Can You Buy Gold on Wealthsimple? [January 2024 Update]

If you’ve dabbled in investing or even just have a general curiosity about it, you’ve likely come across the idea of investing in gold. Gold, known for its intrinsic value and historical significance, is widely considered a stable investment.

But when it comes to acquiring gold, especially through platforms like Wealthsimple, questions arise. Specifically, can you buy gold on Wealthsimple?

Let’s cut straight to it,

No, you cannot directly purchase gold on Wealthsimple. However, you can invest in gold ETFs on the platform, which seeks to replicate the performance of the price of gold while providing you, the investor, with fewer fees and expenses.

If this interests you, let me walk you through an example of a few different ways you can invest in gold on Wealthsimple – both on Wealthsimple Invest and Trade (see the differences between the two here).

For the purpose of this article, we will look at buying a gold ETF called iShares Gold Bullion ETF ^[1] which is a prominent offering by BlackRock, a leading global investment management corporation.

Can You Buy Gold on Wealthsimple?

You can’t buy physical gold bars or coins through Wealthsimple, but you can invest in gold ETFs. These ETFs are available on both the Wealthsimple Trade and Invest platforms and mirror the gold market quite effectively and efficiently from a cost perspective.

Now, we’ve mentioned gold ETFs a few times now, but what exactly are they?

What are Gold ETFs?

Gold ETFs provide investors with the opportunity to invest in gold without the need to possess the physical metal. These ETFs enable individuals to hold various gold-linked assets, thus broadening their investment spread. Some Gold ETFs specifically follow the gold market’s fluctuating prices, while others put money into corporations engaged in gold extraction.

Buying Gold ETFs On Wealthsimple Trade

So, if you’re looking to get some exposure to the gold market, using Wealthsimple Trade is definitely a good way to do it.

If you’ve already got a Wealthsimple Trade account, all you need to do is open your account and see if they offer the gold ETF you want to buy. If you’re unsure which one you want, do a quick Google search of the best gold ETFs for Canadians, and then pick one of the ones you like.

As mentioned earlier, if I chose iShares Gold Bullion ETF, then here’s what the process would look like on my phone (you can also do this on your desktop version of Wealthsimple)

Below, you’ll find the steps I would take to invest in the iShares Gold Bullion ETF on the TSX.

Simple as that! By following these steps above, you’ll have bought into gold without the hassle of..well, actually buying and storing physical gold.

Quick Tip: To learn more about what the gold ETF you’re buying into actually does, scroll to the bottom of the trading page for that ETF, and there’ll be a little description area that will give you more information on the ETF.

Buying Gold ETFs On Wealthsimple Invest

Earlier in this guide, I walked you through the process of purchasing gold ETFs directly through Wealthsimple Trade – which is Wealthsimlpe’s direct investing platform, but now I’m going to switch gears and explore how Wealthsimple Invest, Wealthsimple’s robo-advisor platform, can help you invest in gold ETFs as well.

For More Insights: Wealthsimple Invest vs Trade 2023 | Which is Right For Your Investment Style?

In the screenshot I’ve shared below, you can see that as part of my Wealthsimple Invest portfolio, Wealthsimple has made an investment in a specific gold ETF, named the SPDR Gold MiniShares Trust ^[2], and this gold investment represents about 2% of my total entire Wealthsimple Invest portfolio (which is where I invest in my RRSP)

If you’re not familiar with Wealthsimple Invest or a robo advisor, it’s basically an investment platform that is designed for a more hands-off, “set-and-forget” investment approach. You just set the risk level from a scale of 1-10 and let Wealthsimple do all your investments for you.

The allocation towards gold might be lesser or more depending on your chosen risk level. A lower risk level (somewhere around 1-4) might lead to a higher percentage of funds in gold as it’s considered a low-risk asset, while a higher risk level (7-10) might result in a lesser allocation towards gold.

For context, my risk level is set at 8 as I personally don’t mind taking on some risk right now, and as I showed you above in my screengrab, Wealthsimple Invest has 2% of my RRSP portfolio in a gold ETF.

My Wealthsimple Invest review article here dives much more into Wealthsimple Invest and how it’s the top robo-advising platform in Canada.

How to Buy Gold in Canada?

For those interested in investing in gold, Canada offers various options catering to every investor’s needs.

Physical Gold

Purchasing physical gold, like bullion bars and coins, is the most direct investment method that provides investors with a tangible asset they can hold and store. This form of investment is also often considered less volatile than gold stocks.

With that said, larger gold bars tend to be more expensive due to their size. On the other hand, though, gold coins, being smaller, can be a more affordable and liquid alternative.

When buying physical gold from banks in Canada, there is a purchase limit, typically up to $10,000 every 24 hours, with certain banks like TD having a lower limit.

Gold ETFs, Mutual Funds, and Other Gold-Related Assets

Investors seeking indirect methods to invest in gold might consider ETFs or mutual funds. These funds often track the price of gold, stocks of multiple gold mines and refineries, or provide exposure to gold futures and options.

Some standout choices include the iShares Gold Bullion ETF (as discussed above), BMO Precious Metals Fund, and the CIBC Precious Metals Fund.

Other Gold-Related Assets

In addition to bullion and coins, gold can be purchased as jewelry. However, it’s essential to ensure the purity and authenticity of the gold. Buying jewelry from dealers registered with the Canadian Jewelry Association^[3] is always advisable to guarantee quality.

Places to Buy Gold in Canada

For investors keen on gold ETFs, digital platforms such as Wealthsimple and Questrade provide easy access to various gold-related ETFs, offering both exposure to the metal’s price and gold mining operations.

For those looking to purchase physical gold, major Canadian banks like RBC, Scotiabank, BMO, CIBC, and TD are reliable places to start, often offering online services where investors can buy gold.

Lastly, if you’re interested in gold coins or are looking beyond traditional banks and platforms, options include pawnshops, private dealers, the Royal Canadian Mint, and Canada Post.

FAQS about Buying Gold