Q: There was a banner on BNN this morning that said our trade deficit widened due to an increase in imports of gold. Who is buying that much physical gold and why is it coming from foreign sources? This seems curious to me. Thanks. Ian
5i Research Answer:
This looks more 'accounting' related than actual physical imports and is due to mining companies with US operations essentially marking their holdings back into Canada. So it is recorded as an 'import' but is not really due to entities going out and explicitly purchasing gold from the US.