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Trading gold bullion as a diversification strategy can free your wealth from the ups and downs of the stock market.
While many Canadian savers and investors find themselves stuck dealing with the consequences of market crashes, expanding your portfolio into alternative assets like gold can help you build wealth in different financial markets.
Gold is a great example of an asset that’s not correlated to stock markets and economic performance. In fact, it often performs better when investors are uncertain about the future.
How to buy gold bullion in Canada
Canadians are lucky to have an easily accessible, safe gold market. The Royal Canadian Mint is known across the world for its high-quality coins with advanced security measures, such as its Bullion DNA system for authenticating its coins.
You also have access to coins and bars from around the world. Some products may have higher premiums than others, even for the same amount of bullion. During periods of supply constraints, you may need to turn your attention further afield.
Canadian gold coins are readily available from a number of gold dealers across the country. Although some investors prefer to visit in person, you can easily buy gold online and price compare.
Where to sell gold bullion in Canada
Another advantage to trading gold in Canada is that there is no shortage of professional dealers who will buy coins and bars at reasonable prices. You don’t want to have to rely on pawnshops or private sales to make a return on investment. The market among dealers helps bullion liquidity and makes it easy to cash out. There are numerous gold buyers in Toronto where you can confidently sell for a fair price.
There are three primary factors that determine the value of gold when you go to sell:
- Purity
- Weight
- Condition
With few exceptions, bullion products are 999 fine (99.9% pure gold) or higher. Jewellery, on the other hand, can have widely different purities and usually contains higher percentages of other metals because of how soft and easily dented gold can be.
Weight is another important factor. For retail investors, the 1 oz gold coin is probably the most common unit you’ll deal with, but you can also buy fractional gold, gram gold, and heavier bars.
Invest in RRSP gold
Since 2005, the Canadian government has made it possible to include gold and silver bullion in your RRSP and TFSA. Including bullion in your retirement savings is a huge advantage and not one that investors in every country can do. It will save you on taxes when you cash out or improve your tax refund today, all while building retirement wealth.
Only gold coins minted by the Royal Canadian Mint or gold bars approved by the London Bullion Market Association can be included, but these products are widely available with gold bullion dealers in Canada.
The ready availability of high-quality gold products and the tax regulations in Canada make investing in gold easy. Add it to your portfolio and enjoy the benefits of diversified investing.
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