CPM: Money-market (Day 702)

Day 702, 19:43 • Published in Canada Canada • 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 702

Please note that I am running for congress in October in the province of Ontario with the approval of the CPF. Please consider voting for me on October 25th, here is my campaign presentation. Please consider voting for a CPF candidate in your province and remember to vote strategically, with a CPF majority we can move eCanada forward much faster.

Today on the campaign trail I showed off my artistic side. I really like to play music. I am a self-taught guitar and harp player and I enjoy singing after a few Red Ales. My favourite music is rebel country (Johnny Cash, Steve Earle, Blue Edmundson) and Alternative (Tragically Hip, Green Day, Coldplay). Here is a pic of me jamming with my band, Addy's Daddies.



International Market



The pool of CA$ offers on the market amounted to $34,023.94, up $4,849.54 or 16.6% over yesterday's $29,174.40.

On average, these offers are seeking 0.0307 gold per CA$1.00, which is down 0.0001 or 0.3% from yesterday's 0.0308.

The eCanadian government approved an issue of CA$40,000 six days ago and another issue of CA$40,000 is being voted on right now. 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

Local Market



The offers of gold totaled 78.17, down 44.71 or 36.4% from yesterday's 122.88. The CA$ sought in return for offers of gold averaged $34.644, up sharply by $0.539 or 1.6% from $34.105. The CA$ returned to earth a bit after trading near all-time highs for over two weeks.

The present value is right in the $34.3 to $34.7 range, the wheelhouse of this study. Look gold to enter the market tomorrow and bring this closer to the lower end.

The lowest offer for 1 gold was CA$34.480.

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 0.0289 gold per CA$, calculated as 1G/CA$34.644. The international rate is 0.0307. The arbitrage, or spread between the two, is 0.0018 and tighter than yesterday's 0.014; this is a decent spread and its retracement of yesterday's contraction bodes for more trading tomorrow. There may be a high tide this cycle after all.

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 0.0306, consistent with yesterday's 0.0306.

Recommendation

With cash about to enter the system and the CA$ falling and the spread opening, I'm currently recommending to move to gold.

Who's your Daddy? Addy's your daddy!!!