In the 1960s Canada had more than 1,000 tonnes of gold but began steadily selling it off. Well, now what it has is 77 ounces of gold, primarily in gold coins. This is next to nothing for a national treasury.
Canada has no gold in its treasury. Why? Why did Canada sell all it's gold which makes The Bank of Canada rank dead last in the list of 100 major central banks world wide? And is it important?
What difference does it make? Well, it seems to be making a big difference to a lot of countries. Instead selling off their gold other countries have been very busy buying it...Europe, Russia, China and
the USA. Surely, a country's gold reserves must be important, or why would all these other countries be buying whatever they can of it? And what does the Bank of Canada and the federal government have to say about the selling of all of Canada's gold?
In an email to CBC News in Feb. 2016 written by Finance Dept. spokesman David Barnabe: “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”. According to senior Finance Dept. economist Moneau , "The reason for the gold sale was was the cost involved in storing the gold and the fact gold offers a poor return”.
I agree with The Gold Telegraph that this seems like strange logic since gold has out performed the S&P 500 since 2000. The price of gold went from $35.00 an once in 1967 to over $1,300 today. (More actually, since that article was written.) Following the sale of its gold Canada's market debt has surpassed $ 1 trillion in a historic milestone.
So what does Canada's national debt have to do with the price of gold?