Canada is a gold mine

 Canada is a gold mine

COVID-19 is proving to be more resilient than we hoped for, and as a result we see many countries entering into recession.  And because holding gold in reserve is so important for countries during recessions, it is even more disturbing that the Trudeau government has not only sold off the last of the Canadian gold reserves, they are also allowing the selling off of Canadian-owned gold mines. 

 

Reuters (Dec 22, 2019) reported that the Zigin Mining Group, one of China’s biggest gold miners, has entered into an agreement to buy Canadian miner Continental Gold Incorporated for 1.33 billon, saying the purchase would increase its gold reserves and boost cash flow as well as profits. Who is this “it”? This is very good for China, but what does it accrue to the Canadian public? Nothing, nada. No jobs. No income or taxes for Canadians in general, and further because this gold mine is in Columbia. The Canadian company “has suffered its share of security problems. Four employees were killed in a single month last year, one near Buritica and the others at a different exploration site”. Security problems? What does that mean exactly? Does it mean that employees were killed for trying to steal gold? Or that the Indigenous people were protesting? We don’t know what the actual situation is. But anyway let’s hope that China will take of the security problems as it has had so much experience with security problems of its own.

 

And closer to home there’s another Canadian gold mine poised to be sold. The headline of Nunavut News (May 21^st, 2020) is “Chinese ownership of Nunavut’s resources stokes unease”. If this goes through, the Chinese have will have ownership rights on Canadian soil. I am not trying to bash China. It’s doing what it thinks is in the best interest of its country and people, and buying up gold and gold mines makes good sense. But not Canada. While Canada’s done so well with the health of its citizens during COVID-19, it is failing us by treating gold as a non-essential or important to ensuring our country’s long-term health. 

 

For the conservatives to try bring down the Trudeau government on the WE Charity issue is, while not minor, also not a major issue for Canadians at this time. For many, like me, it’s more of an irritation when there are world shaking events that need our attention. In my opinion the Trudeau government and other governments preceding it have been changing rules and regulations in the banking system that will make your hair stand up. Next time