For hundreds of years, gold has been considered the safest investment as it has been a symbol of riches and prosperity. Globally and in Canada, gold bullion is fast growing in popularity as a valuable investment option. It serves as a hedge against inflation, changes in value of money, and unstable economics. Regardless of your level of experience as an investor, you must be fully knowledgeable about purchasing and maintaining gold bullion Canada.

Gold Bullion Canada: What is it All About?

Gold bullion is the physical form of gold usually found as coins or bars. Its weight and purity define its value. The term “bullion” encompasses both bars and coins that meet the purity standards of 99.5% or higher. Small coins to massive bars weighing several kg are among the different sizes of gold bullion available.

Reputable source for investors, the Royal Canadian Mint generates some of the best gold bullion products available worldwide from Canada. Whether your preferred investment is gold bars or coins, having actual gold provides a concrete approach to vary your portfolio.

Why you Should Invest in Gold Bullions?

1. Acts as a Hedge Against Inflation

Many see gold as a hedge against inflation. Usually, the price of gold rises as inflation lowers the value of fiat money. Investors often turn to gold if the inflation increases since it preserves buying power while other investments could lose value.

2. Safe Haven Valuation

Gold bullion is also known as “safe haven”. Investors rush to purchase gold during political or economic turbulence as, even if stock markets collapse or currencies lose value, its value usually remains constant or increases. Given its value always increases during financial difficulties, gold makes a wise investment.

3. Diversification

Since gold is a non-correlated good, its price does not always follow the trends of equities, bonds, or real estate values. Having gold in your portfolio will thus help to offset any losses from other assets, so reducing risk.

Different Types of Gold Bullion Available for Investment

Usually, Canadian investors choose two main types of gold bullion: coins or bars.

• Gold Bars

Gold bars range in weight from one gramme to 400 ounces. Canadian investors most often find the 1-ounce and 10-ounce bars to be appealing sizes. Given their lowest premiums over the spot price of gold, gold bars are a desirable choice for those trying to optimize their investment.

• Gold Coins

Another often chosen option are gold coins, such the Canadian Gold Maple Leaf. Made by the Royal Canadian Mint, these coins are renowned for their great purity—99.99% pure gold. One of the most well-known gold coins in the world, the Canadian Gold Maple Leaf comes with more liquidity and simplicity of sale. Although coins have somewhat greater premiums than bars, their lower values make them more likely to be sold or traded.

How to Buy Gold Bullion in Canada?

Gold bullion can be purchased in Canada from a number of respectable stores. Purchasing from reliable sources guarantees that you are obtaining real, premium gold. Some possibilities consist in:

1. Royal Canadian Mint

Among the most respectable gold bullion sources available worldwide is the Royal Canadian Mint. It generates a range of gold bars and coins, among which the recognizable Gold Maple Leaf coin. You can buy straight from the Mint or via approved merchants.

2. Authorised Dealers

At reasonable costs, these authorised dealers provide a large selection of gold items including coins and bars. Before you buy, be sure you investigate the dealer’s customer comments and reputation.

3. Banks

Certain big Canadian banks, like Scotiabank and TD Bank, also carry gold bullion for sale. For first-time investors, purchasing via a bank offers extra peace of mind even if their choice can be more limited than that of specialized dealers.

Storing Gold Bullion: Ways you Should Know

Thinking about storage comes next once you have bought your gold bullion. Maintaining your investment from theft or loss depends on how safely you secure it. Here are some choices for Canadian investors on storage:

1. Home Storage

Certain investors would rather have their gold at home in a safe. This choice comes with hazards including theft or damage. People choose home storage so they can have quick access to their gold. If you decide this path, think about insuring your gold and make sure you buy a top-notch safe.

• Bank Safety Deposit Boxes

Your gold bullion can be kept in safety deposit boxes in with Canadian banks. Although you have to pay an annual cost, this choice offers more security than house storage. Remember that banks do not cover the contents of safety deposit boxes, hence you will have to obtain independent gold insurance.

3. Third-Party Archives

Gold bullion can be securely vaulted at specialized storage facilities as Brink’s or Loomis. Many of these facilities offer further services including auditing and delivery; many are insured as well. Though this is the safest choice, storage costs are involved.

Taxes Implications

Gold bullion is known to be a capital asset in Canada. This makes you liable to capital gains tax when you sell your gold for profit. Using your marginal tax rate, the Canada Revenue Agency (CRA) levies half of your capital profits. If you paid $10,000 for gold bullion and sold it for $15,000, for instance, you would have a $5,000 capital profit. Of this ($2,500), half would be liable for taxes at your personal income tax rate. Maintaining thorough records of your gold purchases and sells can help you to fairly document any increases or losses to the CRA.

Conclusion

Investing in gold bullion Canada is a real and safe approach to vary your portfolio and protect against economic unpredictability. Canadian investors have several other options from gold bars to coins and from several credible places to purchase from. But you must keep your gold safely and understand the tax implications. Whether your current portfolio needs expansion or you are a first-time investor, gold bullion can be a great addition to your financial plan.