It’s Official: Canada Has Sold All Of Its Gold Reserves
Something strange was noticed during the past month when observing the last official international reserves of Canada, and it is that Canada had sold almost half of its gold reserves in a month. According to February data, total Canadian gold reserves stood at 1.7 tons. That was only 0.1 percent of the country’s total reserves, which also include deposits and bonds in foreign currency.
Now, talking to experts in the area is about understanding what has happened. That being the case, according to economist Ian Lee of the Sprott Business School at Carleton University, Ottawa has no real reason to keep its gold reserves aside from adhering to tradition.
In fact, Lee has accurately stated, “Under the old system, (gold) backed up currencies”, also said, “The US dollar was tied to gold. One ounce was worth US $ 35. Then in 1971, for lots of reasons I will not get into, Richard Nixon took the United States off the gold standard. “
In the modern financial world, gold is not considered a form of currency
Lee has also indicated that in the modern financial world, metal is no longer considered a form of currency. “It is a precious metal, like silver … they can be sold like any asset”.
Therefore, the amount of gold that the Canadian government owns has been declining steadily since the mid-1960s, when more than 1,000 tons were kept hidden. Half of those reserves were sold in 1985, and then almost all of the rest were sold from the 1990s to 2002.
Now, the Canadian Finance Department today launched its last official international reserves and, as of this moment, it is already official: Canada has “eliminated the tradition” and still does not have gold.
In this way, the government of Canada sold 21,851 ounces of gold coins for liquidation in February. On February 29, gold holdings stood at 77 ounces. The valuation is based on the correction of the afternoon of February 29, 2016, in London, of US $ 1,234.90 per ounce.
Therefore, it could be said that Canada can now concentrate on buying better assets.
Source: Tyler Durden | ZeroHedge