Can you hold gold in a registered account?
Gold is considered an appropriate investment in Canadian registered accounts, Audrey. This means you can hold gold in a registered retirement savings plan (RRSP) or a registered retirement fund (RRIF).
However, gold and silver coins, bars and certificates are subject to conditions. For example, gold coins must be at least 99.5% pure, while silver coins must be at least 99.9% pure. Coins cannot have a collectible value, so the fair market value cannot exceed 110% of the value of the gold or silver content. To be eligible, coins must also be purchased directly from a Canadian financial institution or the Royal Canadian Mint.
Bullion bars, ingots or wafers are suitable, if purchased from a metal refinery approved by the London Bullion Market Association. The cleanliness requirements are the same as for coins.
Gold or silver certificates issued by the Royal Canadian Mint or a financial institution may also qualify, if the bullion represented meets the above criteria.
Many ways to invest in gold in Canada
There are other ways to hold property, Audrey, beyond physical gold. SPDR Gold Shares (NYSEArca ticker symbol: GLD) is the world's largest physically backed gold exchange-traded fund (ETF). It holds thousands of gold, and investors can buy and sell the ETF easily from their registered accounts. It is very liquid, if you need to sell it quickly.
There are mutual funds that own gold coins and gold coins, although it is more common to find precious metal funds that offer exposure to various precious metals, gold being the main one. And of course, you can invest in gold by buying company shares, such as those of small exploration companies or large global gold producers, with high to low risk levels.
Diversification is better than a single investment
My inclination, Audrey, would be to allocate, at least, a small amount of gold to your RRIF account. That's not a reflection of my opinion on gold and what I think might happen around gold prices—frankly, I'd be speculating. My answer will be the same as any other commodity, stock or stock industry. Diversification is the only “free lunch” in investing, meaning that if you want something safe—which is part of your question about gold—you should aim to build a diversified portfolio.
If I were you, I would allocate no more than 5% to stocks and no more than 10% to gold. But you should talk to your counselor or do some due diligence to decide what works best for you.
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