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Canada, a Major Gold Producer, is now a “Gold Free Zone?”

...a pack of wild dogs ate it...and my homework...

Canada's Kinross Gold Mine

Canada’s Kinross Gold Mine

Canada has used up all of its gold reserves. For the first time since 1935 the country is out of gold.

The volume of gold reserves in Canada has declined steadily over the past 50 years. In the mid-1960s, Canada’s gold reserves exceeded 1,000 tons. By 1985, half had been sold. In 2015, the reserves were down to three tons and now the country has no gold left.

© fin.gc.ca

According to Finance Department data, Canada sold 41,106 ounces of gold coins in December and another 32,860 ounces of gold coins in January. The remaining 21,929 ounces were sold in February.

© Michael Dalder

“The government has a long-standing policy of diversifying its portfolio by selling physical commodities (such as gold) and instead investing in financial assets that are easily tradable and that have deep markets of buyers and sellers,” Finance Department spokesman David Barnabetold CBC in February, when Canada was left with $24 million worth gold in its reserves.

By comparison, the United States had 8,133 tonnes of gold (261.5 million troy ounces) at the end of 2015, worth almost $300 billion, according to the World Gold Council, which amounted to more than 72 percent of its total foreign reserves.

“These days, gold has no legal purpose that is required under monetary policy,” Ian Lee, a professor at the Sprott School of Business at Carleton University in Ottawa told the Globe and Mail. The link between banknotes and gold has steadily disappeared in the second half of the 20th century.

However, many are calling for currency to be backed by gold again. Among them is Ted Cruz, who is running for the Republican nomination for US president. The Texas senator has suggested America should return to the gold standard.

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Posted by on March 5, 2016, With 1063 Reads Filed under Economy & Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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3 Responses to "Canada, a Major Gold Producer, is now a “Gold Free Zone?”"

  1. DJ C  March 5, 2016 at 8:27 pm

    Well, actually Canada has plenty more gold left and it may be looking to mine it. That’s the gold in the possession of the Canadian public.

  2. CoJonesGrandes  March 5, 2016 at 9:11 am

    What? No more deep storage gold in Canada? What’s next? Plutonium in Ft Knox?

  3. NotAVeteran2  March 5, 2016 at 8:46 am

    ooh god, so Canada thinks it’s okay to sell of a touchable good that has maintained (at least) a certain amount of value throughout human history for some paper not worth the wood it’s printed on, that will have ‘completely zero’ value once the other party renegs on the deal???
    (and it’s quite easy to reneg an a paper deal)

    Are they actively steering toward failure?

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