Canadian Gold & Precious Metals FAQ
Essential answers about tax exemption, karat purity standards, troy weights, and selling scrap jewelry in Canada.
Is physical gold bullion taxable in Canada under CRA rules?
No. Under the Canada Revenue Agency (CRA) Excise Tax Act, investment-grade bullion coins and bars that are at least 99.5% pure (.995+ fine gold) are zero-rated financial instruments. They are 100% exempt from federal GST and provincial HST/PST nationwide.
Is gold jewelry taxable when bought or sold in Canada?
Yes. Gold jewelry (such as 10K, 14K, 18K) is not considered pure investment bullion because its purity is below 99.5%. Retail jewelry purchases are subject to applicable GST/HST/PST in your province. However, when you sell your personal second-hand jewelry to a scrap buyer, you do not charge sales tax.
How many grams are in 1 Troy Ounce of gold?
1 Troy Ounce equals exactly 31.1034768 grams. International bullion markets always use troy ounces, not avoirdupois ounces (standard kitchen ounces which are 28.35 grams).
What is the minimum purity to be legally called gold in Canada?
Under the Canadian Competition Bureau and Precious Metals Marking Act, items must be at least 10 Karats (41.7% pure gold) to be legally advertised and sold as "gold" in Canada. Anything less (such as 9K or 8K) cannot be marketed as gold without explicit disclosure.
How do Canadian scrap gold buyers determine jewelry payout?
Reputable buyers weigh your jewelry on certified scales, test the karat hallmark with an electronic XRF analyzer or acid test, calculate pure gold content (Weight × Karat % × Spot Cad Gram), and offer a payout usually between 80% and 92% of melt value.
Why are Canadian Maple Leaf coins considered the world standard?
Minted by the Royal Canadian Mint in Ottawa, the Canadian Gold Maple Leaf was the first bullion coin to achieve 99.99% ("four-nines") purity. It incorporates advanced anti-counterfeiting features like Bullion DNA™ laser-engraved micro-leaf verification.
Canadian Gold Tax Rules (CRA & GST/HST Guide)
Essential tax compliance standards established by the Canada Revenue Agency (CRA) under the Excise Tax Act.
Investment-grade gold bars and coins with purity equal to or exceeding 99.5% (.995) are defined as financial instruments and exempt from GST, HST, and PST across all Canadian provinces.
Gold jewelry (10K, 14K, 18K, 22K) is subject to provincial sales taxes (GST/HST/PST) because purity falls below the 99.5% investment threshold or carries artistic/manufacturing value.
Qualified physical gold and silver bullion produced by the Royal Canadian Mint (.9999 pure) or accredited refiners can be held within self-directed RRSPs and TFSAs in Canada tax-sheltered.