CPM: Money-market (Day 714)
Day 714, 18:18
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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$. I then compare the two and to previous reports. Note that most activity occurs BELOW these price points as these are the offers that have NOT been taken yet. I throw out the retarded offers as they skew the results.
Day 714
This will be my last report in this format.
I have learned a lot about the money-market since I started this series of articles and played in the market and I'm ready to expand the scope.
I am going to be making some MAJOR changes to the Money-market report. I am going to add other currencies, definitely the USD and the HUF. I am willing to track five for the purposes of this report and I will select the other two based on comments posted in this article as well as economic rankings of nations in eRep, I'll probably weight GDP heavily.
Note that this report compares to Day 711
Shameless Plug
Please watch for my other regular CPM articles:
CPM: Money-market (Bi-daily)
CPM: Commodity and Product Report (Weekly)
CPM: Labour Report (Weekly, Mondayish)
CPM: This Week in the eCanadian Economy (Weekly, Sundayish)
CPM: Company Profile (Weekly, Fridayish)
International Market
The pool of CA$ offers on the market amounted to $17,397.98, down $6,442.53 or 27.0% over Day 711's $23,840.51. Look for the balance of offers to swell over the coming days as congress approved an issue of CA$40,000 yesterday.
On average, these offers are seeking 0.0300 gold per CA$1.00, which is down 0.0005 or 1.6% from 0.0305 on Day 711.
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 713 = CA$40,000.00, trading @ 0.0300 / 0.0293
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$30,000.00, trading @ 0.0302 / 0.0283
Local Market
The offers of gold totaled 159.68, up 78.37 or 96.4% from 81.31 three days ago. The CA$ sought in return for offers of gold averaged $34.184, down by $0.361 or 10.6% from $34.545.
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$33.894.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0293 gold per CA$, calculated as 1G/CA$34.184. The international rate is 0.0300. The arbitrage, or spread between the two, is 0.0007, which is the tightest spread recorded to date and bodes for lower trading volumes.
I've added a green line to the arbitrage chart to plot the equilibrium or "fair" price that lies between the local and international markets, adjusted for the weighting of the prices (ie relative size of the offers). The fair price is 0.0304, down from 0.0304 two days ago.
Recommendation
Stay in gold or currency where-ever you are at.
Who's your Daddy? Addy's your daddy!!!
Day 714
This will be my last report in this format.
I have learned a lot about the money-market since I started this series of articles and played in the market and I'm ready to expand the scope.
I am going to be making some MAJOR changes to the Money-market report. I am going to add other currencies, definitely the USD and the HUF. I am willing to track five for the purposes of this report and I will select the other two based on comments posted in this article as well as economic rankings of nations in eRep, I'll probably weight GDP heavily.
Note that this report compares to Day 711
Shameless Plug
Please watch for my other regular CPM articles:
CPM: Money-market (Bi-daily)
CPM: Commodity and Product Report (Weekly)
CPM: Labour Report (Weekly, Mondayish)
CPM: This Week in the eCanadian Economy (Weekly, Sundayish)
CPM: Company Profile (Weekly, Fridayish)
International Market
The pool of CA$ offers on the market amounted to $17,397.98, down $6,442.53 or 27.0% over Day 711's $23,840.51. Look for the balance of offers to swell over the coming days as congress approved an issue of CA$40,000 yesterday.
On average, these offers are seeking 0.0300 gold per CA$1.00, which is down 0.0005 or 1.6% from 0.0305 on Day 711.
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 713 = CA$40,000.00, trading @ 0.0300 / 0.0293
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$30,000.00, trading @ 0.0302 / 0.0283
Local Market
The offers of gold totaled 159.68, up 78.37 or 96.4% from 81.31 three days ago. The CA$ sought in return for offers of gold averaged $34.184, down by $0.361 or 10.6% from $34.545.
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$33.894.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0293 gold per CA$, calculated as 1G/CA$34.184. The international rate is 0.0300. The arbitrage, or spread between the two, is 0.0007, which is the tightest spread recorded to date 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
Stay in gold or currency where-ever you are at.
Who's your Daddy? Addy's your daddy!!!
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Comments
Thank you for all of your informative articles. You provide much valuable information. As a former student of economics, I also enjoy seeing concepts I learned applied in the world of Erep. Do you have any formal training in economics or business?
Keep up the good work!