Is The Canadian Dollar Backed By Gold?

I get a lot of questions both from Canadian and American twitter users asking if the Canadian dollar is backed by gold. Many people are scared with the current state of the United States economy and they are looking for a safe haven and they ask if the Canadian Dollar is backed by Gold. I guess their reason for asking this question is if the United States dollar Crashes they can then switch to Canadian dollars and then I guess cash their money into gold. I’m not entirely sure but I think it’s something to that effect.

Furthermore more than ever more and more people are becoming aware that the United States Dollar is not backed Gold. Although this alarms people the truth is that had the gold standard not been removed from the United States, many of us would not enjoy many of the things we enjoy today. If money was still backed by Gold we would have to find or dig for gold in order for the government to print more money. This would inevitably lead to deflation especially in the United States a country that grows so rapidly, and would most likely destroy the system we currently have in place

The reason why many people speak highly of the gold standard is because it rewards “Savers” & not Investors. If we as a civilized world return to the gold standard whoever already has the gold has all the power and if those people decide to be stingy with their money the rest of us don’t stand a chance.

So Is The Canadian Dollar Backed By Gold???

The answer is obviously NO. There is no such thing a Fiat currency being backed by gold.

What is a fiat currency?

Fiat simply means any money declared by a government to be legal tender. Legal tender for Canadians basically means the CAD* If you have some Canadian money with you just look at it. there’s an example below.

Canada Money

Canadian Money

The portion next to the red line clearly states “This Note Is Legal Tender”. Now allot of you have been frightened by conspiracy theorists who are both trying to make a name for themselves and trying to make a fast buck. Although there is some truth to what some of them are saying the real truth is most of what they are doing and saying is pure speculation. We all know there is corruption in Government but for most of us we just want to make sure we can live our lives without worrying about losing everything.

It’s 2010 as I am writing this post and our world is going through a change. The people are demanding a better world and wheels are now in motion. Now honestly the money system as we know it today might crash but having a gold standard is not what’s going to make it better. If you look back in history The Gold or Silver Standard has always been the main contributor the failure of many nations. Having a Gold standard actually causes more wars because more gold needs to be found in order to expand the economy.

Plus unlike silver (at the moment anyway) Gold is not a consumed precious metal. I predict as the decline of silver becomes more apparent that gold might be used similarly to how silver is used today but that’s getting away from the point here. For many of you who are like me and grew up poor you should actually be thankful the Gold Standard was removed. Had it not been removed us poor folks would have never stood a chance.

In our current markets when times get tough our governments can print more money. Had the gold standard been there our governments would have to dig for gold. I will use another example that some of you are more familiar with. In many poorer nations Farmers are the rich people. Not the doctors or dentists the farmers. Why because they have the land they have the food. We all need to eat right? What this means for the poorer people of those countries is that the poorer classes don’t stand a chance. This means if you we’re born poor in these places don’t expect anything to change, this means unless you can marry into a rich family your best chance to be rich is to get into the government which is one of the reasons why so many 3rd world nations have such corrupted governments.

In the western World as well as in Europe they’ve made it where everyone has a chance at wealth. When the demand is there Money is Printed or loaned. The smart Investor will get money and find a way to make it more money. This is called capitalism and this is one of the reasons why the gold standard was removed. So again to answer the question is The Canadian Dollar backed By Gold the answer is NO and in my opinion be thankful that it’s not.

For those of you want to opt out of the Canadian dollar and would prefer to use Gold and silver consider reading the Where To Buy Gold Coins Online post