How To Invest in Gold and Silver in Toronto

Anne Nygård via https://unsplash.com/photos/w4FLDxUs8QA

Gold and silver are uniquely reliable investment options. In fact, they're considered “safe haven assets”: assets whose value holds or increases during tumultuous stock market and economic times, including the COVID-19 pandemic and the 2008 economic crisis.

Of course, investing in gold and silver isn't entirely without risks. Like other assets, their value fluctuates. Over the long term, however, gold and silver maintain their purchasing power with remarkable consistency.

Here's a look at how Torontonians can invest in gold and silver bullion.

What is Gold and Silver Bullion?
Gold bullion refers to gold coins and bars that are at least 99.5% pure gold. Silver bullion refers to silver coins or bars that are at least 99.9% pure silver. Both gold and silver bullion are not subject to sales tax, can be held as reserves at institutional investors or central banks, and sold by gold and silver sellers.

The most common option for beginning bullion investors is to buy 1 oz bars or coins. Silver bullion is cheaper than gold bullion, and therefore a more affordable option for beginning investors. In March 2021, gold was over $1,700 USD per ounce; silver was only $25 USD. Recently, the price of gold per ounce has increased to around $1,800 USD, while the price of silver per ounce has remained around $25.

How to Invest in Gold and Silver Bullion
The route you take when investing in Toronto gold and silver bullion depends on your individual financial goals and values. Broadly speaking, though, there are three main options:

1. purchasing gold and silver as physical assets
2. purchasing gold and silver as mutual shares or exchange-traded funds (ETFs) that replicate the price of gold and silver
3. trading options and futures in the commodities market.

For beginners, investing in gold and silver as physical assets is typically the most straightforward option. By buying gold and silver bullion, you have direct control of your assets, and minimize counterparty risk.

Different suppliers may sell the same silver and gold bullion at different prices, however, so for Torontonians, it's always a good idea to shop around for bullion before making any big financial decisions.

How to Buy Gold and Silver Bullion

Once you've decided to invest in gold and silver bullion, you can buy the precious metal assets online or in person from local gold and silver dealers, jewelers, or banks.

Gold and silver bars are typically more affordable than coins, as they have lower production costs and therefore lower premiums. If your goal is to add a quality bullion product to your portfolio, bars are an excellent option. If your goal is to collect gold and silver for personal or aesthetic reason, coins might be a better choice.