But if you have a global financial panic, and people have to go to some kind of gold standard, Canada is going to be in a very weak position. Because they sold a lot of the gold and not accumulated very much. So the right solution for Canada actually is to print Canadian dollars and buy gold. That way they can target the exchange rate and get gold and keep the gold all at the same time.
So my advice to Canada would be to start building up your gold reserves and that would actually strengthen your currency and you could buy even more gold. I don’t think they’ll do that because to do so, they would have to be honest about the fact that the dollar’s in jeopardy and it’s important to get gold. So they may just cross their fingers and hope for the best. But if I were looking out for Canada, I would tell Canada to buy more gold.
- Source, Jim Rickards via Sprott Money: