Yes, you can use cash to buy precious metals in Canada. You can also sell your precious metals for cash to certain dealers. According to various precious metal dealers, you can walk in, have your precious metals tested and weighed, and receive payment in cash on the spot, with the process taking 15-30 minutes. However, there are FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) rules to consider:
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FINTRAC Obligations: As per Dealers in precious metals and stones, dealers must report large cash transactions of $10,000 or more in a single transaction to FINTRAC. Additionally, under the 24-hour rule, multiple cash transactions totaling $10,000 or more within a 24-hour period may also need to be reported if they involve the same conductor or beneficiary.
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Record-Keeping: Dealers must keep detailed records of such transactions, including the type and value of the precious metals, as well as the buyer’s identity, which requires you to be at least 18 and present valid ID (e.g., driver’s license or passport).
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Suspicious Transactions: Dealers are also required to report any suspicious transactions that might indicate money laundering or terrorist financing, regardless of the amount.
So, while cash purchases are allowed, transactions involving $10,000 or more will trigger FINTRAC reporting requirements, and dealers must comply with strict record-keeping and identity verification rules.
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.
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