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An Introduction To How To Buy Physical Gold In Canada

How and Where to Buy Gold Bars – Mike Maloney
Do You Know How to Buy Physical Gold in Canada? What About Silver?

Learning how to buy physical gold in Canada, and even silver can save you money and time in building a smart portfolio.

Sold on the idea of purchasing;gold;in Canada? Unsure about the best process for getting your hands on some? This article will help you understand how to buy physical gold in Canada. First, there are a few options for buying gold generally that could be suitable for you. Below, I will walk through the best methods of how to buy physical gold in Canada.

The best choice for you may not be the same as for me because of our unique financial objectives and individual lifestyle choices. While just about nobody will complain about getting;gold as a gift, preferences for the style vary. Second, among the various ways of buying physical gold, some are generally more cost-effective in certain time frames. I will explain why owing fine gold bulliongo here for a quick breakdown of;what is bullionfor instance, is generally preferable compared to semi-fine gold.

  • the real thing ;
  • something that owns the real thing ;
  • or something that is affected by the real thing .
  • What Are The Basic Steps To Buy Physical Gold in Canada?
    A Primer on Different Types of Gold

    There are various advantages to buying coins over bars, and vice-versa. You will need to educate yourself on the best options available. There is no real right or wrong answer on which you buy. It just depends on what you really prefer.


    How To Store Gold Bars

    Part of buying gold bars is where youll store them. While keeping some at or near home can be useful, you dont want all your physical wealth vulnerable to one act of misfortune.

    The ideal solution is to keep what you think you might need in an emergency close byand then get the rest of your holdings out of the house, and yet still have it easily accessible at any time.

    That option is available. Private, non-bank, fully allocated, fully-insured class-3 vaults offer the highest level of security and are the best way to keep bullion safe during times of financial and social crises.

    Thinking Of Investing In Physical Gold Consider The Pros And Cons First


    • Protect your wealth. Gold has long been seen as a reliable store of value that is largely unaffected by the factors that influence other investments. For example, when share prices plummet, the price of gold usually rises as investors look for somewhere safe to park their money.
    • Diversify your portfolio. Golds safe haven status also makes it well worth considering if youre looking to diversify your investment portfolio and protect your overall financial position during periods of market downturn.
    • Easy to buy. There are many dealers who specialize in buying and selling gold, so getting your hands on this precious metal may be easier than you think.
    • Its a tangible asset. If global financial systems were to somehow collapse, such as what happened during the Great Depression, owning gold as a physical asset offers financial protection. Gold also cant be destroyed by fire or water damage and wont corrode over time.
    • Liquid. Gold is fairly easy to convert to cash whenever you need to do so. However, it can be easier to sell a gold stock or ETF than it is to sell a bar of gold.


    Also Check: How Much Is One Brick Of Gold

    Where Is Central Bank Gold Stored

    Most banks opt to store gold in their subterranean vaults, although;some banks keep their physical gold in foreign reserves.

    For example, of its 600 tonnes, the Dutch central bank has 15,000 gold bars, or 31 percent, of its gold stock on hand; 31 percent is held in New Yorks Federal Reserve bank. The remaining 38 percent of the Dutch gold stock is kept in the Canadian and English central banks.

    Etfs That Own Mining Stocks


    Dont want to dig much into individual gold companies? Then buying an ETF could make a lot of sense. Gold miner ETFs will give you exposure to the biggest gold miners in the market. Since these funds are diversified across the sector, you wont be hurt much from the underperformance of any single miner.

    The larger funds in this sector include VanEck Vectors Gold Miners ETF , VanEck Vectors Junior Gold Miners ETF and iShares MSCI Global Gold Miners ETF . The expense ratios on those funds are 0.51 percent, 0.52 percent and 0.39 percent, respectively, as of July 2021. These funds offer the advantages of owning individual miners with the safety of diversification.

    Risks: While the diversified ETF protects you against any one company doing poorly, it wont protect you against something that affects the whole industry, such as sustained low gold prices. And be careful when youre selecting your fund: not all funds are created equal. Some funds have established miners, while others have junior miners, which are more risky.

    Also Check: What’s The Value Of Gold

    Access To Gold Accounts

  • The Bank primarily offers gold accounts to central bank customers. This is to support financial stability by providing central banks with secure custody for their gold reserves and access to the liquidity of the London gold market .
  • To facilitate, either directly or indirectly, access for central banks to the liquidity of the London gold market, the Bank will also consider providing gold accounts to certain commercial firms. In deciding whether to provide an account, the Bank will be guided by the following criteria. a. The firms day to day activities must support the liquidity of the London gold market. b. Specifically, the Bank may have regard to a number of factors including but not limited to: evidence of active or prospective trading with a central bank customer; or whether the firm has committed to honour buy and sell prices.
  • Access to a gold account remains at the sole discretion of the Bank.
  • The Bank will review the above periodically.
  • Five Things You Need To Know About Gold

    2 minute read

    Gold is often perceived as a safe haven during turbulent times, although it can itself be very volatile. We look at five things you need to know about the precious metal.

    Who’s this for? All investors

    The value of investments can fall as well as rise and you could get back less than you invest. If youre not sure about investing, seek professional independent advice.

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    Why Investors Like Gold

    Gold has a proven track record for returns, liquidity, and low correlations, making it a highly effective diversifier, says Juan Carlos Artigas, director of investment research at the World Gold Council.

    These qualities are especially important for investors:

    • Returns: Gold has outperformed stocks and bonds over certain stretches, though it doesnt always beat them.
    • Liquidity: If youre buying certain kinds of gold-based assets, you can readily convert them to cash.
    • Low correlations: Gold often performs differently from stocks and bonds, meaning when they go up, gold may go down or vice versa.

    In addition, gold offers other potential advantages:

    • Diversification: Because gold is generally not highly correlated to other assets, it can help diversify portfolios, meaning the overall portfolio is less volatile.
    • Defensive store of value: Investors often retreat to gold when they perceive threats to the economy, making it a defensive investment.

    Those are a few of the major benefits of gold, but the investment like all investments is not without risks and drawbacks.

    While gold performs well sometimes, its not always clear when to purchase it. Since gold by itself doesnt produce cash flow, its difficult to determine when its cheap. Thats not the case with stocks, where there are clearer signals based on the companys earnings.

    The Best Way To Buy Gold

    How to buy gold bullion the safer, cheaper & easier way.

    By;Bryan Borzykowski;on October 22, 2012

    Most investors should have some exposure to the yellow metal, but how much should you own?

    About a year ago at this time it was impossible to turn on the TV or pick up a newspaper without encountering something on gold. The assets price was soaring, hitting $1,900 an ounce in September 2011 and gold bugs were predicting that the yellow metal would continue to climb. Today, it seems as though much of the rhetoric has died down, probably because the price has moved sideways for the last 12 months. Today, gold is selling for around $1,750.

    Just because it may not be breaking new price records doesnt mean you shouldnt own any gold. Historically, gold has been a great hedge against both inflation and poor economic performance. With continued deficit problems in Europe and the U.S. and a threat of a Chinese slowdown, its possible gold will rise again, says Stephen Lingard managing director of Franklin Templeton Multi-Asset Strategies. Gold is a great hedge in this environment and thats why weve seen such strong performance over the last few years, he says.

    Gold is not a good investment on a standalone basis, he says. Equities make far more sense on a long-term basis. What gold does is provide a little bit of insurance and it helps with overall diversification.

    He adds that people shouldnt worry about how high the price will go. Gold isnt moving, he says. Currencies are declining.

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    Pros And Cons Of Buying Locally Vs Online

    Most gold bars are bought in one of two places: at a local coin shop, or online.;

    Believe it or not, youll likely find better pricing online than at a coin shop, even after factoring in shipping costs. Thats because the overhead at a brick-and-mortar store is higher. But thats just part of the difference between them;

    Heres the pros and cons of buying locally vs. online. First, a local dealer:

    Can visually inspect product, and take immediate possession Premiums are likely higher for purchase, and will likely be smaller when you sell
    Dealer may be willing to negotiate on premium Likely has limited product choices
    Potential for greater privacy May have less liquidity for large buybacks

    Even if you decide to buy online, I recommend checking with a local dealer, because a;relationship with them can be helpful if you need to make a quick sale.;If you inquire with them, see if theyll negotiate on price.

    Here are the pros and cons of buying online:

    Pro Con
    Ability to order online and lock in price at your convenience, 24/7. Avoid talking to a salesperson Must trust dealer to deliver precise product
    Total cost is likely lower
    Greater selection Product only ships after payment clears

    A good way to start is to compare prices of the same product among a few dealers.

    Getting a low premium is good, of course, but price isnt the only consideration see if the dealer is educational in nature , and if they have a buyback policy.

    Silver Bars Are Less Expensive Than Silver Coins

    Why? Premiums are lower because coins have more intricate designs and thus greater labor and machining costs. Coins may be prettier, but you pay extra for that appeal.

    Here is an example of the difference in premium between silver Eagle coins and top brand silver bars. You can see that bars are decidedly cheaper. Their premiums are half or even a third of what youll pay for Eagle coins.


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    Gold Bar Brands Matter Choose Wisely

    Tip: Buy only gold bars with a recognized hallmark and proper stamping.

    Proper stamping and a recognized hallmark mean youre getting a reputable gold bar. There are some private mints in the world that dont include all of this information, which could mean its not a pure gold bar or has low quality. Its important that you know how to make sure your gold is real.

    Stamping: a reputable gold bar should have its weight, purity, refiner, and a registration number stamped on it.

    Its important to buy gold bars with these markings. Without them you dont know what youre getting, and a future buyer will probably demand an assay.

    Theres an easy way to assure your gold bar has proper stamping, and thats to buy bars with a

    Reputable hallmark: A hallmark simply refers to the brand of the barthe refiner or manufacturer that minted the bar. You want a well-recognized hallmark so that you know youre getting a high quality bar, and also so that youll have no difficulties someday selling it. A good hallmark will allow you to sell the bar virtually anywhere in the world. It is highly liquid.

    Here are some of the worlds most highly regarded refiners:

    There are others, such as the Sunshine Mint and Republic Metals .

    Plan To Protect Your Gold Bars

    Can I Buy Gold Bars at My Bank?

    Consider how and where you will store and protect your gold. Gold bars require less space than coins to store the same number of ounces, which can make them easy to keep at home. You could also store your bars in a bank safe deposit box or at a facility that specializes in gold storage and protection.

    How and where you store your gold bars will partly depend on your financial goals. Do you plan on holding them as a means of protecting your savings until your children are grown, or as a means of emergency financial assistance? If it’s the latter, you may want to consider storing your gold close to home, as a bank or storage facility may have limited hours of operation or be located far away. In an emergency, your gold could be inaccessible. Mitigate risk by making accommodations for storing and protecting your gold bars before taking possession of them.

    Recommended Reading: How To Invest In Gold Stocks

    To Facilitate Stability And Growth

    The primary function of central banks is to promote stability and foster economic growth. As currencies become increasingly devalued, banks must ensure their respective economies dont flounder. As such, gold is used to control the size and speed of market growth.

    Using Chinese and Russian central bank gold buying as an example, a Global Bullion report explains that emerging economies are especially exposed to free market excesses and use gold to offset the risk.

    Owning gold prevents these excesses from utterly driving currency and damaging industry,it reads.

    Richard Wants To Know Can I Sell My Gold To A Bank

    Richard: You know I have 20 gold bullions and scrap gold here. The scrap gold is a mixture of some rings, a necklace, some thin chains, cufflinks, a wristwatch band, earrings and a brooch. I know that gold sells by the weight and thats why I weighed it. All the scrap gold has a weight of 51.74 pennyweights. Can I sell my gold to a bank? And if yes, do you think they are willing to accept the scrap gold too?

    Alan: I know some banks are buying gold coins. But just bullions like yours and no other coins and especially no scrap gold. But I dont know nationwide operating banks that are buying coins. Banks that buy gold coins are mostly smaller banks with just a couple of branches or even only one branch. There is another drawback that they only buy your gold coins back if you are banking with them. So, you would need to open a bank account in order to make the deal and consider, some banks take up to 20 days to close the selling deal. Why? It is because most banks are not able to determine the authenticity of your coins. They send your gold coins away to get proof of authenticity. Im not sure if this procedure is hassle-free. Thats very questionable.

    Richard: I understand. But wouldnt it be a good idea for banks to buy gold in any condition?

    Richard: Maybe not but it would be very convenient for me as a consumer.

    Alan: I agree with you.

    Alan: Thank you.

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    Buy Precious Metals Now

    We offer the following precious metals in gold and silver with a minimum 99.99% purity:

    Physical bullion bars Minimum investment of 1 oz. for gold and 1 oz. for silver
    Physical coins Minimum investment of 1/10 oz. for gold and 1 oz. for silver
    Specialty collector coins

    Bars and coins are available in the following denominations4:

    Gold bullion bars 1 oz., 10 oz., 100 oz. or 1 kg
    Silver bullion bars 1 oz., 10 oz., 50 oz., 100 oz., 1,000 oz. or 1 kg
    Gold coins 1/10 oz., ¼ oz., ½ oz., 1 oz.
    Silver coins

    Banking Centre prices for precious metals are quoted in Canadian and U.S. currencies.

    Online prices for precious metals are quoted in Canadian currency.

    You may purchase precious metals from your Canadian-denominated chequing, savings or personal line of credit accounts.

    No, theres no minimum purchase amount.

    Yes. The maximum purchase amount is $9,500;CA within a 24-hour period. Visit a CIBC Banking Centre for purchases over $9,500 CA.

    No, there isnt a fee for buying precious metals. Taxes based on your province or territory also apply.

    No, all confirmed precious metals purchases online are final.

    If the courier cant complete delivery after at least one attempt, youll receive a notice indicating where your shipment is held.

    Yes, we insure precious metals purchased through CIBC Precious Metals Online while in transit.

    Sign on to CIBC Online Banking®. Go to CIBC Precious Metals Online and select Order History to check the status of your order.

    Choose A Gold Company

    Why do Banks own Silver & Gold?

    One of the smartest ways to ensure you’re getting the best gold bar at the best price is to buy from a reputable gold company that puts your needs first. How do know if you’re dealing with a reputable company? Look for

    • Third party ratings and a long history of client reviews.As the Federal Trade Commission advises, Check out the seller by entering the company’s name in a search engine online. Read about other people’s experiences with the company. Reputable, established gold companies can show that they have a long history of great service. Many also have the highest ratings from consumer advocate groups like the Better Business Bureau and the Business Consumer Alliance.
    • A focus on education.A company that prides itself on client education won’t rush you into making a purchase that’s not right for you. We specialize in educating customers not only on the gold industry, but the type of portfolios they can use to protect their , said U.S. Money Reserve’s CEO Angela Koch in an interview on Enterprise Radio.

    Sign up to receive U.S. Money Reserve’s free Gold Information Kit to learn everything you need to know before purchasing precious metals. Explore special offers, discover diversification strategies, and dive into U.S. Money Reserve’s exclusive precious metals guidebook. This expertly prepared tool is our gift to you!

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