CPM: Money-market (Day 672)

Day 672, 17:57 • Published in Canada Canada • by Addy Lawrence

Day 672

A gentle reminder, look for me on your Congressional ballots this month, I'm running in Newfoundland under the banner of Canadian Progressive Front. Please consider voting for me and PLEASE VOTE PERIOD!!!

Note that today's report compares to yesterday.

International Market

There is a large pool of CA$ offers on the market again today, still overe $30k at $34,833.09 but down $2,187.70 or 5.9% from yesterday's $37,020.79.

On average, these offers are seeking 0.0293 gold per CA$1.00 which is up 0.7% from yesterday's 0.0291 gold. This is amongst the lowest rates I have observed since I commenced the study on Day 662.

The eCanadian government approved the issue of CA$30,000.00 on Day 663 (nine days ago) and it appears to be reaching its zenith in offers. The CA$ was trading at .302 gold at the time of the approval.

If you are holding Canadian, I recommend to move to gold as CA$ appears headed for a drop. I surmise the saturation point is approaching, not sure how many days into the future it is though.

Local Market

The offers of gold totaled 191.38 and was way up, 94.79 or 98.1%, over yesterday's 96.59 gold. The CA$ sought in return averaged $35.824, down slightly by $0.242 or 0.7% from yesterday's $36.066.

The gold available to holders of CA$ is markedly up, likely due to investors looking to take advantage of an abundance of CA$. The competition for the CA$ amongst gold-holders appears to have strengthened the CA$. With the recent issue of money by the Canadian government (30,000 on Day 663), there is proportionately more CA$ available than gold so look for the gold offers to be gobbled up quickly, or rise in price.

The cheapest offer for 1 gold was CA$35.824.

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 0.0279 gold per CA$, calculated as 1G/CA$35.284. The international rate is 0.0293. The arbitrage, or spread between the two, is 0.0014, unchanged from yesterday. This tight spread is likely why we see a high number of CA$ offers (it is tougher for gold holders to find a third instrument withing that spread).

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