Holding gold and silver in an RRSP or TFSA

Yes, some physical gold and silver can be held in a registered plan. But the rules are strict. The metal must meet set standards, and it must be held by the plan's trustee, not by you. This guide explains the rules in plain terms.

This is general information, not tax or investment advice. Speak to your plan issuer and a tax professional before you buy.

The short answer

Certain gold and silver coins, bars, ingots, wafers and certificates are qualified investments [1][2].
RRSPs and TFSAs generally allow the same types of investments [3].
You need a self-directed plan with an issuer that accepts bullion [4].
The metal must be held by the plan's trustee. You cannot keep it at home [1].
Platinum and palladium are not listed [2].

Which gold and silver qualifies

Section 4900 of the Income Tax Regulations lists the bullion that qualifies [2]. The CRA explains it in its Income Tax Folio on qualified investments [1].

Coins

A gold or silver legal tender bullion coin qualifies when [1][2]:

it is at least 99.5% gold or 99.9% silver (995 and 999 parts per 1,000);
the CRA's folio describes it as produced by the Royal Canadian Mint [1]; and
its fair market value is not more than 110% of the value of its gold or silver content.

The CRA says the 110% test is there to make sure the coin is not held for its collectible value [1].

Through Border Gold, registered accounts can hold the products Questrade offers for them: in practice, Gold and Silver Maple Leaf coins and LBMA-accredited gold and silver bars. Ask us before you buy.

Bars, ingots and wafers

A gold or silver bar, ingot or wafer qualifies when [1][2]:

it meets the same purity standards (99.5% gold, 99.9% silver);
it was produced by a refiner accredited by the London Bullion Market Association (LBMA); and
it bears a hallmark showing the refiner, purity and weight.

Certificates

A gold or silver certificate issued by the Royal Canadian Mint or a "specified corporation" can qualify. The metal behind it must meet the coin or bar standards. It must be bought directly from the issuer or from a specified corporation [1].

Platinum and palladium

Platinum and palladium do not appear in the list of qualified investments in section 4900(1) [2].

How it must be held

Self-directed plan. A self-directed RRSP lets you make the investment choices yourself. Your financial institution can tell you if it offers one [4].
Held by the trustee. "All qualified investments of a registered plan must be held by the trustee of the plan and not by the controlling individual" [1]. For an RRSP, the CRA also says securities cannot be held in your own name [4].
Issuers. Banks, insurance companies, credit unions and trust companies can issue TFSAs [3]. Not every issuer accepts physical metal.

Border Gold works with Questrade for registered accounts: RRSP, TFSA, FHSA, RESP, RRIF, LIRA and LIF. The metal is held in a secure vault for the account. Border Gold buys and sells at its published prices, subject to availability, and charges no fees of its own; Questrade charges the account fees. See Precious metals in registered savings.

What happens if you get it wrong

If a plan acquires a non-qualified investment, there are tax consequences.

For an RRSP or similar plan, the CRA says the controlling individual is subject to a 50% tax, and the plan is taxable on income from the non-qualified investment [1].
For a TFSA, the tax is 50% of the fair market value of the property when it was acquired or became non-qualified [3].

Steps to hold bullion through Border Gold

Open your account with Questrade. Open a registered account with Questrade, then fund it or transfer an existing account in.
Ask us for a Dealer Authorization Form. Call or email us with your Questrade account number. We work with Questrade to send you the form that lets us trade on your account.
Buy your metal. Once your account is ready, we let you know and help you choose eligible products. Your metal is held for you in an accredited vault.

See Precious metals in registered savings to get started.

Sources

Canada Revenue Agency, Income Tax Folio S3-F10-C1, Qualified Investments (RRSPs, RESPs, RRIFs, RDSPs, TFSAs), paragraphs 1.52 to 1.54, 1.69 and 1.99: https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-3-property-investments-savings-plans/series-3-property-investments-savings-plan-folio-10-registered-plans-individuals/income-tax-folio-s3-f10-c1-qualified-investments-rrsps-resps-rrifs-rdsps-tfsas.html
Justice Laws Website, Income Tax Regulations, section 4900: https://laws-lois.justice.gc.ca/eng/regulations/C.R.C.,_c._945/section-4900.html
Canada Revenue Agency, RC4466 Tax-Free Savings Account (TFSA), Guide for Individuals: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html
Canada Revenue Agency, Self-directed RRSPs: https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/contributing-a-rrsp-prpp/self-directed-rrsps.html