- April 30, 2016
- Posted by: Chowdhury Shahid Uz Zaman
- Category: How to invest
These days, every investor seems to be lauding the value of incorporating precious metals into their portfolios. In order to hedge against losses investors experienced during the recessions of 2008 and 2013, many are turning to gold and silver as part of their RRSP investments. The reasons for this are myriad.
Gold offers the best in storage capabilities
When looking for the right metal in which to invest, remember that gold holds more value while not taking up as much space. It costs money to store your metals, so higher value often means higher yield since you don’t have to pay so much for storage.
Popularity of gold in worldwide banking
Gold is used as an investment hedge not only by individual investors, but by national banks. When a country fears that a global recession or geopolitical instability might threaten the strength of their dollar, many nations try to acquire as much gold as possible to strengthen their finances.
Silver offers lower spot prices for individual investors
Generally if you are an investor aiming to spend under $1,500, silver will net you a greater gain than gold because silver has a lower premium over spot if you are investing under $1,500.
Silver has greater industrial use
Silver has more uses for industrial purposes than gold, which is why many investors tend to mix both into their RRSPs. Because silver has more practical uses beyond currency, financial experts like those at Guildhall Wealth Management often suggest leaving some room for silver as its industrial use will always keep its value high.
If you live in Canada, the value of these metals is even higher, as physical currency such as gold and silver bullion are now eligible for RRSP, TFSA, LIRA, and other tax-sheltered, registered accounts. If you want to buy gold and silver in Toronto through Guildhall Wealth Management, your assets will be fully allocated and segregated, which means that as a Canadian investor you maintain full ownership these metals. If you decide to diversify your portfolio through gold and metal RRSP investment, be sure that your registered bullion accounts are provided the following:
- Delivery receipts
- Direct access to your precious metals (upon request).
- Inventory statements (including bar description and serial numbers).
- The flexibility for account holders to buy and sell precious metals within seconds by phone with a wealth representative.
If you invest with a Wealth Management firm like Guildhall, you will even receive an itemized inventory report for your investment items, complete with individual serial numbers. All physical gold and silver products are held in a secured, IIROC approved, depository located in Ontario, Canada. Maintaining physical ownership of your metals is the best way to own gold or silver in your RRSP and Guildhall Wealth Management assists precious metals investors in buying and holding physical gold and silver within their Registered Savings Plan (RRSP or TFSA). Because this is the first investment vehicle of this nature to be offered in Canada, investing in RRSP bullion puts you ahead of the investment curve.
Be a smart investor and understand the process before you invest. The following registered savings plan account classes are eligible to hold physical bullion:
RESP – individual and family registered education savings plan
LIF – life income fund,
RRIF – registered retirement income funds,
RRSP – registered retirement savings plans,
TFSA – tax-free savings accounts, and
LIRA – locked in retirement account
Investment dealers registered with the Investment Industry Regulatory Organization of Canada (IIROC) can help you with the selection, purchase, storage, and allocation of precious metals as part of your investment portfolio. All you need to do is find the right wealth management team for you.