Buying, finding, and owning gold has interested people for over 5,000 years. Whether it was an old-time miner or a modern-day investor, gold is everywhere. Gold shows up in pawnshops, investment markets, eBay, and even TV shows like Yukon Gold and Gold Rush.
Not to mention museums that feature gold-digging exhibits for patrons and private collectors of precious metals. Chances are that you own gold in some form or another, but do you really know how much it’s worth? Today we will explore how much gold costs in Canada, what the prices depend on, and how to buy gold in Canada.
The average price of Gold in Canada
The price of gold in Canada is constantly changing, but the average cost of one ounce of gold currently is between $2100-$2300 CAD. Per gram, the average price of gold in Canada is between $72-81 CAD. For comparison, you could get ~ 0.04368 ounces or ~1.4 grams of gold for $100 CAD on the current market.
Since gold is used as a standard of value for currencies worldwide, the price can fluctuate with market conditions. Nowadays, you can even buy gold bullion and other gold merchandise online.
What does the price of Gold in Canada depend on?
There are a few different factors that determine the price of gold in Canada. Some of the main ones include supply vs. demand, gold production numbers, the jewelry and metal industry, and the value of the U.S. dollar. For example, suppose the U.S. dollar weakens, and gold production numbers are low overall for the year. In that case, the prices of gold will be higher because there is less supply available for the demand.
However, many people like to invest in gold because it is seen as having enduring worth since it has held value in society for thousands of years. Nowadays, other things that can affect the price of gold in Canada are inflation, dysfunctional government policies, and global instability.
For example, pre-COVID would have been a great time to invest in the gold markets. The reason is that now during the pandemic, people lack confidence in the government and financial markets, and the price of gold has subsequently increased.
For people who have an active investment in the gold market, that’s good news since their units will be worth more right now.
How can you buy Gold in Canada?
There are three main ways you can buy gold in Canada; you can invest in physical gold, gold on the stock market, or gold via CFDs. Some people like investing in tangible gold since they get to be the physical owner of gold bars or coins.
You could also invest in gold jewelry since the jewelry industry makes up over half of the current gold demands. Keep in mind, the gold jewelry you buy won’t be pure gold, so buyers beware. Always make sure to research your gold source before purchasing, whether it is an online merchant or a gold broker in your neighborhood.
If you are looking to invest in gold but not interested in physically having it, then investing in the gold stock market might be the right choice for you. As an investor, you can buy shares in a business in the gold industry and then benefit from the fluctuations of the industry.
For example, you could invest stocks in a gold mining company, and then you would profit from the performance of the gold mining company rather than gold as a commodity. Otherwise, you could buy units in a gold-themed Exchange Trading Fund (EFT), and a gold expert would help you manage the funds.
The last option for investing in gold in Canada is riskier and should be left for the more advanced and experienced investors. You can invest in gold via CFDs which stands for Contract for Difference. This means you would be investing in future markets and price movements through CFDs to earn profits.
Although the gold market fluctuates, one of the most significant advantages of investing in gold is the perceived value or enduring worth that it holds over time. This enduring worth is why gold has been coveted for thousands of years.
When looking into any of these opportunities, make sure to do your research and weigh all your options thoroughly to figure out what is right for you. If you are not sure which gold investment option is best, do some online research or book an appointment with a qualified advisor.