How to buy gold in Canada

In the age of meme stocks and economic and political instability, gold is a stable investment that doesn’t experience the same volatility as stocks and other tradable assets. If you are looking to hedge against large drops in the market, you may want to consider investing in gold as a way to protect your wealth. Read on to learn how to invest in gold and how to buy gold in Canada.

How to buy gold in Canada: choosing the asset type

If you want to gain exposure to gold, there are a few ways to invest in gold in Canada.

• You can buy and store physical gold
• You can invest in gold ETRs or gold stocks
• You can trade gold on the financial markets as contracts for difference (CFDs).more info button

What is the price of gold per oz in Canada now?

How to buy physical gold in Canada

Buying and storing physical gold allows you to get your hands on a tangible asset and avoid the risks associated with the stock market.

Buy gold from Silver Gold Bull

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If you decide to buy physical gold, you’ll need to consider what form you’d like to acquire. You can buy gold bullion in the form of gold bars or in coins:

1. Bars: These are larger and therefore more expensive, but they are an effective option if you’re looking to make a sizeable investment.
2. Coins: These smaller and less valuable, so they can be a more convenient option when you need to liquidate some of your investment or you have less money to invest with.

At most institutions, there is a limit to how much gold you can purchase daily. For instance, most banks have a daily limit of around $10,000 worth of gold, but this can vary. Whether you are a customer or not may also influence your daily purchase limit and even purchase price.

• How to buy gold bars in Canada

  Gold bars generally range in size from 1/10oz (ounces) to 1kg, but there are bars of up to 500oz available. Remember that precious metals use troy ounces and that one troy ounce equals 31.1 grams.

  There are 2 types of gold bars: cast bars and minted bars. Cast bars are produced by pouring molten gold into an ingot mould, while minted gold bars are manufactured via a minting or stamping process.

  Cast bars are cheaper to produce, but minted bars look better and are generally easier to sell.

• How to buy gold coins in Canada

  Mints around the world also produce gold bullion coins. Typically smaller than bars and ingots, they’re generally considered to be a more convenient option for many investors.

  Not only are they cheaper to buy, but they also make it easier to liquidate a small portion of your investment when you need cash. Coins contain between 1/20oz and 1oz of pure gold. A 1/20oz coin with cost you less than $200, making it a more cost-effective way to gain exposure.

  These coins also have a nominal monetary value and can be accepted as legal tender in the country where they’re made – examples include the Australian Kangaroo, the American Gold Eagle, the Canadian Maple Leaf and the UK’s Gold Sovereign.

Compare Canadian gold bullion dealers

Gold bullion refers to gold that is at least 99.5% pure and has been transformed into bars or ingots or minted into coins. Gold bullion is the form in which gold is traded on commodities markets around the world.

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Name	Product	Locations	Product types	Standard storage fees	Standard delivery fee	Available metals
Silver Gold Bull		Calgary, Online	Bars, Coins, Jewelry, Collectables	Contact for pricing	$19.95 (Free on orders over $299.00)	Gold, Silver, Diamonds	Go to site More Info	An Alberta-based provider offering up-to-the-minute pricing on high quality products from reputable mints and suppliers. Get discreet and fully insured delivery to your door, storage options, free shipping over $299.00 and a price-match guarantee.	Compare	loading Fetching your data...
Sprott Money		Online	Bars, Coins, Collectables, Bullion	Contact for pricing	$15.00 – $30.00, plus 0.4% - 0.75% of $ value. Free on orders $3,000+.	Gold, Silver, Platinum	More Info	An established provider offering high quality and competitively priced investment-grade bullion. Get access to market insights, international storage options and timely customer service.	Compare	loading Fetching your data...
Regal Assets		Online	Bars, Coins	Contact for pricing	Included in price quoted for metals	Gold, Silver, Platinum, Palladium	More Info	A Toronto-based provider offering high purity bullion with transparent fees and commissions. Offers both national and international storage options.	Compare	loading Fetching your data...
Vaulted		Online	Bars	1.8%	$50.00 delivery + $2.00 per bar. For smaller amounts contact Vaulted	Gold	More Info	A simple and easy-to-use online provider offering 99.99% pure gold kilo bars manufactured conflict-free. Download the Vaulted app to quickly buy and sell gold.	Compare	loading Fetching your data...
Canadian Coin & Currency		Online, Toronto	Bars, Coins, Jewelry, Notes	N/A	$8.99 - $22.00	Gold, Silver, Diamonds	More Info	An online provider offering top quality gold and silver bars and coins at competitive wholesale and direct-to-investor pricing. Offers affordable shipping options.	Compare	loading Fetching your data...

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How to buy gold stocks in Canada

You can invest in gold stocks to profit from gold prices rather than physically owning gold. With this approach, you don’t actually buy any gold. Instead, you invest in the performance of the gold industry or the mining company.

Stock market investors can buy shares in companies that have gold exposure, such as gold miners, or they can buy units in a gold-themed exchange traded fund (ETF).more info button

If you want to buy gold stocks, you need a full-service broker or you can do so by opening an account on an online trading platform.

Buying gold stocks or ETFs means you don’t have to go through the hassle of buying, storing and insuring it. When you buy shares of a gold mining company, that company is responsible for the mining and storing of gold, and you become a share owner of the company itself. However, because you don’t own any actual gold, it exposes you to all the usual risks that the stock market carries (market volatility, company bankruptcy and the possibility of losing your investment, etc.).

How to buy gold ETFs in Canada

Sprott Physical Gold Trust (TSX: PHYS)

Created in February 2010, the Sprott Physical Gold Trust is a closed-end trust that invests in unencumbered and fully-allocated London
Good Delivery (LGD) gold bars.

• MER fee: 0.42%
• 1 Year performance: 7.16%
• 5 Year performance: 7.66%

Buy PHYS.TSX on CIBC Investor's Edge

Horizons Gold ETF (TSX: HUG)

The Horizons Gold ETF was created in 2009 and seeks to replicate the performance of the Solactive Gold Front Month MD Rolling Futures Index ER.

• MER fee: 0.30%
• 1 Year performance: -4.62%
• 5 Year performance: 4.55%

Buy HUG.TSX on CIBC Investor's Edge

iShares Gold Trust (NYSEArca: IAU)

The iShares Gold Trust was launched in 2005 and seeks to reflect the performance of the price of gold using the London Bullion Market Association (LBMA) Gold Price as a benchmark.

• MER fee: 0.25%
• 1 Year performance: %
• 5 Year performance: %

Buy IAU.NYSE on CIBC Investor's Edge

SPDR Gold Shares (NYSEArca: GLD)

Created in 2004, the SPDR Gold Shares ETF and is the largest physically backed gold ETF in the world. Shares in the fund represent units of fractional undivided beneficial interest in, and ownership of, the SPDR Gold Trust.

• MER fee: 0.40%
• 1 Year performance: -3.26%
• 5 Year performance: 6.79%

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Royal Canadian Mint – Canadian Gold Reserves (TSX: MNT)

Created in 2012, the Canadian Gold Reserves fund offers Exchange-Traded Receipts (ETRs) that represent an undivided beneficial interest in gold bullion held in custody by the Mint but owned by ETR holders.

Unlike an ETF, which lets you invest in gold-related companies and interests, this ETR lets you actually own physical gold. Instead of storing it yourself, though, the gold is stored by the Mint.

• MER fee: 0.35%
• 1 Year performance: 0.25%
• 5 Year performance: 5.49%

Buy MNT.TSX on CIBC Investor's Edge

How to investing in gold via CFDs

An alternative to buying gold stocks or units in an ETF is to speculate on price movements through CFDmore info button investing in the futures market. CFD investors seek to profit from bond price movements – whether up or down. That means that even if gold prices are falling, CFD investors can still make a profit. However, because CFDs can be highly risky and are complex derivative products, gold CFDs are better suited to advanced traders. You can read more about CFDs in our detailed guide.

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Forex.com		US$100	Minimum US$25	Forex Metals Commodities Indices Shares	Forex.com Desktop, Forex.com Web Trading, Forex.com Mobile Trading, MetaTrader 4	CFDs are leveraged products which involves greater risk than using cash resources only. You could lose all or more of your initial investment. Trade 80+ currency pairs and 220+ CFDs in equities, commodities and indices on Forex.com.	Go to site More Info	Compare	loading Fetching your data...

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Where to buy physical gold and gold bars in Canada

How do you find the best place to buy gold in Canada? There are several options to consider when choosing where to buy gold in Canada, so make sure to consider the following factors before deciding where to buy:

• Location. There are a number of gold dealers around Canada, so the location of those dealers will influence your decision if you plan on buying gold in person. Check out Bullion Directory to find a gold bullion dealer in your province.
• Online options. There are also many online dealers that allow you to conveniently buy gold bullion online. As well as specialist dealers, you can also buy gold through marketplaces such as eBay and even arrange purchases through precious metal forums. However, as is always the case when spending money online, you’ll need to make sure you know who you’re dealing with – do some research to find out whether the seller is reputable and trustworthy.
• How the gold was produced. You’ll also need to find out where the dealer gets their gold from. Is it refined and produced by an established and recognized manufacturer?
• Bullion DNA (for gold and silver maple leaf 1 oz coins). The Bullion DNA technology prevents counterfeiting by scanning and detecting the authenticity of Gold Maple Leaf 1 oz coins dated 2014 and onwards and Silver Maple Leaf 1 oz coins dated 2015 and onwards. If you’re interested in buying these types of assets, look for a registered Bullion DNA dealer.
• Premiums and commissions. Read the fine print to find out what fees the dealer charges. Expect to pay a commission to the dealer, which is usually folded into the purchase price, as well as an assay fee to check the purity of the gold and to verify its authenticity, but shop around for the best value.
• Compare price to Canadian gold price. Gold prices are commonly quoted in US dollars, so make sure you compare the price offered by a dealer with the current price of gold in Canadian dollars.
• Delivery. Find out how and when the gold will be transported to you or to its place of storage. Is it insured if anything goes wrong during the delivery process?

Thinking of buying physical gold? Consider the pros and cons first

Bottom line on investing in gold

Like silver, gold is considered a stable investment that retains its value. Before you invest in gold, you’ll want to consider whether you want to buy, store and insure physical gold, invest in gold on the stock market, or use CFDs to trade gold. Regardless of how you choose to invest in gold in Canada, remember that, like all investments, it carries risk.

Frequently asked questions about how to buy gold in Canada

• How do I store my gold?

  Once you’ve purchased your gold, you’ll also need to find a safe place to store it. There are several options to consider, including the following:

  1. 1. • Bullion dealers. Many gold dealers will also offer a storage service where you can keep your gold bars or coins for a fee, so ask about the storage options available when you make your purchase.
        • Safety deposit boxes. You can rent a safety deposit box at a bank to securely store your gold bullion.
        • Secure vault storage. For high-level security, you may want to research vault storage companies near you and the storage options they offer.
        • At home. You can also choose to store your gold at home. This obviously may not be as secure as some other options, so you may want to get a home safe installed. You’ll also need to update your home and contents insurance to make sure your precious metal is covered by your policy (learn more about home insurance in our detailed guide).

• Do banks sell gold in Canada?

  Some banks do sell gold to customers, but many do not. Canada’s Big 5 banks – TD Canada Trust, CIBC, BMO, RBC and Scotiabank – all sell gold and other precious metals. If you’re interested in buying from a bank, talk a local bank representative to find out what your options are, and make sure your investment comes with a secure way of storing your precious metals. You’re also more likely to get a better price if you are a customer of the bank you’re buying gold from.

• How do I sell my gold in Canada?

  If you bought and stored physical gold in Canada and are ready to sell it, you have a couple of options. The main way to sell your gold is to go to a bank’s resale centre or branch for information on how to re-sell to the bank. Always make sure you keep your original purchase receipt and verification that the gold is in perfect condition.

• Is it safe to buy gold online?

  Yes, it is safe to buy gold online in Canada, provided you’re purchasing from a reputable gold dealer. Before deciding whether to buy, make sure you thoroughly research the legitimacy of any dealer by checking to see how long they’ve been in operation and whether they’ve been flagged for any breached of compliance. You can check out public ratings of various precious metals dealers in Canada on the Better Business Bureau (BBB) website.

• Are precious metals dealers in Canada required to follow any security regulations?

  All precious metals dealers in Canada are required to adhere to a compliance program set out by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). This is to prevent money laundering and terrorist financing. Suspicious transactions must be reported and detailed reports of certain types of transaction must be kept by the dealer. There are penalties for noncompliance. See the FINTRAC website for more details.

• What are other ways to make money from gold?

  Aside from buying gold in Canada as a physical commodity, there are a couple of other ways you can potentially make money from gold. For example, it’s possible to invest in exchange-traded funds that track the price of gold or invest in gold mining companies. Of course, these options also come with a certain level of risk attached, and there’s no guarantee of making a profit.

• Are there any taxes on gold bullion in Canada?

  If you buy or sell gold in an investment form (gold of at least 99.5% purity), GST/HST is not payable. However, if you later sell your gold bullion for a profit because it has increased in value since you bought it, capital gains tax will apply.

  However, you may be able to offset some of this burden by holding your gold in certain types of investment accounts like Registered Retirement Savings Plans (RRSPs) or Tax-Free Savings Accounts (TFSAs). Speak to a tax lawyer, tax specialist or investment advisor for more information and to find out what tax-reducing strategies may be open to you.