CPM: Money-market (Day 704)
Day 704, 21:33
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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$. I then compare the two and to previous reports. Note that most activity occurs BELOW these price points as these are the offers that have NOT been taken yet. I throw out the retarded offers as they skew the results.
Day 704
Please note that I am running for congress in October in the province of Ontario with the approval of the CPF. Please consider voting for me tomorrow/today, here is my campaign presentation. Please consider voting for a CPF candidate in your province and remember to vote strategically, with a CPF majority we can move eCanada forward much faster. Contact the CPF to see where your vote would provide the most value.
Note that this report compares to Day 702.
International Market
The pool of CA$ offers on the market amounted to $47,160.00, up $13,136.06 or 38.6% over Day 702's $34,023.94. This is the greatest amount of offers noted during the course of this study.
On average, these offers are seeking 0.0303 gold per CA$1.00, which is down 0.0003 or 1.0% from 0.0307.
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$30,000.00, trading @ 0.0302 / 0.0283
Local Market
The offers of gold totaled a paltry 68.84, down 9.33 or 11.9% from 78.17. The CA$ sought in return for offers of gold averaged $37.006, up sharply by $2.362 or 6.8% from $34.644. The CA$ appears to be losing value quickly, this is a marked drop and this may be the bust to the boom observed over recent weeks.
The present value is right in the $34.3 to $34.7 range, the wheelhouse of this study, however it quickly moved from the low range to high. The lack of gold offers is putting tremendous pressure on the value of the CA$.
The lowest offer for 1 gold was CA$35.000.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0270 gold per CA$, calculated as 1G/CA$37.006. The international rate is 0.0303. The arbitrage, or spread between the two, is 0.0033 and much looser than Day 702's 0.018; this is a large spread and bodes for more trading tomorrow, trading that will see the CA$ drop.
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, down from 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!!!
Day 704
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 tomorrow/today, 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. Contact the CPF to see where your vote would provide the most value.
Note that this report compares to Day 702.
International Market
The pool of CA$ offers on the market amounted to $47,160.00, up $13,136.06 or 38.6% over Day 702's $34,023.94. This is the greatest amount of offers noted during the course of this study.
On average, these offers are seeking 0.0303 gold per CA$1.00, which is down 0.0003 or 1.0% from 0.0307.
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$30,000.00, trading @ 0.0302 / 0.0283
Local Market
The offers of gold totaled a paltry 68.84, down 9.33 or 11.9% from 78.17. The CA$ sought in return for offers of gold averaged $37.006, up sharply by $2.362 or 6.8% from $34.644. The CA$ appears to be losing value quickly, this is a marked drop and this may be the bust to the boom observed over recent weeks.
The present value is right in the $34.3 to $34.7 range, the wheelhouse of this study, however it quickly moved from the low range to high. The lack of gold offers is putting tremendous pressure on the value of the CA$.
The lowest offer for 1 gold was CA$35.000.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0270 gold per CA$, calculated as 1G/CA$37.006. The international rate is 0.0303. The arbitrage, or spread between the two, is 0.0033 and much looser than Day 702's 0.018; this is a large spread and bodes for more trading tomorrow, trading that will see the CA$ drop.
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, down from 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!!!
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Comments
Excellent analysis.
We will have to start paying you for these great reports. Or at least try to make you a Media Mogul.