Our objective is to educate Canadians on the benefits of converting part of your RRSP (or other retirement plan) to physical gold and silver bullion. As of 2005, the Canadian Revenue Agency (CRA) now allows Canadian RRSP holders to invest in pure investment-grade precious metals coins and bars such as:
- The Canadian Gold and Silver Maple Leaf Bullion Coins
- The American Gold and Silver Eagle Bullion Coins
- The Austrian Gold and Silver Philharmonic Coins
Other coins and bars might qualify as the rule dictates that dictate that it must be at least 99.5% pure, be produced by an accredited refinery, and purchased directly from the refiner or producer or a government-regulated financial institution. Also, the coins’ value must be derived from its gold content and not from its value as a collectible. In fact, no collectible coins are allowed as RRSP investments.
Investing in gold through an RRSP
Investing in gold through an RRSP is the preferred ways to invest in precious metals in 2015 because it is tax-advantaged, secure and ensures you are getting only the highest grade bullion when it comes to purity. For more information on how to invest in physical gold and silver bullion through an RRSP or other Canadian retirement plan, check out this video from Caché Metals, the leader in Gold RRSP investing in Canada:
Top Canadian Companies in 2016 for Gold RRSP Investments
There are costs to holding physical gold in your RRSP. First, the gold must be purchased and verified by a third party custodian who reports to the Canadian Revenue Agency. Then, it must be transported and securely stored. All of these steps have associated costs that add to the already-high opportunity cost of holding a non-interest earning asset like gold.
At the same time, holding physical gold provides a level of security that other investments cannot. Even gold that is stored in a distant vault can usually be claimed and shipped at any time. Several companies provide Canadians with the services necessary to add physical gold to their retirement portfolios in accordance with the 2005 federal budget laws.
Questrade is Canada’s most popular Gold RRSP custodian. They were the first Canadian broker to offer the option of holding physical gold and silver coins and bullion bars in registered accounts, and they remain the only “all-in-one” Gold RRSP company in Canada, which means they provide both brokerage and metal dealership services. Other companies we’ve reviewed deal with external brokerages. An account can be opened with as little as $1000. Any actual precious metal is stored in your name at the International Depository Service of Canada (IDS) or pooled and stored at the Royal Canadian Mint. You can also have it shipped and store it yourself. See our RRSP custodian comparison table for more details.
Silver Gold Bull is our #1 recommended Gold RRSP Dealer and Bullion Dealer in 2016. Silver Gold Bull is a Calgary-based online platform that allows users to trade qualifying gold coins and bars. Assets can be shipped to the purchaser or shipped to one of their secure storage partners in Toronto or Calgary. Once again, Silver Gold Bull will not act as your brokerage for the RRSP. When we spoke with them over the phone, they said that they partner up with Questrade for brokerage part. See our gold dealer comparison table for more details.
Other Ways to Include Gold in Your RRSP
Instead of buying and storing actual gold, one can add exposure to gold to their investment portfolio by purchasing gold-related financial instrument. Like owning physical gold, these investments have associated costs, risks and rewards.