Canada Is Now “Burning Furniture” To “Heat The House”

Canada is selling off its gold reserves:

Back in the 1960s, Canada held more than 1,000 tonnes of gold. But it began steadily selling off its hoard, and by 2003, the country had just 3.4 tonnes.  Now, Canada has less than one tonne.  (CBC News – a division of the Canadian Broadcasting Corporation)

Contrary to the recent “Pet Rock” theories, gold is perhaps the most liquid asset in the world next to Treasuries.  When an entity is reduced to selling assets as a last resort like this, it’s analogous to a household having to burn its furniture in the winter in order to heat the house.

Somewhat reminds me of when the Bank of England dumped half of its gold reserves at the bottom of the 1981 – 2000 gold bear market, marking the beginning the current secular bull market in precious metals.

 

8 thoughts on “Canada Is Now “Burning Furniture” To “Heat The House”

  1. If us Canadians wanted to build Gold reserves …. we could do the same thing as China or Russia and buy domestic production ….. however, the Canadian politicians are too stupid, and when they vigorously start buying Gold to rebuild the coffers, that’ll likely signal we are close to the top in Gold.

    1. more likely our canadian politicians take their orders from their anglo-american masters.

      agreed, buy when they sell and sell when they buy.

  2. Clif High says gold, silver and Bitcoin are about to rocket higher based on his analysis of data returned by his web bot. Stack em up.

  3. The good ole Canuck puppets. The US pulls the strings and Canada supplies enough gold to the market to keep the COMEX clown show going for another two months.

    Keep up the great work Dave!

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