07: Gringotts Wizarding Bank

"I would like to request the currency exchange service for this year's first-year students."

"Oh, is it that time again?" The goblin behind the counter hoisted himself up to get a better look at Ivan and Hermione, who stood next to Professor McGonagall.

He scrutinized them and asked, "Excuse me, who needs to exchange Muggle currency?"

"It's Miss Granger..."

"Sorry, Professor," Ivan interjected before she could continue. "I'm curious, how much can this money be exchanged for?"

"..."

Professor McGonagall glanced at Ivan, slightly confused by his question, but after catching a subtle blink from him, she understood. "Miss Granger and Mr. Ambrosius both require the exchange service," she clarified to the goblin.

Although Hogwarts offers scholarships for financially disadvantaged students like Ivan, these funds typically only cover the purchase of basic materials and school supplies.

Therefore, Ivan chose to forego the scholarship in favor of applying for the Muggle currency exchange service instead.

"Ivan, do you have enough money?" Hermione asked.

She had brought about 2,000 pounds, which could theoretically be exchanged for approximately 400 gold Galleons at the current rate of 5 pounds to 1 Galleon.

However, in practice, young wizards from Muggle families are limited to exchanging up to 100 Galleons per year. Moreover, the exchange rate is subject to fluctuation.

For instance, if a large amount of Muggle currency is exchanged for Galleons in a short period, the rate of 1 pound to 5 Galleons could shift dramatically to 1:50, or even 1:500.

To the goblins, Muggle currency is practically worthless. For them, it's no more valuable than waste paper.

So, the most strategic approach would be to purchase gold in the Muggle world first, then exchange that gold for Galleons at Gringotts.

Although this method could lead to gold depreciation—resulting in diminishing returns on the number of Galleons received—the goblins' longstanding affinity for gold mitigates this issue somewhat.

Given the limited global reserves of gold, the goblins are more than willing to acquire all available gold from the Muggle world, even at lower prices!

After all, they are effectively the only market for such transactions.

If Ivan were to bring several tons of gold, the goblins might see it as an opportunity to recalibrate the value of gold to the equivalent of cabbages, a tactic to safeguard their financial interests.

"Mr. Goblin! How many Galleons can this gold be exchanged for?" Ivan asked, placing a box of gold on the counter with assistance from Professor McGonagall.

He was mindful to control the quantity of gold he presented, keen to prevent the goblins from gaining too much leverage.

"Gold?!" The goblin exclaimed upon opening the box and discovering rows of small, shiny objects that appeared like tiny yellow fish: "Ah, it's really these golden little beauties."

"Mr. Ambrosius, correct?" The goblin adjusted his glasses. "Based on the current rate of gold to Galleon exchange, these can be traded for 250 gold Galleons at Gringotts."

"..."

Upon hearing this figure, Ivan's expression turned frosty.

It was clear to him that substantial deductions had been applied.

"Okay," he said tersely, concealing his frustration.

Ivan did not haggle over the exchange rate; instead, he accepted the deal outright, much to the surprise of Hermione and Professor McGonagall. He silently noted this transaction, deciding to let the goblins enjoy their moment of triumph—for now.

Meanwhile, Hermione exchanged her pounds for 80 gold galleons. After leaving Gringotts, Professor McGonagall inquired about the box of gold Ivan had brought with him.

"Professor, I acquired all my gold through legitimate means," Ivan assured her.

He explained that as a child, he had once predicted lottery numbers published in a newspaper and won the third prize, which he used to better the conditions at the orphanage.

Additionally, Ivan occasionally used his savings to place bets on sports events.

He was cautious with his prophecies, ensuring not to exploit them excessively, and always kept his betting within reasonable limits.

However, Ivan omitted certain details from his explanation.

For instance, he didn't mention how he had used Transfiguration—not Disguise Magus, as there's no mention of such a spell in canonical Harry Potter texts—to alter his appearance and open multiple bank accounts in the Muggle world. This was part of his preparation for an independent life after leaving the orphanage.

With similar discretion, he had ensured his safety and anonymity despite his considerable wealth through careful use of his magical skills.

"That's incredible," Hermione exclaimed, her eyes wide with amazement at Ivan's capabilities.

Before, when she had imagined someone predicting the future, she had whimsically thought about lottery numbers but never expected to actually meet someone who had successfully done it.

Even Professor McGonagall was momentarily at a loss for words, impressed and somewhat bewildered by Ivan's prudent use of his prophetic gift.

Ultimately, Professor McGonagall could only advise Ivan to be cautious not to reveal magical secrets to Muggles and to refrain from excessive gambling. With that, she decided to move on from the topic.

The trio left Gringotts, and Professor McGonagall instructed them to review their shopping lists for Hogwarts. Hermione, with her characteristic eagerness, promptly recited the list from memory:

"[Uniform]

Three sets of plain work robes (black)

One plain peaked hat for daytime wear (black)

One pair of protective gloves (made from dragonhide or similar material)

One winter cloak (black, with silver fastenings)

Note: All student clothing must have name tags attached.

[Textbooks]

Standard Book of Spells (Grade 1)

A History of MagicMagical Theory

A Beginner's Guide to Transfiguration

One Thousand Magical Herbs and Fungi

Magical Drafts and Potions

Fantastic Beasts and Where to Find Them

The Dark Forces: A Guide to Self-Protection

[Other]

One wand

One cauldron (pewter, standard size 2)

One set of glass or crystal vials

One telescope

One brass scales

Students may bring one owl, one cat, or one toad"

"Oh! There was also a line - Parents are kindly reminded that first-year students are not allowed to bring their own broomsticks."

After finishing the list, Hermione looked at Ivan and Professor McGonagall with enthusiasm. The latter smiled and praised, "It seems that our Miss Granger is well prepared."

Professor McGonagall appreciates young witches like Hermione who are eager to learn.

Like Hermione, Professor McGonagall, who is of mixed blood, once had a similar desire to prove herself equal to any pure-blood wizard.

"Ivan, shall we go buy the textbooks first?"

Hermione's thirst for knowledge was evident. Her only shortcoming is her tendency to take everything written in books as absolute truth.

"Okay."

Ivan and Hermione headed to Flourish and Blotts, captivated by the rows of books filling the store.

Meanwhile, Professor McGonagall instructed them to stay at Flourish and Blotts while she went to purchase cauldrons, gloves, and other supplies.

Having been a professor at Hogwarts for many years, McGonagall knew exactly where to get the best quality for the lowest price.

"Ahh~ Professor McGonagall is such a good teacher," Hermione remarked, admiringly. "It would be great if all professors at Hogwarts were like her!"

To others, Professor McGonagall might appear strict and traditional, but to Ivan and Hermione, she was a figure of quiet pride—stern on the outside but deeply caring beneath that facade.

Well, this "cat lady" might be a bit old.