Gold and silver prices suffered a jarring correction in mid-October, sending tremors through Canada’s bullion and numismatic markets as retail investors and collectors scrambled to reassess their positions just days after both metals reached record highs.
On Oct. 21, gold plummeted 6.3 per cent – the steepest drop in more than 12 years – mirroring global turbulence and a sudden shift of capital toward Bitcoin and risk assets, fuelled by emerging optimism around U.S.–China trade negotiations.
By the close of trading on Oct. 22, gold was priced at about C$5,813 an ounce, a sharp retreat from the Canadian-dollar record high of roughly C$6,065 reached on Oct. 16. The correction erased more than US$2 trillion in worldwide gold market value and rattled veteran Canadian bullion dealers.
“Markets are always driven by emotion as much as fundamentals, and what we saw on Tuesday was a classic capitulation,” said market analyst Tony Sycamore. “Gold was massively stretched and overbought, but this correction also opens buying opportunities for Canadian investors.”
For Canadian collectors and investors, the turbulence raises new questions about strategy. The flagship one-ounce pure gold coin from the Royal Canadian Mint – the Gold Maple Leaf (GML), struck in .9999 fine gold – remains a staple of the bullion landscape. Since its introduction in 1979, the GML has set worldwide standards for purity and security.
As of Oct. 22, most Canadian dealers were asking about C$6,000–C$6,250 for a one-ounce GML – a few per cent above spot, reflecting normal premiums and inventory conditions. Premiums widened this week due to volatile spot prices, increased hedging costs and stressed delivery chains for bullion.
Silver followed a similar path. After reaching a Canadian-dollar high of about C$75.93 per ounce on Oct. 16 – its strongest level of the year – silver dropped to roughly C$67.20 by Oct. 22, a decline of nearly 12 per cent in less than a week. The pullback mirrored gold’s downturn and underscored how quickly investor sentiment has shifted after months of steady gains in both precious metals.
The drop in prices comes amid a wider asset-allocation shift. As Bitcoin surged toward US$148,000, institutional theorists such as Anthony Pompliano dubbed the moment “the great rotation from gold into Bitcoin,” suggesting that even a small percentage of global gold capital shifting into cryptocurrency could eclipse previous highs in digital assets.
Geopolitical and macroeconomic winds have also unsettled investors. Renewed calls from U.S. President Donald Trump for conciliation with China, combined with expectations of an October rate cut by the U.S. Federal Reserve, have undermined traditional safe-haven impulses and reduced demand for gold.
For Canadian investors and collectors, the lesson from the recent historic gold and silver sell-offs is clear: while market sentiment can change rapidly, long-term value remains tied to assets with both intrinsic and collector appeal. As one recent statement from the Royal Canadian Mint notes, “The real value in coins is both in their metal and their meaning.”