CPM: Money-market (Day 674)
Day 674, 18:20
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Published in Canada 
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by
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by Addy Lawrence
Day 674
On the eve of eCanada's Congressional Elections, one final reminder to please look for me on your ballot. I'm running in Newfoundland under the banner of Canadian Progressive Front. Please consider voting for me, PLEASE VOTE PERIOD!!!
http://www.erepublik.com/en/article/cpm-congressional-platform-for-addy-lawrence-942401/1/20
Note that today's report compares to yesterday, the theme for today is digestion.
International Market
There is still a large pool of CA$ offers on the market, offers totalled $27,767.36 which is essentially flat with yesterday's $27,068.81 (up $698.55 or 2.5
On average, these offers are seeking 0.0293 gold per CA$1.00 which is even with yesterday. This is amongst the lowest rates I have observed since I commenced the study on Day 662.
The eCanadian government approved the issue of CA$30,000.00 on Day 663 (eleven days ago) and and another $40,000.00 on Day 671 (three days ago). I surmise that it will take 5-7 days for the second approval to take root but look for the CA$ to take 10 basis point hit based on how the first approval went. The CA$ was trading at .291 gold at the time of the most recent approval.
If you are holding Canadian, I recommend to move to gold as CA$ appears headed for a drop. I surmise a 10 point drop to 0.0283, what the heck, I'll go out on a limb and predict it will hit 0.0283 by day 680.
Local Market
The offers of gold totaled 136.36 and is way down, 155.11 or 53.22%, over yesterday's 291.468 gold. This is a record change for the local market. Incredibly, this digestion of gold offers had very little impact on exchange, CA$ sought in return averaged $35.685, down slightly by $0.013 or 0.0% from yesterday's $35.698.
The gold available to holders of CA$ is markedly down, this is due to the massive digestion of cash (155.11 x 35.685 = upper limit of $5,535.10) with the volume of CA$ hitting the market. The competition for the CA$ amongst gold-holders appears to maintained the strength of the CA$. With the recent issue of money by the Canadian government ($30,000 on Day 663 and $40,000 on Day 671), there is proportionately more CA$ available than gold. All logical economic reason point to an increase in the number of CA$ per gold in the near future.
The cheapest offer for 1 gold was CA$35.560.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0280 gold per CA$, calculated as 1G/CA$35.685. The international rate is 0.0293. The arbitrage, or spread between the two, is 0.0013, no change from yesterday. This tight spread is likely why we see a high number of CA$ offers (it is tougher for gold holders to find a third instrument withing that spread).
Who's your daddy? Addy's your daddy!!
On the eve of eCanada's Congressional Elections, one final reminder to please look for me on your ballot. I'm running in Newfoundland under the banner of Canadian Progressive Front. Please consider voting for me, PLEASE VOTE PERIOD!!!
http://www.erepublik.com/en/article/cpm-congressional-platform-for-addy-lawrence-942401/1/20
Note that today's report compares to yesterday, the theme for today is digestion.
International Market
There is still a large pool of CA$ offers on the market, offers totalled $27,767.36 which is essentially flat with yesterday's $27,068.81 (up $698.55 or 2.5
😵. Offers have exceeded $25k for five days running.
On average, these offers are seeking 0.0293 gold per CA$1.00 which is even with yesterday. This is amongst the lowest rates I have observed since I commenced the study on Day 662.
The eCanadian government approved the issue of CA$30,000.00 on Day 663 (eleven days ago) and and another $40,000.00 on Day 671 (three days ago). I surmise that it will take 5-7 days for the second approval to take root but look for the CA$ to take 10 basis point hit based on how the first approval went. The CA$ was trading at .291 gold at the time of the most recent approval.
If you are holding Canadian, I recommend to move to gold as CA$ appears headed for a drop. I surmise a 10 point drop to 0.0283, what the heck, I'll go out on a limb and predict it will hit 0.0283 by day 680.
Local Market
The offers of gold totaled 136.36 and is way down, 155.11 or 53.22%, over yesterday's 291.468 gold. This is a record change for the local market. Incredibly, this digestion of gold offers had very little impact on exchange, CA$ sought in return averaged $35.685, down slightly by $0.013 or 0.0% from yesterday's $35.698.
The gold available to holders of CA$ is markedly down, this is due to the massive digestion of cash (155.11 x 35.685 = upper limit of $5,535.10) with the volume of CA$ hitting the market. The competition for the CA$ amongst gold-holders appears to maintained the strength of the CA$. With the recent issue of money by the Canadian government ($30,000 on Day 663 and $40,000 on Day 671), there is proportionately more CA$ available than gold. All logical economic reason point to an increase in the number of CA$ per gold in the near future.
The cheapest offer for 1 gold was CA$35.560.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0280 gold per CA$, calculated as 1G/CA$35.685. The international rate is 0.0293. The arbitrage, or spread between the two, is 0.0013, no change from yesterday. This tight spread is likely why we see a high number of CA$ offers (it is tougher for gold holders to find a third instrument withing that spread).
Who's your daddy? Addy's your daddy!!
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Great Economic Article! Voted, Subbed.
http://www.erepublik.com/en/article/congressman-alaricus-948376/1/20" target="_blank">http://www.erepublik.com/en/article/cong[..]1/20
Vote me For Congress Tomorrow 😁^
I would like to see someone do a detailed analysis of the relative Strength of Canada's economy compared to the rest of the world.
My own quick work shows Canada's average salaries are ~25% higher than our enemies.
Overheated labour market due to investment and a growth in industry sectors that is currently in over supply, the market will correct its self shortly as the weak go broke. Once these hits the markets will stabilise and wages will become more realistic as jobs disappear due to surplus.