Canadian Precious Metals
Buying Guide

The Foundation

Why Physical Metal — Not Just ETFs

I hold gold ETFs in registered accounts. They are excellent financial instruments — tax-efficient, liquid, and easy to hold inside a TFSA or RRIF. I am not against them. But a gold ETF is a claim on gold held by a custodian institution. In a scenario of severe financial system stress — which is exactly the scenario that makes gold valuable — that custodial chain could be disrupted.

Physical metal that you hold eliminates counterparty risk entirely. There is no institution that can fail, no account that can be frozen, no system that can be hacked. The metal is yours, in your hand, under your control. It is the oldest form of savings in human civilization and that is not an accident.

My personal view is that both have a role. ETFs for registered account efficiency. Physical metal for genuine resilience. They are complements, not substitutes. This guide covers the physical side — the part that most financial education ignores.

What to Buy

Silver vs. Gold — Coins vs. Bars

Coins vs. Bars — Which Is Better?

For most people, coins are better. Government-minted coins carry a recognized face value, are guaranteed for purity by their issuing mint, are instantly recognizable worldwide, and are easier to sell in small quantities. A one-ounce gold bar from a private mint may be perfectly genuine, but it requires more verification when you go to sell it.

Bars make economic sense when you are storing a larger amount of value and want to minimize the premium paid over spot price — bars typically carry a lower premium than coins. But for the average reader of this site, building a coin-based holding is the more practical choice. Start with government-minted coins. Consider bars later, from well-known refiners (Royal Canadian Mint, PAMP Suisse, Valcambi), if and when you are holding larger amounts.

What "Investment Grade" Means

In Canada, precious metals are exempt from GST/HST if they meet the CRA's definition of "investment-grade" precious metals. For gold, this means .995 fine (99.5% pure) or higher. For silver and platinum, it means .999 fine (99.9% pure) or higher. Government-minted coins from recognized mints (Royal Canadian Mint, US Mint, Royal Mint UK) almost always meet this standard. If in doubt, ask the dealer to confirm the purity. Keep this in mind — it affects whether you pay tax at purchase.

Understanding What You Pay

Spot Price, Premiums, and What Things Actually Cost

The single most confusing aspect of buying precious metals for first-time buyers is the gap between the "spot price" they see online and the actual price they pay at a dealer. Here is a plain-language explanation.

What Is a "Premium" and Is It Normal?

Yes — premiums are completely normal and you will always pay one. The premium covers: the cost of minting the coin, packaging and assaying, the dealer's operating costs and profit margin, and sometimes an additional charge for popular or limited coins. A premium of 15–25% over spot for a one-ounce silver coin from a reputable dealer is entirely typical in Canada. If a dealer is offering coins at exactly spot price or below spot, something is wrong — either the coins are fake or there is a serious problem with the dealer's business.

Premiums Vary by Coin Type and Quantity

• Government-minted coins (Maple Leaf, Eagle) typically carry a premium of 15–25% over spot for silver, and 3–8% for gold.
• Private mint bars typically carry 3–8% premium, but require more verification when reselling.
• Buying in quantity usually reduces the per-unit premium — buying 10 coins at once costs less per coin than buying one at a time.
• Buying directly from the Royal Canadian Mint online often means paying a higher premium than a local dealer, but you have complete confidence in authenticity.

The Purchase

How to Find a Reputable Dealer in Canada

There are three main ways to buy physical precious metals in Canada. Each has trade-offs.

Option 1: Royal Canadian Mint (Most Trustworthy, Higher Premium)

The Royal Canadian Mint sells directly online at mint.ca and through its two retail stores in Ottawa and Winnipeg. You will pay a higher premium than at a private dealer, but you have absolute certainty about authenticity. For your first purchase, especially, this peace of mind has real value. The Mint ships securely across Canada and accepts major credit cards.

Option 2: Local Coin Dealers (Best Value, Requires Vetting)

Local coin shops and bullion dealers typically offer the best prices. To find a reputable one in your area:

• Search for dealers who are members of the Canadian Association of Numismatic Dealers (CAND) or the Professional Numismatists Guild (PNG). Membership in these organizations requires adherence to ethical standards.
• Check Google Reviews — but read them carefully. Look for consistent patterns over many reviews, not just star ratings.
• Visit in person before buying. A legitimate dealer will have a proper shop, be happy to show you coins, explain the pricing clearly, and give you a receipt. If a dealer is reluctant to provide a receipt or explain how pricing is calculated, walk away.
• Ask: "What price will you pay me if I want to sell this coin back in six months?" A reputable dealer will answer this question clearly. The buy-back price will be below your purchase price — that is normal — but the dealer should tell you what it is without hesitation.

Option 3: Online Canadian Dealers (Convenient, Mid-Range Pricing)

Several well-established online bullion dealers serve Canadian customers and ship insured. They offer better prices than the Mint but lower than walk-in local dealers who know their customers. Look for dealers with a long track record, clear pricing, and insurance on shipments. Examples of dealers with established Canadian reputations include Kitco Metals, SilverGoldBull Canada, and Canadian Bullion Services — do your own current research, as the industry does change.

Protecting Yourself

How to Avoid Counterfeit Coins

Counterfeit precious metal coins do exist — particularly fake silver and gold coins sold through unregulated channels. Here is how to protect yourself.

Buy from Reputable Sources

The most effective protection against fakes is buying from sources where the incentive and ability to sell counterfeits is minimal — the Royal Canadian Mint, CAND member dealers, and established online bullion retailers. The risk of counterfeits at these sources is very low. The risk at unregulated peer-to-peer sales is high.

Basic Verification You Can Do Yourself

• Weight and diameter: Every legitimate coin has published specifications. A Canadian Silver Maple Leaf weighs exactly 31.10 grams (one troy ounce) and is 38mm in diameter. A digital postal scale (inexpensive) will tell you immediately if a coin is underweight — a clear sign of a fake or an adulterated coin.
• The ping test: Silver coins produce a clear, high-pitched ring when tapped or dropped onto a hard surface. Fake silver coins (often made from base metals) produce a dull thud. Search "silver coin ping test" on YouTube to hear what genuine silver sounds like before you buy.
• Magnet test: Silver is not magnetic. If a coin is attracted to a strong magnet, it is not pure silver. This test alone does not guarantee authenticity (some fake materials are also non-magnetic) but it quickly identifies certain categories of fakes.
• Visual inspection: Genuine Maple Leaf coins have extremely fine detail — the maple leaf veins, the Queen's or King's portrait, and the radial lines on the reverse are sharp and precise. Counterfeits typically show softer detail, slightly off dimensions, or incorrect text spacing. Compare with images on the Mint's website if in doubt.

Sigma Metalytics and Professional Verification

If you are buying a significant quantity or a single large purchase, some coin dealers have a Sigma Metalytics machine — an electronic tester that verifies the metal content of a coin non-destructively in seconds. Reputable dealers will test coins in front of you upon request. This is particularly useful for gold, where the stakes are higher per coin.

The Canadian Tax Reality

GST/HST and Capital Gains — What You Need to Know

Keeping Records — Essential

The CRA requires you to track your Adjusted Cost Base (ACB) for capital gains purposes. In plain language: you need to know what you paid for each coin, so that when you eventually sell, you can calculate the gain or loss correctly. Keep every receipt, forever. A simple spreadsheet works — date of purchase, description (e.g., "1 oz Canadian Silver Maple Leaf"), quantity, total paid including any fees, dealer name. This takes five minutes per purchase and will save enormous headaches later.

What to Keep on File for Each Purchase

• ✓
  Dealer's receipt showing: date, description of coin, quantity, price paid, dealer name and address
• ✓
  Confirmation of purity (e.g., "Canadian Silver Maple Leaf .9999 fine" printed on the receipt or invoice)
• ✓
  Payment confirmation (bank statement entry or credit card statement for the amount)
• ✓
  Your own record in a spreadsheet or notebook: date, coins purchased, price per coin, total paid
• ✓
  Any certificate of authenticity provided with larger purchases

After You Buy

Storing Your Metal Safely

Physical metal is only as useful as your ability to access it when you need it. Here are the key principles:

Not in a Bank Safe Deposit Box

I have said this elsewhere on the site and I will say it again here. Safe deposit boxes are bank property in bank branches. If the bank closes, is in a bank holiday, or is subject to a court order, you may not be able to access your box at the moment you need it most. If the entire point of holding physical metal is having access independent of the banking system, keeping it in the banking system defeats the purpose.

At Home in a Proper Safe

A quality safe, properly installed, is the right long-term solution. See rich.tedlee.ca/protect.html for detailed guidance on choosing a safe — particularly the warning about cheap big-box-store safes that can be opened with a magnet. For your first few coins while you research and budget for a proper safe, a well-hidden secure location at home is acceptable. But do not leave significant holdings without proper protection indefinitely.

Do Not Store in Original Packaging Loosely

Silver coins in particular can tarnish if exposed to air and humidity over time. This does not affect the metal's purity or value, but can affect resale presentation. Many collectors store coins in individual capsules (small plastic holders sized to each coin diameter), which protect the surface. These are inexpensive — a few dollars per capsule — and available from coin dealers.

Tell One Trusted Person

Your executor, your spouse, or a trusted adult child should know that you hold physical metal and where it is located. If something happens to you and no one knows the metal exists, it will simply be lost. This is more common than people think. Document its existence in your family letter or estate planning documents.

Continue Learning

Related Pages

• Starting With Very Little — Your First $1,000 Plan
• Protect Your Wealth in a Two-Sphere World — The full resilience framework including safes, bail-ins, and capital controls.
• Registered Accounts and Hard Assets: The Canadian Tax Reality — TFSAs, RRSPs, RRIFs, and how ETFs fit alongside physical metal.
• Silver Hub — tedlee.ca
• The Debasement Trade — Why gold and silver matter in a world of monetary expansion.
• History of Gold and Money