At its most basic, arbitrage means little more than buying at one price in one market and then selling at a higher price in another. Sometimes that shift in market can be geographic, and at others – as is the case here – it can be a shift over time.

I just read an article about a guy called Bob Peterson in the United States who figured out that the market for college textbooks was unlikely to be stable. He did an analysis of online selling prices and found, sure enough, that prices swung widely through the year in line with the academic calendar. Prices were at their lowest in the summer and then went through the roof once the college year started. This was a discovery that enabled him to double his money each term by buying in summer and selling in the autumn.

Two things to take from this I think:

1. Why not copy this simple arbitrage system in the UK?

2. What other products display a similar demand cycle?

Maybe there’s a clue in the very last word I just typed!