Historical Peak of Canada’s Gold Reserves

Sylvain Faust
Originally completed February 14, 2025

This article explores Canada gold reserves, from their peak in 1965 to their complete liquidation by 2016, analyzing the policymakers responsible and comparing Canada’s approach to global trends.

Note: Unless otherwise specified, all dollar ($) figures in this document are U.S. dollars (USD).

TL;DR – The Rise and Fall of Canada’s Gold Reserves

Canada once held over 1,023 metric tonnes of gold in 1965, making it a significant holder of gold reserves. However, through successive government policies prioritising liquid assets over bullion, the country gradually sold off its gold over the following decades. By 2016, Canada became the only G7 nation with virtually zero gold reserves, a stark contrast to countries like the U.S. (8,133 tonnes), Germany (3,352 tonnes), and China (2,264 tonnes), which have maintained or increased their holdings.

This article explores Canada’s gold liquidation policy, identifying key Prime Ministers, Finance Ministers, and Bank of Canada Governors who oversaw the sales. It contrasts Canada’s decision with the global trend of rising central bank gold reserves, particularly in Russia and China, which have aggressively accumulated gold in recent years. The data highlights how Canada’s once-massive gold reserves were sold off at prices far below today’s value, making the decision increasingly controversial in hindsight.

Peak Reserves in the 1960s

Canada’s official gold reserves reached their all-time peak in the mid-1960s, when the Bank of Canada held approximately 1,023 metric tonnes of gold (about 32.9 million troy ounces) (And then there was none: Canada sells its gold – MINING.COM). This zenith occurred in 1965 (And then there was none: Canada sells its gold – MINING.COM). At that time, under the Bretton Woods monetary system, gold was a cornerstone of international reserves for many countries (And Then There Was None: Canada Sells its Gold – Resource World Magazine). Canada’s large holdings reflected this era when major currencies were linked to gold or the U.S. dollar (which was convertible to gold at a fixed price). In fact, prior to 1971 (when Bretton Woods ended), gold constituted the largest share of most countries’ reserve assets (And Then There Was None: Canada Sells its Gold – Resource World Magazine), so Canada’s buildup by 1965 was in line with global practices of the period.

Policy Changes and the Reduction of Gold Holdings

After 1965, Canada’s gold reserves began to decline due to significant policy shifts and strategic decisions:

• Assisting U.S. Balance of Payments (1960s): In the late 1960s, as the U.S. faced balance-of-payments pressures, Canada agreed to help stabilise the system by reducing its reserves. Notably, in 1966, Canada sold about $200 million of gold to the United States (Historical Documents – Office of the Historian) (approximately 5.7 million ounces, or 178 tonnes) as part of an agreement to ease U.S. financial strains. This marked the start of deliberate reductions in Canada’s gold stock.
• End of the Gold Standard (1971): The collapse of the Bretton Woods system in 1971 – when the U.S. ended dollar convertibility to gold – removed the formal requirement for gold backing in major currencies (And then there was none: Canada sells its gold – MINING.COM). After the world went off the gold standard, holding large gold reserves was no longer viewed as essential for currency stability. This global monetary shift allowed Canada to rethink its reserve composition.
• Official Diversification Policy (Post-1970s): In subsequent decades, Canadian authorities adopted a “long-standing policy of diversifying [the] portfolio by selling physical commodities (such as gold) and instead investing in financial assets” that are highly liquid (And then there was none: Canada sells its gold – MINING.COM). In practice, this meant gradually selling off gold reserves and reinvesting in interest-bearing foreign securities (like government bonds) and other foreign exchange assets. The rationale was that gold, unlike bonds, has no yield and incurs storage costs, so diversifying into easily tradable financial assets was seen as more prudent (And then there was none: Canada sells its gold – MINING.COM) (And then there was none: Canada sells its gold – MINING.COM).
• Steady Sell-Off (1980s–2000s): Canada’s gold holdings fell from 1,023 t in 1965 to about 500 t by 1985 (And then there was none: Canada sells its gold – MINING.COM), reflecting continuous sales over those 20 years. This trend continued through the 1990s. By the early 2000s, Canada had sold most of its remaining gold: “throughout the 1990s and up to 2002, Canada kept selling its gold” (And then there was none: Canada sells its gold – MINING.COM). For context, Canada’s gold reserves were down to roughly 46 tonnes by 2000 (Canada Gold Reserves – Trading Economics).

Crucially, these reductions were policy-driven. Both the Department of Finance and the Bank of Canada agreed to hold minimal gold. Officials like former Finance economist Don Drummond argued that gold yielded poor long-term returns and was costly to store, reinforcing the case for allocating reserves to other assets (And then there was none: Canada sells its gold – MINING.COM). This consistent policy course — started in the 1970s and maintained by successive governments — led to the near-elimination of Canada’s gold reserves over about four decades.

See also: F-35 Cancellation — Economic Risks & the Gripen Alternative for Canada, which analyzes another major Canadian policy decision with deep economic implications and long-term strategic trade-offs.

Current Gold Reserves and International Comparison

Today, Canada’s official gold reserves are virtually zero. As of early 2016, the Bank of Canada reported zero tonnes of gold in its official international reserves (And then there was none: Canada sells its gold – MINING.COM). (Only a token of 77 ounces of gold in coins remained on the books, essentially negligible (And then there was none: Canada sells its gold – MINING.COM) used for minting commemorative coins or other small-scale purposes by the Royal Canadian Mint.) Canada thus stands out as an extreme case — it became the only G7 country with no significant gold holdings (all other G7 nations hold at least 100 tonnes of gold in reserve) (And then there was none: Canada sells its gold – MINING.COM). In fact, Canada now ranks at the bottom among nearly 100 central banks worldwide in gold reserves (And then there was none: Canada sells its gold – MINING.COM).

This current position is a dramatic change compared to the 1960s peak. For perspective, Canada’s 1965 gold hoard of 1,023 t would place it among the top central bank holders in the world if it still held that amount. But instead, after years of sell-offs, Canada holds essentially none of its once-large gold stash. By contrast, other major economies have retained substantial gold reserves: for example, the United States still holds over 8,100 t, and countries like Germany, Italy, and France each keep 2,400–3,400 t in their vaults (And then there was none: Canada sells its gold – MINING.COM). Even the United Kingdom, which famously sold about 395 tonnes of gold between 1999 and 2002 (over half its reserves at the time) (And then there was none: Canada sells its gold – MINING.COM), stopped far short of zero and today holds several hundred tonnes.

Global trends have also shifted over time:

• In the late 1990s and early 2000s, a number of Western central banks were net sellers of gold (prompting coordination like the 1999 Washington Agreement to limit gold sales to stabilise prices) (And then there was none: Canada sells its gold – MINING.COM). Canada’s aggressive sell-off during this period was in step with that temporary trend of reducing gold reliance.
• However, since about 2010, central banks worldwide have turned into net buyers of gold (And then there was none: Canada sells its gold – MINING.COM), driven largely by emerging economies increasing their gold reserves. This makes Canada’s decision to completely exit gold even more unusual. As Canada was selling its last gold, many other central banks (in Asia, Russia, Europe, etc.) were adding to their stockpiles as a hedge and diversification strategy.

In summary, Canada’s gold reserves hit a historic high in 1965 at roughly 1,023 tonnes (And then there was none: Canada sells its gold – MINING.COM). In the decades that followed, major policy changes — notably the end of the gold standard and a deliberate diversification strategy — led Canada to sell off virtually all of its gold holdings. The peak era coincided with the Bretton Woods system when gold was king, whereas the sell-off era saw fiat currency systems and a preference for liquid, interest-bearing reserve assets. Today, Canada holds essentially no gold, a stark contrast to its 1960s peak, and an approach that diverges from most other countries’ practice of retaining sizable gold reserves (And then there was none: Canada sells its gold – MINING.COM) (And then there was none: Canada sells its gold – MINING.COM).

Sources:

• Bank of Canada / Bullion Management Group, “And then there was none: Canada sells its gold” (2016) – historical gold reserve figures and policy rationale (And then there was none: Canada sells its gold – MINING.COM) (And then there was none: Canada sells its gold – MINING.COM).
• World Gold Council data via Bullion Management Group (2016) – comparison of Canada’s holdings vs. other nations (And then there was none: Canada sells its gold – MINING.COM) (And then there was none: Canada sells its gold – MINING.COM).
• U.S. Department of State, Foreign Relations of the United States (1965) – Canadian agreement to sell gold to the U.S. in 1966 (Historical Documents – Office of the Historian).
• Bank of Canada/Resource World Magazine (2016) – context on Bretton Woods and Canada’s diversification policy (And Then There Was None: Canada Sells its Gold – Resource World Magazine) (And then there was none: Canada sells its gold – MINING.COM).
• Trading Economics – Canada’s gold reserve level in 2000 (Canada Gold Reserves – Trading Economics).

Canada’s Gold Reserves: Data Verification and Historical Timeline

Verifying Canada’s Gold Reserve Data

Peak and Decline: Canada’s official gold reserves reached a historic peak in 1965 at 1,023 metric tonnes (Canadian Press finds ignoramuses to provide cover for gold dishoarding | Gold Anti-Trust Action Committee | Exposing the long-term manipulation of the gold market). Thereafter, the country began gradually reducing its holdings. By the mid-1980s, reserves had fallen to roughly half that level (around 500 tonnes) (And then there was none: Canada sells its gold – MINING.COM) as Canada started diversifying away from gold. This sell-off trend continued through the 1990s; by 2002, Canada’s reserves were nearly depleted – only about 18.6 tonnes remained (And then there was none: Canada sells its gold – MINING.COM) (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um). In the ensuing years, the last remnants were sold. By early 2016, Canada’s gold reserves had effectively dropped to zero, with official reports showing a mere 77 ounces (mostly gold coins) left – essentially nothing in central bank terms (Canadian Press finds ignoramuses to provide cover for gold dishoarding | Gold Anti-Trust Action Committee | Exposing the long-term manipulation of the gold market) (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com). In February 2016, the Bank of Canada reported 0 tonnes of gold, marking a complete exit from gold holdings (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com).

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Policy Decisions: The continual sell-off was driven by deliberate policy decisions. Canadian authorities adopted a “long-standing policy of diversifying [the] portfolio by selling physical commodities (such as gold) and investing in financial assets that are easily tradable” (And then there was none: Canada sells its gold – MINING.COM). In practice, this meant converting gold into cash or interest-bearing foreign securities, which officials argued yielded better returns and liquidity than idle bullion (Canada sells gold, keeps shift into euro reserves, by Randall Palmer, 1/6/03). A Department of Finance spokesperson emphasized that Canada’s gold reserves are held in the name of the Minister of Finance, and “decisions relative to gold holdings are taken by the Minister of Finance.” (Canada sells off large chunks of its gold reserves – National | Globalnews.ca) In short, the federal Finance Minister – in coordination with the Bank of Canada – repeatedly chose to sell gold in favour of other reserve assets (like foreign currencies and government bonds). This strategic shift began around 1980 and was reaffirmed by successive governments over the following decades.

See also: U.S. Foreign Policy Reset – Strategic Infrastructure & Influence, a companion piece exploring how the U.S. is shifting strategy in a multipolar world through development diplomacy, infrastructure, and global partnerships.

International Comparison: These decisions made Canada an outlier on the world stage. By eliminating its gold, Canada “sold off all its official gold holdings, bucking an international trend” in which other central banks have been net buyers of gold since 2010 (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com). Today, Canada stands as the only G7 nation with virtually no gold reserves, whereas all other G7 countries hold at least 100 tonnes of gold (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com). (For context, the United States holds about 8,133 tonnes, and even the U.K. retains roughly 310 tonnes (Canada sells off large chunks of its gold reserves – National | Globalnews.ca).) Canada’s near-zero gold position puts it at the bottom of world rankings for official gold holdings (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com). This underscores how drastically Canadian policy diverged from the norm – a conscious choice to prioritize liquidity and yield over holding gold bullion.

The Decision-Makers Behind Canada’s Gold Liquidation: Prime Ministers, Finance Ministers, and Bank of Canada Governors

1965–1980s: Peak Holdings and Early Sell-Offs

• Lester B. Pearson (Prime Minister 1963–1968): Under Pearson’s leadership, Canada’s gold stockpile reached its apex. In 1965, the Bank of Canada held 1,023 tonnes of gold – the highest level ever (Canadian Press finds ignoramuses to provide cover for gold dishoarding | Gold Anti-Trust Action Committee | Exposing the long-term manipulation of the gold market). Pearson’s era did not yet see significant sales; gold was still considered a core reserve asset in the 1960s.

• Pierre Trudeau (Prime Minister 1968–1979, 1980–1984): Trudeau’s government presided over the end of the Bretton Woods era (gold standard) in 1971 and the transition to a fiat currency system. Through the 1970s, Canada’s gold holdings remained substantial, but by the late 1970s, the government began reconsidering their utility. After Trudeau returned to office in 1980, his administration initiated the first significant gold sales. With gold prices at record highs around 1980, the government saw an opportunity to sell. In 1980, Canada formally began selling off gold reserves, reinvesting the proceeds into interest-bearing foreign assets (Canada sells gold, keeps shift into euro reserves, by Randall Palmer, 1/6/03). Finance Minister Allan MacEachen (Trudeau’s finance minister from 1980-1982) oversaw these initial sales as part of a strategy to “convert [gold] into cash, which is liquid,” reflecting the view that bullion “sits… and collects dust” without yielding interest (Canadian Press finds ignoramuses to provide cover for gold dishoarding | Gold Anti-Trust Action Committee | Exposing the long-term manipulation of the gold market). Gerald Bouey, Governor of the Bank of Canada (1973–1987), worked with the Trudeau government during this shift; the Bank supported diversifying reserves as inflation and currency markets became the focus after the gold standard. By the time Trudeau left office in 1984, Canada’s gold holdings were already on the decline from their 1960s heights.

• Joe Clark (Prime Minister 1979–1980): Though in office for only nine months, Clark signalled a policy change regarding gold. In December 1979, the Clark government (with Finance Minister John Crosbie) announced plans to sell some of Canada’s gold reserves to better diversify the country’s foreign exchange reserves (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um). This plan came as gold prices were spiking to then-record levels, making a sell-off financially attractive. However, Clark’s minority government fell before the sales could be executed (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um). The proposal set the stage for the subsequent Trudeau government to act on a similar diversification principle.

• Brian Mulroney (Prime Minister 1984–1993): Mulroney’s incoming government embraced and greatly expanded the gold sale policy that started in 1980. In the mid-1980s, under Mulroney, Canada accelerated its gold disposals. The combination of high interest rates (making bonds attractive) and a need to modernize reserves led to large sell-offs in the late 1980s. As a result, Canada’s bullion holdings fell sharply. (One analysis notes Canada held about 625 tonnes at the end of 1985 and then began rapidly selling down after that (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um).) Mulroney’s Finance Minister Michael Wilson (1984–1991) presided over these hefty sales in the 1986–1990 period. By 1985, Canada’s gold reserves had already dropped to roughly 500 tonnes (And then there was none: Canada sells its gold – MINING.COM) (about half the 1965 level), and the sell-offs continued. Bank of Canada Governor John Crow (1987–1994), who took office in the late 1980s, was tasked with managing monetary policy during this steep reduction. While the Bank of Canada carried out the transactions, it did so under the policy direction of the Mulroney government and Finance Department. The late 1980s set the momentum for what would become an ongoing drawdown of Canada’s gold position.

1990s: Accelerated Gold Sales Under Mulroney and Chrétien

• Late 1980s to Early 1990s (Mulroney Government Continued): Canada’s gold sell-off greatly intensified from 1986 through 1993. During this period (spanning the end of Mulroney’s tenure and briefly his successor), Canada sold approximately 437 tonnes of gold (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um). This massive disposal reduced official gold reserves from about 625 tonnes in 1985 to under 190 tonnes by early 1994 (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um). Don Mazankowski, who became Finance Minister in 1991 (succeeding Wilson), continued the policy through the early 1990s. By the time Prime Minister Mulroney left office in June 1993 (and the short-lived government of Kim Campbell that followed in late 1993), Canada’s once-large gold holdings had been slashed to a fraction of their former size.

• Jean Chrétien (Prime Minister 1993–2003): After winning power in late 1993, Chrétien’s government carried on the drive to liquidate gold reserves. Chrétien’s long-serving Finance Minister, Paul Martin (1993–2002), was a key figure in this effort. In the mid-1990s, the pace of sales remained strong. Notably, around 1994, the government disposed of another large block of gold – about 67 tonnes in one go (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um) – further cutting the stockpile. After that, Ottawa steadily sold gold year by year. Throughout the late 1990s, Canada averaged nearly 12–13 tonnes of gold sold per year (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um) under Martin’s stewardship, continually reinvesting the proceeds into foreign currencies and securities. This sustained program drove Canada’s reserves down to just around 19 tonnes by 2002 (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um). Bank of Canada Governor Gordon Thiessen (1994–2001) was the central bank chief during most of this period; the Bank facilitated the sales as instructed, and Martin often reiterated the view that gold’s role was diminishing. By the end of the 1990s, Canada had largely exited gold at a time when many other countries still held substantial bullion. Chrétien and Martin’s policy reflected the same logic as earlier: that Canada’s fiscal and monetary interests were better served by liquid, interest-earning assets than by gold bars in a vault.

2000s: Nearing the Elimination of Gold Reserves

• Early 2000s (Chrétien/Martin Era): Coming into the 21st century, Canada had only a small vestige of its gold reserves left. By 2002, official holdings were down to roughly 18.6 tonnes (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um) (about 600,000 ounces). The government moved to sell even this remainder. In late 2002, while Jean Chrétien was still Prime Minister, Finance Minister John Manley (who succeeded Paul Martin in 2002) authorized a final major sale. In December 2002, Canada sold about 83,399 ounces of gold (approximately 2.6 tonnes) – roughly one-eighth of its remaining reserves at the time (Canada sells gold, keeps shift into euro reserves, by Randall Palmer, 1/6/03) (Canada sells gold, keeps shift into euro reserves, by Randall Palmer, 1/6/03). This sale took advantage of a modest uptick in gold prices and was part of the “long-standing drive” to get more return on reserves (Canada sells gold, keeps shift into euro reserves, by Randall Palmer, 1/6/03). After this transaction, Canada’s holdings stood at only ~599,000 ounces (about 18.6 tonnes) going into 2003 (Canada sells gold, keeps shift into euro reserves, by Randall Palmer, 1/6/03). Essentially, the country had nearly emptied its vaults, retaining just a token amount of gold.

• Paul Martin (Prime Minister 2003–2006): When Paul Martin became Prime Minister in late 2003 (after a decade as the architect of gold sales as Finance Minister), Canada’s gold reserve was already minimal. Martin’s government did not reverse course – no gold was bought back. Ralph Goodale, Martin’s Finance Minister (2003–2006), maintained the policy of holding foreign exchange and bonds rather than gold. During the mid-2000s, the remaining gold was mostly in the form of coins or small bullion holdings. No significant sales or purchases occurred in this period; effectively, Canada was sitting on a near-zero reserve and treating gold as non-essential. The Bank of Canada Governors David Dodge (2001–2008) and Mark Carney (2008–2013) managed monetary policy while gold formed only a trivial portion of the country’s international reserves. Canada’s official reports continued to show dwindling gold, dropping incrementally as small disposals or reclassifications were made. By the end of the 2000s, Canada’s gold reserve was down to just a few tonnes, if that, marking the virtual exit from gold that had been planned since the 1980s.

• Stephen Harper (Prime Minister 2006–2015): The Harper government stayed the course on Canada’s no-gold policy. Jim Flaherty, Harper’s Finance Minister from 2006 to 2014, and later Joe Oliver (2014–2015) did not initiate any gold purchases. They essentially oversaw a period in which gold holdings were stable at near-zero levels. Any residual gold (a few tonnes at most) was seen as surplus to requirements. The official international reserve reports during Harper’s tenure show Canada holding only a very small amount of gold (often in coin form) alongside tens of billions in foreign currencies and bonds. Notably, as other central banks worldwide started buying gold in the late 2000s (amid economic uncertainty), Canada did not follow that trend (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com). The policy of prior decades – viewing gold as a non-performing asset – remained in force. By 2015, Canada’s gold reserves were down to roughly 3 tonnes in total (according to IMF data) (Canada sells off large chunks of its gold reserves – National | Globalnews.ca), effectively the leftover bits awaiting final disposition.

2010s: Final Sales and the End of an Era

• Final Drawdown (2015–2016): Canada’s complete exit from gold was finalized in the mid-2010s. In late 2015, Prime Minister Justin Trudeau took office, inheriting a gold reserve of only a few tonnes. Trudeau’s Finance Minister, Bill Morneau, moved quickly to dispose of the remainder. Under Morneau’s direction, the Department of Finance sold off virtually all of Canada’s last gold holdings over the course of a few months. Official records show that as of late 2015 Canada still held about 3 tonnes of gold (Canada sells off large chunks of its gold reserves – National | Globalnews.ca). However, in early 2016, the government sold large chunks of this residual gold. By the end of January 2016, reserves had dropped to 0.62 tonnes (620 kg) (Canada sells off large chunks of its gold reserves – National | Globalnews.ca) (Canada sells off large chunks of its gold reserves – National | Globalnews.ca), and shortly thereafter, essentially zero. The Bank of Canada’s February 2016 report listed 0 tonnes of gold, confirming that Canada had sold its last gold (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com). (In fact, only ~77 ounces remained in the form of commemorative coins, which is negligible (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com).) This marked the first time in modern history that Canada’s official gold reserves were effectively empty.

• Decision-Makers and Rationale: The final sale was a clear execution of long-standing policy. Minister Bill Morneau’s office explicitly confirmed that the decision to liquidate gold was made by the Finance Department, in line with the idea that Canada’s gold reserves “belong to the Government of Canada” and are under the Minister’s authority (Canada sells off large chunks of its gold reserves – National | Globalnews.ca). Bank of Canada Governor Stephen Poloz (2013–2020) was at the central bank’s helm during this period. Poloz upheld the bank’s stance that holding gold was not necessary for Canada’s reserve objectives, pointing to the deep liquidity of alternative assets. Some commentators even dubbed Canada’s final sell-off as “Poloz’s Bottom,” likening it to the UK’s famous “Brown’s Bottom” gold sale episode (And then there was none: Canada sells its gold – MINING.COM). By selling when gold prices were relatively low (and after other countries had begun accumulating gold again), Canada potentially realized less value – a decision that has been debated. Nonetheless, the official justification remained consistent: diversification and financial returns. The Bank of Canada reiterated that it was following a “long-standing policy” to invest reserves in assets like foreign currencies, which are easier to trade, rather than in gold (And then there was none: Canada sells its gold – MINING.COM).

• Outcome: With the 2015–2016 transactions, Canada became the only G7 country with essentially no gold in its central bank reserves (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com). This outcome was the culmination of decades of policy decisions by successive Prime Ministers, Finance Ministers, and Bank of Canada Governors. It highlights a unique Canadian approach: prioritising liquid financial assets over gold bullion as the backbone of national reserves. As of 2016, Canada’s official international reserves consist entirely of currency, deposits, and bonds – gold is no longer part of the mix (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com). The historical peak of 1,023 tonnes in 1965 stands in stark contrast to the 0 tonnes held today, underscoring the dramatic long-term shift in Canadian reserve policy.

Sources:

• World Gold Council / Bank of Canada data (via news reports) confirming historical reserve levels (Canadian Press finds ignoramuses to provide cover for gold dishoarding | Gold Anti-Trust Action Committee | Exposing the long-term manipulation of the gold market) (And then there was none: Canada sells its gold – MINING.COM) (Why has our Bank of Canada sold most of its gold reserves ?? – memeBee #van4um).
• Statements by officials and experts on Canada’s gold sales policy (Canada sells gold, keeps shift into euro reserves, by Randall Palmer, 1/6/03) (And then there was none: Canada sells its gold – MINING.COM) (Canadian Press finds ignoramuses to provide cover for gold dishoarding | Gold Anti-Trust Action Committee | Exposing the long-term manipulation of the gold market).
• Department of Finance and Bank of Canada communications on final gold dispositions (Canada sells off large chunks of its gold reserves – National | Globalnews.ca) (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com).
• International comparisons of gold reserves (Canada vs. other nations) (Canada sells off gold reserves – a ‘Brown’s Bottom’ repeat? – BizNews.com) (Canada sells off large chunks of its gold reserves – National | Globalnews.ca).

Gold Reserves of the World’s Largest Economies: Then vs. Now

Notes:

• United States: The U.S. has maintained its gold reserves at approximately 8,133.5 metric tonnes since 1971, following the end of the Bretton Woods system.
• Germany: Germany’s gold reserves have remained stable over the past five years, with no significant additions or reductions.
• Italy and France: Both countries have kept their gold reserves relatively unchanged in recent years.
• Russia and China: These nations have been actively increasing their gold holdings. Over the past five years, Russia has added approximately 500 metric tonnes, while China has increased its reserves by about 700 metric tonnes.
• Japan and the United Kingdom: Both countries have seen minimal changes in their gold reserves in recent years.

This data highlights the varying strategies of major economies regarding gold reserves, with some maintaining stable holdings and others actively increasing their gold assets.

See also: F-35 Cancellation — Economic Risks & the Gripen Alternative for Canada, which analyzes another major Canadian policy decision with deep economic implications and long-term strategic trade-offs.

Conclusion: The Cost of Short-Term Thinking in Canada’s Gold Policy

Canada’s decision to begin selling its gold in the 1980s was initially not out of step with global trends. Many Western nations, including the United Kingdom and parts of Europe, reduced their gold reserves in favour of financial assets that offered liquidity and interest-bearing returns. The world had moved away from the gold standard, and central banks were adjusting their strategies. From that perspective, Canada’s early gold sales were not inherently unreasonable.

However, what sets Canada apart is not that it sold some gold, but that it sold everything. Other nations eventually halted their sales and maintained strategic reserves. Canada, by contrast, continued selling until 2016, when it became the only G7 country with virtually no gold holdings. This extreme approach raises serious questions about the long-term economic vision of Canadian policymakers.

Beyond just lost financial opportunity, Canada’s gold liquidation may have had a direct impact on the weakening of the Canadian dollar (CAD) over time. Gold serves as a stabilizing reserve asset and a hedge against currency devaluation. Countries like the United States (8,133 tonnes), Germany (3,352 tonnes), and even Russia (2,336 tonnes) have maintained or increased their gold reserves, ensuring a level of confidence in their currencies. Meanwhile, China has aggressively accumulated gold in recent decades, reinforcing its position in global markets.

By eliminating its gold stockpile, Canada has made the Canadian dollar more vulnerable to external market forces, interest rate fluctuations, and commodity cycles like oil and natural resources. Unlike the U.S. dollar, which benefits from its massive gold reserves, the CAD is now entirely dependent on fiat currency. This has left Canada uniquely exposed among major economies. Once close to parity, reserves hold value only if market confidence remains intact. Without gold, Canada lacks an intrinsic monetary safeguard that other nations continue to rely on.

This is not just a mistake in financial management; it is a failure of strategic economic foresight. Despite clear global trends of central banks accumulating gold as a hedge against financial instability, Canadian policymakers—across multiple administrations—continued selling until nothing remained. Was this due to a fundamental miscalculation, a lack of foresight, or an ideological bias against gold? Regardless of intent, the consequences of this decision are now evident.

This raises a fundamental question: Who made these decisions, and why did they fail to recognise gold’s enduring role as a stabiliser in uncertain economic times?

Canada’s complete gold liquidation is a case study of the dangers of short-term financial thinking overriding historical precedent and global monetary strategy. While it may be too late to undo these sales, the broader lesson is clear: economic policy should be guided by long-term resilience, not temporary gains, and Canada’s unique position as the only major economy without gold is a policy failure that should not be repeated.

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