Gold bars
Gold bars also known as bullion, are a popular means of purchasing gold. On the face of the bar, the purity, manufacturer, and weight should be stamped. Bullion is typically sold by the gram or ounce.
When purchasing gold, purity plays a crucial role: To be considered bullion, investment-quality gold bars must be at least 99.5% pure gold, and if so, they are exempt from all taxes. However, even if they are not, taxes remain in effect.
Gold can be purchased directly from any of the big five Canadian banks—Scotiabank, RBC, TD, CIBC, and BMO—in person at a branch, online, or through your actual bank account and online banking. Within a 24-hour period, the maximum amount of gold that can be purchased from Canada's major banks is usually around $10,000.You must present two forms of identification in person at your local branch in order to make additional purchases. Non-bank customers can also buy a smaller amount of gold within 24 hours from some banks, like TD. This limit is $2,999.99 at TD.
If you don't want to store your gold at home, the major banks in Canada will also provide storage services to their customers through a custodial account for free. However, because gold at banks is stored collectively, the gold you withdraw is distinct from the gold you deposit. You can choose allocated storage, which stores your gold in a separate vault with your name on it, if you want to be sure that the gold you take out of storage is actually yours. This comes with a cost, which can be either a fixed annual rate or a percentage of the gold's value per year.
Gold can also be purchased in person or online from a reputable dealer. Even though pure gold bullion is exempt from taxes, you will be responsible for any costs associated with delivery, transportation, or insurance.
Gold Coins
Gold coins, like the Canadian Maple Leaf and the American Gold Eagle, are popular collectibles. Due to the collector aspect, you will have to pay taxes and a premium over what you would pay for the same amount of gold in bar form. Additionally, coins typically contain less gold than gold bars. For instance, a one-ounce American Eagle coin only contains 91.67 percent gold. In point of fact, the coin has a weight of 1.1 ounces, of which approximately one ounce is pure gold; Copper and silver make up the remainder of the weight.
You can purchase gold coins from reputable dealers, pawnshops, and private sellers. Gold coins can also be purchased from Canada Post, The Royal Canadian Mint, and Canada's big five banks. The Royal Canadian Mint's Bullion Digital Non-destructive Activation (DNA) technology, which is available at the mint or at a registered Bullion DNA dealer, can be used to verify the authenticity of gold coins from 2014 and later. Using specialized software, a Bullion DNA device digitally verifies the security markings on your coin using a high-resolution photo that can only be seen through the Bullion DNA device.
For older or non-Royal Canadian Mint coins, several easy tests can be used to confirm their authenticity.
Magnet: Since gold isn't magnetic, if you can pick up a coin with a magnet, it probably isn't gold or an alloy of gold.
The "Ping" Test: When striking a gold coin, a high-pitched ringing sound should be heard. The sound of non-gold coins will be much duller, and they won't last as long.
The Ceramic Test: A gold mark, not a black mark, should appear when gold is dragged across an unglazed ceramic plate.
Nitic Acid: When placed in nitric acid, pure gold should not corrode or oxidize. But doing this is risky because it will ruin any gold that isn't 100% pure or your other metals. For testing various karats of gold, you can obtain various strengths of acid.
Jewelry Buying gold can be done in a different way through jewelry, especially old pieces that probably have more gold in them. But keep in mind that, just like with gold coins, you'll probably have to pay more for the gold you actually get. Depending on the manufacturer, it could be anywhere from 20% to 300%.)
Also, remember that not everything that glitters is gold. Gold is alloyed with other metals by manufacturers to alter the color or make them more durable.
