Call ahead to check availability when you want specific gold bars or coins.
Why Buy Gold
Gold is a valuable asset that has been used as a form of wealth for thousands of years. It’s a trusted hedge against inflation, currency depreciation, and economic instability. While other investments can fall out of favor, gold’s value has remained relatively stable over time.
The allure and attraction of gold is fairly universal across the world and over time. Gold can be taken most anywhere and either used directly or converted to the local currency to use. While its value can certainly be influenced by monetary policy and government decisions, it is not directly under their control like fiat currencies are. Gold often is used as a hedge and for portfolio diversification as it often moves the opposite direction to stock markets. Gold is seen as a way to reduce volatility and risk.
There are many ways to invest in gold without actually owning gold. This could be ETFs, gold certificates, or buying shares in gold mining companies. While these types of investment get you exposure to the gold market owning physical gold offers buyers something more. Gold that you can hold in your hand, store where you want, travel with it, and pass it down to younger generations – establishing a legacy of wealth, security, independence, and self-responsibility for generations to come. It is not just an investment for your lifetime.
How Gold Prices are Determined
Market Prices
This is the biggest driver of how we price the gold bars and coins that we sell. There is a global market that trades in precious metals, like gold, in both the spot and the futures markets. Physical gold as well as derivatives like options or ETFs are traded during market hours Monday to Friday. The spot price of gold changes by the second and our prices are based off this number. The price in the global market is very reactive to geopolitical events, economic news and indicators, supply and demand, interest rates, time, and many other factors.
Bar Charges
When a gold bar or coin is made, the mint or refiner will charge a fabrication fee per piece. This charge is to offset the cost of physically making it and is in addition to the price of the gold the object contains. The amount of the bar charge varies by item and by maker. These charges are fairly stable however they do change over time. They also respond to changes in supply and demand and sometimes change drastically resulting in big price shifts. Typically the bar charges on coins are bigger than the equivalent size of bars, due to their more complex artistic designs and features. Also important to note that the smaller the gold bar or coin is, the greater impact the bar charge has on the total price i.e. it will cost you more to buy ten 1/10 ounce gold bars than it will cost to buy one 1 ounce gold bar.
Supply and Demand
Whenever there is a shift in the supply or demand of gold in general or for particular gold bars/coins this will be reflected in the price. At a macro level you will see this in the shift of the global inter-market price of gold. When demand outpaces supply for specific bars or coins you may see their price jump up relative to a similar coin or bar.
Some gold buyers will pay premiums to get gold bars or coins from specific mints or refiners due to their international reputation and recognizability.
The tax treatment of different gold items can also impact buyers’ preferences.
The collector value of many gold coins can far outweigh the gold value of the item. We are not a numismatics, or coin collecting shop and do not grade the condition of coins or sell them as collector’s items.
Mark Up
Like any business, our prices include margin to cover the costs of running the business, paying our staff, and to make a profit.
Market Volatility
A subset of the global gold market is volatility – when prices fluctuate rapidly and/or make big moves. Volatility increases uncertainty and can impact the prices charged. During periods of volatile markets spreads are usually widened as protection.
Taxes
In Canada most gold bars, ingots, coins, and wafers are not subject to HST if they contain a minimum purity of 99.5% gold. All other gold items such as 22k gold coins (Krugerrands, US Mint Eagles etc.) are sold subject to HST.
Currency
We offer prices to our customers in both Canadian Dollars (CAD) and US Dollars (USD). The global market for gold, and most assets, is priced in USD. For those buying gold using CAD the exchange rate with USD will impact the price you pay. When CAD is strong and gains value against the USD it will make gold cheaper relative to the Canadian Dollar. When CAD weakens against the USD you will pay more in CAD for the same amount of gold.
Types of Gold We Sell
Gold Bars
Gold bars are quite literally the gold standard when it comes to investing in precious metals. Ranging in size from one gram to 400 ounces there are sizes of gold bars for most any investor’s budget and strategy. Gold bars are very standardized and their pricing is much easier to understand than the complexities of the gold coin market. There is not much numismatic, or collector, value to gold bars although some buyers may be willing to pay a premium for particular gold bars they desire.
Range of Sizes
Common sizes are: 1, 2.5, 5, 10, 20, 50, 100, and 1000 Gram bars. 1/20, 1/10, 1/4, 1/2, 1, 2, 5, 10, 100, and 400 Troy Ounces.
Recognized Standard
Mints and refiners well known around the world including The Royal Canadian Mint, Johnson Matthey, Pamp Suisse, and Asahi produce gold bars with their mark and purity clearly identifiable.
Gold coins have a great history to them going back to King Croesus of Lydia in the 6th Century BC. Over time many gold coins of different purities, sizes, and values have been made by kingdoms and governments for use in trade, for investment, and as a store of wealth. The early 1930s saw the US enact laws that outlawed private ownership of gold and required the public to exchange their gold for dollars. In 1967 South Africa launched the gold Krugerrand as a way to market their gold internationally. This directly led to the current market where many nations like Canada, the US, Australia, and the UK make and sell many high quality gold coins. Gold coins have more of a collectible factor to them compared to gold bars. Most modern gold coins are produced annually, and typically contain the year on the coin. The size of the production run, changes in the appearance or features of the coin, or just the year itself can lead to some buyers favouring specific coins. The collectors market for rare, and graded condition, older gold coins is an entirely different market and not one that we participate in.
Legal Tender
Many gold coins have a face value to them and can be used in the country of issue as money. Note: The value of the gold greatly exceeds the face value of them. For some buyers the legal currency status of them is a plus.
Style, Design, and Features
More so than most gold bars, gold coins are known for their artistic designs, intricate engraving, and more recently for their features. Coins like the Royal Canadian Mint’s flagship Gold Maple Leaf coin contain security features like micro engraving and BULLION DNATM a proprietary technology to authenticate them.
This form of gold looks like small pebbles, around the size of rice. It is typically only bought by jewellers and other manufacturers, although some other buyers are attracted to their appearance – perhaps channeling the Gold Rush feeling of the 1800s. Their small size makes it easy for a jeweller to melt specific amounts of gold to use on the piece of they are making.
This is another specialty form of gold that is bought by jewellers and other manufacturers. It comes in a range of gold alloys like 10 Karat, 14 Karat, 18 Karat etc. and can be used directly by the manufacturer to make their jewellery or other goods.
