A Simple Hedge for Canadians as Markets Get Weird

Markets feel weird when too many big forces pull in different directions at the same time. Rates still bite, inflation refuses to behave, and every headline about wars, trade, or elections can whip prices around in an afternoon. In that kind of tape, investors often want one simple hedge that does not require forecasts or perfect timing. A small slice of gold exposure can do that job, as gold often holds its ground when confidence wobbles and currency fears flare.

MNT

Royal Canadina Mint-Canadian Gold Reserves (TSX:MNT) does not run mines, and that detail matters. It trades as Canadian Gold Reserves exchange-traded receipts backed by physical gold held by the Royal Canadian Mint. Each receipt represents a specific entitlement to gold, and the program posts that entitlement and its net asset value regularly. That structure can suit Canadians who want gold exposure without dealing with bars, storage, or insurance.

The biggest news over the last year came from growth in the program and the mechanics that keep it liquid. In September 2025, the Mint completed a follow-on offering of 833,200 receipts at $53.18 per receipt for gross proceeds of about $44.3 million. The offering increased receipts outstanding and added more gold to the program, which can help liquidity and narrow spreads. It also signalled demand for a “made in Canada” gold wrapper.

The other news comes straight from the gold tape, because MNT tracks gold, not operating results. As of Feb. 9, 2026, the program showed a net asset value of about $1.3 billion, with 17,730,515 receipts outstanding and a per-receipt gold entitlement of 0.0103713 troy ounces. The same update showed a spot gold price around $5,064 per troy ounce in Canadian dollars. When gold jumps, MNT reflects it quickly.

Numbers don’t lie

Now for the numbers that count as earnings in a physical gold vehicle. “Performance” shows up as changes in net asset value and market price, not revenue or earnings per share (EPS). The gold stock shows a strong 2025 total return for MNT, which lines up with gold’s strength over that period. Treat that as context, not a guarantee. Gold can trend hard, then go quiet for long stretches.

Program disclosures matter too, as these tell you how the wrapper behaves when demand rises. The Mint’s third-quarter 2025 financial report referenced the follow-on offering under the Canadian Gold Reserves program. That detail matters because it shows the program can expand through issuance instead of trapping investors in a fixed pool that drifts far from underlying value. Expansion can help keep premiums and discounts under control.

The 2026 outlook depends on whether “weird” markets stay weird. If inflation flares again, if recession fear returns, or if geopolitics keeps investors jumpy, gold can keep acting like portfolio insurance. If real yields rise and risk appetite roars back, gold can cool off, and MNT will follow. Currency moves also matter, because Canadians feel gold in Canadian dollars, and the loonie can amplify or mute the ride.

Bottom line

MNT can work as a simple hedge for Canadians because it offers direct exposure to physical gold with transparent program data and no corporate drama. It will not pay a dividend, and it will not compound like a great business, so it should not replace your core holdings. But as a small position, it can smooth the bumps when stocks wobble, and that smoother ride can help you stay invested today when the market starts acting strange again.

The post A Simple Hedge for Canadians as Markets Get Weird appeared first on The Motley Fool Canada.

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More reading

• Gold and Silver Are Sliding: 1 TSX Stock to Watch
• 1 Magnificent TSX Dividend Stock Down 41% to Buy and Hold for Decades
• What’s the Average TFSA Balance at Age 30 in Canada?
• CAD/USD Is Moving: Here’s the TFSA Fix
• CRA: Here’s the TFSA Contribution Room for 2026, and Why Now is the Best Time to Use it

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.