Canada made one of the quietest — and most controversial — decisions in modern reserve management.
In the 1960s, Canada ranked among the world’s top gold holders, sitting on 1,000+ tonnes of bullion. Back then it was worth about $1.15B. In today’s terms? Well over $150B.
Instead of holding, successive governments slowly unwound the position. Year by year, tonne by tonne, the gold was sold. By 2016, Canada had crossed a historic line — becoming the only G7 nation with virtually zero gold reserves.
The logic seemed sound at the time: • Gold pays no interest
• Storage and security cost money
• Liquid, yield-bearing foreign assets looked “smarter”
So Canada chose income over insurance.
Fast-forward to today — and that decision looks very different.
While Canada exited, the U.S., Germany, China, and others doubled down, treating gold not as an investment, but as monetary protection. A hedge against currency debasement, sanctions, and systemic shocks.
With gold repeatedly proving its role during crises, many now see Canada’s move as a costly misread of risk — trading long-term resilience for short-term efficiency.
History has a way of repricing decisions.
Gold just keeps reminding us. 🥇
