If you are considering physical gold in Canada, the number of choices can make a simple purchase feel complicated. Should you buy a bar or a coin? Why is the checkout price higher than the spot price? Does tax apply? And what should you check before you buy?

This guide answers the questions customers most often ask about gold bullion. It is general educational information, not personalized financial or tax advice. Product availability, pricing and individual tax circumstances can change, so confirm current details before a transaction.

1. What is gold bullion?

Gold bullion is physical gold valued mainly for its metal content, weight and purity. It is commonly sold as bars, wafers or government-issued bullion coins. Bullion is different from fine jewelry, where craftsmanship, design, gemstones and brand value can be important parts of the price.

In Canada, the Canada Revenue Agency defines a “precious metal” for GST/HST purposes as a gold, silver or platinum bar, ingot, coin or wafer meeting specified purity requirements. For gold and platinum, the minimum is 99.5%; for silver, it is 99.9%.

2. What is the gold spot price?

The spot price is the current wholesale market reference price for gold, usually quoted per troy ounce. It changes throughout the trading day. Canadian retail prices are also affected by the Canadian dollar because international gold is commonly quoted in U.S. dollars.

The spot price is a reference point—not usually the final price of a physical bar or coin. To explore available products, visit our precious metals collection.

3. Why does physical gold cost more than the spot price?

The amount above spot is called the premium. It can reflect refining and minting, fabrication, secure transport, insurance, verification, inventory costs, product demand and the dealer’s operating margin.

Premiums are not identical across products. Smaller bars normally cost more per gram than larger bars because fabrication and handling costs are spread across less gold. A recognizable coin or a product in limited supply may also carry a different premium.

4. Is a gold bar or a gold coin better?

Neither is automatically better; they serve different preferences.

• Gold bars: often chosen for straightforward exposure to gold and, in larger sizes, potentially lower premiums per gram.
• Bullion coins: often chosen for government backing, recognizable designs and security features.

Canada’s Gold Maple Leaf is a well-known government-issued bullion coin made from 99.99% pure gold. The best choice depends on budget, desired unit size, storage plan, current premium and how you expect to sell later.

5. Should I buy 10 grams or 1 ounce?

A 10 gram bar has a lower total purchase price and may be easier to sell as one smaller unit. A 1 troy ounce bar contains approximately 31.1035 grams and may offer a lower premium per gram, depending on the product and market.

Compare the total price, price per gram, current buyback terms and your need for flexibility. You can review the 10 gram gold bar and 1 ounce gold bar pages for current product details.

6. Is gold bullion subject to GST/HST in Canada?

Qualifying investment-grade precious metals are generally treated differently from jewelry and lower-purity products. CRA guidance states that a qualifying gold bar, ingot, coin or wafer must meet at least 99.5% purity, along with the applicable form and recognition requirements. Qualifying supplies are generally exempt or, for certain first supplies by a refiner or owner, zero-rated.

Do not assume every item described as “gold” receives the same treatment. Jewelry, collectible products, manufacturing services and products below the required purity can be treated differently. Ask the seller how a specific item is classified and consult a qualified tax professional for advice about your circumstances.

7. How can I check whether a gold product is authentic?

Start with a reputable seller and inspect the product information. Look for the stated weight and purity, the mint or refinery mark, serial number where applicable, intact packaging where applicable, and an invoice that identifies the product.

Professional verification may use calibrated weight and dimension checks, electronic analysis or other non-destructive testing methods. Avoid relying on appearance alone, and be cautious when a price is unusually far below the market.

8. Does opening the assay package reduce the value?

It can affect buyer confidence and resale convenience for some minted bars. The gold content does not disappear when packaging is opened, but sealed packaging and an intact assay card can make identification easier. Before opening a packaged bar, ask how the dealer’s buyback process treats opened packaging.

9. How should physical gold be stored?

Choose storage based on value, access needs, insurance and personal security. Options can include a properly secured home safe, a bank safety-deposit box or specialized insured storage. Keep invoices, photographs, serial numbers and insurance records separate from the metal itself. Avoid publicly sharing storage details.

10. How does selling gold bullion work?

A buyer normally confirms the product, weight, purity and condition, then provides a quote based on the current market and the buyer’s applicable spread or fees. The amount you receive will not necessarily equal the retail asking price for the same product.

Before accepting an offer, ask:

• Which live market reference is being used?
• How long is the quote valid?
• Are testing or service fees deducted?
• Which identification and payment procedures apply?
• Does packaging or product brand affect the quote?

For information about selling to Peymani Gold in Vancouver, visit Sell to Us.

11. When is the best time to buy gold?

No one can consistently identify the perfect short-term entry point. Gold prices can react to interest rates, inflation expectations, currency movements, central-bank activity, geopolitical risk and investor demand. A practical decision begins with your purpose, time horizon, cash needs, risk tolerance and the premium you are paying.

If short-term price changes would force you to sell, physical gold may not fit that portion of your funds. Avoid decisions based only on fear of missing out or a prediction presented as certain.

12. What should I compare before choosing a bullion dealer?

• Transparent product weight, purity and mint or refinery information
• A clear relationship between spot price, premium and final price
• Current inventory and delivery or pickup expectations
• Secure payment and identity-verification procedures
• Written invoices and understandable return or cancellation terms
• A clearly explained buyback process
• Real contact information and a verifiable local presence or service area

Explore gold bullion in Vancouver

Peymani Gold serves customers looking for physical precious metals and fine jewelry in Canada. Browse our gold bars and coins, learn more about Peymani Gold, or contact us with a product question before purchasing.

Last reviewed: July 17, 2026. This article provides general information only and does not constitute investment, legal or tax advice. Prices and product availability can change.