Canada is the only G7 nation with zero official gold reserves, a position reached in 2016 when the federal government sold its remaining bullion through the Exchange Fund Account (EFA). All reserve disclosures since then list 0 tonnes of gold, while every other G7 economy continues to hold large bullion positions.

1. Canada Sold All Its Gold

Through the 2000s and early 2010s, Canada gradually reduced its gold holdings.
By 2016, the last coins were sold, leaving:

• 0 tonnes of gold
• A unique position among advanced economies

This reflected a policy shift toward liquid, interest-bearing assets.

2. Other G7 Countries Still Hold Significant Gold

Latest World Gold Council data:

• S.: 8,133 t
• Germany: 3,352 t
• Italy: 2,452 t
• France: 2,437 t
• Japan: 846 t
• K.: 310 t
• Canada: 0 t

Canada is the only G7 member with no gold.

3. Global Central Banks Are Increasing Gold Holdings

Gold purchases hit historic levels:

• 2022: ~1,082 tonnes (record)
• 2023: ~1,037 tonnes (second-highest)

Most central banks are adding gold; Canada is not.

4. Why Ottawa Eliminated Gold

Federal rationale has emphasized:

• High storage and handling costs
• Lower returns vs government bonds
• Preference for highly liquid foreign assets
• Gold viewed as non-essential in modern reserve strategy

Reserve policy belongs to the Department of Finance, while the Bank of Canada acts as the agent managing the reserves operationally.

5. Why This Matters for the Bank of Canada

The BoC doesn’t use gold for monetary policy, but the reserve mix affects Canada’s financial-stability backdrop:

• No gold as a crisis-confidence anchor
• Heavier reliance on USD-denominated securities
• A reserve profile unlike any other G7 central bank

This doesn’t limit the BoC’s rate decisions, but it makes Canada’s reserve framework distinct.

Key Takeaway

Canada’s zero-gold stance is deliberate and long-standing but it stands out more today as global central banks buy record amounts of bullion.
For BoC watchers, it’s an important part of understanding Canada’s reserve structure and its place within the G7.