Posted in Gold & Silver Investment

Tips for Investing In Gold and How to Hold Gold in Your RRSP

Among the different types of metals available in the market, gold is one such precious metal which is worthy of investment. When one plans to invest in gold, one can easily invest in different forms of gold. For consumers, investing in gold jewelry can be the best option. However, for investors, studying the market is crucial before investing. In order to understand the market, one can take the advice of professionals.

buy gold online

Some professionals may advise not to buy gold online especially bullion bars or gold certificates. While gold bars might be easy to store, it’s not accepted as a legal tender. Similarly, trading with gold bars is not very easy. On the other hand, it’s not wise to invest in gold certificates as they contain a small amount of interest in physical gold in it.

A Better Way to Invest In Gold

Before one gets to learn about the right way to invest in gold, one should try to know the reason behind investing in gold. Gold investment can help one to remain protected from inflation or any other crisis. On the other hand, it can also help in protecting one’s asset. Moreover for investors, investing in gold bullion can be a great way to diversify the portfolio.

Not Investing in Gold Bullion Coins

Rather than investing in gold bullions or coins, it would be better if one buy gold mining stocks. Basically, the mining stocks can play a great role in one’s investment portfolio. The reason to invest in the mining stocks is that it can easily create some income. However, it is not the case with gold bullion. Therefore, investing in a mining stock can help one to remain in an advantageous position.

buying gold online

Invest In Physical Gold through RRSP

Still, if you have decided to buy gold online and hold the physical gold in an RRSP, you would need to keep in mind the following things. They are:

A certain set of rules and costs involved in order to hold physical gold in an RRSP. Following the rules are important in order to avoid penalties. The Canadian federal budget in 2005 came up with investment-grade gold and silver coins, along with gold and silver bullion bars. All these coins and bars were worthy to be held in RRSP.

If you have decided to hold gold in RRSP, you would need to make sure that the gold is 99.5% pure. Moreover, the coins formed by the Royal Canadian Mint should be legal tender coins in order to be eligible for RRSP.

In order to hold the gold coins in RRSP, after buying gold online one should try to look out for a 3-rd party custodian of the gold coins or bars. The third party will report to the Canada Revenue Agency after verifying the amount of gold bullion one is holding.

Hence, opening an account and register with an accredited investment dealer is crucial. In order to hold gold in an RRSP, one can easily invest in bullion bars and coins.

It would be better to buy gold online in a limited amount in order to hold it in an RRSP. However, one should invest in shared or stocks of gold mining firms only after having informed knowledge. Or else, one should invest in gold bullions.