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AMERICAN GOLD BUFFALO — AUGUST 31, 2020

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

C$2,702.36
Premium: C$128.68 (5.0%)

On Monday, August 31, 2020, the American Gold Buffalo was priced at C$2,702.36 in Canadian Dollars. This included the spot price of C$2,573.68 plus a typical dealer premium of C$128.68 (5.0% over spot). Gold fell C$4.19 (-0.16%) 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 2020, gold in CAD traded between C$1,977.73 and C$2,721.27, with an annual average of C$2,376.14. This day's price was 8.3% above the yearly average and -5.4% from the year's high.

PRICE BREAKDOWN

ComponentCAD
Gold Spot (XAU/CAD)C$2,573.68
Premium (5.0%)+C$128.68
American Gold BuffaloC$2,702.36
Per GramC$86.88

CANADIAN DEALER PRICES — AUGUST 31, 2020

Dealer1 oz Bar (CAD)Premium
KitcoC$2,638.68C$65.00
Sprott MoneyC$2,651.68C$78.00
SilverGoldBullC$2,628.68C$55.00
TD Precious MetalsC$2,668.68C$95.00
Royal Canadian MintC$2,683.68C$110.00
Border GoldC$2,643.68C$70.00

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📊 Market Analysis — August 31, 2020

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

❓ 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.

❓ 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.

💡 Canadian Gold Investor Guide

Storage Considerations: Home safe (for holdings under C$50,000), bank safe deposit box (limited insurance), or allocated vault storage through dealers like Kitco or Sprott Money (institutional security, insured). Each option involves different cost, convenience, and risk trade-offs.

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.

⚖️ Unit Conversions (CAD)

UnitPrice (CAD)
Per Troy Ounce (31.1g)C$2,702.36
Per GramC$86.88
Per KilogramC$86,882.77
Per Pennyweight (1.555g)C$135.12
Per Tola (11.66g)C$1,013.38

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