CPM: Money-market (Day 673)
Day 673, 17:14
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Published in Canada 
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by
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by Addy Lawrence
Day 673
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 still a large pool of CA$ offers on the market, offers totalled $27,068.81 which is down $7,764.28 or 22.3% from yesterday's $34,833.09. This is the biggest one day drop observed to date.
On average, these offers are seeking 0.0293 gold per CA$1.00 which is even with yesterday. 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 (ten days ago) and and another $40,000.00 on Day 671 (two days ago). I surmise that it will take 5-7 days but look for the CA$ to take 10 basis point hit. The CA$ was trading at .291 gold at the time of the most recent approval.
If you are holding Canadian, I recommend to move to gold as CA$ appears headed for a drop. I surmise a 10 point drop to 0.0283.
Local Market
The offers of gold totaled 291.468 and was way up, 100.09 or 52.3%, over yesterday's 191.38 gold. This is a record high for the second day in a row, people are lining up to reel in the CA$. The CA$ sought in return of this record amount of gold offers averaged $35.698, down slightly by $0.126 or 0.4% from yesterday's $35.824.
The gold available to holders of CA$ 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 and $40,000 on Day 671), there is proportionately more CA$ available than gold.
The cheapest offer for 1 gold was CA$35.478.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0280 gold per CA$, calculated as 1G/CA$35.698. The international rate is 0.0293. The arbitrage, or spread between the two, is 0.0013, down almost imperceptibly by .0001 from yesterday. This tight spread is likely why we see a high number of CA$ offers (it is tougher for gold holders to find a third instrument withing that spread) and gold offers as each market looks to break the other.
Who's your daddy? Addy's your daddy!!
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 still a large pool of CA$ offers on the market, offers totalled $27,068.81 which is down $7,764.28 or 22.3% from yesterday's $34,833.09. This is the biggest one day drop observed to date.
On average, these offers are seeking 0.0293 gold per CA$1.00 which is even with yesterday. 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 (ten days ago) and and another $40,000.00 on Day 671 (two days ago). I surmise that it will take 5-7 days but look for the CA$ to take 10 basis point hit. The CA$ was trading at .291 gold at the time of the most recent approval.
If you are holding Canadian, I recommend to move to gold as CA$ appears headed for a drop. I surmise a 10 point drop to 0.0283.
Local Market
The offers of gold totaled 291.468 and was way up, 100.09 or 52.3%, over yesterday's 191.38 gold. This is a record high for the second day in a row, people are lining up to reel in the CA$. The CA$ sought in return of this record amount of gold offers averaged $35.698, down slightly by $0.126 or 0.4% from yesterday's $35.824.
The gold available to holders of CA$ 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 and $40,000 on Day 671), there is proportionately more CA$ available than gold.
The cheapest offer for 1 gold was CA$35.478.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0280 gold per CA$, calculated as 1G/CA$35.698. The international rate is 0.0293. The arbitrage, or spread between the two, is 0.0013, down almost imperceptibly by .0001 from yesterday. This tight spread is likely why we see a high number of CA$ offers (it is tougher for gold holders to find a third instrument withing that spread) and gold offers as each market looks to break the other.
Who's your daddy? Addy's your daddy!!
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Comments
This really is tremendous work you are doing. I wondered about the inflation that would be caused by the recent release of all that CAD.
Thank you once again for putting this together.