Home›Products›American Gold Buffalo›January 29, 2016

AMERICAN GOLD BUFFALO — JANUARY 29, 2016

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

C$1,645.13
Premium: C$78.34 (5.0%)

On Friday, January 29, 2016, the American Gold Buffalo was priced at C$1,645.13 in Canadian Dollars. This included the spot price of C$1,566.79 plus a typical dealer premium of C$78.34 (5.0% over spot). Gold fell C$5.63 (-0.36%) 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 2016, gold in CAD traded between C$1,490.57 and C$1,790.43, with an annual average of C$1,652.64. This day's price was -5.2% below the yearly average and -12.5% from the year's high.

PRICE BREAKDOWN

ComponentCAD
Gold Spot (XAU/CAD)C$1,566.79
Premium (5.0%)+C$78.34
American Gold BuffaloC$1,645.13
Per GramC$52.89

CANADIAN DEALER PRICES — JANUARY 29, 2016

Dealer1 oz Bar (CAD)Premium
KitcoC$1,631.79C$65.00
Sprott MoneyC$1,644.79C$78.00
SilverGoldBullC$1,621.79C$55.00
TD Precious MetalsC$1,661.79C$95.00
Royal Canadian MintC$1,676.79C$110.00
Border GoldC$1,636.79C$70.00

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📊 Market Analysis — January 29, 2016

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. Gold has historically outperformed during periods of negative real interest rates — when inflation exceeds the Bank of Canada's overnight rate. Canadian investors use gold as a hedge against purchasing power erosion, particularly when CPI exceeds 3%. The correlation between gold and the inverse of real rates makes it a strategic allocation in balanced portfolios.

❓ Frequently Asked Questions

❓ What is the best size to buy for Canadian investors?

For most Canadian investors, 1oz gold bars or Canadian Gold Maple Leaf coins offer the best balance of premium and liquidity. Larger bars (10oz, kilo) have lower premiums per ounce but can be harder to liquidate in smaller amounts.

❓ 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.

💡 Canadian Gold Investor Guide

Dollar-Cost Averaging (DCA): Buy a fixed CAD amount of gold each month — say C$500. This strategy reduces the impact of short-term volatility and removes the stress of timing the market. Over 10+ years, DCA has historically produced returns close to the annual average gold price.

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.

⚖️ Unit Conversions (CAD)

UnitPrice (CAD)
Per Troy Ounce (31.1g)C$1,645.13
Per GramC$52.89
Per KilogramC$52,892.08
Per Pennyweight (1.555g)C$82.26
Per Tola (11.66g)C$616.92

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