Home›Products›American Gold Buffalo›May 12, 2006

AMERICAN GOLD BUFFALO — MAY 12, 2006

🪙 99.99% Purity · GST/HST-exempt · RRSP/TFSA: Yes

C$828.01
Premium: C$39.43 (5.0%)

On Friday, May 12, 2006, the American Gold Buffalo was priced at C$828.01 in Canadian Dollars. This included the spot price of C$788.58 plus a typical dealer premium of C$39.43 (5.0% over spot). Gold fell C$3.13 (-0.40%) from the previous session.

The American Gold Buffalo is the US Mint's 99.99% pure gold coin, introduced in 2006. Unlike the American Eagle, the Buffalo's high purity means it IS GST/HST-exempt in Canada and IS eligible for RRSP/TFSA registration—making it an attractive alternative for Canadian investors who appreciate American coin designs.

In 2006, gold in CAD traded between C$611.35 and C$791.71, with an annual average of C$684.64. This day's price was 15.2% above the yearly average and -0.4% from the year's high.

PRICE BREAKDOWN

ComponentCAD
Gold Spot (XAU/CAD)C$788.58
Premium (5.0%)+C$39.43
American Gold BuffaloC$828.01
Per GramC$26.62

CANADIAN DEALER PRICES — MAY 12, 2006

Dealer1 oz Bar (CAD)Premium
KitcoC$853.58C$65.00
Sprott MoneyC$866.58C$78.00
SilverGoldBullC$843.58C$55.00
TD Precious MetalsC$883.58C$95.00
Royal Canadian MintC$898.58C$110.00
Border GoldC$858.58C$70.00

RELATED

Spot May 12, 2006 American Gold Buffalo All Products Compare Dealers

📊 Market Analysis — May 12, 2006

For Canadian investors, understanding the relationship between the USD/CAD exchange rate and gold pricing is essential. A weakening Canadian Dollar amplifies gold returns in CAD terms, while a strengthening CAD can dampen returns even when USD-denominated gold rises. Geopolitical tensions — including trade wars, military conflicts, and sanctions — historically drive gold higher as investors seek safe-haven assets. The Canadian Dollar, as a commodity currency tied to oil prices, can weaken independently during global uncertainty, creating a double tailwind for gold priced in CAD.

❓ Frequently Asked Questions

❓ Can I hold gold in my RRSP or TFSA?

Gold bars and coins with 99.5%+ purity from approved refiners can be held in a self-directed RRSP or TFSA through a qualified custodian. Storage is handled by approved vault facilities like those operated by the Royal Canadian Mint.

❓ Is this product GST/HST-exempt in Canada?

Under the Excise Tax Act, investment-grade gold bullion with 99.5% or higher purity is exempt from GST/HST across all Canadian provinces. Products below this threshold (e.g., American Eagle at 91.67% gold) are subject to full provincial sales tax.

❓ How should I store gold safely at home?

If storing at home, use a UL-rated fire-resistant safe bolted to concrete. Consider a rider on your home insurance policy. For larger holdings, allocated vault storage through Kitco Pool or Sprott Money provides institutional-grade security.

💡 Canadian Gold Investor Guide

Portfolio Allocation: Most Canadian financial planners recommend allocating 5–15% of a diversified portfolio to gold and precious metals. This allocation provides downside protection during equity bear markets while maintaining growth potential during inflationary periods.

Physical vs Paper Gold: Physical bullion (bars, coins) provides tangible ownership with no counterparty risk, ideal for long-term holdings. ETFs (CGL.TO, MNT.TO) offer convenience for trading and rebalancing. A combination of both can optimize for both security and flexibility.

⚖️ Unit Conversions (CAD)

UnitPrice (CAD)
Per Troy Ounce (31.1g)C$828.01
Per GramC$26.62
Per KilogramC$26,621.10
Per Pennyweight (1.555g)C$41.40
Per Tola (11.66g)C$310.50

📚 Learn more: How to Buy Gold in Canada · Gold Tax Guide · 25 Year Price Analysis · All Guides