The Best Gold Investment Options Available in Canada

Gold has always been a popular investment. Known as a reliable store of value, it can withstand inflation, economic crises, wars, and other disasters. The question is: What's the best way to invest in this precious metal?

The spot price for 1 troy oz has topped 4,000 USD for the first time ever in 2025. This makes it an attractive investment. What is the best way for people to add it to their portfolios? The best gold investment options available in Canada depend on an investor's goals, budget, and level of knowledge.

Why Are Gold Prices Increasing?

Gold prices have increased in recent years. Why?

• Inflation: Precious metals are a traditional hedge against inflation. As paper currency loses value, it becomes a safe haven. As demand rises during periods of inflation, gold prices increase.
• Uncertainty: Investors likewise seek the stability of precious metals when they are worried about the economy. Historically, it doesn't suffer as much as stocks or funds during a bear market or recession.
• Risk management: Also, physical metal does not have counterparty risk. No single CEO or company can significantly impact the value with their decisions or choices.

Investors need to remember that some investments, such as mining stocks or funds, are still tied to the stock market, whereas physical coins and bars are not. Though all gold-based assets are good for risk management, more decentralized options like physical coins and bars come out ahead in terms of overall risk management because they don't require a functioning stock exchange or broker.

The Top Gold Investment Options in Canada

The ways to invest in precious metals include exchange-traded funds (ETFs), certificates, mining stocks, physical bullion, jewelry, and gold retirement accounts.

ETFs

Exchange-traded funds are designed to track the prices of certain markets, such as industries, indices, or a country's economy. Gold ETFs contain stocks, futures, physical metals, and other assets. The goal is to track the spot price closely.

The advantage of ETFs is that they are easy to access for anyone who can open a brokerage account. Someone who wants to buy an ETF can do so with one click. It can also be cheap to start investing, with shares often costing less than physical metals, and options like fractional shares making the cost even less.

On the other hand, buyers don't own physical gold, so if a severe economic crisis occurs, they may lose their investment. ETFs also have management fees, which can take away some profits.

Gold Certificates

These certificates are similar to ETFs in that they let people invest in gold without requiring them to actually possess it. There's one very important difference, however. The certificates represent ownership of actual gold, held in a vault somewhere.

This can be a cost-effective way to invest in physical metals. The advantages include not having to worry about security and the ability to get fractions of ounces instead of having to buy whole coins or bars.

On the other hand, there can still be management costs and counterparty risk. Certificate holders need to trust the bank or vault to remain financially solvent and stay in business. Also, if there is a serious crisis, they may not be able to take possession of their coins themselves.

Physical Bullion

Physical bullion is investment-grade gold. Bars need to be at least 99.5% pure, but many coins are 99.9% pure, with the best being nearly perfect (99.99%).

The main advantage of physical precious metals is that they remain in the buyer's possession. While they have to be kept securely, having possession of coins is a major advantage. There is no counterparty risk. This means that an investor doesn't have to worry about someone else making a mistake that ruins the investment.

Physical gold has a global market, so investors can technically sell it anywhere. There are challenges with getting fair prices and finding reputable buyers. But, established retailers like Sprott Money also buy gold, making it easy for individual investors to access the global market.

Jewelry

24k gold is 99.9% pure, making it investment-grade. People often give jewelry as a gift, and it can be worth its weight plus have a premium because of the design.

Jewelry is collectible, and it can be an attractive idea to wear your wealth. However, jewelry may not be as easy to sell for full value compared to coins or bars. Also, a lot of jewelry does not meet the purity standard for investment. Pure gold is somewhat soft, so a lot of jewelry is made from less-pure varieties (18k or 14k).

Retirement Accounts

Canada allows registered retirement savings plan (RRSP) holders to invest in precious metals. However, there are strict guidelines that need to be met. The metal needs to come from an approved mint, meet purity standards, and be stored with a licensed third-party custodian. Jewelry and privately-stored coins don't qualify.

There are tax advantages to keeping gold in an approved RRSP account, but account holders also have to pay storage fees and taxes when they use the proceeds from selling their bars.

Mining Stocks and Gold Mining

Mining stocks are a way to invest in gold. They can rise in value when the spot price increases and demand rises. However, other factors, such as poor management or more successful competitors, can cause them to lose value even if the spot price is high.

Some people try gold mining themselves. This requires some skill and knowledge and can be very time-consuming for individuals. However, practices like placer mining (also known as panning) are sometimes accessible to people. The advantage is not having to pay for the nuggets or dust that gets found. For most, though, this is not a realistic option and isn't profitable unless done on an industrial scale. 

Invest in Physical Gold with Sprott Money

Sprott Money offers a range of gold, silver, and platinum products, including coins, bars, and rounds. Our products come from government mints like the Perth Mint and Royal Canadian Mint and private mints like the Scottsdale Mint.

It's important to buy coins from reputable dealers. Sprott is one of the most respected names in the precious metals industry, and we have been delivering investment-grade metals to customers and earning their trust since 2008. Whether you want to add to your portfolio, start one, or get a gift for a loved one, browse our collection and find the perfect product today.