Bank of England
February Term - Report 2 - Why Invest?
Our Rough Balance: http://www.erepublik.com/en/article/-mof-january-report-3-closing-balance-2207505/1/20
Feburary Report 1: http://www.erepublik.com/en/article/-mof-february-report-1-time-to-invest--2217925/1/20
Again I bring you another report where the numbers won’t really be discussed. Due to the same reason as last time. There really isn’t enough change to justify me writing it all up so close to the end of the term, I will of course do a numbers edition at the end of the term so the new cabinet knows exactly what we have and of course the public can see what they have to work with going in. If you are curious now, it is still effectively the same as the last report with pretty pictures. .
I am more writing to talk about the schemes we have going on currently.
Info: When I say “Cash Out” I mean the time when the bot decides how much of the CC invest on the MM turns into gold at a rate dependent on the band
When I say “The Band” I mean the value I sell the CC at. Currently we are using 0.004, that means we are buying gold for 250 a pop. This will work all the way to 333.33 which is when the 0.003 band will start to be used.
Now, the eUK has many orgs, we can make money using them on the MM when the market is stable to keep it very low risk. The only other use Orgs have right now is to write newspaper articles, at least they is all they can do of any value. Why would we rent these magnificent money making tools you ask?
Quite simple, we do not have enough cash to make use of these orgs. I worked out the best value for the 0.003 band to invest was £50,000. It seems it is a different amount now that we have dropped to the 0.004 band which I am currently trying to figure out. Sadly the market was only declared stable enough for eUK funds not too long ago so I don’t have the experimentation time to really figure it out. Any offers I put up now will be cashing out next term and sadly as I have no political party I do not qualify for Gokus cabinet. I will be applying to both cabinets anyway so I may be able to continue my research for the new numbers.
As we do not have enough cash to go on all the orgs we have we can rent them out for a set fee. This is a monthly fee and this term we have had one taker for £7500. The 30 day rent ends mid way through next term so I hope they fully respect this deal and allow the org to stay in the hands of the person who rented it until the end of his 30 days.
Investment in Orgs:
The reason to do this is the same as noted above. We don’t have the cash to fill all of our orgs, so why not use the publics money and take a cut of the profit making them and us money? So far we have only had a handful of investers but I project it will make us about £3k and £3k for those that invested too.
Sadly as I cannot guarantee this program will continue next term I will not be accepting anymore investments until I have confirmation from both leading applicants for CP that this will continue.
Why Invest Now?
This is nothing to do with the investing above, this is to do with a Government investing on the MM. Right now gold is very stable which is exactly what we need. It is actually rising slightly which is even better. As long as it stops at about £320 and goes no higher than we can not complain at all.
We were skeptical early this term about what it was all going to look like. Annoyingly gold was dropping during our night and that just meant we couldn’t risk all of our treasury. A week or two in it because much more stable and safe, I was given the green light to invest and away we went. Sadly the whole process takes ten days to cash out so during a whole term you can only just cash out three times per org. I missed out on just over two weeks which meant most orgs will only be able to cash out once (due to having to stagger them for best results, some will not cash out until next term).
How much can we possibly earn?
I used to find best results when putting 4 orgs on the MM a day staggered at roughly 6 hours intervals. Most orgs would always fully cash out. Now a set stack of 50k cash (the value I used to find was most reliable in cashing out fully into gold) gets us 200 gold.
A cycle is 10 days then add a day to sell the gold. So say we have a complete 11 day cycle. That would need 44 orgs which needs a cash reserve of £2.2M. Now we don’t have that much in the orgs, which is the cause of the investment programs and renting orgs out.
Lets imagine we did have 2.2M and the mass market stayed exactly the same as it is now. Imagine we could sell gold for £285. Over 11 days the 44 orgs cash out maximum in a perfect world. That is 200 gold a pop, 8800 gold over 11 days. 800 gold a day. A term is 30 days, so 24,000 gold over a whole term.
Each gold is sold for 285 but bought for 250. That is £35 profit per gold bought. 24,000 gold multiplied by £35 profit is a total profit of 840k over a term.
Now, when I first came into the role of MoF my goal was always to max out the MM and run schemes based on the profit. As you can see, with a bit of research and the current market position we could make a massive amount of profit.
Here is to the next administration continuing the monetary market investments and making that kind of profit with the chance they have here! For the record I will continue to invest 4 times a day until the 5th so that they can continue if they wish to.
I have had lots of PMs asking how it all works, I hope this has helped you all out!
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