Canada has now sold virtually all of its gold holdings
One marginal seller of gold will be removed from the market in the very near future -- Canada.
Reserve managers are notoriously bad market timers. Canada once held more than 1,000 tonnes of gold. They were halved by 1985 and then almost all of the rest of it was sold in the 1990s and 2002. Almost immediately after the Dept of Finance stopped selling in 2002, gold went on a remarkable run, gaining 525% through 2011.
Some reserves were retained but the total was down to 3 tonnes last year and about 1.7 tonnes early this year. That has now fallen to virtually nothing on seemingly aggressive selling to start the year.
Numbers released Monday showed Canada has just $19 million of gold in the vaults, which is negligible in the world market.
Gold has probably run too far, too fast in the short-term, but if you're looking for a reason to buy in the long-term, this is one of those signals that are worth heeding.
Separately, Jeffrey Gundlach was on the wires today saying gold is going to $1,400.