by Ian Bickis, The Canadian Press
CALGARY — Canada may be a global outlier when it comes to its sell-off of gold.
But to Ian Lee, a professor at Carleton University’s Sprott School of Business, the decision marks the end of an era that doesn’t fit into today’s financial system.
“Why did they sell the gold? To convert it into cash, which is liquid,” said Lee. “Bullion is not liquid. It sits down in the basement and collects dust.”
The country’s holdings in the precious metal peaked in 1965 at 1,023 tonnes or about 32.9 million ounces, according to the World Gold Council. But in recent years, gold has lost its lustre for the federal government, which on Thursday announced it was left with 77 ounces in official reserves — less than a quarter the size of a gold bar.