Canada Has ZERO Gold Reserves – This Is A Big Mistake

Almost every central bank today they own Gold from the United States to China and Russia there's a global understanding That gold is true money and it is the Ultimate store of value and for the last Decade central banks they'll be buying Gold like no tomorrow they don't care if The price is a thousand or two thousand Dollars an ounce they know the ultimate Value of fiat currency is trash and just In Q3 alone central banks they bought 400 tons worth of gold the highest Amount over the last 12 years but that's One bank that's defying this trend and That is the Bank of Canada in fact they Have no gold reserves today and I Believe that is a horrible mistake if You take a look at Canada's foreign Reserves we can see they hold everything Under the sun except gold you have over 77 billion dollars worth of Securities And deposits plus if you throw in the Special drawing rights from the IMF they Have over 100 billion reserves but they Have zero gold on their books not a Single ounce you probably have more gold Than a Bank of Canada and it's really Starting to see a Global Central Bank That is all in paper instruments there's Totally sharp hard assets especially Precious metals and we need to talk About this because Canada might be Exposing itself to a lot of terrorists As we approach the end of the currency

Life cycle and here's the funny thing You actually think that Canada would Have more reverence more respect for Commodities especially gold after all They are the fourth largest producer of Gold in the world mining almost 200 tons A year just slightly behind Russia and Australia it is a 14 billion dollar Industry and they export their gold Bullion to all parts of the world right But they refuse to hold any in their Votes now in this video we're gonna do a Deep dive into why Canada has sold off All their gold at the bottom of the Market head is insane why it doesn't Make sense and why it is definitely a Bad idea today and if you travel back in Time Canada had over 1 000 tons in 1965 But the government has been selling off All their physical gold with the last Round done sold in the early 2000s and Since 2020 we are seeing Global money Printing like never before and inflation In Canada is almost seven percent Holding just paper assets isn't the Smartest move and if one day Canada Decides to restock their gold bullion Which I believe they will it will move The markets in a very big way now we're Going to ask ourselves what would cause A central bank to liquidate all their Gold and it's in central Bankers they Have horrible timing when selling off Their gold reserves we just need to

Recall Gordon Brown's decision to sell Half of Britain's gold reserves at the Bottom of the market between 1999 and 2002. the gold price was at an all-time Low of 300 an ounce at best and this was Also roughly the same time period that Canada also sold off their goal Holdings And since that time the price of gold Has skyrocketed and gone up by 600 Percent you can't time a worst trade Other than buying Bitcoin at 60 Grand a Year ago so why did Canada sell their Gold and according to the former Bank of Canada the Governor David Dodge he gave The most bizarre reason why they decided To offload their Holdings it's really a Twilight Zone reason that you won't Believe and according to him it's quite Clear that it caused the whole goal Whereas foreign us or Chinese or Euro-born yields give you a return and He goes on to say holding this antique Instrument of stability called gold Really didn't make any sense and we need To debunk his statements with the Benefit of hindsight because we can Objectively determine that the Bank of Canada they made a horrible mistake Liquidating its goal reserves they are All in with paper assets and Fiat Instruments that even aren't terrified Of just looking at their Reserve balance Sheet so let us compare the returns of Gold versus bonds which is most likely

What the Bank of Canada bought using the Proceeds of the sale now the problem With David Dodge idea of chasing you is That he's ignoring the reality of Inflation and money printing yes gold Pays no yo it pays no dividends but it Holds its value world of returns from Paper instruments are eroded by Inflation and let's assume that the Bank Of Canada puts the majority of the cash Proceeds into U.S treasuries the reserve Currency that heavy country still needs So there's very little exchange rates Here and let's say they took a thousand Dollars and they placed it in a 10-year U.S treasury that was yielding around Four to five percent in the early 2000s And let's be generous and give it a five Percent yield for 10 years and they hold It to maturity and then the Bank of Canada rolls that amount and they buy More 10-year treasuries for three Percent yield in 2011. so we have an Average of four percent yield from U.S Bonds spread out over 20 years very Simple math they would have turned the Initial one thousand dollars into almost Twenty two hundred dollars in 20 years And that looks decent right they have More than doubled their money right but Those returns are nothing compared to Just sitting on their goal if the Central Bank just held that goal they Would have experienced an incredible

Gain from 200 an ounce to almost 1800 Today that's almost a six times gain a Thousand dollars invested in goal would Return around 6 grand over the same time Period so selling gold for bonds was not A good financial decision it doesn't Matter if they bought Chinese American Or european bonds they can't keep up With inflation and especially today when Currencies they are all crashing against The dollar and this is the problem of Holding paper assets especially bonds Right now rates are rising causing Bond Values to fall and that means central Banks have no choice but to hold their Bonds or treasuries until maturity or if They do sell they'll take a haircut but If they just hold it to maturity the Interest payment still won't catch up With inflation a year of 3.7 treacheries Is nothing when inflation is easily Double that at around eight percent Holding bonds open you up to both Inflation and interest rate risk and the World beginning to see this David she Believes that the international monetary System is robust but I think he's Forgetting about how leverage the entire Financial system is and how Bond values Can crash even the Federal deserve is Sitting on tens of billions of losses as Jerome Powell continues to hike raids And this is happening globally however We need to understand why Canada was

Bold enough to dump all its goal and According to the economist Martin Murray He believes that Canada has tied their Fates with the United States he mentions How the Canadian dollar is a satellite Currency to the United States and Canada Can always rely on the U.S for financial Aid if they run into a liquidity crisis And what matters referring to is the U.S Dollar swap lines between Canada and the Federal Reserve so let's say Canada runs Into a dollar shortage they don't need To sell any gold in the open market they Can just tap into the currency swap line With the Federal Reserve let's change Canadian dollars plus a fee for US Dollars and yes it does solve the Immediate liquidity problem and the swap Line is very big at around 30 billion Dollars if I'm not wrong Canada can then Use these dollars to import Commodities Food oil and products from the world not Really oil I mean they're the biggest One of the biggest producers of all but The main issue here is a complete Reliance on the Federal Reserve and U.S Monetary policies basically the Bank of Canada has swapped away gold which has Zero counterparty risk for the help and Assistance of the United States a single Country one country and this opens up a Lot of questions what if one day Relations break down what if the dollar Goes to a currency crisis because of

Money printing or debt default and what Other stores are value does Canada have If an extreme scenario happens now all These are valid questions and this is The blind spot that Canada has and they Might want to remember that we live in A Brave New World where Murphy's Law is in Effect right anything that can go wrong Will go wrong and that's why holding Gold is so important and the majority of Central banks they do it it's usefulness Comes from its Simplicity you hold it You own it and there's no counterparty Risk attached to it it can't be printed From Teen air or debased away but Knowing all this why doesn't Canada buy More gold and this is where we need to Speculate a little bit it should be Obvious to everyone that Canada and the United States they are best friends in Fact Canada Supply 61 percent of America's crude oil imports so there is A symbiotic relationship between the two Countries and if Canada was to buy gold The U.S might see it as a slap to the Face remember gold is priced in US Dollars So when you buy gold you are Selling away the dollar and longing gold You're telling the world that you'd Rather hold a yellow piece of metal than A reserve currency or U.S treasury is Right and that's a geopolitical problem Canada is America's largest trading Partner ahead of China even and if they

Start dumping dollars for gold that Isn't a good sign for their relationship So in a sense Canada might be stuck they Can't buy tons of gold today without Raising eyebrows and causing the price To spike up but I believe they will Eventually have to make a move back into Goal if inflation continues to stay Elevated and if bond prices continues to Crash the Bank of Canada will be forced To sit on these assets until maturity And suffer the full effects of inflation We can already see them starting to lose Money for the first time ever thanks to Rising rates now if Canada decides to Stockpile gold they can easily do it we Can see key regions of the country all Producing gold especially in Quebec and Ontario in fact Canada still has 2200 Tons of gold sitting below ground that They can easily mine and this is gold That they can dig out refine and stop Power as reserves rather easily plus yet The Royal Canadian Mint which can refine Gold eternity to Big bars they can store On the central bank so Canada has Everything they need to build their gold Reserves without even importing from Overseas right and this is why it's Truly bizarre that a bank issued a Statement saying go Boolean is not Considered as liquid as for example U.S Treasury Securities and to the extent That physical delivery may be involved

Could entail significant cause for Secure transport and storage and it Seems they value convenience much more Than having a store of value without Counterparty risk and doesn't make sense To worry about storage and delivery Costs when they already have the Facilities and infrastructure to make it Happen and in a grand scheme of things This could be a classic case of Pennywise pound foolish but while Canada Isn't buying gold the rest of the world Is stocking up we have Eastern countries Including China and India stockpiling Gold like never before and even the United States isn't crazy enough to sell The 8100 tons of gold on the open market They know that holding the world's Largest stockpile of gold gives Credibility to both the economy and the US dollar remember it was the backing of Gold doing the Bretton Woods agreement In 1944 they helped propound the dollar As the reserve currency if all faith is Lost in a dollar the U.S at the very Least has a huge stockpile of gold to Restore some confidence not all but at Least some confidence in the system if We look down the list of countries with The most goal in their vaults we can see The most developed countries in the World all holding enormous stockpiles And that can go from five percent to Over 20 percent of their FX us we have

NATO members like Germany Italy and France having thousands of tons and Asian countries like China and India and Turkey also holding generous amounts of Gold the precious metals has so many Advantages they just make sense to put Some money there it holds no political Or counterparty risk it is a tier one Asset this sanction proof and apart from Bonds it is very liquid every country in The world will gladly swap their Currency for your physical goal that's Why it's very bizarre that the Bank of Canada thinks so little of gold and if I Was a central Banker I see two big reads They are looming on the horizon right we Didn't have to realize that inflation Has gotten out of control and coming Back down to two percent might not Happen for the next two five or even 10 Years and how our fiat currency is going To fare then and you might be getting Yield on your bonds but if the real Interest rate is still negative your Reserves are still down in purchasing Power and the second risk is not being Prepared if there's a global monetary Reset gold could come back as money and One what if the world does split into Two different monetary systems and what If Eastern countries like China decides To experiment the go back currency Canada won't have any physical gold to Boston confidence in the Canadian dollar

And in the United States the holder of The reserve currency is wise enough to Hold on to their physical goal perhaps Canada should follow suit because if a Revaluation or monetary reset happens And goals involved the Bank of Canada Might be forced to buy gold at Double or Even triple the prices today now maybe I Am wrong but I think the key to Investing is to buy an asset when it is Low and undervalued and not selling it At the bottom of the market and for you And I this is just further evidence that Gold is still not being taken seriously Enough around the world just ask Yourself guys when was the last time you Heard conversations about people talking About gold other than this Channel and Others like it right now I can tell you That most of the discussions I hear Around me about stocks and bonds and to A lesser extent real estate gold isn't Even on people's radar and mainstream Media isn't talking about it but what we Are seeing are signs that Fiat Currencies they are in trouble there's Been too much money printing going on Gold is Flowing from the West to the East and we are in a global currency Crisis so hang tight guys and let's Remember the bigger picture when it Comes to stacking gold if Canada does a U-turn and starts accumulating goal Again we could see another Gold Rush

Happen at other central banks they might Follow suit and stack even more but it Still boggles my mind that the country Is so blessed with natural resources Believing more in paper assets than Commodities but let me know what you Think the Canada make a good move by Selling off their goal reserves where Canada restocked their votes with gold Once again let me know in the comments Below stay safe be sure to smash the Like button and subscribe as we navigate Through this inflationary times