Is gold taxable in Canada?
Yes. Physical gold and gold ETFs are subject to capital gains tax when sold. For individuals, 50% of the gain is included in income at your marginal tax rate. Gold held in a TFSA or RRSP grows tax-free — if you want gold exposure in registered accounts, use a Canadian gold ETF (e.g., CGL.C or MNT).
Is physical gold a good investment in Canada?
Physical gold (bullion or coins) provides the most direct inflation hedge and is independent of financial institution risk. However, storage costs (vault fees or home insurance) reduce effective returns. Physical gold is also illiquid — selling requires finding a dealer. For most Canadians, a gold ETF in a TFSA or RRSP is more practical.
Does gold pay dividends or interest?
No. Physical gold and gold bullion ETFs pay no income — they only appreciate (or depreciate) in price. Gold mining ETFs (e.g., XGD) do pay small dividends from mining company profits, but the yield is typically under 1%.
How much of my portfolio should be in gold?
Most financial planners suggest 0–10% for long-term investors who want an inflation hedge, with 5% being a common guideline. Gold has low correlation to equities — in a diversified portfolio, even a small allocation can reduce overall volatility without significantly reducing long-term returns.