Quick profile of a country with a pronouced "reserve gap"

The name may surprise some, but the country is Canada. The Government of Canada decided that paper reserves were the way to go starting in 1980; its last holdings of bullion were sold in 2002. From 652 tons in 1980, all that's left in the GoC's possession is 100,000 1-oz coins.

[The Ministry of] Finance insists it has no regrets about emptying its gold vaults. Its priority is to have international reserves that it can easily sell in an emergency, made up of assets whose value remains relatively steady. The government does try to earn a decent return of its reserve holdings, but that goal is secondary.

At least, the sales started at the beginning of the 20-year gold bear market; otherwise, me and my fellow Canadians might have to endure some Gordon-Brown-related jokes. Still, it is odd that a country with so many gold mines would have a government that eschews gold in its reserves.