How to Buy Gold Bullion in Canada
Gold bullions, bars, coins and wafers
Ė all of these go under the common term physical gold. On its part, physical gold is a stable and relatively simple to manage investment instrument, whose popularity has grown considerably since the outbreak of the mortgage crisis in the USA in the late 2006, which later evolved into whatís known today as the global financial crisis. In essence, there are three types of investors who buy gold bullion: those hedging uncertainty and possible financial disasters, ones who just aim at making profit, and individuals who combine profits with hedging. What is in the portfolio of the investor is determined by his objectives. Given the stability of this instrument, buying physical gold in Canada
can help diversify your investment portfolio. What makes physical gold superior to all other hard currencies and means of payment known today is the fact that it is practically impermeable to inflation or any other stock market malaise.
Forms of physical gold
You have the option to buy gold in the form of bars, gold bullion, coins and wafers, as well as in the form of numismatic gold coins or gold jewelry. Undeniably, gold bullion bars and gold bullion coins are the most popular physical gold forms available on the market. A recent market survey shows that some of the most popular gold coins are the Canadian Maple Leaf
gold coins of 1/2 oz, 1/4 oz, 1/20 oz, 1/10 oz, and 1 oz, followed by the 22 karat South African Krugerrand
, as well as the American Gold Eagle
. In this line of thought, two of the most popular and well-established producers of gold bullion bars are Switzerland-seated Credit Suisse, and Johnson Matthey - a world leader in advanced materials technology that has its headquarters in London.
How to buy physical gold?
One of the easiest ways to buy physical gold is through an online gold bullion dealer such as Kitco
Canadian precious metals
dealer based in Quebec
. Alternatively, you can buy gold coins from the Royal Canadian Mint
. The RCM produces all coins of circulation in Canada
as well as palladium, platinum, gold, and silver bullion
. Other products you can choose from are medallion coins, watches, jewelry pieces, and much more. The Royal Canadian Mint is famous for the high quality of gold bullion and pure gold content of the products it offers.
Just like you should avoid sub-prime mortgage lenders when purchasing a new home, here you should stay away from newly-established or little-known dealers of physical gold, because the consequences could be dire. One of the most stupid things you can do is buy physical gold from eBay. The reasons to abstain from purchasing gold bullion from private dealers are quite obvious: you canít be guaranteed that what you buy is really gold.
Buying physical gold from local dealers
If you are a brick-and-mortar fellow, you can order gold bullions or gold coins from your local bank
, but be aware that certain orderings of physical gold
are subject to taxation, according to the current Canadian legislation
Finally, donít forget to take care of issues such as safe-keeping and proper theft insurance, before you buy gold bullions or coins.