Throughout history, gold has been considered a luxury item and an asset due to its merit but lately, gold prices have soared and Canada has sold a decent amount of its gold reserves. Even though I normally do not write about business and gold, I will make an exception.
According to the Telegraph, Gold prices hit $1272.77 on Friday and are still rising as the US Federal Reserve delays further interest rates which have enabled the gold prices to soar.
Even the European Central Bank is starting to change up its banking ways by starting to charge customers during a deposit and so far, gold demand has risen in Europe which has raised the price of gold greatly due to the amount of demand.
CBC News said that Ottawa, Canada has sold off the majority of its gold reserves with only 77 ounces remaining which is worth roughly $130,000 CAD, all in gold coins.
With the highest amount of gold held in Ottawa more than 1000 tonnes, the government of Canada is almost finished selling the entire reserve due to the high demand for gold which has allowed it to maximize gold trade earnings.
Later in the article, Pete Evans, the author of the article has said that the 77 ounces left might even have been already sold but we will have to wait for confirmation from the reserve reports coming in April.
The drive to sell it now? Well, lately, gold prices have hit a 13-month high of $1272.77 per troy ounce which is quite high and it is suspected that it is due to several changes from the US Federal Reserve and the decisions of the European Central Bank in terms of transactions.