Lesson Precious metals

Precious metals at Questrade

Learn about how to invest in precious metals like gold or silver with any of your Questrade accounts.

Gold and silver bars

Questrade allows you to buy and sell physical precious metals (like gold and silver) in all accounts, even registered accounts like a TFSA or RRSP.

Precious metals are used by many investors to diversify their portfolios, and can potentially be a useful asset class during times of high volatility.

Even though commodity-based ETFs are available that track the price of gold or silver, some investors may prefer to own the actual physical metals themselves. This grants direct ownership, and may provide an additional level of protection against external market forces or geopolitical issues.

Questrade is one of the only Canadian brokerages where you’re able to buy and hold physical precious metals in every type of self-directed account - including registered accounts like an RRSP, TFSA, RIF, RESP, or etc. You can buy or sell metals anytime the market is open with a quick call to our trade desk. For more details, please check out the sections below.

Investing in precious metals also comes with some benefits over other traditional asset classes like stocks or bonds, namely:

  • Can potentially be a hedge against inflation
  • Intrinsic value
  • No central bank credit risk
  • High liquidity
  • Historically low or negative correlation to stocks and bonds

Investors who purchase physical precious metals in their accounts may use storage options provided by the Royal Canadian Mint, IDS Canada, or Brinks. Depending on the specific type of metal and quantity, different storage options may be available.

Depending on the type of account you use to purchase your precious metals, they can also usually be withdrawn and shipped to your residence. Check out the sections below for more information on storage or delivery options and fees.

Reminder: This article is for informational and educational purposes only and should not be considered investment or trading advice.

Buying and selling precious metals

Gold and silver coins

You can buy precious metals like gold and silver by calling our Trade Desk directly at 1.866.980.9590 between 8 AM and 3:00 PM EST.

If calling from the U.S. or internationally, please dial +1.416.227.6911

If you’ve been referred by a precious metals dealer, please contact your dealer directly to make purchases.

Physical precious metals cannot be purchased or sold at this time through our online platforms.

Important note: After purchasing precious metals with your Questrade account, prices are updated overnight and reflect the value of the previous day’s closing price.

To get a real-time bid and ask price to buy or sell the metals in your account, please contact the Trade Desk or your dealer directly.

Commissions

Fees icon

The commission for precious metals is $19.95 USD per order. (No matter the quantity)

Separate commissions may be charged for different metal types and kinds (i.e., buying gold coins vs bars or silver).

The Trade Desk will be able to confirm your final commissions when you’re placing your trades.

If you’ve been referred by a precious metals dealer, please contact your dealer directly to make purchases (or sales).

Please note that all precious metals are priced in U.S. Dollars. If you need to convert currencies before or after a trade, please check out this article for more details.

Note: RESP accounts incur an additional $5.00 commission on your first precious metals trade each day due to the trade being conducted in USD. This is a flat, per-day commission, no matter how many trades are made in the RESP account that day.

Secure storage options and fees

Precious metals storage icon

Pooled or segregated storage?

Depending on your specific needs, either storage option may be a good fit for your account. Check out the differences below:

Pooled storage

The precious metals are stored at the Royal Canadian Mint or Brinks and all of Questrade customers’ precious metals are stored together.

Pooled storage providers have no reference to the individual Questrade customer name or account number as the precious metals are pooled and stored in Questrade’s name (in-trust for our customers). 

Segregated storage

The precious metals are stored at either IDS Canada or Brinks and every customer’s metals are held and reported on separately.

The storage facility is advised of the individual Questrade customer name and account number to which the precious metals belong.

Storage fees

Depending on the specific metals you’re interested in purchasing, different storage options may be available.

The Trade Desk will be able to confirm which storage options are available depending on the type of metal and type of asset (bars, coin, or leaf).

Pooled storage

A fee of 0.6% of the market value for gold, and 0.9% of the market value for silver will apply.

This is a yearly prorated amount, charged monthly to the same account the metals are held in.

This storage fee is charged in Canadian dollars, and GST/HST or QST may apply.

For example: A customer with $50,000 worth of gold in their RRSP will be charged $250 yearly, or ~$20.83 CAD per month. This storage fee will be charged to the same RRSP the gold is held in, so please keep enough cash available each month for the storage fee.

Segregated storage

A fee of 1.5% of the market value will apply (for both gold and silver).

This is a yearly prorated amount, charged to the same account the metals are held in every month.

This storage fee is charged in U.S. dollars, and GST/HST or QST may apply.

For example: A customer with $50,000 worth of gold in their TFSA will be charged $750 yearly, or ~$62.50 USD per month. This storage fee will be charged to the same TFSA the gold is held in, so please keep enough cash available each month in USD for the storage fee.

Start investing confidently

Ready to open a registered account to store your precious metals?

Get Started

Check out the sections below for more information on withdrawing or shipping your precious metals, and frequently asked questions.

If you’re interested in withdrawing the precious metals from your Questrade accounts, please keep the following in mind:

  • Withdrawals of metals from registered accounts is considered a “de-registration”, and is treated the same way as a cash withdrawal by the CRA.
  • You cannot make withdrawals from certain types of locked-in accounts under normal circumstances (i.e., LIRA, L-RSP).
  • There is no way to withdraw metals, and keep them registered in an RRSP or TFSA for example.
  • You are responsible for storage fees until the withdrawal date.

Shipping and insurance fees

Note: For customers withdrawing precious metals, a service fee of USD $75.00 will be charged to process the withdrawal.

Shipping

shipping icon

For pooled storage with the Royal Canadian Mint:

The shipping fee is $35 USD per 500oz or $35 USD per $100,000 in market value of the metal (whichever is higher).

For pooled storage with Brinks, or segregated storage, please contact the Trade Desk for a shipping quote.

Shipping can typically take up to 2 weeks, and varies depending on the storage location of the metals, and the location of the customer.

Please note: At this time, we can only ship your precious metals to the official address on file with Questrade.

Insurance

When shipping precious metals, insurance is mandatory.

insurance checkmark shield icon

For pooled storage with the Royal Canadian Mint:

  • $6.50 USD per $1000 of gold value
  • $6.50 USD per $1000 of silver value

For pooled storage with Brinks, or segregated storage, please contact us for an insurance quote.

Example: Fred is withdrawing $10,000 USD worth of gold from his TFSA account, and it’s currently held in pooled storage. Fred will pay $35 for shipping, and $65 for insurance. With the service fee included, Fred’s total cost is $175 USD.  

Pick-up

Instead of shipping your metals, you may also have the option to pick them up. This will depend on the specific type of metal, and where it’s stored. The storage provider may also charge a nominal fee to process the pick-up.

For example: IDS and Brinks may have different pickup procedures, locations, and fees.

Pick-ups need to be scheduled through Questrade’s Trade Desk at 1.866.980.9590, and will take at least 2 business days to arrange.

Government-issued Photo ID, vehicle information, and other details may be required to schedule a pickup.

Check out the sections below for more information about frequently asked questions.

Does Questrade offer physical metals or certificates?

Questrade only offers the purchase of physical precious metals. We do not offer certificates at this point in time.

Are my precious metals insured?

Precious metals in your Questrade account are covered under the Canadian Investor Protection Fund (CIPF). CIPF provides protection for property held by Questrade on behalf of an eligible customer if Questrade becomes insolvent.

You can learn more about the CIPF program on their website.

Where are my metals stored?

The location of the storage facility for your precious metals depends on the storage type you have.

Pooled storage is available at the Royal Canadian Mint or Brinks. Segregated storage is available at IDS Canada or Brinks depending on which precious metals dealer you purchase from. For specifics, please inquire with the trade desk.

All storage facilities are CIRO approved, and located within Canada.

Can I visit my metals for an inspection?

To visit, kindly contact us or  your precious metal dealer for an appointment . You can also reach out to us or your dealer to request an inventory report from the segregated storage facility.

Does Questrade verify that my metals are at the storage facility?

Questrade receives monthly precious metals inventory reports from every storage facility to verify that they hold the metals.

In addition, the storage facilities are also regularly inspected by industry regulators to ensure compliance.

Can I switch from pooled to segregated storage? (and vice versa)

Because different types of metals are available depending on your storage option, it may not be possible to transfer your exact metals “as they are” from one storage facility to another.

For example: The Royal Canadian Mint may offer certain products (gold coin/leaf) that are non-transferable to independent segregated storage providers.

If you still need to switch storage options, you may need to sell your current metals, and re-purchase metals that are specifically available in segregated storage.

Please contact our Trade Desk directly at 1.866.980.9590 for more information and options available to you.

Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.

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