Investing in gold in Canada can be a wise choice for diversifying your investment portfolio and protecting your assets. Here’s a recap of the six easy ways to invest in gold in Canada as a beginner, along with some frequently asked questions:
You can purchase physical gold in the form of bars, coins, or medallions from major financial institutions like RBC, TD, or the Royal Canadian Mint. Banks offer safe storage options, and you can even take loans against your gold holdings.
Invest in shares of gold-related companies, such as gold miners, processors, and royalty companies. These stocks can provide exposure to the gold industry and may pay dividends.
Gold Exchange-Traded Funds (ETFs) offer a cost-effective way to invest in a basket of gold-related assets or even physical gold. These ETFs trade on stock exchanges and provide diversification.
Trade gold via futures contracts, which allow you to invest in a specified amount of gold at a predetermined price for a future date. You can do this through major banks or discount brokerages.
ETRs represent an interest in gold bullion held by the Royal Canadian Mint. These are listed on the Toronto Stock Exchange and can be traded like stocks, providing a way to invest in physical gold without custody.
Gold mutual funds, though having higher management fees compared to ETFs, offer a way to invest in a diversified portfolio of gold-related assets. They can be purchased in full or partial units through most brokerages.
Investing in gold can be a safe option during periods of market volatility and economic uncertainty. Gold historically performs well in such conditions and can serve as a hedge against inflation and currency devaluation.
Gold can be a good investment, especially when used as a defensive asset to protect your capital during economic downturns and market turbulence. Its value has endured for centuries, making it a reliable option for portfolio diversification.
Buying gold ETFs through a Canadian discount brokerage is a simple and cost-effective approach.
Yes, most major Canadian banks offer gold purchase options, including storage and delivery services.
Yes, you can include gold stocks and ETFs in your Tax-Free Savings Account, and any gains will be tax-free.
It is legal to own physical gold in Canada, either in your possession or stored securely.
TD Canada Trust customers can sell gold and precious metals at a TD Branch, with pricing based on live market rates.
The sale of gold may trigger a capital gain or loss, which is taxable unless it’s within a TFSA. Most gold purchases in Canada do not require GST payment.
