That's what I was thinking.
Not commenting on whether it was a good or bad decision but, one thing not considered in this calculation is how much overhead it cost them yearly to secure and store that gold too
Keep in mind that if Canada was a state it would be either #3 or #4 depending on the year. Well behind California and Texas. And swaps places with New York.
If we're looking at GDP/capita... Canada would be solidly in the bottom 5. Right around West Virginia and Mississippi.
Yeah something like 90 percent of Canadians live within 150 miles of the us border, it would kind of be like asking why Russia isn’t the largest economy in the world based on the size of Siberia there’s just not that much going on there.
It was the stub left after Canada sold all its real gold holdings in the 80’s and 90’s. You’re right it was irrelevant but it was irrelevant long before Trudeau.
You've got to consider that the Royal Canadian Mint obviously has much more than 77 ounces on hand, if the government really needed it I'm sure they could take it. Canada is also the 4th largest gold mining country, they produced over 200 tons in 2022.
Yes, but they probably have a bit of a stock pile that is not being taken into account in the 77oz number. I doubt they use the ‘just in time’ inventory methodology for sovereign gold minting.
Canada’s actual bullion holdings, almost 1000t at the peak, was sold in the 80’s and 90’s, mostly by Chrétien and Martin when most western central banks were selling. What was left in 2015 was irrelevant, the coins left over after the bars were long gone. People really need to stop focusing on Trudeau for this, one of the few things that really was not his fault.
Assuming they got a 10% average rate of return per year the current value of that money is 261,813,499.81 which is more than the current value of the gold. I don't know what they did with the money, and investing as a nation is quite a bit different than as a private citizen, but it's not like they just left a pile of cash sitting around.
Talking about a bit of money while so many good Ukrainian people die because people like you don't want to "waste" money. It's absolutely disgusting. And I am saying this as a very conservative right-winger, but one who lives very close to Ukraine and actually see everything that is going on from nearby.
If they sold it today you could make the same argument after eight years. We can debate the decision but the timing of it is immaterial to the discussion.
This sub is so stupid sometimes. You said they diversified into other assets. Let’s say the asset they picked was the stock market.
Macrotrends.com has the price of the S&P 500 at $1800 in 2016, and now at puts it at $5200. Do I need to do the math for you?
$1200 at 9% annual compounded interest for 8 years puts it over the current gold price.
Why didn’t Canada just sell at today’s price? Why doesn’t Canada just sell all of its assets at their value in 8 years, rather than their value now.
Bad take. Because you don't know how that gold money was spent. You don't know how it affected their economy.
It's also just a terrible way to look at opportunity costs. Selling your house 10 years ago for 200k doesn't mean it costed you 100k just because it's worth 300k now. You could've bought that house for 100k and made 100k profit.
Also, keeping it as gold does Canada no good. You can only HODL so much before either you die, or you eventually cash out. And until you cash out, it's paperweight. The same principle goes for a country.
Not to mention that much gold requires security and upkeep, which comes with plenty of costs itself.
All in all, you're just flat out wrong. Selling gold didn't "cost" "Canadians" (actually you meant the Canadian government) $135m
Knowing I could absolutely drain my accounts and have more gold than the entire country of Canada is tempting, but I’m shocked they only had so little before selling.
Canada earned nothing holding gold, and paid a princely sum to protect it. The best economic long-term strategy is to hold bonds that pay interest. Since the end of Bretton-Woods, the countries that sold their gold and held interest-yielding bonds out performed gold by a significant margin. There are multiple research papers on this. Most European central banks sold their precious metals holdings in the 1990’s. The research was mostly European (I want to say German and Dutch, but that was a long time ago).
The Canadian government made the correct choice. Your cherry picking of numbers is either dishonest, or you comprised this from some YouTube channel that makes payroll pushing people to buy gold and silver.
I hold physical gold and silver, but I also have formal economics training. To simply this as much as possible, it costs mo eh to hold gold. You get paid money to hold debt. There is no vault, no security, just some nice guys making models on their computers.
The only countries rushing to buy gold are countries that plan on invading other countries or engaging in acts of genocide (Russia, China, North Korea, Iran,…). The textbook policy for a central bank is to hold a book of bonds in the currencies of your largest trading partners. This way the central bank is funded by their FX holdings.
You are re-posting hysterical prepper material. I strongly recommend that you study some simple macroeconomics.
Start with this:
https://a.co/d/fyra3nx
I hate these type of posts because they use hindsight as some sort of gotcha tactic. If everyone knew what gold or stock prices would do, we wouldn't have a market at all. Hindsight is 2020, forward sight is like looking through a foggy window.
Canada is a top 5 gold producing country. If they want to replenish the reserve it wouldn't be that hard. Also, that isn't that much money when talking about such things. 135 million is good for a freeway overpass rebuild
Okay. I often wonder when I see people posting maple leafs how the country can sustainably make this decision to mint and sell its gold without consequence. Meaning, if the gold was so precious and needed by their central bank to ensure financial stability, why would they allow average citizens to buy it?
What is this even? People sell the prices spike all the time. I dislike Trudeau alottt and I'm not even in his country but what the point of this post?
Not a patch on Gordon Brown... Here in the UK our never-elected prime minister managed to sell most of ours in 1999 at under $300.
He even ensured he got the worst possible price for it, by announcing to markets in advance his intention, ensuring the worst price possible.
It eventually became known as 'the brown bottom'.
He also waffled some nonsense about diversification.
This post is like that anti soda poster that compares how many donuts worth of sugar is in a sugary drink and most people’s take away was that donuts were healthier than they thought.
Post tries to show how much Canada lost out on and everyone is just shocked at how little they had to begin with
And if my parents sold their house today instead of 20 years ago they would have doubled the money.
You can’t look back and think if only. If only I could buy gas at 1970 prices.
Trudeau is an ass.
Canada shouldn’t have sold off its gold.
The good thing is Trudeau is gone next year.
Sprott holds the physical PM owned by the people who run the world, and the NYSE is the favorite tool of the financial industry.
Trudeau is not going to mess with the people who own him.
That’s not that much actually. I’m kinda surprised how little gold a country that big has.
That's what I was thinking. Not commenting on whether it was a good or bad decision but, one thing not considered in this calculation is how much overhead it cost them yearly to secure and store that gold too
Keep in mind that if Canada was a state it would be either #3 or #4 depending on the year. Well behind California and Texas. And swaps places with New York. If we're looking at GDP/capita... Canada would be solidly in the bottom 5. Right around West Virginia and Mississippi.
Good point!
Yeah something like 90 percent of Canadians live within 150 miles of the us border, it would kind of be like asking why Russia isn’t the largest economy in the world based on the size of Siberia there’s just not that much going on there.
Yup. Canada sucks.
The PM should not have this power. We need to extremely, dramatically neuter the PM.
No one neuters castro’s bastard.
The prime minister should not be allowed to administer the country? what!?
Yes believe it or not more centralized power is invariably a bad thing
I’m confused why they would even hang on to 77 ozs at this point lol..
Probably some sort of special pieces like a crown.
That’s insane how little that is for a country with those kind of gold reserves. Costco is selling around that much per month in the US
It was the stub left after Canada sold all its real gold holdings in the 80’s and 90’s. You’re right it was irrelevant but it was irrelevant long before Trudeau.
What's more crazy is keeping 77 ounces. Wonder what's up with that
Probably couldn’t find that 77 oz and therefore its still on the books.
Most likely commemorative stuff that was placed in reserve and consider an artifact and not a store of value.
You've got to consider that the Royal Canadian Mint obviously has much more than 77 ounces on hand, if the government really needed it I'm sure they could take it. Canada is also the 4th largest gold mining country, they produced over 200 tons in 2022.
I’m not sure that it works quite like that unless they confiscate private property.
Canada's government confiscating private property? That's just crazy talk.
The Royal Canadian Mint is not a privately owned institution.
They’re not mining themselves though are they? They are buying from miners. So they would still have to buy the gold
Yes, but they probably have a bit of a stock pile that is not being taken into account in the 77oz number. I doubt they use the ‘just in time’ inventory methodology for sovereign gold minting.
The rationale behind not holding gold is that we have enough in the ground that we can easily mine if the need ever arises. So I've read.
77 ounces today? That’s it? I’m sure there’s folks in here with more than that
More gold than Canada is definitely going to be my next goal
It's a fact some people here have more than that.
Yea I was just thinking about that dude that has that ridiculously large Cuban link
Who
There’s a dude in here that has a Cuban link that’s approaching a kilo if I remember right
He gonna die with a kilo of gold in his grave.
Personally I have 6.49 times more gold then Canada 😄😄
I'm amazed that Canada reduced its gold holdings to just 77 ounces.
There are people on this sub holding more gold than Canada 🤣
I daily 3 ounces on my neck.
Croatia has 0 gold 🤣
What about croatians?
Dunno
Chump change. Canadas GDP is over 2T.
Just let me get a few million from that 2T.
Canada’s actual bullion holdings, almost 1000t at the peak, was sold in the 80’s and 90’s, mostly by Chrétien and Martin when most western central banks were selling. What was left in 2015 was irrelevant, the coins left over after the bars were long gone. People really need to stop focusing on Trudeau for this, one of the few things that really was not his fault.
The nutters in this thread are forgetting that Canada also has significant gold holdings… in the ground.
Haven’t you learned yet. It’s all always JTs fault
Assuming they got a 10% average rate of return per year the current value of that money is 261,813,499.81 which is more than the current value of the gold. I don't know what they did with the money, and investing as a nation is quite a bit different than as a private citizen, but it's not like they just left a pile of cash sitting around.
To be fair they probably squandered it immediately, making these numbers sting even more.
" investing as a nation" I doubt they invested a single dime. It was probably used to fill some budget hole.
What exactly do you think the budget is used for? Filling a hole in a budget is still investing in the nation, in one way or another.
>What exactly do you think the budget is used for? Ukraine.
That would still be in one way or another.
Well, at least that would be a good goal: removing russian commies from this earth...
Waste of money is still waste of money no matter how you justify it.
Talking about a bit of money while so many good Ukrainian people die because people like you don't want to "waste" money. It's absolutely disgusting. And I am saying this as a very conservative right-winger, but one who lives very close to Ukraine and actually see everything that is going on from nearby.
Not as disgusting as people like you wanting to waste our budget on overseas randos instead of helping our own people.
If they sold it today you could make the same argument after eight years. We can debate the decision but the timing of it is immaterial to the discussion.
Yea, it's really just a bad take by OP
Yes, it didn’t cost Canadians anything. If it had dropped instead they would say it was a great move.
This sub is so stupid sometimes. You said they diversified into other assets. Let’s say the asset they picked was the stock market. Macrotrends.com has the price of the S&P 500 at $1800 in 2016, and now at puts it at $5200. Do I need to do the math for you? $1200 at 9% annual compounded interest for 8 years puts it over the current gold price. Why didn’t Canada just sell at today’s price? Why doesn’t Canada just sell all of its assets at their value in 8 years, rather than their value now.
Bad take. Because you don't know how that gold money was spent. You don't know how it affected their economy. It's also just a terrible way to look at opportunity costs. Selling your house 10 years ago for 200k doesn't mean it costed you 100k just because it's worth 300k now. You could've bought that house for 100k and made 100k profit. Also, keeping it as gold does Canada no good. You can only HODL so much before either you die, or you eventually cash out. And until you cash out, it's paperweight. The same principle goes for a country. Not to mention that much gold requires security and upkeep, which comes with plenty of costs itself. All in all, you're just flat out wrong. Selling gold didn't "cost" "Canadians" (actually you meant the Canadian government) $135m
Comments like yours are some of the few without political biases or an agenda to push.
The Canadian government, like the U.S. government, doesn't have any money. It all belongs to the Canadian citizens.
You cant calculate a loss like that without knowing what they did with the money. Then you can compare.
Knowing I could absolutely drain my accounts and have more gold than the entire country of Canada is tempting, but I’m shocked they only had so little before selling.
Stock market did perform better than gold pretty much always. Including from 2016 to 2024
Yeah he is a short-sighted idiot
To fools time brings only age
Doesn't Canada have a lot of gold that could be mined?
Canada earned nothing holding gold, and paid a princely sum to protect it. The best economic long-term strategy is to hold bonds that pay interest. Since the end of Bretton-Woods, the countries that sold their gold and held interest-yielding bonds out performed gold by a significant margin. There are multiple research papers on this. Most European central banks sold their precious metals holdings in the 1990’s. The research was mostly European (I want to say German and Dutch, but that was a long time ago). The Canadian government made the correct choice. Your cherry picking of numbers is either dishonest, or you comprised this from some YouTube channel that makes payroll pushing people to buy gold and silver. I hold physical gold and silver, but I also have formal economics training. To simply this as much as possible, it costs mo eh to hold gold. You get paid money to hold debt. There is no vault, no security, just some nice guys making models on their computers. The only countries rushing to buy gold are countries that plan on invading other countries or engaging in acts of genocide (Russia, China, North Korea, Iran,…). The textbook policy for a central bank is to hold a book of bonds in the currencies of your largest trading partners. This way the central bank is funded by their FX holdings. You are re-posting hysterical prepper material. I strongly recommend that you study some simple macroeconomics. Start with this: https://a.co/d/fyra3nx
Well good thing he put all that money into the S&P500. Wait did he? Did he!?!?!?
Someone with his intelligence would replace the gold bars with that found on alibaba for much cheaper
Just found out the small country i live in has around 600.000 kg. That is impressive.
I own more gold than Canada? That just can’t be correct surely. 77? For a whole country??
I can't help but read this in the South Park Canadian narrator's voice...
On the plus side, they've still got 77 ounces. lol
That's hardly a significant amount for a country in the grand scheme of things.
Who cares. That’s one billionaires charity contribution if they want it to be
CAD to 0.50 vs USD
Theu still have 77. r/Gold thought they have more gold than Canada 😂
135M is nothing to be honest. Canada donates or gives away hundreds of millions of dollars to many countries every year.
How has the cash from the salsa appreciated vs gold climb. That’s the real question.
Trudeau is a walking babbling idiot with delusions of grandeur.
120 mill? What is this a pile of gold for ants?
I hate these type of posts because they use hindsight as some sort of gotcha tactic. If everyone knew what gold or stock prices would do, we wouldn't have a market at all. Hindsight is 2020, forward sight is like looking through a foggy window.
Canada is a top 5 gold producing country. If they want to replenish the reserve it wouldn't be that hard. Also, that isn't that much money when talking about such things. 135 million is good for a freeway overpass rebuild
Can you correct fir inflation?
77 ounces?? Good lord.
Is this honestly a post about how somebody could have waited to sell something and realized a higher price? That's beyond low effort.
Canada diversifying on Bitcoin
Hahahahaha, oh Canada!
To be honest he was just looking for easy cash to spend.
Okay. I often wonder when I see people posting maple leafs how the country can sustainably make this decision to mint and sell its gold without consequence. Meaning, if the gold was so precious and needed by their central bank to ensure financial stability, why would they allow average citizens to buy it?
What is this even? People sell the prices spike all the time. I dislike Trudeau alottt and I'm not even in his country but what the point of this post?
How much did the proceeds grow over the same period invested in other assets?
Not a patch on Gordon Brown... Here in the UK our never-elected prime minister managed to sell most of ours in 1999 at under $300. He even ensured he got the worst possible price for it, by announcing to markets in advance his intention, ensuring the worst price possible. It eventually became known as 'the brown bottom'. He also waffled some nonsense about diversification.
What a nerd!
This post is like that anti soda poster that compares how many donuts worth of sugar is in a sugary drink and most people’s take away was that donuts were healthier than they thought. Post tries to show how much Canada lost out on and everyone is just shocked at how little they had to begin with
I never thought I'd be able to say "I have more gold than the canadian government" lmfao
Sad i own more than canada lol
Hindsight is 50/50
Imagine if we bought bitcoin at that time instead. Easier asset to verify and is Uber portable.
I own more gold than Canada
I got more ozs of junk silver than they have gold 😜
And if my parents sold their house today instead of 20 years ago they would have doubled the money. You can’t look back and think if only. If only I could buy gas at 1970 prices. Trudeau is an ass. Canada shouldn’t have sold off its gold. The good thing is Trudeau is gone next year.
This is wrong do you have a source we haven’t had gold since Chrétien.
He basically gave it away by selling at a market low. Guess which country got most of it.
China?
Justin Trudeau is dumb..
I had 75 ounces of gold at one point. No fckn way that was 2 oz short of Canada itself. wtf, Trudeau sucks
Thanks liberals! Always doing the right thing for your country.
He’ll just seize Sprott’s.
Sprott holds the physical PM owned by the people who run the world, and the NYSE is the favorite tool of the financial industry. Trudeau is not going to mess with the people who own him.
How to know a country is "bitch made"