CPM: Money-market (Day 679)
Day 679, 17:34
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Published in Canada 
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by
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by Addy Lawrence
Day 679
Today, I get to stretch my image legs, let me know what you think about the charts.
International Market
The pool of CA$ offers on the market continues to drop, offers totaled $11,644.86 which is down $2,745.47, or 19.1%, from $14,390.33 yesterday. This is the lowest balance of offers noted since the study began on Day 662.
On average, these offers are seeking 0.0291 gold per CA$1.00 which is even with yesterday. The CA$ has enjoyed a 10 day run at this level, a remarkable standard of consistency, its almost as if the dollar has chosen to spite me decided not to fluctuate.
The eCanadian government approved the issue of CA$30,000.00 on Day 663 (sixteen days ago) and and another $40,000.00 on Day 671 (eight days ago). The CA$ dropped 10 basis points after the first approval but it hasn't moved much with the second. The CA$ was trading at .291 gold at the time of the most recent approval, I'm still waiting for the shoe to drop.
If you are holding Canadian, I recommend to move to gold as CA$ appears headed for a drop. For the record, on day 674 I predicted it will hit 0.0283 by day 680. It is becoming clear that my time is running out, however, there is still one more day.
Local Market
The offers of gold totaled 145.00 and is down 45.09, or 23.7%, over yesterday's 190.09 gold. With a decrease in the pool of gold being offered, the price in CA$ became less competitive, the average offer of gold sought CA$36.687 in return, up slightly by $0.007 or 0.0% from yesterday's $36.680.
The gold available to holders of CA$ is down. 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$35.248.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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$35.687. The international rate is 0.0291. The arbitrage, or spread between the two, is 0.0011. This tight spread will slow down the trading activity as it is difficult for gold holders to find a third instrument within that spread.
Who's your daddy? Addy's your daddy!!!
Today, I get to stretch my image legs, let me know what you think about the charts.
International Market
The pool of CA$ offers on the market continues to drop, offers totaled $11,644.86 which is down $2,745.47, or 19.1%, from $14,390.33 yesterday. This is the lowest balance of offers noted since the study began on Day 662.
On average, these offers are seeking 0.0291 gold per CA$1.00 which is even with yesterday. The CA$ has enjoyed a 10 day run at this level, a remarkable standard of consistency, its almost as if the dollar has chosen to spite me decided not to fluctuate.
The eCanadian government approved the issue of CA$30,000.00 on Day 663 (sixteen days ago) and and another $40,000.00 on Day 671 (eight days ago). The CA$ dropped 10 basis points after the first approval but it hasn't moved much with the second. The CA$ was trading at .291 gold at the time of the most recent approval, I'm still waiting for the shoe to drop.
If you are holding Canadian, I recommend to move to gold as CA$ appears headed for a drop. For the record, on day 674 I predicted it will hit 0.0283 by day 680. It is becoming clear that my time is running out, however, there is still one more day.
Local Market
The offers of gold totaled 145.00 and is down 45.09, or 23.7%, over yesterday's 190.09 gold. With a decrease in the pool of gold being offered, the price in CA$ became less competitive, the average offer of gold sought CA$36.687 in return, up slightly by $0.007 or 0.0% from yesterday's $36.680.
The gold available to holders of CA$ is down. 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$35.248.
Arbitrage
Arbitrage represents the opportunity to make money via trading currencies. The opportunity exists if you can find another currency which trades with CA$ 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$35.687. The international rate is 0.0291. The arbitrage, or spread between the two, is 0.0011. This tight spread will slow down the trading activity as it is difficult for gold holders to find a third instrument within that spread.
Who's your daddy? Addy's your daddy!!!
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Comments
Sorry about the graphs guys, I'll keep working on it, I've finally figured out how to include them in the article, I'll have to toy with the resolution to get it right.
I don't like the format of Erep newsletters at all. I have all sorts of trouble with hyperlinks not working, and the fact the pictures are not clickable thumbnails that open into other windows is silly. Not all of us are html lingo experts, and even if we were I am not sure it would even work.
Nonetheless, I think your logic is sound regarding the gold vs CAD. Perhaps it's going to take a little longer than you think, but I can't see how it wont be impacted. Although considering all the new players joining up every day, perhaps firing up the ol' printing press won't devalue the currency? There is a larger pool of CAD, but also a larger pool of ECanadians who are earning/trading/buying etc. It would be interested to chart the increase in eCanadians, and find out how it compares percentage-wise with the increase in CAD. I could see that slowing downany inflationary results from the increase in CAD
Thanks for the feeback Temujin. I started to track the eCanadian population, unemployment rate, imports and exports on my weekly update (Commodity, Product, Labour), there will be some trend charts there as I have three weeks of history in the works.