How to Buy Gold in Canada: The 2024 Investor’s Guide

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Disclaimer: The content on this site isn’t financial advice and cannot be taken as such. Speak to your financial advisor before making any investment decision. Past results aren’t indicative of future returns. We also may receive commissions from companies and products when you click on certain links in our content.

Wondering how to buy gold in Canada as a way to diversify your portfolio against inflation, skyrocketing debt, stock volatility, and general market uncertainty? 

It wouldn’t be a bad idea, considering central banks all around the world are stocking up on the yellow metal. In fact, with the notable exception of Scotiabank, Canada’s big five banks will buy your gold and silver assets at market rates. 

If all our financial institutions are loading up on gold, why aren’t you?

Below, I’ll show you the different ways Canadians can invest in gold and get the best deal possible on their investment. 

Should You Buy Gold? 

First, you may be wondering “should I buy gold?” or “is gold right for me?” Both are valid questions. Gold may or may not be right for you, depending on your investment objectives and current portfolio allocation.

Canadians tend to invest in gold for the following reasons:

  • Diversification from paper assets like stocks, bonds, ETFs, and mutual funds. 
  • Portfolio balancing/protection in case of a recession
  • Hedge against inflation and deflation
  • Insurance policy in case of a collapse of the dollar
  • Way to preserve wealth for future generations
  • Gold is the oldest investment known to man and is accepted worldwide
  • Unlike paper assets, gold value can never go to zero

Historically, gold has shown great results for all of the above. However, keep in mind that, just like with any other investment, past results don’t guarantee future returns, so don’t go ahead and put all your savings in gold! Diversification is the name of the game when it comes to investing, just like any financial advisor would tell you. 

Speaking of financial advisors, we recommend that you speak to one before making ANY investment decision. If your financial advisor doesn’t believe in portfolio diversification, you probably want to find a new one. 

 

Most Popular Gold Bullion Bars

Gold bullion bars are very popular among Canadian precious metal investors. Especially for those looking to invest considerable amounts of money. The main reason is the markup over the spot price for gold.

Since there are no minting and design costs investors do not pay as large a markup over the spot price for bullion bars. Here are some of the most popular gold bullion bars in Canada.

1. Royal Canadian Mint Gold Bar

The Royal Mint produces gold bars of various sizes; the most sought-after are 1 oz bars, also known as wafers, and 1 kg bars. All bars and wafers are made with 0.9999 pure gold.

2. TD Gold Bars

TD Bank produces a variety of gold bars and wafers from LBMA-approved mints. The smallest sized wafer starts at 1 gram and increases in a variety of weights up to 1 kg. All bars are impressed with the TD log on one side, the weight, and the purity.

 

Gold Coins Versus Gold Bars

The main considerations when deciding on whether to invest in gold coins or bars amount greatly to two factors: quantity and collectability. Firstly, how much are you looking to invest in gold? At some point paying for the extra markup on gold coins outweighs the privilege of owning such attractive items.

The next thing is collectability, many gold coin investors are also looking for numismatic value. The coin may not have it now, but it might gain it in the future. In this case, coins are the only way to add extra possible value to your investment.

Note that not all gold coins are considered bullion by the Canadian Revenue Agency. 

The agency has specifications on the issuer and purity of coins for them to be approved for investment through a retirement account. Using a gold company like the ones mentioned below can help you navigate the regulatory maze. As they are able to advise on which gold coins are approved or not.

Gold Coins        Gold Bars
Can hold collectible or numismatic value     Pay smallest markup over spot price
Highly attractive    More durable
Higher markups over spot price       Cannot achieve higher returns for numismatic value                          

 

Gold Bullion Versus the Different Types Of “Paper Gold”

  1. First, gold bullion is a tangible asset that you can hold and touch, whereas paper gold is a financial instrument that represents a claim on gold but does not provide physical possession of it. 
  2. Second, gold bullion is not subject to the same risks and uncertainties as paper gold. For example, paper gold investments, such as gold ETFs and mining stocks, are subject to market volatility and can be affected by factors such as changes in interest rates and economic conditions. Gold bullion, on the other hand, is a more stable and predictable investment.
  3. Third, gold bullion has the potential to retain its value over time, even in times of economic uncertainty. This makes it a valuable diversifier for an investment portfolio, as it can provide protection against inflation and market downturns.

Overall, investing in gold bullion offers a number of benefits, including tangibility, stability, and diversification, that make it a compelling option for investors.

 

Benefits of Investing in Gold With an RRSP, TFSA, or LIRA

When it comes to investing in precious metals, retirement accounts such as RRSPs, TFSAs, or LIRAs hold several advantages. LIRA accounts are Locked in Retirement Accounts and are used when you have a pension plan from a previous employer.

You can decide to claim those funds and transfer them to a LIRA account. You will not be able to withdraw the funds until retirement, usually a minimum of age 55. These funds are not open for yearly contributions like TFSAs or RRSPs. Rather it is a one-time contribution you make when you leave an employer.

All retirement accounts have the advantage of a tax-enhanced environment where your investment can grow tax-free. Here are the main characteristics of TFSAs and RRSPs.

TFSA   RRSP
Contribution limit $7,000 for 2024 Up to 18% of the previous year’s income or $31,560 for 2024
Unused contribution limits are added to the following year Unused contributions added to the following year
Contributions after tax and deducted  and deducted from your tax claim Contributions before tax and deducted and deducted from your tax claim
Can make untaxed withdrawals before retirement Taxed withdrawals before retirement 

                                                                                                                 

Top 5 Canadian Gold Companies for 2024

Here’s our list of the top 5 gold companies in Canada as well as an overview of each company’s respective advantages.

Silver Gold Bull 

Silver Gold Bull opened its business in 2009 in search of an innovative way to service bullion and precious metals investors. They are based in Calgary, Alberta, and have since then ranked up 100s of thousands of positive customer reviews.

They have made quality client service their main theme, coupled with the lowest markups over spot price in the industry making them our number one choice. Silver Gold Bull has catered to hundreds of thousands of clients and has racked up over $3 billion in transactions.

Ratings & Customer Reviews

Pros

  • 👍Best price guarantee (first in the industry)
  • 👍They offer the best deals when buying through a Canadian retirement plan (RRSP, TFSA, LIRA, and others)
  • 👍300,000+ five-star reviews
  • 👍Over $3 billion in trusted transactions
  • 👍Voted “best online shop” by Newsweek magazine. 

Cons

  • 👎No online pricing

 

Sprott Money

Sprott Money was founded by Eric Sprott in 2007 as a wholesale, retail, and institutional dealer of precious metals. Sprott is a well-known Canadian investor and billionaire who was also appointed to the Order of Canada in 2013.

Sprott Money is headquartered in Toronto but can provide its services countrywide online or over the phone. The same company also runs Sprott Asset Manager which specializes in investments in precious metals and other resources.

Ratings & Customer Reviews

Pros

  • 👍Wide assortment of collectibles as well as precious metals
  • 👍High-net-worth individuals will get better exchange rates for USD/CAD
  • 👍Pricing and quotes for items online

Cons

  • 👎Oriented towards high-net-worth individuals
  • 👎No walk-in location

 

Border Gold

Border Gold founder, Michael Levy, has been in the gold business since 1968 and has seen all the possible financial market cycles possible. This bullion dealer focuses on gold and silver and has a limited selection when it comes to platinum and palladium.

This bullion dealer was founded in 1994 and has a remarkably high standard of customer reviews. Border Gold has a walk-in store in Vancouver and can also take care of shipping and storage for clients buying gold outside of a retirement account.

Ratings & Customer Reviews

Pros

  • 👍One of the largest and most long-standing bullion dealers
  • 👍Recognized distributor of the Royal Canadian Mint
  • 👍Low minimum order at $300

Cons

  • 👎Limited selection in platinum-group metals

 

Kitco

 

 

 

 

Kitco is a Canadian gold bullion dealer founded in 1977 and based in Montreal. The dealer is one of the largest online retailers of precious metals with a global client base. Its customers include investors, jewelers, and collectors.

In addition to its online retail operations, Kitco also operates a global network of physical precious metals showrooms, allowing customers to view and purchase physical bullion. The company is known for its competitive pricing and wide selection of products, including coins, bars, and rounds. 

Ratings & Customer Reviews

Pros

  • 👍A valuable source of information related to gold and other precious metals
  • 👍Wide assortment of precious metal bars and coins
  • 👍International storage

Cons

  • 👎Instances of poor online customer reviews

 

Bullion Mart

 

 

 

 

 

 

Bullion Mart has been in the business for over twenty years and offers a wide selection of products. Items offered include a large assortment of numismatics, altogether they have over 90 different silver items and 46 gold items.

Considerable discounts are available for bulk orders. Most silver item orders receive discounts for 25 plus pieces and most gold orders for 10 plus pieces. This bullion dealer is not linked to any brokerage house and does not offer the possibility of investing in precious metals through a retirement account. 

Ratings & Customer Reviews

Pros

  • 👍Wide choice of bullion and numismatics
  • 👍Discounts for bulk orders
  • 👍Buyback prices at up to 98% of the spot price

Cons

  • 👎TFSAs and RRSPs are not available
  • 👎Some instances of poor online reviews
  • 👎No information on management 

 

Most Popular Gold Bullion Coins

Canada has one of the most renowned official mints in the world. So, it’s not surprising that many of Canadians’ most popular gold coins are made in Canada. However, there are plenty of choices out there. 

And among the most popular coins, you’ll also find coins from the United States, China, and Europe. Here is a selection of the most popular gold coins for Canadians.

 

1. Canadian Maple Leaf

The Royal Canadian Mint started producing Gold Maple Leaf coins back in 1979. They are made with gold of 0.9999 purity. The standard size is 1 ounce, although in more recent years the mint has also produced smaller-sized coins.

The obverse of the coin shows Canada’s national symbol, the maple leaf, with the inscription of purity, the weight of the coin, and the name of our country. The reverse of the coin shows an effigy of the late Queen Elisabeth II of the United Kingdom. Along with the inscription of her name, the year the coin was minted, and the nominal dollar value.

                             

2. American Eagle

The American Eagle is also a very popular coin in Canada from our neighbors across the border. The United States Mint started producing these coins in 1986 and the design has remained the same since then. 

The obverse of the coin shows an image of Lady Liberty against a background of sun rays and the year. The reverse of the coin has the effigy of an American eagle, the nominal value in dollars, and the amount of gold. They’re minted in 22-karat gold.

             

3. Austrian Philharmonic

The Austrian Mint first started producing these coins in 1989 when they were denominated in Schillings. From 2002, the mint changed the denomination to Euros. They are made with 0.9999 pure gold. And come in decreasing sizes down to 1/25th of an ounce.

The obverse of the coin shows the famous pipe organ from Austria’s world-renowned Golden Music Hall. With the inscription of the weight of gold, its purity, the year of mint, the nominal value, and the name of the country in German.

The reverse of the coin shows an image of various musical instruments typical of many orchestras and the inscription “Vienna Philharmoniker” which is German for Vienna Philharmonic. 

              

4. Chinese Panda

The People’s Republic of China started minting these coins in 1982. The coins are made with 0.999 pure gold. And come in various sizes as small as 1 gram, some more uncommon sizes include 30 grams, 8 grams, and 1/20th oz. The sizes available also vary from year to year.

All the coins have images of a panda on the obverse, although the design may change from year to year. The obverse of the coin for the mint year 2022 shows one panda reaching out to another that is protruding from a tree. 

 

What to Look for In a Gold Company Before Buying

  • When looking for a gold company to buy from, there are several factors to consider. First, it’s important to find a reputable and trustworthy company with a history of providing high-quality gold products. This can be verified by checking the company’s track record, customer reviews, and ratings from industry organizations.
  • Another important factor to consider is the company’s pricing. Gold prices can fluctuate, so it’s important to find a company that offers competitive prices and clear pricing policies.
  • Additionally, you should consider the company’s selection of gold products. A wide range of products, such as gold coins, bars, and jewelry, can indicate a reputable and well-established company.
  • It’s also a good idea to find a company that offers secure and convenient payment options, as well as fast and reliable shipping.
  • Overall, it’s important to do your research and thoroughly evaluate a company before buying gold from them.

Bottom Line

Investing in gold and other precious metals is a sensible way to diversify your portfolio and reduce its overall risk. A great way to enhance the returns of your gold and silver holdings is to invest through a tax-advantaged retirement account such as a TFSA or RRSP.

Canadian Gold Buyers FAQs

As a Canadian gold buyer, you’re bound to have a few questions. Here’s a roundup of the most frequently asked questions asked by our readers.

One way to verify the authenticity of the gold you're buying is to look for a certification from a reputable organization, such as the International Assay Office (IAO) or the London Bullion Market Association (LBMA). These organizations certify that the gold meets certain standards of purity and quality.

The most common forms of gold that are available for purchase include gold bars, coins, and jewelry. Gold bars are typically available in various sizes and weights, ranging from 1 gram to 400 ounces. Gold coins are usually minted by governments and have a face value, in addition to their gold content. 

The best way to buy gold depends on your personal preferences and needs. Some people prefer to buy physical gold, such as bars or coins, which they can hold and store themselves. 

Others may prefer to buy gold through an ETF. However, funds add corporate and governance risk, and don’t allow your investment to be held outside of the banking system.

The value of the gold you're buying is determined by its weight, purity, and the current market price of gold. Gold is typically measured in troy ounces, and its purity is expressed in karats. The market price of gold is determined by supply and demand factors and can fluctuate daily.

Many gold buyers offer a buyback program, which allows customers to sell their gold back to the company at a later date. However, the buyback price may be lower than the original purchase price. 

This is due to factors such as changes in the market price of gold and the condition of the gold you're selling. As well as the markup the bullion dealer will deduct from the spot price. It's important to check the terms and conditions of the buyback program before making a purchase.

 

 

John Kund

John has been writing for various financial magazines for the last two decades. He specializes in the Canadian economy and retirement planning.