CPM: Money-market (Day 666)
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by Addy Lawrence
Wow, I've made it four days in a row, a moral victory!
Iran's declaration of war will heighten activity, eCanada's dollar took a beating as territories were lost last time, be mindful of that activity.
Also, look for me on your Congressional ballots this month, I'm looking at Alberta and Newfoundland in the Canadian Progressive Front. Please consider voting for me and PLEASE VOTE PERIOD!!!
International Market
There was a big rebound in the amount of Cdn dollars being offered for gold on the market today. Offers totaled $18,799.95, up $3,277.01 or 21.1% from yesterday's $15,522.94. This is the largest daily swing noted since I commenced this report five days ago.
On average, these offers are seeking 0.0298 gold per CA$1.00 which is down 1.0% from yesterday's 0.0301 gold.
The eCanadian government approved the issue of CA$30,000.00 on Day 663 (three days ago) so this will bring down the value of the eCanadian dollar on international markets, the CA$ was trading at .302 at the time of the approval.
If you are holding Canadian, I recommend to move to gold as CA$ appears headed for a drop.
Local Market
The offers of gold totaled 86.24 and were down 37.56, or 30.3%, over yesterday's 123.8 gold.
The CA$ sought in return averaged $35.946, down slightly by $0.44 or 0.1% from yesterday's $35.99.
There is less gold available to holders of CA$ today than there was yesterday and the price held steady. This suggests that there is some "stickiness" to the $35.9 price point. So long as gold is available to offer, watch for this price to hold. With the recent issue of money by the Canadian government, 30,000 on Day 663, there is proportionately more CA$ available than gold so look for the gold offers to be gobbled up quickly.
The cheapest offer for 1 gold was CA$35.73.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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 0.0278 gold per CA$, calculated as 1G/CA$35.946. The international rate is 0.0298. The arbitrage, or spread between the two, is 0.0020. Today's spread is smaller than yesterday's 0.0024. A tighter spread means less opportunity to take advantage of arbitrage.
Who's your daddy? Addy's your daddy!!!
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Comments
"On average, these offers are seeking 0.0298 gold per CA$1.00 which is down 1.0% from yesterday's 0.0301 gold."
Dont you mean 0.029G since you can only have 3 decimal places
also CAD never hit 0.030G yesterday
I take the sum of the offers and divide it by the sum of the gold sought and I add one significant digit. My analysis does not include the offers that were settled, only the ones that were o/s. I do this study at about 8pm EST so the cut-off isn't perfect. It never hit .030 but the offers that DID NOT get accepts average 0.0298.
Ah thank you for the info, interesting ~
awesome....subscribed
COOL!
Thanks Jacobi, I appreciate an endorsement from the President.
very nicely done. subd and voted
nice insight. voted and subscribed. just want to know how u'd came up with the international market figure though.
Coach.nyta
International = sum of the offers of CA$ / gold sought in return
Local = sum of the offers of gold / CA$ sought in return
When you are in money market, look at buy gold, sell CAD and then look at buy CAD, sell gold, they are different and the arbitrage stat I am tracking is a measurement of the difference.