Investing in Precious Metals: Understanding Taxes in Canada

When you invest in gold, silver and platinum products, you need to be aware of the financial reporting requirements and taxes involved. 

What Tax Do I Pay on Gold and Platinum Purchases?

Congratulations – if you are here in Canada, you will pay no sales tax (Harmonized Sales Tax, ak.a. HST) on gold and platinum products that have a purity of over 99.5%.

If you are purchasing scrap gold, you will be charged HST since it is “likely” not refined to the minimum of 99.5%. Of course, there are exceptions to this rule, but the vast majority of gold and platinum sales will have no sales tax. 

This “no sales tax” rule is in place since gold and platinum over 99.5% are considered investments. 

What Sales Tax Does a Canadian Pay on Silver Bullion Products?

You will pay no sales tax on silver products with a purity of at least 99.9%. Many silver bars and coins are now even available in 99.99%. No matter which you purchase, there will be no HST charged. 

This “no sales tax” rule is in place since silver over 99.5% pure is considered an investment. 

What Income Taxes Will I Need to Pay on My Gold, Silver and Platinum Investments?

Any profits on your investments will remain tax-free, as long as you hold them. If they are sold, the difference can be taxed. If the value of your sales is less than $1,000, then they are exempt from capital gains taxes. 

Can I transfer Gold, Silver and Platinum Investments to Beneficiaries to Save on Taxes?

Yes, you can certainly give your bullion products to your beneficiaries, but you would still need to pay the capital gains tax. 

Trust Your Financial Professionals

When discussing taxes in any scenario, things can get complicated. Royal Bull encourages you to speak with your tax professional or accountant about ensuring that your selling of bullion does not create a tax burden. 

To help track your investment profits, keep receipts of your purchases and sales.

To add to your precious metal investment portfolio right now, view the many products available at www.RoyalBull.ca/shop.