How Much Gold Does Canada Actually Hold? The Story Behind Zero Reserves

When was the last time you heard about Canada’s gold reserves? Probably never. That’s because Canada doesn’t have any — and it’s a decision that still raises eyebrows in financial circles today.

The Shift: From 1,000+ Tonnes to Nothing

Back in 1965, Canada held 1,023 tonnes of gold, equivalent to roughly $149 billion in today’s money. But over the subsequent decades, the nation systematically liquidated its entire gold stockpile. Rather than maintaining precious metal reserves, Canada pivoted toward foreign bonds, foreign currency holdings, and other liquid financial instruments. By doing this, Canada became the sole G7 nation with zero gold reserves.

This wasn’t an isolated decision made by a single administration. Instead, multiple governments and central bank leaders — including Prime Ministers Pierre Trudeau and Brian Mulroney, along with Bank of Canada Governors John Crow and Gordon Thiessen — all shared the same conviction: gold had become obsolete in a modern financial architecture.

The Contrast: What Other Major Powers Did

While Canada divested completely, the world’s other leading economies took the opposite approach:

• United States: Maintains approximately 8,133 tonnes of gold
• Germany: Holds roughly 3,352 tonnes of gold

These nations clearly disagreed with Canada’s assessment that precious metals were relics of the past.

Present-Day Implications

Today’s financial environment has shifted dramatically from the era when Canada made its decision:

Inflationary pressures have resurfaced as a genuine concern. Geopolitical rivalries are intensifying across multiple regions. Central banks worldwide are now actively acquiring gold at historically aggressive rates. Digital assets are increasingly entering the conversation as alternative stores of value.

Given these developments, the obvious question emerges: Was Canada’s complete divestment a prescient strategic move, or did it represent a fundamental miscalculation? More importantly, might Canadian policymakers eventually reconsider this long-standing position on precious metal reserves?

Financial history suggests that policy reversals often occur precisely when the original assumptions no longer hold true. Whether Canada will follow that pattern remains to be seen.