Canada’s decision to sell its gold reserves in late 2015 to early 2016 continues to haunt the country. With the current price rally the move now implies a roughly US$374 million opportunity cost when repriced at today’s spot levels.
Over a three-month window from December 2015 to February 2016 under former Prime Minister Justin Trudeau, Canada sold 95,817 ounces at an average US$1,274.70 per ounce, for proceeds cited at about US$122.1 million. From a peak of over 1,000 tonnes in the 1960’s, the reserves plummeted to just 77 ounces after the sale.
At a US$5,000 gold price, those same 95,817 ounces would be worth US$479.1 million, implying “lost” value of about US$356.9 million.
Using current spot gold near US$5,174.68 per ounce, the 95,817 ounces would be worth about US$495.8 million, lifting the implied opportunity cost to roughly US$373.7 million.
The stated rationale behind the Trudeau Government’s decision to sell the gold was said to be portfolio diversification away from physical commodities and toward more liquid financial instruments, with the government maintaining the sale was not tied to a specific gold price.
Canada currently has zero official gold reserves, making it the only G7 nation to have fully liquidated its gold holdings. Nevertheless, the country is the 4th largest gold producer in the world, following China, Russia, and Australia. In 2024, Canadian mines produced an estimated 200 metric tonnes of gold, valued at approximately $15.1 billion.
The recent gold price rally has been defined by a historic surge from roughly $2,600 per ounce in early 2025 to a record high of approximately $5,598 in late January 2026. This momentum has been fueled by a “perfect storm” of structural and macroeconomic factors: aggressive central bank buying as nations like China and India diversify away from the US dollar, record ETF inflows from both institutional and retail investors seeking a safe haven, and heightened geopolitical uncertainty stemming from trade tariff threats and Middle East tensions.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
