According to the Ministry of Finance of Canada (http://www.fin.gc.ca/n16/16-030-eng.asp), Canada only has 77 ounces (0.0022 tonnes) of gold left in its official international reserves as of March 3, 2016.
Canada sold most of its gold in the 1990s with UK at the lowest price possible. Canada had 1,023 tonnes of gold reserves in 1965 the highest level recorded in its history. Canada sold off half of its central bank gold holdings by 1985 down to 500 tonnes and then was a major participant in the western central bank collusion scheme to suppress the price of gold and sold gold at fire sale prices all through the 1990s up to 2002.
If Canada kept its gold reserves of 1965 it would be today the 6th largest holder of official gold reserves.
One argument then was that Canada doesn’t need official gold reserves since it is one of the largest underground gold holders.
New argument I heard recently is that gold is no longer part of the international monetary system so therefore there is no need anymore to hold gold in official international reserves.
The February 3rd, 2016 announcement confirms therefore that Canada has completed the process of totally eliminating gold from its official reserves. I expect the remaining 77 ounces to be sold also in the very near future. This goes against the world trend since the 2008 financial crisis of increasing official gold reserves as you can see in the chart bellow. It also goes against any principle of modern portfolio diversification theory as well as against the old “relic of antiquity” principle of “don’t put all your eggs in the same basket”. As of February 3rd, 2016 Canada had close to 60% of its forex reserves in US dollars.
If, as I expect, this is the end of the correction in the gold market then we will call this bottom the Trudeau bottom, after the new prime minister of Canada, as we did when the UK sold a large part of its gold reserves in 1999.