FAQ / P.C.M. Precious Metals Experts

Are there additional costs?

Depending on your order size and delivery location, you may or may not have additional shipping, packaging and insurance fees.  You may contact us at info@CanMint.com or fill out the question form on the right of this page for further information.  E.&O.E.  All rights reserved.

• Yes: If you sell precious metals (e.g., a 99.9% or + pure silver bar or a 99.5% or + pure gold coin) for more than your Adjusted Cost Base (ACB), the original purchase price plus associated costs like fees—you realize a capital gain, and a portion of that gain is taxable.

   

• Exemptions:
  • No tax applies if the gain is $1,000 or less under the personal-use property exemption (e.g., selling a small coin collection), per CRA’s Listed Personal Property (LPP) rules. However, Investment-Grade Bullion typically doesn’t qualify as LPP—it’s treated as a financial asset.

  • No tax is due if held in tax-sheltered accounts like TFSAs or RRSPs until withdrawal (and even then, TFSAs are tax-free).  Contact Attila@CanMint.com for further direction.

     

1. Inclusion Rate:
   • For 2024 (and unchanged into 2025 per the latest CRA update on January 31, 2025), the inclusion rate is 50% for individuals. This means only half your capital gain is added to your taxable income.
   • Example: You buy a gold bar for $1,000 (ACB) and sell it for $1,500. The capital gain is $500; $250 (50%) is taxable income, taxed at your marginal rate (e.g., 30% = $75 tax).

   • Note: A proposed increase to 66.67% for gains over $250,000 was deferred from June 25, 2024, to January 1, 2026—2025 stays at 50%.

      

2. Tax Rate:

   • The taxable portion (50% of the gain) is added to your annual income and taxed at your marginal tax rate, which varies by income bracket (e.g., 20.05% to 53.53% federally/provincially combined in Ontario for 2024). There’s no separate capital gains tax rate—unlike the U.S., where precious metals as “collectibles” cap at 28%.

      

3. Calculation:
   • Capital Gain = Selling Price – ACB.
   • ACB includes purchase price, shipping, dealer premiums, or storage fees. For inherited metals, ACB is the fair market value at the time of inheritance (deemed disposition at death).

   • Taxable Gain = Capital Gain × Inclusion Rate (50%).

      

4. Reporting:
   • Report gains on Schedule 3 (Capital Gains or Losses) of your T1 return for the year of sale. Use lines like 12700 for taxable capital gains.

   • Dealers may issue a T5008 slip for sales over $200, but you’re responsible for reporting regardless—keep records of purchase/sale dates, prices, and receipts.

      

5. Losses:

   • If you sell at a loss (e.g., buy for $1,000, sell for $800), you can offset other capital gains in the same year, carry back three years, or forward indefinitely. Only 50% of the loss is deductible.

      

6. Special Cases:
   • Numismatic Coins: If rare/collectible (not bullion-grade, e.g., below 99.5% gold), they might fall under LPP rules—gains over $1,000 are still taxable at 50%.

   • Non-Residents: If PCM sells while you’re a non-resident, gains may still be taxable in Canada if sourced here (e.g., stored/sold via a Canadian facility)—consult a tax pro for dual-tax treaty impacts.

      

Does the Premier Canadian Mint offer precious metals and valuables storage?

The Premier Canadian Mint proudly offers secure storage services for precious metals and other valuables within our highly fortified premises, ensuring the utmost protection for our clients’ assets. This critical function is overseen by Mr. Nir Maman, our esteemed Head of Security, whose unparalleled expertise, spanning over 25 years in military special operations with the Israel Defense Force’s Counter Terror Unit, law enforcement roles including Canada’s Nuclear Tactical/SWAT Unit, and his current position as a U.S. Reserve Deputy Sheriff, guarantees the integrity and safety of our storage operations. Costs for these services are meticulously determined based on product-specific and client-driven factors, reflecting our commitment to tailored, high-security solutions under Mr. Maman’s rigorous stewardship.

E.&O.E All rights reserved.

Custom made minted memorabilia for your special Wedding day.

Imagine presenting your wedding guests with an enduring token of your love, crafted by The Premier Canadian Mint. Exquisite, custom-made precious metal coins, spoons, key chains, bells, watches, or cufflinks, each minted in resplendent gold or silver and adorned with the faces of you, the bride and groom, or your cherished family crest. With over 68 years of unparalleled artistry, honed through commissions for world leaders and the RCMP’s iconic ceremonial Belt Buckle, our masterpieces transform your union into a tangible legacy, offering your nearest and dearest—or a select few—a timeless keepsake to honor this sacred occasion with elegance and distinction.

• Purity Standards:
  • Gold: Minimum 99.5% for bars, 90% for coins (e.g., EU standards).
  • Silver: Often 99.9% or higher.
  • Platinum/Palladium: Typically 99.95%.

  • These standards ensure the metal’s intrinsic value is reliable for investors.

     

• Forms:
  • Coins: Examples include the Premier Canadian Maple Leaf (gold & silver)  PCM .9999 Fine Silver Buffalo Rounds, American Eagle, or South African Krugerrand. Coins are minted with precise weights (e.g., 1 oz, ½ oz).
  • Bars/Wafers: Larger units (e.g., 1 kg gold bars) for institutional or high-net-worth investors.

  • Unlike numismatic coins, bullion’s value tracks the spot price of the metal plus a small premium for minting and distribution.

     

• Purpose:
  • Investors buy bullion to hedge against inflation, currency devaluation, or geopolitical uncertainty. It’s seen as a “safe-haven” asset, especially during economic volatility.

  • Unlike jewelry or industrial metals, investment-grade bullion is held for wealth preservation, not utility.

     

• Market Regulation:
  • Bodies like the London Bullion Market Association (LBMA) set standards (e.g., 99.5% for gold bars). Mints must meet these to ensure global acceptance.

  • In the EU, tax rules (e.g., VAT exemptions for 99.5%+ gold) define bullion for investment purposes.

    Disclaimer: PCM is not a financial or legal adviser; please consult one. Don’t share information that can identify you, particularly for security reasons that may affect the security of your assets if not held by a highly secured organization such as The Premier Canadian Mint.  E.&O.E.  All rights reserved.

• What It Is: Hallmarking involves checking for official stamps or marks on the metal that certify its purity, often issued by a recognized authority like the Bureau of Indian Standards (BIS).
• How It Works: As per How To Check Gold Purity at Home? | Bajaj Finance (web ID: 5), you can use a magnifying glass to inspect the hallmark on gold jewelry or coins. A BIS hallmark includes components like the BIS logo, fineness number (e.g., 916 for 22K gold), hallmarking year, assaying center, and jeweler’s mark.
• Hallmarking Convention:  It is also known as, the “Vienna Convention” or the “Precious Metals Convention”.  The Convention on the Control and Marking of Articles of Precious Metals, also known as the Hallmarking Convention, Vienna Convention, or Precious Metals Convention, is an international treaty signed in Vienna in November 1972 and effective since 1975. It facilitates cross-border trade of precious metal articles among Contracting States by ensuring standardized control of metal content, while prioritizing consumer protection, though its scope excludes health, security, or other aspects beyond purity.
• Limitations: This method confirms stated purity but doesn’t test the metal itself. Counterfeit hallmarks can also be an issue.

• What It Is: A traditional method where the metal is scratched on a touchstone and tested with acid to determine its purity.
• How It Works: According to 5 Precious Metals Analysis Methods – Analyzing Metals, you scratch the metal on a dark, finely grained touchstone, leaving a visible streak by scratching known K gold sample for comparison. Different strengths of nitric acid are applied to the streak, and the reaction (or lack thereof) indicates the karat value (e.g., 14K, 18K for gold). How To Check Gold Purity at Home?  Also mentions the nitric acid test, noting that pure gold doesn’t react, while alloys may change color.
• Limitations: This method is not very accurate, can damage the item, and involves hazardous acids that can burn skin. It’s also less reliable for high-purity metals or complex alloys.

• What It Is: A simple at-home test to check if the metal is magnetic.
• How It Works: How To Check Gold Purity at Home?  Pure gold, silver, platinum, and palladium are non-magnetic. If a magnet attracts the metal, it likely contains ferromagnetic materials like iron, indicating it’s not pure.
• Limitations: This is a basic test and not definitive, as some non-precious metals (e.g., aluminum, lead copper, brass) are also non-magnetic.

• What It Is: A quick at-home method to test density by checking if the metal sinks or floats in water.
• How It Works: Per How To Check Gold Purity at Home?  Pure gold is dense and will sink in water, while fake or less dense materials may float. A more precise density test involves measuring the metal’s weight in air and water to calculate its specific gravity, which can be compared to known values (e.g., gold’s specific gravity is 19.32 g/cm³).  Similar methods apply to other precious metals such as silver and platinum.
• Limitations: This method is rudimentary and can’t distinguish between metals of similar density (e.g., gold vs. tungsten).

• What It Is: Devices that measure electrical conductivity to estimate purity.
• How It Works: These testers use electrical resistivity to determine gold and other metallic  concentration. Precious Metals are Tested for Purity as they measure surface and through-resistivity to detect plating or filling, comparing the results to known conductivity signatures of precious metal alloys.
• Limitations: These testers have low accuracy, especially for complex alloys, and are less reliable than other methods.

• What It Is: A highly accurate, destructive method considered the gold standard for purity testing.
• How It Works: As per 5 Precious Metals Analysis Methods (web ID: 4), the metal sample is melted with lead oxide in a furnace at around 1650°F. The lead binds with impurities, and the mixture is poured into a mold. The lead sinks, is removed, and placed in a cupel (a porous dish made of bone ash), where it’s reheated. The cupel absorbs the lead, leaving behind pure precious metal, which is then measured to determine purity.
• Limitations: This method destroys the sample, making it unsuitable for finished items like jewelry. It’s typically used for large lots or bullion.

• The Convention on the Control and Marking of Articles of Precious Metals, also known as the Hallmarking Convention, Vienna Convention, or Precious Metals Convention, is an international treaty signed in Vienna in November 1972 and effective since 1975. It facilitates cross-border trade of precious metal articles among Contracting States by ensuring standardized control of metal content, while prioritizing consumer protection, though its scope excludes health, security, or other aspects beyond purity.  A non-destructive, advanced method using X-rays to analyze metal composition.
• How It Works: Types of Assay explains that a metal sample is exposed to X-rays, which cause the atoms to emit fluorescent energy. This energy is analyzed to determine the metal’s chemical composition, identifying the percentage of gold, silver, or other elements.   
• Precious Metals Analysis Methods notes that modern handheld XRF analyzers can distinguish nearly identical alloy grades.
• Spectroscopy vs Spectrology

• Limitations: While highly accurate, XRF equipment is expensive and requires trained operators. It’s less accessible for at-home use.

   

• What It Is: A non-destructive method using sound waves to check for internal consistency.
• How It Works: Types of Assay reveals how an ultrasonic flaw detector sends sound waves through the metal via a transducer. If the metal’s composition changes (e.g., from gold to tungsten), the waves reflect differently, indicating impurities or plating. This is ideal for authenticating bullion.
• Limitations: It works best on uniform samples and may not detect surface-level impurities.

• Vinegar Test: How To Check Gold Purity at Home? Applying a few drops of vinegar to the metal. Pure gold won’t react, but fake metals may change color.
• Ceramic Plate Test: Rubbing the metal on an unglazed ceramic plate leaves a streak—pure gold leaves a golden streak, while fakes may leave a different color.

• Limitations: These tests are basic and not highly accurate, serving as preliminary checks rather than definitive measures.

   

• Market Context: The X post trend and Exclusion from Trump’s tariffs (web ID: 0) highlight the importance of purity in trading. For instance, the premium of COMEX futures over London spot prices dropped after the tariff exemption, reflecting market confidence in standardized purity (e.g., LBMA-approved bullion, per Gold Price – Live Gold Price Chart | GOLD.co.uk, web ID: 1).

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