Holding Gold in an RRSP: What Canadians Need to Know
Many Canadian investors want gold exposure within their RRSP — for the tax-deferred growth and to avoid triggering immediate capital gains tax on an appreciating asset. The practical question is how to do it. An RRSP can hold units of a listed bullion trust, and it can hold gold bullion itself on the conditions set out in Canada Revenue Agency guidance, but coins and bars you already own do not qualify.
An RRSP can hold gold through a listed trust or, on conditions, as bullion itself. Units of a trust listed on a designated stock exchange, such as PHYS (Sprott Physical Gold Trust) on the TSX, are qualified investments and are bought like any listed security. Gold bullion qualifies only on conditions (CRA Income Tax Folio S3-F10-C1): a Royal Canadian Mint legal tender bullion coin worth no more than 110% of its gold content, or a hallmarked bar from an LBMA-accredited refiner, each at least 99.5% pure, bought by the plan itself from the Mint, the refiner or a regulated Canadian financial institution, and held by the plan's trustee. Gold you already own does not qualify. For most plans the listed trust is the simpler route, because the coin, bar and seller conditions do not arise. Either way an RRSP defers tax on growth until withdrawal.
- Can I put physical gold coins in my RRSP?
- Not coins you already own, and not every coin. Gold bullion is a qualified investment for an RRSP only on the conditions in CRA Income Tax Folio S3-F10-C1: a legal tender bullion coin produced by the Royal Canadian Mint, at least 99.5% gold and worth no more than 110% of its gold content, or a hallmarked bar of the same purity from an LBMA-accredited refiner, acquired by the plan itself directly from the Mint, the refiner or a regulated Canadian bank, trust company, credit union, insurer or securities dealer. The plan's trustee holds it, not you. A plan that acquires a coin outside those conditions holds a non-qualified investment, which carries a tax of 50% of its fair market value (refundable in certain circumstances). Units of a trust listed on the TSX, such as PHYS, are qualified investments without the coin, bar and seller conditions, which is why they are the simpler route for most plans.
- Is PHYS eligible for a TFSA as well as an RRSP?
- Yes. PHYS units are listed on the Toronto Stock Exchange, a designated stock exchange, and units listed on one are qualified investments for a TFSA as they are for an RRSP or RRIF (CRA Income Tax Folio S3-F10-C1, paragraph 1.16). The units are bought through a brokerage account that trades on the TSX.
- Is it better to hold gold inside or outside an RRSP?
- For Canadian investors in higher tax brackets, holding gold in an RRSP defers all growth until withdrawal, which is often advantageous. In a taxable account, one-half of a gain is included in income at your marginal rate in the year you sell (the enacted rate as of September 2026). Which is better depends on your marginal rate now versus in retirement, your contribution room, and your time horizon — there is no single answer.