Top 12 Questions I Am Asked About Gold and Silver

This top 12 list was compiled from many of the most common questions I hear frequently from my precious metals coaching clients and others, whether chatting at the grocery store or Senators' games, and is intended to help dispel some myths and to share some real facts about money and physical precious metals - what they are/are not, and their role is just about everyone's life as a way to save and protect your money, and build long-term wealth.

It's especially timely given yet another Liberal government with its proposed massive spending plans with likely higher taxes which should mean more money printing thus higher inflation, and lack of financial privacy with more digital controls. What does this mean for us? Our dollar will be worth less and our purchasing power will decline, with even less financial privacy, meaning life will be even more expensive - how is that even possible??? So, what can you and I do about it to protect and preserve your savings, retirement and wealth? The good news is that there is much we can and should be doing right now to add more financial security and privacy, and wealth preservation and protection - plus peace of mind.

You may have one or more of these questions yourself so hopefully by going through them you can get some clarity and answers which are helpful in deciding on building more financial security, protection and wealth building into your life and those you for which you care is right for you.

👉 BTW, I've created a new quiz called, "How Safe Is Your Money" This short quiz is an eye-opening and fun financial literacy IQ test designed to show you where you're currently at in terms financial security and safety, and whether you're in a good position to protect, preserve and build your wealth or are falling behind and at risk - especiqlly given inflation and the economy.

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1) WHEN I AM BROWSING OR PURCHASING GOLD AND/OR SILVER, WHY ARE ADVERTISED PRICES HIGHER THAN "SPOT"?

When you're buying gold and silver coins or bars, you will typically notice they're priced higher than the "spot" price. Don't worry, it's not a scam! Here’s the lowdown:

The spot price is the current market price at which a particular commodity, such as gold or silver, can be bought or sold for immediate delivery. It is usually established on the New York and London commodity markets. It reflects the latest market conditions and is influenced by various factors including supply and demand, geopolitical events, and economic indicators.

The prices you pay (and sell) for gold and silver are established individually by each precious metals dealer (i.e. local coin shops, online dealers). They often add a "premium" in addition to the spot price for many good reasons such as to cover their overhead, supply and demand at the time, profit margin, etc. So, when shopping for gold and silver, prices really can and do vary by dealer so I always suggest to shop around at three dealers minimum. Get the most ounces you can at the least price.

2) I PREFER TO KEEP MY MONEY IN A BANK ACCOUNT (HIGH INTEREST) FOR SAFETY AND LOW RISK. I DON'T WANT TO LOSE A "DIME".

This is probably the biggest mental roadblock for most people in even considering why gold and silver as a savings account instead of a bank account - so my answer is going to be a bit long but hopefully worth it!

Most people are taught that the safest place for their money is a bank account, especially one with a high interest rate. But let’s look at the facts and how this approach has held up over time—and how it compares to holding physical gold and silver.

Over the last 5 years, the average high-interest savings account in Canada or the U.S. has paid anywhere from 1% to 3%, with short-term spikes a bit higher in recent years due to higher interest rates. But inflation during this time—especially from 2020 to 2023—has been running hot, peaking above 8% (likely over 10% in reality) in Canada, the U.S. and elsewhere. That means even if your savings were earning 3% (or even 5%), interest, inflation was quietly eroding your purchasing power by 5% or more each year. Now let’s compare that to gold, which rose from around $1,500 USD per ounce in 2020 to over $3,300 USD in 2025—a 120% increase. Silver, which was around $17 USD in early 2020, has fluctuated but has also generally outpaced inflation during major economic disruptions. These gains show that precious metals have protected wealth better than even the best “safe” bank options during turbulent times.

Looking at the long term—over the last 50 years—the difference is even more striking. In 1975, gold was about $140 USD per ounce. At today’s price of $3,300, that's a 23x increase in value. Silver rose from around $4 USD per ounce in 1975 to about $25 USD today—still over 6x higher. Meanwhile, the U.S. dollar (and Canadian dollar) has lost more than 85% of its purchasing power due to inflation over the same period.

So, even if you'd kept money in a high-interest savings account earning an average of 4–5% over the decades thinking it was safe, taxes on the interest and the ongoing loss of purchasing power would mean that your savings would buy significantly less today than 50 years ago. If your goal is true long-term safety and the preservation of what your money can buy, history shows that holding physical gold and silver is far more effective than relying solely on a bank account—even one with “high interest.”

3) I PREFER INVESTING IN THE STOCK MARKET TO GROW MY WEALTH - PRECIOUS METALS DON'T DO ANYTHING BUT COLLECT DUST!

I get this all the time, and the latest was from a family member who only invests in growth stocks and does get quite anxious during dips and declines. It’s true — the stock market, particularly the S&P 500, has delivered strong long-term returns. Over the past 20 years, the S&P 500 returned about 830%, or roughly 12.2% annually. So, if you were invested only in it and had no losses elsewhere, you've done well!

But here’s what most people overlook: during that same period, gold returned over 728% (about 11.2% annually) — nearly matching the stock market’s performance, but without the same level of risk or volatility. Silver returned about 266%, offering bursts of high performance during inflationary or crisis periods.

Precious metals aren’t meant to replace growth — they balance and protect your portfolio, and are a great savings against inflation. When markets decline (or crash), or inflation erodes purchasing power, gold and silver often rise, acting as a financial safety net with added peace of mind.

And let’s be honest — in an era of banking crises, money printing, and geopolitical tension, that kind of insurance might be more valuable than ever. So no, gold doesn’t just collect dust. It quietly preserves your purchasing power, especially when there is chaos and uncertainty all around.

4) WHAT ARE THE DIFFERENT TYPES OF GOLD AND SILVER AVAILABLE? AREN'T THEY ALL THE SAME?

Not at all — gold and silver come in various forms, and the differences matter, especially when it comes to purity, trust, resale value, and your personal goals.

Here’s a breakdown of the main types:

Bullion Coins

Government-minted coins like the Canadian "Maple Leaf" (99.99% pure gold) and the American Eagle (91.67% gold with added alloys for durability) are highly trusted and easy to sell worldwide. Most silver bullion coins, like the Silver Eagle or Maple Leaf, are .999 fine silver (99.9% pure) or higher.

These coins are ideal for both beginners and experienced investors due to their recognized purity and authenticity.

Bars

Gold and silver bars come in many sizes and are often the most cost-effective way to buy in bulk. Reputable bars from brands like PAMP Suisse, Royal Canadian Mint, and Valcambi are usually .999 or .9999 fine — meaning they’re 99.9% or 99.99% pure metal.

Bars generally carry lower premiums per ounce and are easy to store if you're focused on volume.

Rounds

Rounds look like coins but are privately minted and thus not legal tender - only a government mint can produce coins with a denomination. Most are .999 fine silver and often feature beautiful or custom designs. There is often lots of choice with rounds given the variety of mints and are great for stacking silver at a lower premium compared to bullion— just be sure you're buying from reputable mints. My preferences are Sunshine Minting, Silvertowne, Scottsdale, Asahi, Valcambi, PAMP Suisse, Germania just to name a few.

Numismatics or semi-numismatics (collectible coins)

These are rare or historical coins whose value is based on scarcity, condition, and collector demand, not just metal content. They may or may not be .999 pure, and in my opinion are not ideal for beginners as...

Circulation silver (a.k.a. junk or constitutional silver in the U.S.)

These are pre-1965 U.S. coins or pre-1968 Canadian coins that contain up to 90% silver. Our money is circulation used to contain silver and gold as they were used as money and produced by government mints. By containing these two precious metals meant that the money had real value - unlike today's useless fiat dollars which are backed by nothing more than a promise by the government. These circulation coins are widely recognized, divisible as they are available in dimes, quarters, half-dollars, dollars, and are ideal for bartering.

5) SHOULD I BUY GOLD, SILVER, BOTH? HOW MUCH OF EACH?

Both gold and silver have unique strengths — and owning a mix of both can give you better balance, flexibility, and protection.

Gold

Gold is like your financial insurance policy. It's less volatile, holds value over time, and is easier to store large amounts of wealth in a small space. It’s trusted worldwide and tends to hold strong during inflation, currency devaluation, and financial crises.

Silver

Silver is more affordable per ounce and has more upside potential these days than gold. Not only a monetary-metal, silver is also heavily in industry, technology, and "green" technologies — and it historically outperforms gold in bull markets. It’s also ideal for smaller transactions or barter due to its lower price point and divisibility. Because of its added industriual uses, its price tends to be more volatile than gold.

So, how much of each?

It totally depends on a person's needs and goals. For someone only looking for wealth protection and preservation and an inflation hedge, gold could be the choice. For an added boost of growth potential, silver may be appropriate. A good starting point for most people is:

• 60% gold / 40% silver if you’re focused on long-term wealth protection

• 50/50 for a balanced hedge

• 40% gold / 60% silver if you’re more aggressive and expect silver to outperform

👉 Your exact ratio depends on your goals, timeline, risk tolerance, storage situation, and budget. This is where my Precious Metals Coaching can be useful where we go discuss this and you walk away with your tailored Precious Metals Plan which outlines a complete acquisition strategy to make acquiring your first ounces a no-brainer

6) I'M RETIRED AND LIKE THE IDEA OF THE SAFETY AND PROTECTION OF PRECIOUS METALS. CAN I HOLD THEM INSIDE MY RRSP?

Yes — you can hold certain types of physical precious metals inside a RRSP, TFSA, or other registered account — but only under specific conditions. The CRA defines "precious metal" as gold, platinum, and silver. To be considered a precious metal for tax purposes, these metals must meet specific purity levels: 99.5% for gold and platinum, and 99.9% for silver. The metals must be stored in an approved third-party vault (not at home) through a self-directed RRSP. For example, you can open a self-directed with RRSP with a reputable online dealer (such as SilverGoldBull.ca), purchase your physical gold and/or silver through them and have it stored inside their secure vault. Always check with your accountant, tax advisor or other certified professional to determine what's appropriate for you.

7) I ALREADY OWN SOME PRECIOUS METALS AS PART OF A ETF/MUTUAL FUND. DON'T IT ALREADY OWN GOLD AND SILVER?

That’s a common question and misunderstanding many people make— and the short answer is: they’re not the same.

When you buy a precious metals ETF (like RBC Precious Metals Fund or SLV), you’re buying a financial product that tracks the price of the metal — but you don’t actually own the metal itself.

• You can’t take delivery of it.

• It's held by a custodian (often a large bank).

• It may be subject to counterparty risk, management fees, and market volatility.

• In a crisis or banking freeze, you may not have access to it — or it may not be redeemable.

When you buy physical gold or silver — coins, bars, or rounds — and take possession, you own it directly. You control where it’s stored, when it’s sold, or who you hand it down to. No counterparty risk. No paperwork. No middleman. No risk.

• Physical precious metals are off the financial grid.

• They're private, tangible, borderless, real money - not digits on a computer screen.

• In a crisis and over time, they retain their value when paper promises often do not.

💡 "counterparty risk" = the risk that the other party in a financial transaction — such as a bank, fund manager, or institution — won’t fulfill their end of the deal. This includes precious metals ETFs, mutual funds, futures, etc.

🤞 Remember this, "if you can't hold it, you don't own it".

8) WHAT ARE GOOD OPTIONS FOR STORING GOLD AND SILVER?

Where and how you store your gold and silver depends on how much you have, where you live, your overall home and property security, how accessible you want it, and how secure you want it to be. The number one and best protection is to not tell anyone you own precious metals - your spouse/partner - that's it. You just never know who they may tell. You wound't blab that you have $50K in cash at home, would you? Keep it quiet.

🏠 At Home

For smaller amounts and ounces, a high-quality safe that’s fireproof, theft-resistant (TL-rated), bolted to the floor, and hidden is a solid choice. Just make sure to keep it discreet and secure. One question I asked clients is once you start to have an amount of gold or silver at home that starts to make you nervous, it may be time to either upgrade your existing safe and consider off-site options.

🔒 Private Vaults

If you have more significant holdings, consider secure, third-party vaults that specialize in precious metals. You want to ensure that your metal is insured, stored securely, audit at least annually, and allocated/segregated only to you. If you prefer access to your metals, you may want to consider storage close to home.

🏦 Bank Safety Deposit Boxes

Banks are another option - but I don't recommend them. Why? First of all, the contents of your safety deposit box aren't insured. So, in case of theft, fire, etc., you are out of luck. Also, banks are not open 100% of the time, plus they can go out of business. This is my least favourite option.

9) HOW CAN I TRUST THAT THE GOLD OR SILVER I AM BUYING IS AUTHENTIC? (trust, testing)

This is one of the most common questions — and an important one especially when you're spending over $4,000 CAD these days on one ounce of gold and you want to make sure it's the real deal. The key is buying from a trusted, well-established dealer - not eBay or pawn shops. If you're buying from a reputable source that specializes in precious metals, you’re already way ahead. These dealers typically sell coins and bars produced by recognized mints like the Royal Canadian Mint, the U.S. Mint, or the Perth Mint (Australia) — so the quality and purity are guaranteed. You'll often see markings like ".999" or ".9999 fine" right on the metal, along with things like serial numbers or certificates that help confirm authenticity. Plus, dealers, whether local coin shop or online, typically test the metal before selling to protect themselves and customers.

If you ever want to double-check, you can use simple tools at home, like a magnet or a scale, or even bring it to a local coin shop to have it tested. But honestly, when you stick with a professional, well-reviewed dealer, fakes are extremely rare. It’s all about knowing who you’re buying from and having confidence in the source.

👉 I've never experienced any fakes from both my local coin shops and online dealers. As part of your precious metals coaching, I provide you wish my own list of trusted and reputable online dealers so you can browse and shop safely and confidently knowing that you will be buying the real deal

10) I OFTEN SEE COINS FOR SALE WHLE STANDING IN LINE AT THE POST OFFICE. ARE THESE GOOD TO BUY?

Those shiny gold or silver-looking coins at the post office can definitely catch your eye but they’re often collectible or commemorative coins, not always pure silver or investment-grade bullion. They often come in fancy packaging, but that doesn’t mean they hold real value when it comes to precious metals.

In many cases, the actual gold or silver content is minimal — and the price (or premium) is much higher than the metal is worth. These coins are usually sold more for their design, nostalgia, or collectibility rather than their true market value. If you're buying precious metals to protect your wealth or hedge against inflation, you're better off sticking to well-known bullion products from trusted mints and dealers.

11) ARE THERE ANY TAXES ON GOLD AND SILVER IN CANADA?

If you're purchasing gold or silver bullion that's considered "investment-grade"—meaning gold or platinum with a purity of at least 99.5%, or silver with a purity of at least 99.9%—you won't pay GST or HST. These products are exempt from sales tax under Canadian law.

However, if the items are below these purity levels—like circulation silver or collectible coins—they're treated as consumer goods and are subject to GST/HST.:

If you sell your precious metals for more than you paid, the profit is considered a capital gain. In Canada, 50% of that gain is taxable and should be reported on your income tax return. ​

So, to keep things simple: buying high-purity bullion is tax-free at the point of purchase, but any profits from selling are subject to capital gains tax.​ If you're unsure about the tax implications for a specific product, it's a good idea to consult with a tax professional or the Canada Revenue Agency (CRA) for guidance.​

👉 Many of my clients prefer to purchase their metals anomymously. How can you do this? Simply buy them at your lcoal coin shop and pay with cash. No personal info is ever recored and you walk out with your metals and a receipt. No one needs to know.

12) AREN'T PRECIOUS METALS ONLY FOR THE THE WEALTHY? I CAN'T AFFORD THEM, ESPECIALLY GOLD

That’s a common myth — but it couldn’t be further from the truth. Yes, today gold is around $4,500 CAD per ounce, which sounds intimidating. But you don’t need to buy a full ounce to get started. Precious metals come in much smaller sizes — like 1-gram gold bars or 1-ounce silver coins — which are far more affordable. A silver coin, for example, might cost around $50 CAD. One big factor is that we don't teach financial literacy, especially gold and silver. The investment industry wants us to give them our money so they can "earn" ongoing fees - transaction, annual, etc. So, they don't promote or advise to buy gold and silver.

Here’s what’s interesting: for most of history, gold and silver were money. They were used in daily transactions, and their value was understood and trusted. It's only in the last century or so that we've moved away from real money and started using fiat currency — money created by governments, backed by nothing but a promise. And while paper dollars can be printed endlessly (causing the value and purchasing power to decline), gold and silver are limited by nature. That’s part of why people turn to them: they’re real, tangible, and proven to hold value over time.

So no, precious metals aren’t just for the wealthy. They’re for anyone who wants to step outside the fragile fiat system and protect and preserve what they’ve worked hard to earn. Even buying one silver coin a month can be a meaningful step toward financial independence and security.

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Disclaimer: This podcast and article and their contents are only for education and entertainment purposes only. They reflect my views and opinions and are never to be considered as financial advice. As always, you should consult a certified professional so you can determine what's right for your circumstances.