CPM: Money-market (Day 665)
Day 665, 16:31
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Published in Canada 
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by
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by Addy Lawrence
International Market
There are much less Cdn dollars being offered for gold on the market today versus yesterday. Offers totaled $15,522.94, down $1,645.43 or 9.6% from yesterday's $17,168.37.
On average, these offers are seeking 0.0301 gold per CA$1.00 which is up 0.6% from yesterday's 0.0299 gold.
The eCanadian government approved the issue of CA$30,000.00 on Day 663 (two days ago) so this will bring down the value of the eCanadian dollar on international markets. If you are holding Canadian, move to gold to hold value, it appears to be headed for a drop. This was my advice yesterday as well and I'm sticking to it.
Local Market
The offers of gold totaled 123.80 and were up 57.45, a remarkable 86.6%, over yesterday's 66.35 gold.
The CA$ sought in return averaged $35.99, down $1.22 or 3.3% from yesterday's $37.21.
There is more gold available to holders of CA$ today than there was yesterday and the price dropped. With the recent issue of money by the Canadian government, 30,000 on Day 663, there is proportionately more CA$ available than gold so this trend will continue until that money is absorbed by the economy. The cheapest offer for 1 gold was CA$35.99.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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$35.99. The international rate is 0.0301. The arbitrage, or spread between the two, is 0.0024. Today's spread is smaller than yesterday's 0.0030. I surmise that there are folks out there that found an alternate currency that could take advantage of the relatively large spread yesterday, that would support the increase in gold offers on the local market.
Who's your daddy? Addy's your daddy!!!
There are much less Cdn dollars being offered for gold on the market today versus yesterday. Offers totaled $15,522.94, down $1,645.43 or 9.6% from yesterday's $17,168.37.
On average, these offers are seeking 0.0301 gold per CA$1.00 which is up 0.6% from yesterday's 0.0299 gold.
The eCanadian government approved the issue of CA$30,000.00 on Day 663 (two days ago) so this will bring down the value of the eCanadian dollar on international markets. If you are holding Canadian, move to gold to hold value, it appears to be headed for a drop. This was my advice yesterday as well and I'm sticking to it.
Local Market
The offers of gold totaled 123.80 and were up 57.45, a remarkable 86.6%, over yesterday's 66.35 gold.
The CA$ sought in return averaged $35.99, down $1.22 or 3.3% from yesterday's $37.21.
There is more gold available to holders of CA$ today than there was yesterday and the price dropped. With the recent issue of money by the Canadian government, 30,000 on Day 663, there is proportionately more CA$ available than gold so this trend will continue until that money is absorbed by the economy. The cheapest offer for 1 gold was CA$35.99.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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$35.99. The international rate is 0.0301. The arbitrage, or spread between the two, is 0.0024. Today's spread is smaller than yesterday's 0.0030. I surmise that there are folks out there that found an alternate currency that could take advantage of the relatively large spread yesterday, that would support the increase in gold offers on the local market.
Who's your daddy? Addy's your daddy!!!
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