Gold in an RRSP or TFSA: Exactly What Qualifies
Qualifying bullion can sit inside a registered plan. Jewellery never can. CRA sets out the conditions precisely, and they are stricter than most people expect.
Gold bullion coins, bars and certificates can be qualified investments for a registered plan, subject to conditions set out in CRA Income Tax Folio S3-F10-C1. Gold jewellery cannot, under any circumstances, because it is not among the forms listed.
Key takeaways
- Minimum purity is 99.5 percent for gold and 99.9 percent for silver.
- Coins must be legal tender produced by the Royal Canadian Mint.
- A coin's fair market value may not exceed 110 percent of the value of its metal content.
- Bars must come from a refiner accredited by the London Bullion Market Association and carry a hallmark showing refiner, purity and weight.
- Purchase must be from the refiner, the Mint, or a specified corporation.
- Jewellery is not a qualified investment in any form.
Not tax advice
Vanhess is a jewellery shop, not an accountancy firm. This page is a plain-English summary of published Canadian law and CRA guidance, with links so you can read the originals yourself. Tax depends on your own circumstances and the rules change. Speak to a qualified accountant or tax advisor before acting on anything here.
The conditions, as CRA states them
CRA Income Tax Folio S3-F10-C1 sets out the rules for gold and silver at paragraphs 1.51 to 1.54. Paragraph 1.51 confirms that, subject to certain conditions, investments in gold and silver bullion coins, bars and certificates are qualified investments, and notes that CRA would anticipate the plan trustee exercising due diligence in using a custodial trustee for the bullion.
| Type | The conditions CRA sets |
|---|---|
| Bullion coin | Legal tender, produced by the Royal Canadian Mint, minimum 99.5% purity for gold. Fair market value may not exceed 110% of the value of its gold content. Must be bought from the Mint or from a specified corporation. |
| Bullion bar, ingot or wafer | Produced by a metal refiner accredited by the London Bullion Market Association, at the same purity standard. Must bear a hallmark identifying the refiner, the purity and the weight. Must be bought from the refiner or from a specified corporation. |
| Certificate | Issued by the Royal Canadian Mint or a specified corporation, where the bullion it represents meets the conditions above. Must be bought from the issuer or from a specified corporation. |
| Jewellery | Not listed. Does not qualify. |
What a specified corporation means
CRA Income Tax Folio S3-F10-C1 defines it as a Canadian-resident corporation that is a bank, trust company, credit union, insurance company or registered securities dealer whose business activities are regulated by the Superintendent of Financial Institutions or a similar provincial authority. In plain terms, you cannot buy qualifying bullion for a registered plan from just any dealer.
The 110 percent rule, and why it exists
CRA caps a qualifying coin's fair market value at 110 percent of the value of its gold content. The stated purpose is to ensure the coin is not held for its collectable value. A registered plan is meant to hold the metal as an investment, not a numismatic collection, and this is the line that enforces it.
Be careful
A rare or heavily collectable coin can easily trade well above 110 percent of its metal value, which puts it outside the rule. Holding a non-qualified investment in a registered plan carries penalties, so this is a detail worth getting right with professional advice rather than guessing.
Why jewellery never qualifies
Two reasons, and either alone would be enough. Jewellery is not one of the forms CRA lists, which are coins, bars, ingots, wafers and certificates. And at 22K, 18K or 14K it falls far below the 99.5 percent purity requirement. There is no version of a gold necklace that satisfies paragraphs 1.52 or 1.53.
Frequently Asked Questions
Can I hold physical gold in my TFSA?
Qualifying bullion, yes. Under CRA Income Tax Folio S3-F10-C1, a legal tender gold bullion coin from the Royal Canadian Mint at a minimum 99.5 percent purity qualifies if its fair market value does not exceed 110 percent of the value of its gold content and it is bought from the Mint or a specified corporation. Bars from an LBMA-accredited refiner qualify on similar terms.
Can I put gold jewellery in an RRSP?
No. CRA's qualified investment rules for gold cover bullion coins, bars, ingots, wafers and certificates meeting specific purity, refiner and purchase-source conditions. Jewellery is not among them, and it also falls far below the 99.5 percent purity requirement.
What is the 110 percent rule for gold coins in a registered plan?
CRA requires that a qualifying bullion coin's fair market value not exceed 110 percent of the fair market value of its gold or silver content, at all times the plan holds it. The purpose is to ensure the coin is held for its metal rather than its collectable value.
Where do I have to buy the gold from?
Under CRA Folio S3-F10-C1, coins must be bought from the Royal Canadian Mint or a specified corporation, and bars directly from the accredited refiner or a specified corporation. A specified corporation is a Canadian-resident bank, trust company, credit union, insurance company or registered securities dealer regulated by the Superintendent of Financial Institutions or an equivalent provincial authority.