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Bronze Plug

Day 674 (Congressional Elections)

I am compiling the data now, in the meantime, I'd like to make a shameless plug for myself, please vote Addy for Congress in Newfoundland, I'm running on the CPF (Canadian Progressive Front) Ticket.

Flat taxes, I'm your daddy!!! Vote for Addy!!!

http://www.erepublik.com/en/article/cpm-congressional-platform-for-addy-lawrence-942401/1/20

Note that today's report compares to yesterday, the theme for today is digestion.

International Market

There is still a large pool of CA$ offers on the market, offers totaled $25,480.09 which is down $2,287.27, or 8.2%, from yesterday's $27,767.36. Offers have exceeded $25k for six days running.

On average, these offers are seeking 0.0293 gold per CA$1.00 which is even with yesterday, for the fourth day running. This is amongst the lowest rates I have observed since I commenced the study on Day 662. Perhaps some sort of equilibrium is being reached here, I don't know of a reason why but 0.0293 seems to be a sticky point.

The eCanadian government approved the issue of CA$30,000.00 on Day 663 (twelve days ago) and and another $40,000.00 on Day 671 (four days ago). I surmise that it will take 5-7 days for the second approval to take root but look for the CA$ to take 10 basis point hit based on how the first approval went. 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, what the heck, I'll go out on a limb and predict it will hit 0.0283 by day 680.

Local Market

The offers of gold totaled 198.91 and is up considerably, 62.55 or 45.9%, over yesterday's 136.36 gold. These additional offers stayed in line with the pool of offers over previous days as they are seeking CA$35.691 in return, up slightly by $0.006 or 0.0% from yesterday's $35.685.

The gold available to holders of CA$ is up. The competition for the CA$ amongst gold-holders is maintaining the strength of 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. All logical economic reason points to an increase in the number of CA$ per gold in the near future.

The cheapest offer for 1 gold was CA$35.000.

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$35.691. The international rate is 0.0293. The arbitrage, or spread between the two, is 0.0013, no change from yesterday. This tight spread is likely why we see a high number of CA$ offers (it is tougher for gold holders to find a third instrument withing that spread).

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