Canada is pretty much out of gold

[lovuian]

http://www.businessinsider.com/canada-is-pretty-much-out-of-gold-2016-3

At an increasingly distant point in history, a government’s currency was backed by gold reserves. But slowly, governments abandoned “the gold standard,” most notably occurring in 1971 when then U.S. President Richard Nixon abandoned the gold standard, and moved to “fiat” currencies where the value was based on faith in the government. This Today another milestone, if slightly less monumental, occurred when the government of Canada confirmed that it had sold most its gold reserves.

[Zynx]

1. So?

[lovuian]

3. at this time many Central Banks

are buying gold
http://www.mining.com/canadas-economy-in-weak-position-for-lacking-gold-reserves-sprott-39765/

Currencies backed by gold


They say the Euro is in trouble

[Zynx]

7. Other than for gold bugs, who cares?

[muriel_volestrangler]

13. There are no currencies backed by gold

It would be too expensive to set up such a currency, and it would restrict the economy. Some currencies have significant reserves, which they may be able to use in case of currency fluctuations.

Canada is a gold producer, so there's less point in them have already-mined reserves of it. If their dollar goes down in value, their in-the-ground reserves will go up in value in Canadian dollars.

[7wo7rees]

2. Umm, so where is the US, like in ours? Fort Knox?

Show us.......

[Spider Jerusalem]

4. most of it is actually held at the Federal Reserve Bank of New York

which also provides secure storage of gold reserves for other countries (10% of the world's gold reserves are in the vault at the New York Fed).

[7wo7rees]

5. Great. Tks.

[closeupready]

10. Relatedly, I know gold is heavy - I wonder how much weight

the gold here in this photo represents. Must be some super high number.

[Spider Jerusalem]

12. NY gold depository has c. 6350 tons (12.7 million pounds), apparently (n/t)

[Yavin4]

14. Who cleans that place?

I wonder.

[Bucky]

6. When the flood of Trumpophobes surge over the border next November

Canada can simply require they bring a certain amount of gold along to replenish the stores of their new motherland

and yes, this looks like the kind of money that can't buy real gold

[Zynx]

8. I think the Canadian economy is just fine. Gold is almost totally irrelevant.

It's something that people who don't understand modern economics obsess over.

[librechik]

9. it's ok. They bought mines in Colorado

so won't run out completely. We could go borrow a cup if we need it. They are our neighbor, after all.

[NightWatcher]

11. They could buy some from the people who advertise on talk radio

They're always hocking that stuff.