CPM: Money-market (Day 706)
Day 706, 19:18
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Published in Canada 
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by
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by Addy Lawrence
A little background on this report. Each day at around 7:00pm EST, I go to the money market and log all of the offers of CA$ for gold. I also log all of the offers of gold for CA$. I then compare the two and to previous reports. Note that most activity occurs BELOW these price points as these are the offers that have NOT been taken yet. I throw out the retarded offers as they skew the results.
Day 706
I received five votes in Ontario during the congressional elections, thank you to those people, and I didn't vote for myself! I appreciate your support.
I wake up this morning a little thankful that I didn't win as this will allow me more time to spend on my ever expanding eConsultant practise
Note that this report compares to Day 704.
International Market
The pool of CA$ offers on the market amounted to $45,358.85, down $1,801.15 or 3.8% over Day 704's $47,160.00. This is amongst the greatest amount of offers noted during the course of this study.
On average, these offers are seeking 0.0304 gold per CA$1.00, which is up 0.0001 or 0.3% from 0.0303.
The eCanadian government approved an issue of CA$40,000 yesterday. The eCanadian government approvals made during the life of this study are as follows:
Day 703 = CA$40,000.00, trading @ 0.0307 / 0.0289
Day 695 = CA$40,000.00, trading @ 0.0302 / 0.0291
Day 684 = CA$40,000.00, trading @ 0.0314 / 0.0287
Day 682 = CA$04,000.00, trading @ 0.0324 / 0.0288
Day 671 = CA$40,000.00, trading @ 0.0291 / 0.0277
Day 663 = CA$30,000.00, trading @ 0.0302 / 0.0283
Local Market
The offers of gold totaled 211.14, up sharply 142.30 or 206.7% from 68.84. The CA$ sought in return for offers of gold averaged $34.425, down sharply by $2.580 or 7.0% from $37.006. The CA$ appears to be recovering value after Day 704's spike.
The present value is right in the $34.3 to $34.7 range, the wheelhouse of this study, however it quickly moved from the low range to high and back to low. The increase in offers of gold has relieved some of the tremendous pressure on the value of the CA$.
The lowest offer for 1 gold was CA$33.999.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ or gold, depending on what you are holding, between these two sums. The trick is to find it. If I find one, I'll publish it however they are tough to find and don't last long.
The implied rate on the local market is 0.0290 gold per CA$, calculated as 1G/CA$34.425. The international rate is 0.0304. The arbitrage, or spread between the two, is 0.0013 and much tighter than Day 704's 0.033; this is a small spread and bodes for lower trading volumes, trading that will see the CA$ increase.
I've added a green line to the arbitrage chart to plot the equilibrium or "fair" price that lies between the local and international markets, adjusted for the weighting of the prices (ie relative size of the offers). The fair price is 0.0302, steady with 0.0302 from two days ago.
Recommendation
With no government issue pending and gold offers growing, I recommend to move to CA$ and look for the CA$ to strengthen.
Who's your Daddy? Addy's your daddy!!!
Day 706
I received five votes in Ontario during the congressional elections, thank you to those people, and I didn't vote for myself! I appreciate your support.
I wake up this morning a little thankful that I didn't win as this will allow me more time to spend on my ever expanding eConsultant practise
🙂I have been approached a lot lately regarding business and economic topics and I'm thankful that I'll have time to spend on that.
Note that this report compares to Day 704.
International Market
The pool of CA$ offers on the market amounted to $45,358.85, down $1,801.15 or 3.8% over Day 704's $47,160.00. This is amongst the greatest amount of offers noted during the course of this study.
On average, these offers are seeking 0.0304 gold per CA$1.00, which is up 0.0001 or 0.3% from 0.0303.
The eCanadian government approved an issue of CA$40,000 yesterday. The eCanadian government approvals made during the life of this study are as follows:
Day 703 = CA$40,000.00, trading @ 0.0307 / 0.0289
Day 695 = CA$40,000.00, trading @ 0.0302 / 0.0291
Day 684 = CA$40,000.00, trading @ 0.0314 / 0.0287
Day 682 = CA$04,000.00, trading @ 0.0324 / 0.0288
Day 671 = CA$40,000.00, trading @ 0.0291 / 0.0277
Day 663 = CA$30,000.00, trading @ 0.0302 / 0.0283
Local Market
The offers of gold totaled 211.14, up sharply 142.30 or 206.7% from 68.84. The CA$ sought in return for offers of gold averaged $34.425, down sharply by $2.580 or 7.0% from $37.006. The CA$ appears to be recovering value after Day 704's spike.
The present value is right in the $34.3 to $34.7 range, the wheelhouse of this study, however it quickly moved from the low range to high and back to low. The increase in offers of gold has relieved some of the tremendous pressure on the value of the CA$.
The lowest offer for 1 gold was CA$33.999.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ or gold, depending on what you are holding, between these two sums. The trick is to find it. If I find one, I'll publish it however they are tough to find and don't last long.
The implied rate on the local market is 0.0290 gold per CA$, calculated as 1G/CA$34.425. The international rate is 0.0304. The arbitrage, or spread between the two, is 0.0013 and much tighter than Day 704's 0.033; this is a small spread and bodes for lower trading volumes, trading that will see the CA$ increase.
I've added a green line to the arbitrage chart to plot the equilibrium or "fair" price that lies between the local and international markets, adjusted for the weighting of the prices (ie relative size of the offers). The fair price is 0.0302, steady with 0.0302 from two days ago.
Recommendation
With no government issue pending and gold offers growing, I recommend to move to CA$ and look for the CA$ to strengthen.
Who's your Daddy? Addy's your daddy!!!
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Comments
Voted!
Sorry to see you didn't get in Addy, keep up the good work.
voh-tedd
Hmm... CA$ is still falling and who's to say they won't do another issue?
They seem to do an issue every 7-10 days, gold is coming back into the market, particularly with the congressional elections, each country mined 200 gold yesterday (40 * 5), call it "congressflation" or devaluation of gold.
Who is your Daddy?
Addy's your Daddy!