Posted on 03/03/2016 10:29:50 AM PST by blam
Tyler Durden
March 3, 2016
One month ago, when looking at the latest Canadian official international reserves, we noticed something strange: Canada had sold nearly half of its gold reserves in one month. According to the February data, total Canadian gold reserves stood at 1.7 tonnes. That was just 0.1 per cent of the country’s total reserves, which also include foreign currency deposits and bonds.
As we noted, the decision to sell came from Finance Minister Bill Morneau’s office.
“Canada’s gold reserves belong to the Government of Canada, and are held under the name of the Minister of Finance,” explained a spokesperson for the Bank of Canada on Wednesday. “Decisions relative to gold holdings are taken by the Minister of Finance.” Reached by Global News on Wednesday evening, a spokesperson for the finance department said the sale “was done in the normal course of business for the government. The decision to sell the gold was not tied to a specific gold price, and sales are being conducted over a long period and in a controlled manner.”
This latest sell-off is indeed part of a much longer-term pattern of moving away from gold as a government-held asset. According to economist Ian Lee of the Sprott School of Business at Carleton University, Ottawa has no real reason to keep its gold reserves other than adhering to tradition.
"Under the old system, (gold) backed up currencies,” Lee explained. “The U.S. dollar was tied to gold. One ounce was worth US$35. Then in 1971, for lots of reasons I won’t get into, Richard Nixon took the United States off the gold standard.”
Gold and dollars were interchangeable until that point, he said, but in the modern financial world, the metal is no longer considered a form of currency.
(snip)
(Excerpt) Read more at zerohedge.com ...
They need cash to pay for a wall along their southern border.
They’re gonna make us pay for it. :-(
Well, we’re covered for this year’s budget. Next year, we’ll tax all IRA money over $50K at 25%; they’re rich anyway. After that, it will be the next guy’s problem.
What a croc.....”no longer considered a form of currency...” By whom? Only governments that want to keep the value of their fiat currencies.
Why then is China buying so much gold? Banks? Others? Why is the price of gold UP?????
Because THE WORLD still values gold as currency........
Glenn Beck sure talks a lot about what a good investment gold is.
Ah, but that Alaskan border, though.
STILL OPEN!
Trudeau's Message to World: Let Government Spending Do the Work
Trudeau is Canada's Bernie Sanders, whom I believe also converted to Islam.
But what about its strategic maple syrup reserves? (yes that is a real thing in Canada)
Sell low, Buy high
Who is buying all the gold?
Can’t sell without a buyer.
You should see my backyard.
Norway pretty much liquidated our gold reservers a bit more than a decade ago.
Typically for our inept conservatives at a low point on the gold price.
Instead the oil fund is buying stock and property.
I bet they made a lot of money selling gold mapleleafs though.
Sell all you want, we'll make more................
So they can sell it to YOU !!!
My guess - China.
Premiers uneasy about national carbon price, as Ottawa weighs unilateral action, Trudeau needs money for his Pet Muslims
They elected a Prime Minster who ran on a promise massively deficit spend. What did you think would happen?
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