold wouldn't fall another 10–15%. Safety came first.
"1 billion is fine. Financing term?" Thomas agreed readily. Six‑times leverage wasn't excessive; he could approve it himself.
"One year," Lin said, raising a finger. "But I want Goldman to lower the interest."
"Allen, 10% is already the lowest," Thomas replied.
At that point Isabella spoke: "Mr. Thomas, one year at 10% is standard. But our boss has worked with Goldman before. This is 1 billion USD — you'll earn 100 million in interest. A discount is reasonable. Other institutions would offer it."
"Thomas, if Goldman won't lower the rate, I'll have to go elsewhere," Lin added. He wasn't threatening, just stating fact. A tiny reduction — even one‑tenth of a percent — meant a million USD saved.
"I'll apply to the CEO immediately, to secure a lower rate," Thomas said. He knew Goldman couldn't risk losing such a deal.
Lin smiled: "I'll await your good news."
"Allen, wait here. I'll be back shortly," Thomas said, leaving quickly to avoid another bank stealing the deal.
Within half an hour, he returned.
Negotiations followed, handled by Isabella. Lin's bottom line was 9.5%. Isabella secured 9.2%. That meant on 1 billion USD, Lin would pay Goldman 92 million in annual interest.
Goldman's own bottom line was 9% — so 9.2% was acceptable.
The contract was signed after lawyers carefully reviewed every clause. First, Lin repaid the 30 million interest from the previous loan, closing that contract. Then a new one was drafted with updated figures.
After confirmation, Lin and Thomas signed.
"Pleasure doing business!" "Pleasure, Allen!"
They shook hands.
Soon after, Goldman transferred 1 billion USD into the designated account. The contract took effect.
Though the funds arrived, Lin didn't act immediately. He wanted to see if gold would fall further. If it reached 170 USD per ounce, he would buy without hesitation — and then hold.
This time, Lin had no intention of shorting again. He believed the long‑term trend was upward. Another correction near 200 USD was unlikely.