CPM: Money-market (Day 700)

Day 701, 00:08 • Published in Canada Canada • 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 700

Please note that I am running for congress in October in the province of Ontario with the approval of the CPF. Please consider voting for me on October 25th, here is my campaign presentation. Please consider voting for a CPF candidate in your province and remember to vote strategically, with a CPF majority we can move eCanada forward much faster.

International Market



The pool of CA$ offers on the market amounted to $29,832.32, down $6,988.81 or 19.0% over yesterday's $36,821.13. This is a good digestion of offers and the spread is climbing, the deals are out there.

On average, these offers are seeking 0.0315 gold per CA$1.00, which is up .0001 or 0.0% from yesterday's 0.0314. The eCanadian government approved an issue of CA$40,000 five days ago.

The eCanadian government approvals made during the life of this study are as follows:
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

I'm currently recommending to move to CA$ as arbitrage is opening up and the CA$ is on the rise.

Local Market



The offers of gold totaled 167.46, up 64.26 or 62.3% from yesterday's 103.20. The CA$ sought in return for offers of gold averaged $34.079, down by $0.014 or 0.0% from $34.093. This is a record low (third day running) for the price of offers, the CA$ is approaching an all-time high in value.

The holders of gold have been firm in the $34.3 to $34.7 range for nearly two weeks, the CA$ has finally broken through.

The lowest offer for 1 gold was CA$33.999.

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$34.079; this is an all-time high for this study and has been near here for 14 days. The international rate is 0.0315. The arbitrage, or spread between the two, is 0.0022; this is a decent spread but the important thing to note is that its growing, boding well for a high volume trading period. I've seen this cycle once in the past and after a bottoming out, a rapid increase ensues and a 2 to 3 day window of profitability opens up. Be ready, it's upon us!!!

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 0.0312 and is unchanged from yesterday.

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