Precious Metals Tax in Canada 2025: Gold and Silver

How the CRA Taxes Precious Metals

Gold and silver are treated as capital property by the CRA. When you sell precious metals at a profit, you trigger a capital gain. Only 50% of the gain is included in your taxable income — the standard capital gains inclusion rate.

This treatment applies to physical bullion (coins and bars), precious metal certificates, ETFs backed by physical metals, and mining stocks. The key distinction is between capital gains treatment (most investors) and business income treatment (dealers and traders).

Capital Gains on Physical Bullion

When you sell gold or silver:

Calculate your cost basis: what you paid (including purchase premiums and any storage/insurance costs that are part of the purchase)
Subtract from sale proceeds
The difference is your capital gain (or loss)
50% of the gain is included in taxable income
Report on Schedule 3 of your T1 return

Example

You bought 10 oz of gold for $20,000 total ($2,000/oz). You sell them for $30,000 ($3,000/oz). Your capital gain is $100. Only $5,000 is taxable. At a 43% marginal rate, you owe approximately $2,150 in tax.

GST/HST Exemption for Investment Bullion

Investment-grade precious metals are exempt from GST/HST under the Excise Tax Act. To qualify for the exemption:

Metal	Minimum Purity	Form
Gold	99.5%	Bar, coin, or certificate
Silver	99.9%	Bar, coin, or certificate
Platinum	99.9%	Bar, coin, or certificate

Royal Canadian Mint Maple Leaf coins meet these standards. Generic bullion bars from reputable refiners (Valcambi, Asahi, PAMP) also typically qualify. Numismatic or collectible coins may not qualify — their value derives partly from rarity, not just metal content.

Business Income for Precious Metals Dealers

If you buy and sell precious metals frequently as a business or dealer, the CRA may classify your gains as business income rather than capital gains. Business income is taxed at 100% inclusion rate. Factors indicating business activity include high transaction frequency, dealer-level knowledge, and transactions as your primary income source.

TFSA Strategy: You can hold gold and silver ETFs (like CGL, SVR, or PSLV) inside a TFSA. All gains on these ETFs inside a TFSA are completely tax-free — a significant advantage for long-term precious metals investors. Physical bullion cannot be held directly in a TFSA.

Precious Metals in an RRSP

Physical gold and silver cannot be held directly in an RRSP. However, gold ETFs (CGL.C, PHYS) and silver ETFs (SVR, PSLV) are RRSP-eligible. Gains inside an RRSP are tax-deferred until withdrawal.

Record-Keeping Requirements

For precious metals investments, keep records of:

Date of purchase
Description (e.g., "10 oz gold bar, 99.99% purity")
Purchase price including premiums paid
Storage and insurance costs (if relevant to cost basis)
Date of sale
Sale proceeds
Dealer name for purchase and sale

Save Your Crypto Profits in a No-Fee Account

When you convert crypto to cash, make sure it lands somewhere with zero fees. KOHO's no-fee account earns cash back and keeps your money accessible. Use code 45ET55JSYA for a bonus.

Get KOHO Free — Use Code 45ET55JSYA

Precious Metals and the T1135

If you hold precious metals at a foreign storage facility (e.g., a Swiss vault or a US dealer's storage program) and the total cost of all your foreign property exceeded $100,000 CAD at any time during the year, you must file a T1135. Precious metals stored in Canada are not subject to this requirement.

Bottom Line

Precious metals investors in Canada benefit from capital gains treatment (50% inclusion), GST/HST exemption on qualifying bullion, and the ability to hold metal ETFs in TFSAs for completely tax-free gains. Accurate cost basis tracking and understanding the GST/HST exemption rules are the two most important tax considerations for Canadian gold and silver investors.