Having guided Canadian investors through precious metals since the 1980s, I understand the unique advantages and challenges of buying gold in Canada.
Let me walk you through your options and help you choose the right approach for your situation.
To begin with, we’ll break down some quick facts that outline your options.
Here’s everything you need to know about how to invest in gold in Canada.
Quick Facts About Canadian Gold Investment
| Method | Minimum | Tax Benefits | Complexity |
|---|---|---|---|
| Physical Gold | No minimum | No GST on pure gold | Simple |
| Gold RRSP | $1,000 USD | Tax-deferred growth | Moderate |
| ETFs/Stocks | Varies | Standard investment | Simple |
Why Consider Investing in Gold in Canada
Canadian investors have the advantage of unique circumstances when it comes to precious metals investments.
Here are just some of the advantages:
- Strong precious metals infrastructure
- No GST/HST on pure gold
- RRSP-eligible options
- International market access
- Professional storage availability
What makes Canada unique for gold investors is our combination of tax advantages and strong property rights.
Unlike many countries, Canada exempts pure gold from GST/HST and offers tax-advantaged precious metals through RRSPs.
nderstanding whether you need physical gold or RRSP-eligible investments should be your first decision. This choice affects everything from dealer selection to tax treatment.
Main Investment Methods
Let me break down exactly how Canadians can invest in gold, based on decades of market experience.
These are your options.
1. Physical Gold Ownership
Direct ownership offers the most control.
This gives you:
- Immediate access to your metals
- No counterparty risk
- Various storage options
- GST/HST exemption (on pure gold)
Recommended Dealer: Silver Gold Bull stands out for Canadian buyers with competitive pricing and nationwide service. Their Calgary headquarters and comprehensive shipping insurance make direct purchases straightforward.
2. Gold RRSPs/TFSAs
Tax-advantaged precious metals investing through registered accounts is a great option for many long-term focused investors.
Keep the following in mind:
- Tax-deferred growth advantages (through RRSP)
- Tax-free gains (through TFSA)
- Professional storage is required
- Regulated custody
Recommended Dealer: Silver Gold Bull is great due to their integration with Questrade, which makes RRSP gold investment particularly accessible with competitive fees and secure storage.
3. “Paper” Gold Options
There are also options for exposure to gold through “paper” investments, meaning you invest in a derivative that tracks the price of gold without taking on physical possession.
Examples of paper gold options include:
- Gold exchange-traded funds (ETFs)
- Mining stocks
- Certificates
- Gold futures
- Gold savings account
Let’s examine a few of the most popular to explore their advantages and disadvantages.
| Type | Advantages | Disadvantages |
|---|---|---|
| ETFs | Easy trading | No physical metal |
| Mining Stocks | Growth potential | Company risk |
| Certificates | Simplicity | Counter-party risk |
A balanced approach combines physical gold through Silver Gold Bull for direct ownership with their RRSP program for tax-advantaged investing.
Physical Gold Buying Guide
Having purchased precious metals for decades, I’ll explain exactly how I buy physical gold efficiently and securely in Canada.
Types of Gold Products
The most popular products include:
| Product | Premium Range | Best Use |
|---|---|---|
| Gold Maple Leafs | 3-5% | Easy liquidity |
| Gold Bars | 2-4% | Better value |
| Wafer Bars | 2-3% | RRSP eligible |
| Foreign Coins | 4-6% | Diversification |
Where to Buy in Canada
Silver Gold Bull offers several advantages for Canadian buyers:
- Headquarters in Calgary
- National shipping network
- Full insurance coverage
- Price match guarantee
- Multi-product selection
Their free shipping over $99 and price matching policy often make them more economical than local dealers, even factoring in shipping.
We recommend both a) researching their direct buy options and b) signing up for their free info kit on gold RRSPs before making your decision. By entering your info, a kmowledgeable rep will give you a call and answer all of your questions.
Pricing Considerations
What affects your final cost:
- Spot price (base price)
- Product premium
- Payment method
- Purchase volume
- Shipping insurance
Real Example: A recent client saved significantly ordering a Monster Box of Silver Maples through Silver Gold Bull versus local dealers, even with shipping included.
RRSP Gold Investment Step-by-Step Process
Let me walk you through exactly how to invest in physical gold through your RRSP, based on real experience with Canadian retirement accounts.
Step 1: Open Questrade Account
Go here to sign up.
- Self-directed RRSP required
- Minimum USD $1,000
- Basic documentation needed
Step 2: Silver Gold Bull Integration
Sign up for Silver Gold Bull’s investor guide. Enter your info and their team will contact you back ASAP.
Steps they’ll walk you through:
- Completing dealer authorization
- Linking accounts
- Selecting storage options
- Choosing eligible products (ties into next step)
Step 3: Choose Eligible Products
Silver Gold Bull, or your elected dealer, will be able to help advise on this step.
Current RRSP-Eligible Products
| Product | Minimum Order | Storage |
|---|---|---|
| Gold Maple Leafs | Any quantity | Ontario facility |
| RCM Gold Bars | 1 oz minimum | Segregated available |
| Silver Maples | 20-25 coin tubes | Professional vault |
| 100 oz Silver Bars | Single units | Fully insured |
Fee Structure Breakdown
What you’ll actually pay:
- Trading: $19.95 per trade
- Storage: 1% annually of holdings
- Insurance: Included
- Currency exchange: Through Questrade
- Setup: One-time fee
While fees may seem higher than direct ownership, tax advantages often offset costs for long-term investors.
Tax Considerations for Canadian Gold Investors
Next, let’s clarify exactly what you need to know about gold investment taxation.
Direct Purchase Tax Rules
The benefits of investing in pure metals:
- No GST/HST on pure gold (99.5%+)
- No GST/HST on qualifying silver
- Capital gains only on sale
- No annual tax reporting
RRSP Advantages
You can receive certain benefits by investing via your RRSP.
| Benefit | Direct Purchase | RRSP Gold |
|---|---|---|
| Tax Deferral | No | Yes |
| Contribution Credit | No | Yes |
| Growth | Taxable | Tax-sheltered |
| Withdrawal | Capital gains | Income |
Record Keeping Requirements
Be sure to keep all your purchase receipts, storage certificates, insurance documents, transaction records and annual statements.
Capital Gains Reporting
When selling physical gold, be sure to keep in mind that 50% of your gains are taxable. The cost basis includes premiums.
For reporting purposes, it’s advised that you keep proof of the purchase price and document selling costs.
Security & Storage Options for Canadian Gold
Having evaluated every major storage option available to Canadians, I’ll break down your choices and their practical implications.
Professional Storage Solutions
If you invest through a professional company like Silver Gold Bull, you will get access to:
- Calgary primary vault
- Ontario RRSP facility
- International locations
- Segregated storage options
- Full insurance coverage
Let’s now contrast these options versus bank boxes and home storage.
Comparison of Options
| Feature | Professional | Bank Box | Home Storage |
|---|---|---|---|
| Insurance | Comprehensive | Limited | Varies |
| Access | 24/7 online | Bank hours | Immediate |
| Audit Trail | Complete | None | Self-managed |
| Cost | 0.5-1% annually | Fixed rental | One-time setup |
| Risk Level | Lowest | Moderate | Highest |
Home Storage Considerations
While tempting for cost savings, consider:
- Insurance limitations
- Security requirements
- Access restrictions
- Disaster risks
- Proof of ownership
Warning: A client recently lost significant value storing gold at home when their insurance policy didn’t cover precious metals – a common limitation of homeowner’s policies.
Making Your Decision: The Right Gold Investment for Canadians
To determine your best path forward based on your specific needs, consider your goals.
1) Tax-advantaged growth:
- Professional storage in Ontario
- Regular contribution schedule
- Tax-deferred growth
Action step: Sign up for Silver Gold Bull’s RRSP program through Questrade.
2) Direct ownership:
- Competitive premiums
- Insured shipping
- Full documentation
Action step: Purchase direct for physical delivery through Silver Gold Bull.
How to Get Started Investing in Gold in Canada Today
If you’re ready to get started today, take the following steps:
For RRSP Investment:
- Open Questrade account
- Contact Silver Gold Bull
- Complete authorization
- Begin metal selection
For Direct Purchase:
- Create online account
- Choose products
- Select shipping/storage
- Complete purchase
Consider starting with Silver Gold Bull’s direct purchase program to understand the process, then explore their RRSP options if tax advantages suit your situation.
Their comprehensive service handles both needs under one roof, simplifying your precious metals investment journey.
Hopefully you now feel better equipped to invest in gold in Canada.
