Summary:
The presentation will discuss the results of a study completed in May 2001 that looked at the impact of central bank gold sales – and Bank of Canada gold sales – on the gold price, and hence on the revenues and future output of the gold mining industry in Canada. In turn, revenue and production have a direct impact on employment, wages and salaries paid, on supplies purchased, and on gold mining value added – i.e. the direct impact on the net economic benefit of gold mining to the Canadian economy.
The presentation will show that the impact of central bank gold sales on the Canadian gold mining industry is significant. The Canadian gold mining industry’s direct revenue losses resulting from all central bank gold sales since 1990 have exceeded $1 billion in 2001 Cdn$ dollars, for example, while the revenue losses resulting from Bank of Canada sales only have exceeded $140 million (2001 Cdn$) since 1990. Revenue losses resulting from Bank of Canada gold sales since its inception are estimated to be in excess of $240 million (2001 Cdn$). In turn, of course, such losses have had significant impacts on more specific industry variables, for which estimates will also be provided.
Author: Martin Murenbeeld Ph.D.
