Do I need to pay Capital Gains on Precious Metals in Canada?
Yes, in Canada, you need to pay capital gains tax on precious metals when you sell them for a profit, as the Canada Revenue Agency (CRA) classifies them as capital assets under the Income Tax Act. This applies to physical precious metals like gold, silver, and platinum in forms such as bars, coins, or bullion, provided they are held as investments rather than personal-use property. Here are the specifics as of April 8, 2025:
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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.
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Exemptions:
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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.
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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.
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Inclusion Rate:
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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.
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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).
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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%.
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Tax Rate:
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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%.
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Calculation:
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Capital Gain = Selling Price – ACB.
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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).
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Taxable Gain = Capital Gain × Inclusion Rate (50%).
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Reporting:
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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.
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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.
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Losses:
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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.
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Special Cases:
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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%.
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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.
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PCM Context
For The Premier Canadian Mint’s clients (e.g., buying our .999+ Fine Silver or .995+ Fine Pure gold coins), no GST/HST applies on purchase, but selling later triggers capital gains tax on profits and only if you decide to convert your precious metals into fiat currency. Our shipping FAQ (same/next day) suggests quick turnover. Clients should track ACB meticulously for tax season.
This is the deal for 2025—50% inclusion, marginal rate, reportable on Schedule 3. Want us to run a sample calculation or check a specific metal/form? Let us know at info@CanMint.com or ask us on the right side of this page!
Note:
Disclaimer: PCM is not a financial 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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