Why Torontonians should consider investing in gold bullion
Torontonians wanting to save or make extra money during the COVID-19 pandemic may wish to consider investing in an asset that tends to retain its value when the market is more volatile than usual. One such asset is gold. Gold has proven itself over literally hundreds of years to be a reliable investment option during stormy financial epochs.
If you believe you don’t have enough money to invest in gold, that might not actually be true. Contrary to popular opinion, you don’t need to be loaded to invest. Yes, the more money you have, the more you can invest. But you don’t need a ton of money to invest; some extra funds will suffice.
You also don’t need to be loaded to build a sturdy, promising financial portfolio, and investing in gold is a good place to start.
Gold investment options
You have many options when it comes to investing in gold. Generally speaking, however, there are three. You can:
- Purchase proxies that represent gold value, such as gold exchange-traded funds (ETFs)
- Purchase gold futures and gold options in the commodities market
- Purchase physical gold bullion
For beginning investors, the third option might be the best way to go, not only because it’s relatively affordable to buy physical gold but also because it’s a straightforward process that doesn’t require much experience or expertise. It’s simple to figure out where to buy gold in Toronto—your local bullion dealer—and when you buy physical gold in the form of gold bullion, you essentially buy it by the ounce. Gold bullion often comes in the form of 1 oz bars and coins, but can be purchased in a variety of weights, whether as gram gold, fractions of an ounce, or even by the kilogram.
(Gold bullion is kept as reserves at financial institutions and central banks.)
Benefits to investing in gold
There are at least three benefits to investing in gold bullion in Canada:
- Gold bullion is not subject to sales tax
- You can include gold bullion in your RRSP and reap the tax advantages and other financial benefits
- Gold bullion is considered an investment vehicle
Bullion experts at reputable dealers can help teach you all about investing in gold bullion, so that you know what you’re doing.
Bullion dealers charge a premium in addition to the spot price of gold bullion. (Spot price is the price of a commodity, including an asset like gold bullion, at a particular moment.) The goal when buying gold bullion is to buy it and sell it as close to spot price as possible.
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