How to Invest in Gold in Canada? Tips for Canadian Investors

Gold is a valuable commodity that has been used as currency and jewelry for centuries. If you’re looking to invest in gold, Canada is a great place to do it! Our article explores the best ways for Canadian investors to invest in gold. We’ll cover everything from buying physical gold bullion to investing in gold ETFs.

So if you’re ready to learn how to invest in gold and start diversifying your portfolio with some precious metal, keep reading!

How to Invest in Physical Gold?

In Canada, the most common way of buying gold is through bullion coins or bars. The Royal Canadian Mint is a reputable source for buying gold bullion, and it can be purchased directly from the mint or from authorized dealers. 

Buying Gold Bullion

Gold bullion is most often found as one- and ten-ounce bars, with weights ranging from a few grams to 400 ounces. Since the price of gold is about $1,900 per ounce since September 2020, investing in gold bullion might be costly. Unlike stocks, it’s not possible to acquire fractional shares of a gold bar.

Because gold bullion is so expensive, it’s important to work with a respected vendor and pay for shipping—whether by way of insurance or by paying for storage at a large vault or in a safe deposit box.

If you invest in gold bullion, keep track of the price of gold so you can determine when to buy, as most dealers adjust their prices based on current rates.

Buying Gold Coins 

Another popular way to buy physical gold is by purchasing minted coins. These aren’t the same as rare ancient coins that collectors gather; these are new, government-issued pieces intended for investors. Their price depends on their gold content, also known as “melt value,” plus a 1% to 5% bonus.

Gold coins come in a variety of weights, with the most common type weighing one or two ounces. The most accessible form of gold coins is collectible coins such as South African Krugerrands, Canadian Maple Leafs, and American Gold Eagles. Some dealers also sell blanks and damaged or worn coins.

Buying Gold Jewelry 

You can also opt for wearable gold, but you should be prepared for the risks that can be avoided if you invest in pure gold.

To begin, you must be cautious about jewelry purchases since not all secondhand jewelry is sold by reliable vendors. It’s also important to you and anybody you try to sell the item to. This implies that it’s crucial that you buy gold investment jewelry from a reputable vendor and get as much documentation as possible.

Furthermore, you’ll pay a markup based on which firm created and manufactured the jewelry. This might range from 20% to more than three times the raw value of the precious metal.

You’ll also need to know the purity of your jewelry, or how much gold it contains. Gold purity is measured in karats, with 24 karats being 100% pure. The melt value of your piece’s components will decrease if they were melted down into pure gold, as the purity is lower.

Benefits of Investing in Physical Gold 

One of the main reasons to get started with gold investing in Canada is that it’s a tangible asset. 

Another benefit is that gold is a hedge against inflation. Over time, the price of gold has tended to go up as the cost of living increases. This is because gold is a limited resource, so as demand goes up and more money is printing, the price of gold increases.

Lastly, gold is a diversification tool. By having some gold in your portfolio, you’re less likely to experience big losses if the stock market crashes.

Drawbacks of Investing in Physical Gold 

The main downside of gold as an investment is that it can be expensive. You might also have to pay for storage and insurance, which will add to the cost. Gold is also a physical asset, so it can be stolen or damaged.

Plus, gold doesn’t produce income like stocks or bonds. It’s considered a “safe haven” asset, which means that people tend to buy it when they’re worried about the economy or stock market. This can drive up the price, but it doesn’t create income for investors.

gold on a black surface

How to Invest in Gold Securities? 

If you want to invest in gold without buying physical gold, you can invest in gold securities. These are financial products that track the price of gold.

Investing in Gold Stocks 

One way to invest in gold is to buy stocks of gold mining companies. These are companies that mine for gold and produce it as a commodity. Gold mining stocks tend to be volatile, but they can provide exposure to the price of gold without having to buy gold bars or jewelry.

Nevertheless, gold stocks are subject to the same risks as other stocks. This means that they can be impacted by the stock market, economic recessions, and other factors.

You Might Be Interested: Best Stocks to Buy in Canada

Investing in Gold ETFs 

Gold-oriented mutual funds or exchange-traded funds (ETFs) are more conservative investments that can be purchased by investors with a lower risk appetite. These funds have various investment techniques, including gold-backed ETFs that invest directly in physical gold and mutual funds that invest in gold mining stocks. 

Some funds invest in both gold and equities. All of them, on the other hand, provide a liquid, low-cost entrance into the gold market that is more diversified and less risky than buying equities outright.

Investing in Gold Options 

Lastly, more seasoned investors might decide on gold futures when investing. Options are contracts that give the holder the right, but not the obligation, to buy or sell an asset at a certain price.

It’s possible to buy an option to bet on whether gold will rise or decline, and if the market changes direction, you’ll only lose the little money you spent for the option.

What Are the Benefits of Investing in Gold Securities?  

Gold securities are easier to acquire than gold bullion, as they trade on major exchanges and are thus simpler to buy and sell. Aside from any management or account fees your broker or fund manager may charge, there are no storage expenses.

Finally, while miner dividends are usually disappointing, they are better than no dividends at all, which is what you receive from physical gold. There’s also the prospect of share price appreciation.

What Are the Drawbacks of Investing in Gold Securities?

Mining companies are subject to the same risks as any other business, such as changes in commodity prices, labour disruptions, and geopolitical events. They also tend to be more leveraged than non-mining companies, which means they can experience bigger losses during economic downturns.

Moreover, buying gold stocks and ETFs brings risks such as changes in the price of gold, expenses, and market liquidity. Gold ETFs also tend to be more volatile than other ETFs, which means they can experience bigger losses during market downturns.

gold coins on a black surface

Get Started With Gold Investing in Canada

Now that you know the basics of investing in gold, here are a few tips on how to do it in Canada: 

-The first step is to decide what type of gold you want to buy. You can buy physical gold, gold securities, or gold mining stocks.

-Once you’ve decided what type of gold you want to buy, the next step is to find a reputable dealer. You can find dealers online or in person.

-The final step is to decide how much you want to invest. Gold is a volatile asset, so it’s important to invest only what you can afford to lose.

Once you’ve bought your gold, it’s important to keep it safe. The best way to do this is to store it in a safety deposit box or a home safe.

Finishing Thoughts

The bottom line is that gold is a good investment for Canadian investors. It’s a tangible asset, it’s a hedge against inflation, and it’s a diversification tool. However, there are some drawbacks to investing in gold, such as the cost and the fact that it doesn’t produce income. 

When deciding whether or not to invest in gold, it’s important to weigh the pros and cons carefully. Hopefully, our article helped you get a better understanding of your options and learn how to invest in gold in Canada.


How to buy gold bullion in Canada?

You may contact a local financial institution and inquire for the person in charge of investment services to purchase bullion products from the Royal Canadian Mint. The customer is responsible for ensuring that the precious metal dealer is a reputable source.

Is gold a good investment?

Although the cost of gold may vary, it has always retained its value over time. It has served as a hedge against inflation and the erosion of major currencies through the years, making it an excellent long-term investment.


Despite her formal background in linguistics, Maja has always been fascinated by the world of finance. She has spent years and years analyzing the market, including trades, investments, pitfalls to avoid as well as the stock exchange. As of recent, she has been studying some non-mainstream stocks in Canada. When I’m not immersed in numbers, I like to spend time with my dog and plan my next trip.

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