CPM: Money-market (Day 696)
Day 696, 17:52
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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 (when my computer is working) 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$. I then compare the two and to previous reports. Note that most activity occurs BELOW these price points as these are the offers that have NOT been taken yet. I throw out the retarded offers as they skew the results.
Day 696
A serious note today. Information breeds confidence, silence breeds fear. When people don't know things, they fear the worst. When people fear the worst, they don't necessarily believe the worst. If ones ask you a question that makes you believe that you are accused of being a liar, perhaps its a question to disprove the same thing. How do you know? Sorting through that sort of stuff is quite an emotional transaction which can build a relationship as opposed to erode one.
International Market
The pool of CA$ offers on the market amounted to $18,314.23, down $1,372.71 or 7.0% from yesterday's $19,686.94. The size of these pools is below the average of $22k, I surmise cash is being deployed in the war effort.
On average, these offers are seeking 0.0301 gold per CA$1.00 which is down 0.3% from 0.0302. The eCanadian government approved an issue of CA$40,000 two days ago. This should put additional downward pressure on the value of the CA$1.00.
The eCanadian government approvals made during the life of this study are as follows:
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$30,000.00, trading @ 0.0302 / 0.0283
I'm currently recommending to hold your positions in gold and CA$ as arbitrage remains tight.
Local Market
The offers of gold totaled 170.24, up 14.41 or 9.2% from yesterday's 155.83. The CA$ sought in return for offers of gold averaged $34.247, down by $0.061 or 0.2% from $34.308.
The holders of gold have been firm in the $34.3 to $34.7 range for nearly two weeks, this is definitely a sticky point.
The cheapest offer for 1 gold was CA$34.214.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0292 gold per CA$, calculated as 1G/CA$34.247; this is an all-time high for this study. The international rate is 0.0301. The arbitrage, or spread between the two, is 0.0009; this is tight and bodes for low volumes of trading. This is as tight as I've seen it during this study. I've seen this cycle once in the past and after a bottoming out, a rapid increase ensues and a 2 to 3 day window of profitability opens up. Be ready, its coming!!!
Who's your Daddy? Addy's your daddy!!!
Day 696
A serious note today. Information breeds confidence, silence breeds fear. When people don't know things, they fear the worst. When people fear the worst, they don't necessarily believe the worst. If ones ask you a question that makes you believe that you are accused of being a liar, perhaps its a question to disprove the same thing. How do you know? Sorting through that sort of stuff is quite an emotional transaction which can build a relationship as opposed to erode one.
International Market
The pool of CA$ offers on the market amounted to $18,314.23, down $1,372.71 or 7.0% from yesterday's $19,686.94. The size of these pools is below the average of $22k, I surmise cash is being deployed in the war effort.
On average, these offers are seeking 0.0301 gold per CA$1.00 which is down 0.3% from 0.0302. The eCanadian government approved an issue of CA$40,000 two days ago. This should put additional downward pressure on the value of the CA$1.00.
The eCanadian government approvals made during the life of this study are as follows:
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$30,000.00, trading @ 0.0302 / 0.0283
I'm currently recommending to hold your positions in gold and CA$ as arbitrage remains tight.
Local Market
The offers of gold totaled 170.24, up 14.41 or 9.2% from yesterday's 155.83. The CA$ sought in return for offers of gold averaged $34.247, down by $0.061 or 0.2% from $34.308.
The holders of gold have been firm in the $34.3 to $34.7 range for nearly two weeks, this is definitely a sticky point.
The cheapest offer for 1 gold was CA$34.214.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0292 gold per CA$, calculated as 1G/CA$34.247; this is an all-time high for this study. The international rate is 0.0301. The arbitrage, or spread between the two, is 0.0009; this is tight and bodes for low volumes of trading. This is as tight as I've seen it during this study. I've seen this cycle once in the past and after a bottoming out, a rapid increase ensues and a 2 to 3 day window of profitability opens up. Be ready, its coming!!!
Who's your Daddy? Addy's your daddy!!!
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The spread right now is over 2.6% and while that is lower then typical its still above many other countries where there is government interference in the market. If you were to do your study earlier in the day when the euro traders are on you'll find much higher gold availability and tighter spreads.