By Paul Ransom and Mark FennoyPublished Nov 07, 2018 08:02:06With the Canadian gold rush underway, the country is on track to be one of the biggest producers of gold and precious metals, according to the latest government statistics.
The number of ounces of gold, silver and platinum in circulation in Canada was almost five times the total in 2016, according the Statistics Canada National Household Survey, and nearly seven times the amount of gold bullion in circulation last year.
Gold and silver have been gaining popularity in recent years as the demand for them has risen amid the economic downturn, and the country has been one of its largest gold producers, according in the latest edition of the National Household Purchasing Power Survey.
Canada’s gold boom, which has seen prices increase by more than 20 per cent in the past year, is expected to continue, according a report from Bank of Montreal.
The bank said the gold market will have increased by an average of 3.1 per cent a year from 2020 to 2026, and is expected increase another 5.3 per cent to an average annual rate of 9.6 per cent.
The country’s demand for gold has grown by more the last decade, with the gold price up a whopping 8.3 times between 2001 and 2015.
It is the second-highest rate of increase in the world.
“The gold market is now at a peak that is not sustainable and will require a significant expansion to ensure a sustained price increase over the next decade,” the bank said.
The gold boom has helped Canada’s economy, with an increase in GDP from $18.3 billion in 2019 to $20.9 billion in 2021.
This is a 6.4 per cent increase, while the rest of the world’s economies are in recession.
The number of Canadians who are millionaires rose by 20.9 per cent from the previous year to 8,942, with 1,972 of them earning more than $1 million.
That’s a 9.4-per-cent increase in that group, according Statistics Canada.
The average annual income of Canadians was $64,800 in 2019.
Gold mining is becoming increasingly popular in Canada.
As the country becomes a gold producer, the price of gold has been rising in recent months, and gold miners are taking advantage of that by selling the gold to buyers in the hope that it will be worth more.
The gold market has risen from about $4.6 billion in 2020 to about $8.6 million in 2021, according Bank of Nova Scotia.
Gold miners are using this boom to sell their gold at a profit, as the gold industry has seen a decline in demand in recent times.
In fact, the gold mining industry lost $1.3-billion in 2016.
“We’re seeing gold prices go up more than 10 per cent per year and it’s not just us,” said Peter Kostov, managing director of the company GoldMine.com.
“There’s a lot of money being made.”