The original title was somewhat
misleading and intended as satire, but it does highlight a serious issue
through today’s lens: central banks and nations worldwide are increasingly
turning to gold to replace what some call “monopoly money.” Yet, according to
official data, Canada has none.
It’s not just hearsay. Figures
from the World Gold Council confirm that Canada’s reported gold
reserves are zero. By contrast, even a tiny nation like Malta—spanning a mere
316 km² (122 mi²) in the middle of the Mediterranean Sea—holds 0.19 tonnes of
gold. So the question remains: why does Canada have none?
Canada: the land of hockey, maple
syrup, and… absolutely zero gold reserves. While most nations are sitting on
shiny piles of gold like dragons in a fairy tale, Canada decided it’s just not
our style. Perhaps we thought, “Who needs a
treasure chest when you’ve got Tim Hortons and Niagara Falls?”
But what’s the real story behind
Canada’s glitter-free vault? Is it fiscal brilliance, sheer indifference, or
did someone just forget to lock the vault door? Join me as we explore the
curious tale of why Canada said “thanks, but no thanks” to holding a single
gram of gold in its official reserves. Spoiler alert: it’s not what you’d
expect!
Canada wasn’t always a gold-free
zone. In fact, in the 20th century, we had a substantial stash. By 1965,
Canada’s official gold reserves peaked at approximately 1,023 tonnes, making us
one of the global leaders in gold holdings. At the time, gold was a cornerstone
of international trade and monetary systems—an emblem of stability for any
economy.
But the winds of change began to
blow. As the global financial system drifted away from the gold standard in the
1970s, Canada started to reconsider its golden hoard. Unlike countries that
held onto their reserves as a hedge against uncertainty, Canadian policymakers
saw gold as a less practical, less liquid asset. Over the decades, successive
governments quietly sold off portions of the nation’s reserves.
By the early 2000s, Canada’s gold
holdings had dwindled to just a few tonnes. Then, in 2016, the last remaining
ounces were sold. Officials argued that modern financial instruments—such as
government bonds—are more efficient and cost-effective. Gold, after all,
doesn’t pay interest, and storing it isn’t cheap.
But in today’s shifting global
landscape—where reserve currencies are being challenged—can having literally
zero gold reserves remain sustainable in the long run?
Stay figgy,
The Figured Figs Team 🌱
Disclaimer: “This
article is for informational purposes only and does not constitute financial,
investment, legal, or tax advice. Readers are encouraged to consult a licensed
professional before making any financial decisions."
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