Canada Has Zero Gold Reserves – Is the Dollar in Danger?

Kellen Ainey (00:00)
Hi there everyone and welcome back to the Ask Andrew podcast. Once again, we're joined by Andrew Sleigh to ask him questions from our viewers. Welcome back, Andrew. Thank you once again for joining us.

Andrew Sleigh (00:10)
Great, Kellen. Good to be back. Thank you very much for hosting again in short notice.

Kellen Ainey (00:15)
Of of course. I'm more than happy to do so. We have a couple of pretty good questions here on the plate. So why don't we dive right in? In its latest price forecast, Society General reiterated its call for gold prices to push above $4,000 an ounce next year. The Dutch Bank also shares this projection for 2026. Additionally, Society General sees gold prices averaging $4,065 USD an ounce in the second quarter of 2026. In your view, what is the likelihood of this coming to fruition?

Andrew Sleigh (00:49)
I think we're going to possibly do that before the end of this year, easily. You know, maybe before the end of October. So at the current pace, I mean, it's a ridiculous forecast to go out four or five months and have it be barely $200 above where it is now. We've done $200 in the last couple of weeks, if not less. it's completely, well, the banks, you know, in cahoots with the government do not want to admit what gold is doing. They don't want to bring attention to it. So they don't want to say anything like gold is going to be, you know, 5,000 bucks by the end of the year or whatever the number is, because then they have their investors say, well, why aren't we doing that? Why aren't we buying gold? And the government, the banks don't want us buying gold. So, so they're never going to put a limelight like that on their spotlight. so that's just par for the course. They always only, you know, inch by inch gave a couple hundred bucks above, you know, a forecast and they keep readjusting themselves and it's ridiculous. They're just talking heads. So it's ridiculous.

Kellen Ainey (01:57)
So you highlighted something very interesting to me, and this is me asking you a question now about our banks and our government not wanting us to buy gold. Now we do know that the Bank of Canada did actually release, well, we don't have any gold holdings, we don't have any physical gold holdings. We got rid of them in a substitution for bonds, I believe it was back in the 80s or 90s. How...

Andrew Sleigh (02:22)
First turn of Trudeau, last 200 tons.

Kellen Ainey (02:26)
Really? was a lot. Okay. I was under the impression that it was, we were already out of gold holdings prior to Trudeau. But with that being said, how do you feel like this has impacted Canadians for these geopolitical events coming up in the future that we can all foresee, ⁓ especially with countries like China, India, drastically increasing their gold reserves?

Andrew Sleigh (02:55)
Well, we'll have nothing to back the currency when we urgently will have to in the future. So therefore our currency will just die on the vine. You know, and unfortunately with that, uh, when the currency just completely implodes, um, then everyone who's been saving their dollars, saving their world, their, their life, their life's work in savings in dollars, whatever it's in stocks, bonds, mutual funds, whatever, um, those dollars all become worthless. So therefore they lose all their wealth. And, you know, it's really bad news that we're not going to be able to back a currency with gold that we don't have. Now, I do believe eventually Canada, when it figures it out, will likely nationalize the gold mines in Canada. But that could be years and years

Kellen Ainey (03:45)
So we have seen a lot of ⁓ Canadian, if our government, the Liberal government that's now been elected, they've been investing a lot back into Canada. Could you see that happening within this one term where, ⁓ well, Mark Carney goes ahead and nationalizes Canadian gold mines or silver mines for that matter?

Andrew Sleigh (04:08)
I don't know how much Carney is really putting back into the economy. He's a talking head as well. So ⁓ he talks and says very little. So, ⁓ you know, like as far as spending, you know, billions of dollars on this and billions of dollars on that, ⁓ this is part of the craziness of how ⁓ the governments of today are running the show. ⁓ They're not investing in infrastructure. They're not investing in you know, oil and gas and all the stuff that builds a country, they want to send billions of dollars to Ukraine or they want to $5 billion on Canadian military, which is in itself deceptive. They're not really going to spend $5 billion on the Canadian military because A, they don't have the personality to even equip the ships and the submarines that they say they want to buy, which likely will never come to fruition.

Again, that's speculation, but that's equal to Carney just saying that we're going to spend all this money and buy new ships or buy new planes. ⁓ That doesn't, know, buying airplanes or buying ships doesn't grow the economy of Canada. So you need to have the expansion of small business in Canada. You need to have expansion of industry, raw resources in Canada. ⁓ You need to have farmers, being equipped to be able to expand and grow and prosper in our country. And all of the things that the governments have been doing worldwide for a decade or more have all been to discourage small business. Farming, everything is all about discouragement of that stuff. mean, unemployment is raging and going to get much worse. Inflation will continue to go higher. That destroys businesses. So it's really going to be just the very biggest companies will exist in cahoots with the government. That's where it's all going.

Kellen Ainey (06:12)
Which we've already seen with companies like Loblaws.

Andrew Sleigh (06:17)
Yep. And so, you know, there's no foreign investment going on in Canada. There's nothing but money leaving Canada. Like billions. ⁓ like, if I was a trillionaire looking to invest in Canada, looking at the political landscape, I'd have to be nuts to invest in Canada.

Kellen Ainey (06:41)
Yeah, I can't argue with you there, especially even just comparing ourselves to our southern neighbors. There is a lot more red tape when it comes to not only just doing a business, investing in said businesses for sure. So, moving on, according to official data from the International Monetary Fund, China bought 2.9 tons of gold in July. However, after reviewing British revenue and customs data, Society General said it suspects the Chinese central bank bought more than 14 tons. With China significantly increasing its gold reserves over the recent years, how big of a variance in China's precious metals holdings do you believe there to be? So what they've reported versus what they actually have. Because we've seen it with regards to customs data versus what they report just within a month and it's a massive variance there.

Andrew Sleigh (07:39)
I think they're buying some stuff that doesn't get reported. So they're buying, you know, Dory bars directly from source, ⁓ from non LBMA approved mines or smelters or wherever they're getting them from. And some of that stuff, ⁓ is, ⁓ doesn't go through official channels is my understanding. So I'm not an expert on that. Well, not very much, but, but, ⁓ you know, for example,

Kellen Ainey (08:01)
Can you expand on that?

Andrew Sleigh (08:09)
China's going over to Peru and buying directly from source from non LBMA, bringing silver slurry, I think is what they call it, ⁓ whatever stage of refinement back to China and then refining it all there. And none of it goes on the books anywhere. It doesn't have to be reported to a national stage anywhere on how much tonnage of silver they're taking out of Peru. So there could be doing something like that with, you know, let's say going over to some mine in Africa that's not LBMA approved, so nothing's on the books, and buying tons and tons of gold and refining it to their own standards back in China. And nobody knows what they've got.

Kellen Ainey (08:53)
So if it's not ⁓ LBMA approved, is it safe to say that the central bank of China doesn't need to report these purchases?

Andrew Sleigh (09:02)
Nobody's going to force the Chinese bank to report anything. And China's going to just look at you and say whatever they want.

Kellen Ainey (09:09)
Well, that's kind of the reality, There's two players that can do that. It's really only China and the US. So I agree. It makes total sense there.

Andrew Sleigh (09:20)
and Russia. like, they'll say whatever they want to say. So

Kellen Ainey (09:21)
Russia too, yes I forgot about them. India also as well, they also have a pretty significant economic standing in the world so I would say that they're starting to get to that threshold as well.

Andrew Sleigh (09:32)
China has been long that they hold their cards extremely close to their chest and they're not going to say what they're doing and they'll say one thing and do another and all that. there's been a long estimation on how much gold China really has and big huge numbers. So they've been importing officially what's been known for

A few years, I don't keep tabs on this because I don't have the time and resources to, and I just get this data from other people that are paying attention to this stuff. But for quite a while, they're importing a thousand tons of gold a month. So, you know, that's besides they're the largest producer in the world. So, so like they're number one, we're number four in Canada. I forget who is second and third. I, I'm going to say Russia and the U S but.

So whatever they're producing locally and then they're doing a thousand tons and you do that by three years. Well, there's 12,000 tons a year times three, 36,000 tons imported over a three year period plus whatever they make. you know, who knows what they really have, but it's way more than the rest of the world.

Kellen Ainey (10:56)
So you believe, so do you believe them, officially they have the eighth biggest holdings of gold in the world. Do you believe them to be number one?

Andrew Sleigh (11:08)
Well, off the record, nothing would surprise me. And I would say if I was China trying to play their game, my goal would be the number one holder of gold in the world. They do the production, they do the importing. Does the U S even have ownership of what gold it has? You know what? It's done for 60 or 70 years, nothing but shenanigans. So

You know, if I was a betting person, I would say who's going to come out on top in all of this is going to be the country that has the most gold. And I think China can prove it. So I think China is going to be the one that has the most gold.

Kellen Ainey (11:49)
So that actually segues me into my third question here, my third and final question. Swiss gold exports to the US fall 99 % in August, but rise 353 % to China after tear of shock. That was the headline of the article that a client had sent me. And then he pulled an excerpt from the article itself. According to a letter from the US Customs and Border

dated July 31st, one kilogram and 100 ounce gold bars would be classified under a customs code that subjects them to costly tariffs with Switzerland's 39 % tariff among the highest the Trump administration has imposed. So that was the excerpt that he had sent me and this is the question he had asked alongside. How does this impact the future of the American dollar, especially considering the

the turbulent geopolitical times. And we kind of already touched that basis point, but I'd like you to expand on that question specifically more.

Andrew Sleigh (12:53)
So if I'm understanding it all, the tariffs on gold coming into the United States and how it affects the dollar, is that really the basis?

Kellen Ainey (13:04)
So basically, both kilogram and 100 ounce gold bars are going to be falling under a custom code that subjects them to tariffs. With Switzerland's 39 % tariff being the highest, yes, being the highest that the Trump administration has imposed. So we've seen a 99 % drop of Swiss gold exports to the states.

Andrew Sleigh (13:14)
Okay. Well, With gold, so basically it's resulting in whatever gold goes into the states going up in price.

Right. It's being tariffed on the way in is is what I'm understanding what this is saying. Now, obviously, the Swiss has has the Swiss has lowered what they're sending. But there's, you know, the Chinese gold, whatever. Well, they don't export gold, but whatever other gold is coming in is being tariffed, which essentially makes the gold more expensive, which ultimately, in my opinion, will just devalue the dollar. It takes more dollars to buy the gold. And.

Kellen Ainey (13:48)
Correct, yes, yes.

Andrew Sleigh (14:11)
If gold is going to go up as a result of tariffs in the United States being such a large economy, then ultimately what do you think is going to happen to the rest of the world with their gold prices? All goes up.

Kellen Ainey (14:22)
Well, the rest of world, I'd say their gold price is raised right there with it.

Andrew Sleigh (14:26)
Yep. Like if it was just happening in, let's say Vietnam, who would care? Okay. And that's what's happening in Vietnam right now with their, have the CBDC stablecoin, whatever, full launch mode testing ground in Vietnam. And, know, the interviews I've seen out of Vietnam says the United States is next. So because it's in Vietnam, nobody cares. It's such a small economy. or if the bond market in Vietnam failed or something like that, would care. So with gold going up 30, 40 % as a result of a tariff and edging prices up, then the world would respond with, globally prices would go up, which just means it's more dollars, whatever country you're in, to buy the same ounce of which in essence, I guess, is devaluing the currency.

Kellen Ainey (15:22)
So you think regardless even if it has nothing to do with China also seeing a rise of 353 % of imports from Swiss gold you think regardless even just the drop of the Well the Swiss in the Swiss exports to the US currency. That's even even just then taking China out of the picture That's going to be drastically impacting the price

Andrew Sleigh (15:44)
So did you say that the imports to China from Switzerland went up 300 %?

Kellen Ainey (15:49)
Yes, for specifically for gold. So US imports from Switzerland in August fell 99 percent, but rose 353 percent to China.

Andrew Sleigh (15:51)
No, okay.

I see. Okay. I didn't quite understand that the first time around. well, that, tells you again, you know, by policy of, of, the administration in America, ⁓ they want the goal to flow to China and not the United States. So the lead, well, my sneaky suspicion is the, ⁓ the society, the council for foreign relations in the United States.

Kellen Ainey (16:21)
Okay, and why do you think that is?

Andrew Sleigh (16:34)
their goal is to hollow out America and move manufacturing and prosperity to China. As odd as that sounds. Like you can go on the website of the Council for Foreign Relations, of which many members of the United States government are on that. And their goal is to switch the powerhouse of economy from the United States to China. They're undermining their own nation they live in. It's crazy. Absolutely crazy.

You can look it up, the Council for Foreign Relations. It's there. So unless I have the title wrong, but I couldn't believe it the first time I heard that a few years ago. And I just, know, all these government members are all part of it and they're undermining their own society. And it's like, you know, where's the treason and the ⁓ sedition in all this? Like, why aren't these being held to account? So I would say that's all part of that scheme.

You know, they're trying to bring the United States down to its knees. And they're trying to bring China into the next realm. Be the dollar of trade will be the next, you know, the BRICS nation, know, yen yuan, not yen yuan or the rumindi, whatever they want to use. And so that lines up with that theory that if you're trying to make the United States weaker, then the gold's not going to flow to America. It flows to China.

Kellen Ainey (18:02)
Well speaking of the BRICS nations, there's been very few updates, especially comparing to last year and the year prior, well of the BRICS nations as a whole. Have we heard anything on where exactly they wanted to move ahead currency specific? So did they make the decision that they were going to consolidate? Because I remember at one point it was they were in a heated debate within themselves.

Andrew Sleigh (18:27)
There was lots of news, it seemed like, you know, every month or two or whatever, we heard stuff about them, right? And ⁓ it's been really quite a bit of crickets. I haven't heard too much. And so that tells me that makes my hair stand up in the back of my neck that they must be getting close to launching something. Because generally speaking, you talk about it, you know, years in advance, a year in advance, six months in advance, whatever. And then, then you stop talking about

Kellen Ainey (18:46)
Really? Yeah, eventually you got to put it into fruition, let's say.

Andrew Sleigh (19:00)
And then you just catch everybody by surprise when they're ready to do that. ⁓ But you're right. mean, there's been very little news about updates with bricks. And so to me, that could be part of the tell that something's coming for them.

Kellen Ainey (19:22)
Okay, and where do you see them leaning? Do you think they do move ahead with consolidating the currency?

Andrew Sleigh (19:31)
⁓ The BRICS nations currency consolidating all the BRICS nations under one currency is up to me

Kellen Ainey (19:37)
Yeah, and even not that if it consolidates all the currencies, but at least the major players on the on the geopolitical stance So we could look at India China Russia as well ⁓ Saudi Arabia, of course

Andrew Sleigh (19:53)
Well, the basis of BRICS has long been that they want to trade in their own currencies. You know, use a basket of currencies. They want to trade in their own currencies. China was going to restrict ⁓ all that. ⁓ And they could use a standard. You know, there's been so little for so long, to be honest. mean, I'm you know, everyone's rusty and what's going on BRICS now. So ⁓ I probably could have answered this better a year ago, but

Kellen Ainey (20:00)
Okay. 100 % I completely understand. You just had brought up BricksNations and you piqued my interest now as well.

Andrew Sleigh (20:23)
Yeah. Yeah. So for a while they were talking about trading with each other's currency, which they're doing now. ⁓ Eventually they're going to have to come to a common denominator, I'm sure, that they can use their own currency to trade into and then use ⁓ like a BRICS you want, if you will, to send to another nation. But they're buying it in their own currency, kind of very similar to US dollar trade now where they do that basically the same for US dollars. you know, I guess we're gonna find out, Kellan.

Kellen Ainey (21:01)
Yeah, it's an it's an I only ask because it's a very interesting scenario, especially with China kind of being the de facto leader with them being an exporter economy. They like at least within the last 15 to 20 years, they haven't had to, for lack of a better term, care about the value of their currency. And we've highlighted that ourselves in the last couple of episodes we've seen here. Even within the trading war, I saw a couple of people highlight how

Andrew Sleigh (21:25)
Yeah.

Kellen Ainey (21:28)
once the trading war between the US and China really heated up that the yuan took a hit. But then I saw other people highlighting where it's that's they can take that hit solely due to the fact that they are an exporter economy. That's not a it's not the same impact that it would have on an importer economies like that of Canada or the US.

Andrew Sleigh (21:48)
When the West is the largest debtors around the world, and as you said, we're the importers, not the exporters, if somebody is going to drive their economy down to zero to take their enemies down to zero as well, and you're the country that makes everything and you have all the manufacturing, I think I'll bet my cards on the country that's making everything for everybody rather than the country that has nothing to offer. Yeah.

Kellen Ainey (22:13)
Rather than the country that owes everyone money.

Andrew Sleigh (22:17)
So ⁓ it's going to be one heck of a storm. had a point in there and somewhere I was going to talk about the with China. ⁓ there's lots of news about things that are collapsing in China. Even seems to have had an uptick of banks going down and whatnot. ⁓ this month, China has dumped 25 billion dollars in US treasuries. So, you know, that's

They've brought that in an upward slant uptick and a consistent basis now. So that's also a sign to look at regards to, know, if there's, I don't see China, you know, going to war in any kinetic war because they're not interested. It's the West that's only trying to drum up that story, in my opinion. You know, they're just trying to grow the economy and move on with their lives. And they're not going to up with the shenanigans of the the swift system punishment if you don't go along with what the U.S. wants. And so they cut people out, know, and the world doesn't want to have that anymore. you ⁓ know, they're going to continue to dump treasuries every month, you know, to whatever number. And that's a sign where they're getting ready to do the white wall on the United States. And as they keep dumping and more countries start to dump their own treasuries, ⁓ I think, hello, hyperinflation coming our way in the US. It's been talked about for a long time that when the world is ready to be off the dollar standard, the dollars will start flowing back to the US. This is probably, I would say, the biggest point of this whole interview right now is When the US loses its its position as the dollar of trade, I believe the numbers are 70 % of all the currency the United States has ever created is offshore Okay, like That's a big number obviously and and I'm pretty close to that number I know maybe only off by a few percent. So once 70 % is no longer needed and 70 % of all the currency created flows back to the United States, it'll be a Niagara Falls event of currency pouring into the US borders, which will cause hyperinflation that might be a world record worse in Zimbabwe.

Kellen Ainey (24:52)
Yeah, the hyperinflation to the utmost degree. I didn't realize that majority of US dollars were actually in circulation outside of the US. That is very big news to me, in all honesty.

Andrew Sleigh (25:07)
Yeah. So that's been the way it's been for quite a long time because it's, you know, the, U S dollar, like the petrodollar, right? Everyone has to buy oil and petrodollars, which is U S dollars. And so the demand for U S dollars around the world has been high for a very long time. And then you have, U S dollars being exported into countries for aid and for weapons and for war and for you, you name it. All that is exported ⁓ currency.

And then, you know, in the early years, the US was loaning countries money. So that's still a currency being exported. And so, it's been 70 % for a long time. So that's a big number when you start talking about the hundreds of trillions of dollars in debt. That's a washout there in the world. And that starts to flow back.

Kellen Ainey (25:56)
Yeah, that's...It's a significant number to say the least. It's... Well, we do always end on positive notes here, I do find, but...

Andrew Sleigh (26:07)
We haven't actually talked about that one for a long time. I ⁓ used to talk about that point ⁓ quite a bit years ago. it has kind of just gotten ⁓ lower on the tree, on the limb. so I'm glad I remembered it because I had not brought that up for quite a while. And we could be in that point where in the very near future, we're going to see that unfold. And if it does,

You don't want to hold any dollars. And that could be why, as we said in our last episode, that the American dollar is now worth seven tenths of a cent. Well, maybe that's got something to do with part of these 70 % of all currency ever created is now already flowing back to America. So, so, you know, if it continues to maintain and accelerate in a slow fashion, hello disaster. So don't hold American dollars. Any dollars, just hold on for a minute.

Kellen Ainey (27:04)
Well, that's why you have the options for gold and silver, right?

Andrew Sleigh (27:10)
Yep. Yep. The only safe haven asset.

Kellen Ainey (27:11)
So Andrew, that... I would say gold specifically the safest. So that is all the time we have today. Once again, it's been a pleasure speaking with you. I actually learned a few things here myself today. For our clients, how specifically can they reach you?

Andrew Sleigh (27:31)
So you can send an email to deathofthedollaratsprottmoney.com. So deathofthedollaratsprottmoney.com. You can call the toll free number, which will be somewhere on the bottom of the screen. And my extension is beside my name there at 230.

Kellen Ainey (27:47)
All right, perfect. Well, once again, Andrew, thank you very much for joining us. If there's anything else, please don't hesitate to flag anything. Any questions you want me to bring up to you our next interview, I'll be more than happy to do so.

Andrew Sleigh (27:49)
No, All right. Sounds good, Kellan. Thank you very much. Have a good day.

Kellen Ainey (28:03)
Likewise.