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Trudeau’s decision to sell gold costs Canada millions

The Trudeau government’s decision to sell off nearly all of Canada’s gold reserves in 2016 has come at a heavy price for the country’s coffers. As seen from the analysis of SmallCapSteve, the decision has cost Canadians over $135 million, as gold prices have more than doubled since the sales took place.

In 2016, Canada reduced its gold holdings to just 77 ounces, down from a peak of over 1,000 tonnes in the 1960’s. Over a three-month period from December 2015 to February 2016, the government sold off a total of 95,817 ounces of gold at an average price of US$1,274.70 per ounce, generating approximately US$122 million in revenue.

You can read more on the matter here.

What’s going on?

• Changing Mortgage Rules Again: Freeland Announces Permanent Amortization Extension (theDeepDive)

• 90% of qualifying electric vehicle buyers opt for $7,500 ‘new clean vehicle’ tax credit as upfront payment, Treasury says (CNBC)

• Homeownership Feels Out of Reach for Many Canadians (theDeepDive)

• Israel on edge for Iranian retaliation after embassy strike (Reuters)

• Conservatives Gain Largest Lead Against Liberals in New Poll (theDeepDive)

• BlackRock’s Larry Fink Expects Fed to Cut Rates Once or Twice in 2024 (Bloomberg)

• Poilievre criticizes Trudeau after PM discloses he rarely reads intelligence documents (Globe)

• Diddy’s Empower Global Hemorrhages Brands Amid Scandal (theDeepDive)

• As foreign leaders urge US Ukraine support, Republicans look to Trump (Reuters)

• AI Is Consuming Power at Record Rate, Data Centers to Make Up Demand Growth (theDeepDive)

• Toronto Pearson Airport to receive 'decade-long,' multibillion-dollar investment (BNN)

What’s the latest?

• Home Sales Rise: Home sales in Canada experienced a modest increase in March, rising 1.7% from the same month last year. This growth is reflected in the national average home price, which increased by 2% year-over-year to $698,530.

• Credit Rating Risk: On the eve of Finance Minister Chrystia Freeland's budget release, the Royal Bank of Canada has warned that Canada is at a heightened risk of losing its AAA credit rating compared to other top-rated countries. This potential downgrade could lead to increased borrowing costs affecting households and businesses nationwide

• Gold Crosses $2,400: Gold has hit a new high, reaching over $2,400 an ounce amid escalating Middle East tensions and ongoing concerns about U.S. inflation. This surge reflects growing investor inclination to favor gold over government bonds as a safer hedge against geopolitical risks.

• Corus Losses: Corus Entertainment Inc. reported a narrower loss of $9.8 million this quarter, improving from a $15.5 million loss the previous year. Despite this reduction in losses, the company experienced a significant 13% drop in revenue, totaling $299.5 million compared to $343.9 million last year. This decline was primarily due to decreased television revenue, which fell from $321.5 million to $278.1 million.

• US Import Prices: In March, U.S. import prices rose by 0.4%, marking the third consecutive monthly increase, largely driven by higher costs for energy products and food. This rise was slightly above economists' expectations of a 0.3% increase. Over the past year, import prices have edged up by 0.4%, reversing a previous downward trend.

Uranium: We need more energy than we have

The stock market and stuff

• JPMorgan Shares Fall After NII Miss, Higher Expense Guidance (Bloomberg)

• Tin Futures Surge to 15-Month High (theDeepDive)

• Cathie Wood takes a stake in OpenAI, saying it’s at the forefront of a ‘Cambrian explosion’ in AI (CNBC)

• Panama’s $10 Billion Mine Closure Casts a Shadow Over Election and Bonds (Bloomberg)

In the juniors

• Steppe Gold To Acquire Boroo Gold For $95 Million In Shares, Create Leading Mongolia Producer (theDeepDive)

• ATHA Energy To Drill 8,000 Metres At Gemini Under Three Phase Program (theDeepDive)

• Bitfarms Hits Hashrate Milestone Of 7 EH/s For Bitcoin Mining (theDeepDive)

FULL DISCLOSURE: Lithium Chile is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Lithium Chile. The author has been compensated to cover Lithium Chile on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.