The Last ContangoBasis Report All the major currencies fell this week, with the dollar down about 0.2mg, (graphs of the currencies priced in gold are here). Cyprus continued to dominate the financial news this week, with one plan after another proposed and rejected. Meanwhile depositors can’t withdraw euros from their bank accounts in the [...]
http://monetary-metals.com/wp-content/uploads/2018/02/MM-MonetaryMetals-Unlock-Homepage-295x62.png00Keith Weinerhttp://monetary-metals.com/wp-content/uploads/2018/02/MM-MonetaryMetals-Unlock-Homepage-295x62.pngKeith Weiner2013-03-25 00:48:312018-03-07 03:05:16Monetary Metals Supply and Demand Report: March 24, 2013
2replies
allenching says:
the 0.4% is p.a. right? if p.a., it is not fair to mention “get that return for just over 60 days” as I doubt if investors can get a similar arbitrage opportunity after 60 days. In theory, investors can only get that 0.4% absolute return if he can immediately enter into another similar arbitrage opportunity. This is a rare case so I think you should either mention an absolute return in this case or drop the word “just” which misleads readers the shorter the number of days, the better. In fact, the longer the number of days, the better as investors do not need to ‘roll’ their arbitrage so often.
allen: I say “just” 60 days because the arbitrageur does not need to lock up his capital for very long. Yes, the 0.4% is per annum. What other 2-month investment can yield 0.4%?
the 0.4% is p.a. right? if p.a., it is not fair to mention “get that return for just over 60 days” as I doubt if investors can get a similar arbitrage opportunity after 60 days. In theory, investors can only get that 0.4% absolute return if he can immediately enter into another similar arbitrage opportunity. This is a rare case so I think you should either mention an absolute return in this case or drop the word “just” which misleads readers the shorter the number of days, the better. In fact, the longer the number of days, the better as investors do not need to ‘roll’ their arbitrage so often.
allen: I say “just” 60 days because the arbitrageur does not need to lock up his capital for very long. Yes, the 0.4% is per annum. What other 2-month investment can yield 0.4%?