Canada Sold 85,703 Ounces of Gold in April, 18% of Holdings
By Greg Quinn
Ottawa, May 5 (Bloomberg) -- Canada sold 18 percent of its gold holdings last month as part of a longstanding plan to improve returns on its international reserves.
The Finance Department sold 85,703 ounces of gold in April, leaving it with about 400,000 ounces worth $142 million, the government said in a statement. The country's total international reserves, including gold, U.S. dollars and overseas currencies, stood at $36.3 billion at the end of the month.
The price of gold has fallen 32 percent since the federal government began selling its stockpile in 1980, when it had 21 million ounces, and boosting its holdings of foreign currencies. Having non-Canadian currency reassures investors that the government can buy Canadian dollars to prop up the currency's value if necessary.
A Finance Department official said ``no decision has been taken as to whether Canada will sell all its gold holdings.''
In February, Canada sold 90,588 ounces of gold as the metal's price rose to $389.05 an ounce, the highest in almost 6 1/2 years. The highest closing price of gold in London for immediate delivery in April was $336.75.
Last Updated: May 5, 2003 09:58 EDT
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