Where to Buy Gold & Silver Bullion in Canada

Investing in physical precious metals has been popular among Canadians for many decades. By investing in gold and silver bullion, you are diversifying your portfolio and hedging against inflation and economic uncertainty. One roadblock for new investors in the precious metals world is figuring out how to purchase bullion and where to purchase it from. This guide will discuss how you can buy physical precious metals and the pros and cons of each.  

Physical Retail Stores 

There are some retail shops where you can purchase gold, silver, and platinum bullion in person, like pawn shops, jewelry stores, and independent bullion dealers. Although these are harder to find, this method provides immediate ownership and the opportunity to see the product in person and bypass shipping costs. However, it is crucial to ensure the creditability of the shop, verify the quality and authenticity of the product, and consider how competitive the pricing is.  

Pros:  

• Instant Ownership: Taking home your metals right after purchasing them may be necessary, depending on your preferences. This allows you to inspect the bullion beforehand and take immediate possession of it.
• In-person Interaction: Visiting a store in person allows you to physically see where you buy your metals, which can be reassuring. Speaking with the representatives face-to-face can also build trust between you and the seller.  
• No Shipping Costs: Since you can take the metals home right after purchasing them, there are no shipping costs.  

Cons: 

• Limited Selection: Retail stores tend to have a more limited selection since they can only hold a select amount of bullion at the store for security and storage reasons, which can narrow your options in design, purity, and weight.  
• Higher Prices: Due to higher overhead costs, prices at physical stores may not be as competitive as those at online dealers. Also, there is likely less room for negotiation due to the limited stock.
• Security Concerns: Transporting gold and silver from the store to your home may pose security risks. If you are purchasing a more significant amount of bullion, be sure to bring someone with you and take precautions.  

Buy Gold & Silver Directly From the Mint 

Mints, such as the Royal Canadian Mint, the Royal Mint, Germania Mint, the US Mint, and many more, produce and supply bullion to authorized dealers. Some mints offer direct consumer purchases; however, this is a less popular option due to many limitations. Most mints have a business-to-business model that prioritizes distributing bullion to authorized dealers rather than consumers. Therefore, direct purchases from the mint may not be as easy or smooth as other avenues of purchasing.  

Pros:  

• Guaranteed Authenticity: Purchasing gold and silver bullion directly from the mint eliminates the concern of varying authenticity and purity of the bullion. You can be sure you aren’t receiving counterfeit products or low-quality bullion.  
• Large Selection Advertised: Mints display a large selection of gold and silver bullion on their website. They also have many commemorative coins with low mintage that may be difficult to find.
• Added Value: Bullion purchased from the mint often comes with certificates of authenticity, high-quality packaging, and other documentation.  

Cons:

• Limited Quantities: The mint usually carries stock of most of their commemorative and collectible coins, whereas bullion is more difficult to purchase from the mint. As mentioned before, the mint’s main priority is distributing its bullion to authorized dealers, so the bullion stock on their site can vary. Although thousands of products are listed on the mint’s website, this does not mean they have stock available for purchase.
• Potential Delays & Costly Shipping: Shipping can be costly if you order from sovereign or private mints. For example, if you live in Canada and want to purchase a coin from Germania Mint, they will have to ship the product from Poland to Canada, which can be way more costly than buying from a dealer with stock from worldwide mints.  

 
Banks 

Most banks, such as TD, CIBC, RBC, and more, offer the option to purchase precious metals in person, over the phone, or through their website. Purchasing from the bank is a trustworthy option; however, it is less popular since most investors buy precious metals to distance themselves from the traditional banking system.  

Pros: 

• Security and Trustworthiness: banks are widely recognized as reliable institutions. When you purchase precious metals from the bank, you can have peace of mind knowing that you are dealing with a legitimate dealer of precious metals. Banks follow strict regulations and security measures, so you can ensure their selection is authentic and high-quality.  
• Convenience: Since most people already have a bank(s) to which they are accustomed, purchasing precious metals from your bank may be a convenient option. You have already established a relationship with your bank, so it can be straightforward to purchase with your bank.  
• Storage Options: Most banks offer security deposit boxes and/or vault services, which allow you to store your metals securely.  

Cons: 

• Higher premiums: A downside of purchasing with banks is the higher premiums. Banks typically charge higher premiums than other sources, which can eat into your return on investment.  
• Limited Selection: Banks tend to offer a more limited selection of bullion since they focus more on the most popular bullion products and their own branded bullion, which may not appeal to collectors or avid precious metals investors looking for a particular bullion product. 
• Lack of flexibility: The buying and selling to banks can be more complex due to the regulations, restrictions, and hours of operation, making transactions more challenging.  

Online Bullion Dealers

Purchasing precious metals from online dealers has become the most accessible and popular way to purchase bullion. Reputable online dealers have a large selection of products and stock. With detailed product descriptions, customer reviews, and competitive pricing, purchasing online allows for an informed decision-making process from the comfort of your home.  

Pros: 

• Competitive Pricing: Online dealers have more competitive pricing, price matches, and promotions. You can easily compare pricing among online dealers and choose the best price.  
• Extensive Selection: Online dealers usually have a large selection of products varying in purity, weight, mintage, mints, and designs.  
• Affordable Storage Options: Some online dealers offer non-bank, non-government storage options worldwide, allowing you to further diversify your portfolio by holding your metals in various countries. Also, these fees tend to be lower than the bank’s storage options.  
• Convenience: Purchasing bullion online allows you to compare pricing, read customer reviews, and purchase from your home. Most dealers offer secure payment methods and insured shipping.  

Cons:  

• Shipping Risks: Shipping bullion to your home risks loss or damage during transit. It’s vital to purchase from a dealer that offers insured and signature-required shipping to eliminate the risk of theft and provide peace of mind, knowing that your package is insured if anything happens.  
• Lack of Face-to-Face Interaction: Some people prefer to speak with someone in person rather than virtually or over the phone. Purchasing online may be challenging for new investors or those who are not technologically savvy.  
• Verification Required: It’s crucial to ensure the online dealer you purchase from is trustworthy. Check the Better Business Bureau, online reviews, and other additional research to help confirm the company’s authenticity.  
   

Sprott Money Ltd.  
 

Sprott Money is an authorized online precious metals dealer known for its customer service, competitive pricing and reliable shipping. It was founded by Eric Sprott, the most trusted name in the precious metals industry. Sprott Money is partnered with various global mints, including the Royal  Canadian Mint. We offer a wide array of gold, silver and platinum products of the utmost quality and purity. Sprott Money Sales Representatives provide a “white glove” customer experience, with a dedicated sales rep to assist you from start to finish, available Monday-Thursday 8 am-9 pm, and Fridays 8 am-8 pm. Sprott Money also provides secure and insured shipping, ensuring the safe delivery of your metals to your home. We offer non-bank, non-government storage solutions for those seeking storage solutions, providing peace of mind and security for investors with low storage fees.

Conclusion

Each avenue of purchasing precious metals has pros and cons, so it’s important to explore your options and choose the one best for your preferences. Physical retail stores allow you to go home with your metals immediately and interact personally with their staff, but they may have higher pricing and more security risks. Buying directly from the mint guarantees authenticity; however, their stock and shipping may be more limited. Banks are trustworthy and reliable but can be more costly and less flexible. Online bullion dealers provide competitive pricing and convenience but have shipping risks and no person-to-person interaction. Ultimately, the best place to buy bullion depends on your priorities and preferences. Now that you know the pros and cons of each method, you can make an informed decision on the best option for you.