Precious Metals Tax in Canada 2025

Updated March 2025 — bremo.io

Precious metals — gold, silver, platinum, and palladium — are popular alternative investments in Canada. They receive specific treatment under Canadian tax law, including rules about capital gains, GST/HST exemptions, and reporting obligations. This guide covers everything Canadian investors need to know about the tax treatment of precious metals in 2025.

Capital Gains Tax on Precious Metals

Precious metals are treated as capital property under the Income Tax Act. When you sell, trade, or otherwise dispose of precious metals at a profit, you realize a capital gain. Under Canada's capital gains inclusion rate, 50% of net capital gains are included in your taxable income.

This applies to:

• Physical gold, silver, platinum, palladium bars and coins
• Precious metals ETFs held in taxable accounts
• Shares of mining and streaming companies (regular capital gains)

If you sell precious metals at a loss, the capital loss can offset capital gains from the same year, be carried back 3 years, or carried forward indefinitely.

Business Income vs. Capital Gains for Metals Dealers

For most individual investors who buy and hold precious metals as a store of value or inflation hedge, gains are capital gains. However, if you are a dealer or trader in precious metals — regularly buying and selling with the primary intent of profit — the CRA may classify your activity as business income, making 100% of net gains taxable. Dealers can deduct business expenses.

GST/HST on Precious Metals: The Key Rules

Gold Bullion — GST/HST Exempt

Under the Excise Tax Act, the sale of gold coins or gold bars that meet specific purity requirements is zero-rated (GST/HST-free). To qualify for the exemption:

• Gold must be at least 99.5% purity (.995 fine or higher)
• Applies to gold bullion bars and most government-minted gold coins (e.g., Royal Canadian Mint Maple Leaf, American Gold Eagle)
• Does NOT apply to gold jewellery, numismatic (collector) coins, or gold below 99.5% purity

The Royal Canadian Mint's Gold Maple Leaf coin is .9999 fine gold and qualifies for the GST/HST exemption.

Silver Bullion — Generally Subject to GST/HST

Unlike gold, silver bullion does not have a specific GST/HST exemption under the Excise Tax Act. Most silver bars and coins are subject to GST (5%) or the applicable HST rate in your province (up to 15% in Atlantic Canada).

This is a significant additional cost for silver buyers. On a $1,000 silver purchase in Ontario, you would pay $130 in HST (13%), making your actual breakeven price higher than the spot price of silver.

Platinum and Palladium

Investment-grade platinum and palladium (99.5%+ purity) may qualify for GST/HST zero-rating similar to gold, but the rules are less clearly established than for gold. Consult a tax professional for specific platinum/palladium purchases.

Adjusted Cost Base for Physical Metals

Your ACB for physical precious metals is the total cost of acquisition, including:

• Purchase price (spot price + dealer premium)
• GST/HST paid (if applicable — forms part of your cost)
• Shipping and insurance costs
• Vault storage setup fees (if capitalized)

When you sell, your capital gain is the proceeds of sale minus the ACB. Keep all purchase receipts.

Precious Metals ETFs: Tax Treatment

Precious metals ETFs (iShares CGL, Sprott PHYS, etc.) are treated as securities for tax purposes:

• Gains on disposal are capital gains (50% inclusion)
• No GST/HST on purchases (buying ETF units is not a taxable supply)
• Can be held in TFSA (tax-free gains), RRSP (tax-deferred), or FHSA
• Annual management fees are embedded in the MER, not separately deductible

For registered account investors, ETFs are the clearly superior tax structure for precious metals exposure — no GST/HST on purchase, no storage costs, and TFSA/RRSP eligibility.

Precious Metals Mining Stocks: Tax Treatment

Shares of precious metals mining companies are treated as standard securities:

• Capital gains on price appreciation (50% inclusion)
• Dividends eligible for the dividend tax credit if Canadian companies
• Flow-through shares from mining companies offer special deductions — these are a specialized tax planning strategy

Reporting Precious Metals on Your Tax Return

Capital gains from precious metals are reported on Schedule 3 of your T1 General return. List each disposition with:

• Description (e.g., "Gold Maple Leaf coins")
• Proceeds of disposition
• Adjusted cost base
• Gain or loss

If you hold precious metals in foreign accounts or through foreign storage programs with total cost over $100,000, T1135 filing may be required.

Record-Keeping Requirements

Keep all records for at least six years, including:

• Purchase receipts for every precious metals acquisition
• Sale confirmation slips
• Storage receipts (for cost basis purposes)
• Account statements from dealers and storage programs