Gold has protected wealth for millennia. Here's how Canadians can invest in gold in 2025 — and how to do it tax-efficiently.
Gold serves several roles in a diversified investment portfolio. It acts as a hedge against inflation, tends to hold value during currency devaluation, and often moves inversely to equities during market downturns. For Canadians, gold also offers diversification away from the heavily resource-weighted TSX and exposure to a globally priced commodity denominated in USD.
Gold ETFs are the most convenient way for Canadian investors to gain gold exposure. They hold physical gold on your behalf and trade on the TSX or NYSE like stocks. No storage or insurance headaches.
| ETF | Ticker | MER | Currency |
|---|---|---|---|
| iShares Gold Bullion ETF | CGL / CGL.C | 0.55% | CAD hedged/unhedged |
| Sprott Physical Gold Trust | PHYS | 0.35% | USD |
| SPDR Gold Shares | GLD | 0.40% | USD |
| iShares Gold Trust | IAU | 0.25% | USD |
Canadians can buy gold coins and bars through dealers like the Royal Canadian Mint, ScotiaMocatta, and local bullion dealers. Physical gold gives you direct ownership with no counterparty risk, but requires secure storage and insurance. Common products include:
Canada is home to several of the world's largest gold mining companies, all listed on the TSX:
Mining stocks offer leveraged exposure to gold prices — when gold rises, miners' profits can increase disproportionately. However, they also carry operational, geopolitical, and management risk beyond just the gold price.
For diversified mining stock exposure without picking individual names:
Gold and gold investments are taxed as capital property in Canada. Gains are capital gains (50% inclusion rate). Physical gold sold at a profit triggers capital gains. Gold ETFs held in a TFSA generate tax-free gains. Gold mining stocks are treated like any other Canadian equity.
Investment-grade gold (minimum 99.5% purity) is exempt from GST/HST in Canada. When you buy gold coins or bars that meet the purity standard, you do not pay sales tax. Lower-purity gold items (like jewelry) are subject to HST.
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Get KOHO Free — Use Code 45ET55JSYAMost financial advisors suggest a gold allocation of 5–15% of a diversified portfolio. Gold tends to perform best during periods of high inflation, geopolitical uncertainty, or dollar weakness. It pays no dividends or interest, so the opportunity cost increases in high-interest-rate environments.
Some investors view Bitcoin as "digital gold" — a scarce store of value with similar inflation-hedging properties. In practice, Bitcoin and gold have very different volatility profiles. Gold's 10-year annualized volatility is roughly 15%; Bitcoin's is 60–80%. Both can coexist in a portfolio, but serve different risk tolerance levels.
Gold ETFs are the most practical way for most Canadians to invest in gold — liquid, low-cost, and TFSA-eligible. Physical gold makes sense for investors who want full direct ownership. Mining stocks offer higher potential returns with higher risk. A combination of the above is often appropriate for meaningful gold exposure in a diversified portfolio.