Owning Physical Gold and Silver in an RRSP

Owning Physical Gold and Silver in an RRSP

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As investors seek to secure their financial future and navigate the ever-changing landscape of economic uncertainties, the allure of physical precious metals as a valuable addition to registered accounts has gained traction. This article explores why owning physical gold and silver within registered accounts can be a strategic move for diversifying investment portfolios and safeguarding long-term wealth.

 

While traditional asset classes like stocks and bonds remain crucial components of investment strategies, physical gold and silver offer unique attributes that can bolster a portfolio’s resilience during economic turbulence. From acting as a hedge against inflation to serving as safe-haven assets, precious metals have a history of preserving wealth and providing a reliable store of value.

 

Join us as we delve into the advantages of holding physical gold and silver in registered accounts, understand their potential tax benefits, and appreciate the flexibility and control these tangible assets afford investors in their pursuit of financial security and long-term prosperity.

Why Own Physical Gold?

Portfolio Diversification

Including physical gold and silver in your registered accounts can enhance diversification. Precious metals typically have a low correlation with traditional asset classes like stocks and bonds, which means they may perform differently in response to economic and market conditions. This diversification can help reduce overall portfolio risk and improve resilience during economic uncertainty.

Hedge Against Inflation

Precious metals, particularly gold, have historically acted as a hedge against inflation. As the purchasing power of fiat currencies declines over time due to inflationary pressures, the value of gold and silver often rises. By holding physical precious metals in registered accounts, investors can safeguard their purchasing power and preserve wealth over the long term.

Safe-Haven Assets

During times of economic turmoil or geopolitical uncertainty, investors tend to seek safe-haven assets. Gold and silver are considered traditional safe-haven investments due to their historical store of value and global recognition. Including these metals in registered accounts can offer protection against economic downturns and market instability.

No Counterparty Risk

Owning physical gold and silver means direct asset ownership without relying on financial institutions or intermediaries. There is no counterparty risk, which can be advantageous in financial instability or bank-related concerns.

Long-Term Wealth Preservation

Precious metals have proven their ability to preserve wealth over the centuries. Holding physical gold and silver in registered accounts allows investors to take a long-term approach to wealth preservation, securing assets for retirement and future generations.

Tax Benefits

Holding physical precious metals in registered accounts can offer tax advantages in some countries. For example, in the United States, certain retirement accounts, such as Individual Retirement Accounts (IRAs), allow for the inclusion of gold, silver, and other approved precious metals. This can provide potential tax benefits, such as deferring taxes on gains or taking advantage of tax-free growth (in the case of Roth IRAs).

Flexibility and Control

Owning physical precious metals allows investors to access their assets when needed. Unlike other investments, physical metals can be readily sold or converted into cash without complex processes or significant transaction costs.

Pros and Cons

Pros

Physical metals offer benefits that few other investments can match. Consider these perks.

 

  • Gold doesn’t need electricity or the Internet. Not hackable or erasable as your mobile.

 

  • Gold is value dense; $50,000 in gold coins fits in your hand. They are smaller than a stack of equal-value dollar bills. Physical gold may be stored in a tiny space.

 

  • Physical metals are one of the few investable assets that provide privacy.

 

  • Physical metals can be transported worldwide. Physical metals can be used as trip money or stored abroad. Gold is more accessible than silver. This gold makes border crossing easy.

 

  • Physical metals can be great heirlooms since they retain value and are palpable.

Cons

Metals, like other things, have pros and cons. The drawbacks.

  • Gold and silver transactions require commissions like other investments. Commissions are frequently greater than stock or bond purchases but lower than real estate costs.

 

  • Due to their elaborate designs, coins cost more than bars. Silver costs more than gold to make yet sells for less.

 

  • Even with shipping, online dealers may have more selection and be cheaper than local coin shops. Online retailers often waive shipping and insurance fees with a minimum purchase.

 

  • Since collectibles, rare coins, and numismatic products have higher premiums, only these products if you’re a collector.

 

  • Bullion premiums are reasonable compared to other investments. Premiums may grow if the market tightens due to poor industry profits.

Conclusion

In conclusion, owning physical gold and silver within registered accounts presents a compelling proposition for investors seeking to fortify their portfolios and secure their financial future. As time-tested safe-haven assets, precious metals offer valuable diversification benefits, as they often exhibit a low correlation with traditional investments like stocks and bonds.

 

Including physical gold and silver in registered accounts not only acts as a hedge against inflation but also provides security during periods of economic uncertainty and market volatility. By preserving purchasing power and safeguarding wealth over the long term, precious metals contribute to a well-rounded investment strategy that can weather various market conditions.

 

Furthermore, the potential tax advantages of holding physical precious metals in registered accounts, such as certain retirement vehicles, offer additional incentives for investors to embrace this strategic approach to wealth preservation.

 

As with any investment decision, individuals must assess their financial goals and risk tolerance and consult with qualified financial advisors before proceeding. By considering the benefits of physical gold and silver within registered accounts, investors can leverage the unique attributes of these tangible assets to build a more robust and resilient investment portfolio, positioning themselves for a brighter financial future.

See our Registered Account Info Page for more

So you have decided to buy silver online.

Great choice. Let’s talk about silver.

Silver is exceptionally popular today. Part of the reason for this is the belief that it’s potential for upside value increase is even greater than the same belief in gold. In fact, there is a very good book on this subject entitled: “ Why Silver Will Outperform Gold by 400% in the coming years”. It’s a very scholarly book and quite convincing. Give it a read if you have the time.

Silver Bullion Prices

Mind you, one need not look as far as that book to find evidence of the common belief that silver has great potential for growth in the near future. All one has to do is go to the web or even Youtube and there are advocates of this thought at every turn.

At Durham Precious Metals we believe that silver is an easy choice because it gives a sense of substance due to its lower cost per ounce than gold.

Silver Bullion

Probably 90% of our business is silver sales so this sentiment is fairly unanimous throughout the public. 10oz bars seem to be the most popular. Generic rounds and Silver Maples seem to be the next most popular and 1oz bars a close 4th place. It is our opinion that 10 oz bars and 1oz rounds are your best value as their premium over spot is very reasonable. However, there is no wrong choice when it comes to our silver product line because we try to concentrate on product lines with low premiums anyway.

Silver has always been a form of money. There are those that will argue that silver has been demonetized but we beg to differ. All one has to do is refer to the (CCRA) definition for 999 bullion. It is deemed by Rev Can to be a “ financial instrument”. Enough said on that subject!

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From a utility standpoint, silver has somewhere in the neighbourhood of 60,000 industrial uses including painting the backs of mirrors to create the reflective surface to collecting radiation in solar panels. If nothing else, the lack of an above ground supply of silver ( which is relatively new historically) will keep the demand for this metal strong since for most applications there is no viable substitute.

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Can you imagine the mayhem that would ensue if all the major electronic manufacturers came grinding to a halt due to a silver shortage? It would be catastrophic to the economy. We believe that this fact alone will be a major driver of support for the silver price when the powers that be run out of tricks in their attempt to suppress the price of silver. And yes, we agree that this practice goes on in plain sight and that the regulators turn a blind eye. Let’s hope justice prevails and that the historic silver/gold ratio returns to its traditional level.

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In the meantime…keep stacking!

So you have decided to buy gold online.

Great choice! Let’s talk about gold then, shall we?

Gold is, and always has been, a favorite of collectors of precious metals. Its 6000-year history of sustaining wealth is unprecedented. The yellow metal has launched wars, bought fortunes and has been a form of money throughout that history. It is one of the densest metals and also one of the densest elements on the periodic table. It weighs in at a density of 19.32 grams per cubic centimeter. Water, by contrast, has a density of 1 gram per cubic centimeter.

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Platinum is the densest of the common 4 precious metals at 21.45 grams per cubic centimeter.

People will often ask when gold is the right choice to buy as opposed to other metals such as silver. This is a very common question. There is no easy answer that anyone can give to someone so we always boil it down to practical applications.

Gold Bullion

Consider how much of an investment you are planning to make over-all throughout the course of your precious metals buying.  If you are planning on purchasing, for example, $10,000 worth of metals and then cap your spending then it really doesn’t matter which metals you buy. The volume of the purchase will be relatively small in terms of weight and size. Our main concern and Durham Precious Metals comes down to simple things like , cost of storage, cost of shipping and bulk. We are always trying to help our customers have the best experience as metals collectors.

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For example, if you were to tell us that you are considering selling a piece of real estate and use the proceeds to buy metals then gold would be our suggestion. The reason comes down to volume and weight at this point. Several hundred thousand dollars of silver would be an incredible amount of bulk at this spend level. Hundreds of pounds of silver would be hard to store practically and would be more expensive to store as well. If you are the DIY type it would also be harder to hide than a comparable dollar amount of gold.

Keep in mind that at the time of this writing gold is about 75 times more expensive in dollar terms as the same weight of silver. That equates to 75 times less bulk per dollar spend. This will make it much easier to hide or store if you are looking at large purchase amounts.

Price of Gold?

If you are only considering a small total purchase amount either of the metals is perfectly fine. The one consideration we always emphasize for small purchase amounts really comes down to personal perception. Here is what we mean. Silver is 75 times more bulky per dollar spend. Obviously, it is going to feel a lot more substantial if you buy $5000 worth of silver and have several hundred ounces to admire than only about 3 ounces. It’s a perception thing at this point but perception matters to people since perception can make us feel a particular way about what we spend our money on.

In closing, gold and silver are both great choices and neither is wrong in terms of their value of utility. They have both had a long history as a store of wealth and that isn’t likely to change any time soon.

Buy both with confidence. Buy Gold Online

We often carry pieces that we don’t list on site so feel free to call us for an up-to-date list.

About DPM

When you consider silver value and gold value, the wise choice is to stock up today. At Durham Precious Metals we make it easy and convenient to buy silver and buy gold online.

For those who are serious about investing in gold and silver bullion, DPM is your one-stop store to buy gold and buy silver, whether it be through our website or our retail store.

Many people want to know where to buy gold and do not realize they can avoid the traffic hassle of driving into the city and visit us at DPM located in Oshawa, Ontario. See our Retail Store page for directions. Our customers are delighted with our competitive silver price. We carry mint direct silver bars, silver coins, gold bars and gold coins.

Make Durham Precious Metals your choice for gold and silver bullion.

Consider a Gold IRA as well