BUY GOLD BULLION IN CANADA
Buying gold bullion in Canada offers you a way to diversity your assets from the traditional paper monetary financial system. Precious metals are an alternative investment with real, inherent value. It is a hard asset, finite, and can’t be printed or reproduced. There is a limited amount able to be mined. It has stood the test of time and gold bullion has been traded in various methods for hundreds of years. The gold products we offer are almost entirely investment grade purity.
Investment grade gold is defined as having a purity of .995 or greater and thus our gold coins are mostly dependent on the gold spot price derived from the financial markets. Canada Gold offers a full line of gold coins and bars to meet your investment needs. We carry gold bars in varying sizes including generic 1 oz gold bars and kilo gold bars.
Gold Bullion Bars
A flat bar struck using .999+ (usually) pure gold is known as a gold bullion bar. Ranging from 1 troy ounce to even 32 troy ounces, gold bars are available in various sizes. However, 1 gram, 1 oz, 100 gram and kilo size remain the most common weights available in the bullion market. Their popularity stems from the fact that they are worth very close to their gold melt values – making them a solid investment choice.
Even though gold bars were usually struck by private mints, government mints have also started to strike gold bars for sale to the public as well.
Gold Bullion Rounds
Gold bullion rounds are flat, disk-shaped pieces of .9167+ pure gold. Although their weights may range from fractions of a troy ounce to 5 troy ounces, 1 oz gold rounds are far more popular than their heavier and lighter counterparts.
Gold rounds are generally struck by private mints, and they are worth close to their melt value as well, making them popular choices for investment.
Gold Bullion Coins
Gold coins are also flat, disk-shaped 0.999+ pure gold pieces. However, most gold coins, unlike gold rounds, carry an official face value (legal tender value) in the country of issue. These investment instruments carry one of the highest premiums over the spot price of gold due to collector demand and official recognition from sovereign governments.
Some factors that need to be considered while comparing these gold instruments are:
1. Premium over Spot
Mainly a part of the discussion when we talk about any gold bullion instrument – premium over gold spot price refers to how much more a product is worth (premium charged) over the melt value of gold present in the gold bullion coin, round, or bar. Factors like their minting source, age, rarity, and collector demand play a critical role when valuing a gold product outside its melt value.
Thus, some rounds, coins, and gold bars of similar weights can have substantially lower prices compared to their more popular counterparts. However, gold coins usually enjoy a higher premium than other gold investment options due to official recognition from a sovereign government. Even though the face value given to the coin is nominal in nature, it inspires confidence among buyers.
Though most bars, coins, and rounds manufactured across the world, be it in Austria, USA, or China, contain 99.9% pure gold, a few mints like the Royal Canadian Mint surpass the typical purity levels by using 99.99% pure gold in their products. Even though a 0.09% purity increase might not seem like a lot, it vaults the gold products into an elite category of products.
3. Susceptibility to Counterfeit
Precious metals investments have always been the target of counterfitters looking to make a quick buck. To battle this issue, many mints implement unique markers and counterfeit-proof measures, like Sunshine Minting’s Mint Mark SI™ feature and the micro-graving done by the Royal Canadian Mint. As the counterfeiting is punishable by law and usually carries a heavy prison sentence and fines, legal tender coins are considered a comparatively safer option as their legal tender status acts as a successful deterrent in most cases.
Storing gold bullion products can take up considerable space. As secure storage space is a limited resource, products must be chosen with care. Stackability of the products purchased will affect the amount/value you can store in a given area of the limited secure storage at your disposal. Value per square inch is a critical metric when buying relatively large quantities of gold bullion. Bullion bars allow substantially more amounts of gold per square inch compared to all other investment vehicles. On the other hand, gold coins and rounds are unwieldy options as they require casings, tubes, or boxes when storing large numbers.
Famous, well-known coin series and coins from respected mints are easily liquefiable due to constant demand for products. Hence, at any given time you will be assured of scores of both active buyers and sellers in the market. This ensures that investors can easily divest their precious metals assets, without having to sell at melt value.
6. New vs. Secondary Market
Another factor to take into account when purchasing gold instruments is whether to buy new freshly-minted products or to look for relatively cheaper secondary-market gold goods. Like any other product or commodity, most everyone automatically prefers shiny and new. Moreover, there is a widespread myth among some investors that secondary-market precious metals products have a lower resale value because of their condition and lack of finish. Depending on the sentiment and market condition when the investor is looking to sell, this is not always the case. However, collectors who treasure gold coins for their collectible value will, in most cases, prefer mint condition and near-perfect or perfect graded gold coins.
7. Playing the market
For people who want to ‘play the market,’ i.e. buy and sell regularly to earn immediate profits on every transaction, it is essential to invest in products that can be moved quickly. Even though this is a well-known strategy, timing the market is harder than it seems. For investors who want to buy and sell at a moment’s notice, portability plays an important role in their product choices. However, a healthy risk appetite is required for playing the market. These investors mostly prefer smaller, more portable gold investment vehicles such as coins and rounds.
8. Small Buyers
People with limited capital to invest in precious metals may not divest as much as they would desire into buying gold bullion in Canada. Hence, such buyers should stick to cheaper low-risk gold bullion products with lower premiums over spot, offering them solid appreciation over time – granting them with inflation-proof, financial protection. This is the best way to hedge against inflation and is recommended by financial advisors as a good method of balancing portfolios.
9. Large Buyers
These particular buyers are looking to create a hefty fund to hedge inflation. When seeking to establish a substantial fund, bars become an extremely attractive option, as they are the easiest to stack and store. They come in weights as high as 32.15 troy ounces, making storage relatively easier when compared to other instruments such as rounds and coins. However, providing adequate safety and security to this massive quantity of gold can be a tedious task. Hence, investors are increasingly attracted towards offshore gold storage facilities, advertising top-of-the-line security and peace of mind.
Some people out there appreciate the true beauty of a beautifully minted gold coin. Collectors buy these products for their ‘artistic’ or ‘collectible’ value rather than their melt value. For them, there is no right or wrong; they should pick the products that they consider aesthetically appealing.
As you would have probably figured out by now, all forms of gold bullion products have their purpose in an investment portfolio. Hence, a safe and recommended strategy is to allocate a specific ratio (depending on you or the advice of your investment advisor) of every type of gold bullion instrument in your tangible assets. However, it is an entirely personal decision that one must take after careful deliberation.