CPM: Money-market (Day 711)
Day 711, 21:32
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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$. I then compare the two and to previous reports. Note that most activity occurs BELOW these price points as these are the offers that have NOT been taken yet. I throw out the retarded offers as they skew the results.
Day 711
eCanada is whole again, what will we rally around now? I suggest strengthening our economy.
Note that this report compares to Day 709
Look for my other CPM (Create, Plan, Manage) articles:
CPM: Money-market (Daily to Bi-daily)
CPM: Product and Commodity Report (Weekly)
CPM: Labour Report (Weekly)
CPM: This Week in the eCanadian Economy (weekly)
CPM: Company Profile (Weekly)
International Market
The pool of CA$ offers on the market amounted to $23,840.51, down $21,518.34 or 53.5% over Day 709's $40,194.48. This is a huge digestion of offers and just in time because there is a money issue bill going through congress as of press time, more CA$ is on its way.
On average, these offers are seeking 0.0305 gold per CA$1.00, which is down 0.0002 or 0.7% from 0.0307 on Day 709.
The eCanadian government an approval to issue CA$40,000 pending. 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$30,000.00, trading @ 0.0302 / 0.0283
Local Market
The offers of gold totaled 81.31, down 75.57 or 48.2% from 156.88. The CA$ sought in return for offers of gold averaged $34.545, up by $0.368 or 1.1% from $34.177.
The present value is right in the $34.3 to $34.7 range, the wheelhouse of this study. The offers of gold have been test in the past seven days with the onslaught of CA$ being offered.
The lowest offer for 1 gold was CA$34.150.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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$34.545. The international rate is 0.0305. The arbitrage, or spread between the two, is 0.0016, larger than Day 709's 0.0014; this is a fair spread and bodes for lower trading volumes.
I've added a green line to the arbitrage chart to plot the equilibrium or "fair" price that lies between the local and international markets, adjusted for the weighting of the prices (ie relative size of the offers). The fair price is 0.0304, down from 0.0304 two days ago.
Recommendation
With the government issue pending and offers of gold dwindling, stay in gold and move to it where you can.
Who's your Daddy? Addy's your daddy!!!
Day 711
eCanada is whole again, what will we rally around now? I suggest strengthening our economy.
Note that this report compares to Day 709
Look for my other CPM (Create, Plan, Manage) articles:
CPM: Money-market (Daily to Bi-daily)
CPM: Product and Commodity Report (Weekly)
CPM: Labour Report (Weekly)
CPM: This Week in the eCanadian Economy (weekly)
CPM: Company Profile (Weekly)
International Market
The pool of CA$ offers on the market amounted to $23,840.51, down $21,518.34 or 53.5% over Day 709's $40,194.48. This is a huge digestion of offers and just in time because there is a money issue bill going through congress as of press time, more CA$ is on its way.
On average, these offers are seeking 0.0305 gold per CA$1.00, which is down 0.0002 or 0.7% from 0.0307 on Day 709.
The eCanadian government an approval to issue CA$40,000 pending. 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$30,000.00, trading @ 0.0302 / 0.0283
Local Market
The offers of gold totaled 81.31, down 75.57 or 48.2% from 156.88. The CA$ sought in return for offers of gold averaged $34.545, up by $0.368 or 1.1% from $34.177.
The present value is right in the $34.3 to $34.7 range, the wheelhouse of this study. The offers of gold have been test in the past seven days with the onslaught of CA$ being offered.
The lowest offer for 1 gold was CA$34.150.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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$34.545. The international rate is 0.0305. The arbitrage, or spread between the two, is 0.0016, larger than Day 709's 0.0014; this is a fair spread and bodes for lower trading volumes.
I've added a green line to the arbitrage chart to plot the equilibrium or "fair" price that lies between the local and international markets, adjusted for the weighting of the prices (ie relative size of the offers). The fair price is 0.0304, down from 0.0304 two days ago.
Recommendation
With the government issue pending and offers of gold dwindling, stay in gold and move to it where you can.
Who's your Daddy? Addy's your daddy!!!
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Comments
So any advice if you have gold to invest but not enough time for arbitrage?
Yo votrdddddddddddd
@Wild Han, you're comment is right on the mark, I am getting a lot of pm's along those lines. There is no quick fix. If you have gold to play with, you are in a good position however the ideal is to move from gold, to a currency, and then back to gold in a short time frame. Yesterday, for example, there was an opportunity in the GBP (british pound) but it only lasted for about an hour. If I posted it in this article, the moment will have passed by the time you read it.
One excellent indicator in the Canadian market will be when there is only one or two offers on the first page cheaper than the rest of the page (ie one offer at 0.029 and the rest at 0.030), this means that arbitrage has opened up and trading is hot.
I simply do not have enough time to report on every currency like I do for the CA$, however, I am considering changing my report format and expanding the currencies I look at.
Sorry to not answer your question directly but I empathize with your situation.
With little time investment you can still play in the local exchange market in a stable currency like CAD has become. Even without playing on the global market if you follow your own currency there is plenty of opportunity for profits.
"The lowest offer for 1 gold was CA$34.150."
"On average, these offers are seeking 0.0305 gold per CA$1.00"
Selling gold for 34.15 and converting CAD at 0.03 = 2.45% profit which is high for a stable currency. Because of the good margin some investment banks have moved in and it has lowered since the time of this report.