Gold prices hit a record US$5,500 an ounce this week, driving lineups at Canadian bullion dealers and sparking acquisition activity in the country's mining sector.
The precious metal has climbed sharply amid geopolitical instability and weakening confidence in the U.S. dollar. Silver prices have followed, reaching approximately $150 CAD per ounce.
Canadians rush to sell coins and bullion
Calgary gold retailers reported significant lineups this week as customers looked to cash in on soaring prices.
Chris Pollock, founder of Canada Gold, said the company has seen "a huge increase in customers looking to liquidate bullion they've collected over the years."
Canada Gold operates 17 locations across Canada and the United States. When it opened its first Calgary store, silver traded at about $15 per ounce, and gold had just crossed $1,000 per ounce.
"We're seeing Canadians who just collected some silver dimes or silver quarters that they saw in their change in decades past," Pollock said. "Now it's worth getting close to 100 times the face value on the coins."
Not everyone is selling. Charles Richer waited at a northwest Calgary location on Tuesday, hoping to buy gold.
"I'm trying to buy gold, although there's a long lineup, so it probably won't be today," Richer said.
Experts point to U.S. dollar concerns
Tim Kiladze, a financial reporter for the Globe and Mail, described the surge as "investor pandemonium."
"Now you have this crazy demand coming in, while supply is relatively fixed," Kiladze said. "It's kind of this perfect storm for gold prices to go up."
Analysts cite rising demand, inflation hedging, and government institutions shifting reserves away from the U.S. dollar as factors behind the rally.
"If this narrative keeps forming that this is all a response to the chaos in the U.S. and the lack of security of the U.S. dollar, then maybe it lasts for a while," Kiladze said.
U.S. President Donald Trump called the greenback's recent decline "great."
Canadian gold exports volatile amid price swings
Gold became a major Canadian export through much of 2025 as prices climbed. The value of gold exports surged by $4.7 billion in September and October alone, according to Statistics Canada.
Exports then fell by $3.2 billion in November as volumes dropped 35 percent month over month, with sharp declines in shipments to Britain, the United States, and Hong Kong.
The price rally has also triggered deal-making in Canada's mining sector. China's Zijin Gold this week struck a $5.5-billion deal to acquire a Canadian gold miner.
Geopolitics could determine how long the rally lasts
Kiladze said geopolitical developments in the coming months will shape the outlook for precious metals.
"Maybe it's until the midterms in the U.S., when all of a sudden Donald Trump faces a lot of backlash later this year and then has to reverse course. But maybe he doesn't reverse course," he said. "There's lots of unknowns."
