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Gold in Canada: A Basic Guide to What You Need to Know

Have you ever thought about gold? It’s a unique asset. Gold is liquid and scarce, luxury goods and investment all at once. Gold offers competitive returns compared to other financial assets. It can be a hedge against inflation and a way to increase your wealth. Over time, fiat currencies tend to fall in value against gold.

Did you know that Canada is home to the world’s 9th largest gold reserves? Canada is also the fifth-largest producer of gold globally, with new mines and exploration continuing around the country. New mines have been opening up in British Columbia, Nunavut, and Newfoundland.

If you’re curious to know more, today we will discuss basic things you know about gold in Canada.

Where is Gold Found in Canada?

Gold is mined across Canada, but most of the gold is found in Ontario and British Columbia. Over 85% of Canada’s gold mines are located in Ontario, with the largest gold mine in the world, the KSM Project, owned by Barrick Gold. In British Columbia, both the Red Chris and Mount Milligan mines are producing gold.

There are also small deposits of gold across the country, but they are mostly minor and not yet mined. The Yukon contains Canada’s largest gold deposit, but most of the gold is located below the waters of the Klondike and Peel Rivers and has not been mined.

What is the Purpose of Gold?

Gold is most often used in jewelry. Jewelry is a luxury good that is hard to replicate, which helps push up the price.

Gold is also used in the electronics industry, most often as an electrical conductor. It is less expensive than silver, but gold is more durable. Gold is used in the production of smartphones, computers, televisions, and other electronic devices.

The precious metal is also used in dentistry. Gold is non-toxic and more durable than other metals used for this purpose. Gold is used in crowns, veneers, bridges, fillings, and other dental appliances.

Additionally, gold is also used for security. Gold-traded instruments are used as storage for wealth. The precious metal is also used as a hedge against inflation, with its price guaranteed to increase over time.

How Much is Gold in Canada?

Gold exports in 2017 were worth CAD 6.1 billion, with 83% of the gold being exported to the United States. Canada’s gold is often mined in remote areas. It would be expensive to transport the gold, which is why it is usually exported. Instead, the primary gold deposits are used to produce gold-rich concentrates sold to refineries in the United States. About 20 refineries in the United States produce gold bars, many of which are sold to investors.

The price of gold can swing wildly, but over the past century, the cost of gold has averaged around $600 per ounce. Gold prices fluctuate wildly, but overall it has remained stable.

How Can I Buy Gold in Canada?

Gold bars are the most common way to buy gold. You can purchase gold bars directly from a refinery, a coin shop, or a bullion dealer. Each bar of Canadian gold contains .999999 pure gold.

There are many places to buy gold bars, but the Royal Canadian Mint is one of the most popular. You can purchase gold bars at face value or through a collector set. The RCM also sells gold coins, which are available in different sizes.

You can also buy gold coins from the many private mints in Canada. The Royal Canadian Mint sells gold coins, but there are also private mints that sell their coins.

Lastly, you have the option of buying gold coins through a gold fund. If you want to buy gold as an investment, you can purchase shares of a gold fund.

Summary

Gold is so much more than just a pretty metal. It is a rare and precious metal that has been used for thousands of years. Gold is an investment, a luxury good, and a utility metal used in almost all industries.

Overall, gold is a unique investment, is highly liquid, and has a history of value that extends far into the past. It’s a unique opportunity to protect your savings and diversify your portfolio. Happy investing!

Newfoundland Gold is an alliance of companies focused on advancing mineral exploration and mining projects in Canada’s Newfoundland. Collectively these industry leaders are committed to bringing awareness to Newfoundland. If you’re interested in learning more about the Gold Rush here, sign up now for our event on Dec. 7, 2021!

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