AMERICAN GOLD EAGLE — DECEMBER 19, 2016
🪙 91.67% Purity · NOT GST/HST-exempt · RRSP/TFSA: No (below 99.5%)
On Monday, December 19, 2016, the American Gold Eagle was priced at C$1,597.42 in Canadian Dollars. This included the spot price of C$1,521.35 plus a typical dealer premium of C$76.07 (5.0% over spot). Gold rose C$7.64 (+0.50%) from the previous session.
The American Gold Eagle is the official US gold bullion coin, produced by the US Mint since 1986. While extremely popular in the United States, Canadian buyers should note that its 91.67% purity (22 karat) means it does NOT qualify for GST/HST exemption in Canada and is NOT eligible for RRSP/TFSA registration. Canadian investors may prefer the Gold Maple Leaf for tax advantages.
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 -7.9% below the yearly average and -15.0% from the year's high.
PRICE BREAKDOWN
| Component | CAD |
|---|---|
| Gold Spot (XAU/CAD) | C$1,521.35 |
| Premium (5.0%) | +C$76.07 |
| American Gold Eagle | C$1,597.42 |
| Per Gram | C$51.36 |
CANADIAN DEALER PRICES — DECEMBER 19, 2016
| Dealer | 1 oz Bar (CAD) | Premium |
|---|---|---|
| Kitco | C$1,586.35 | C$65.00 |
| Sprott Money | C$1,599.35 | C$78.00 |
| SilverGoldBull | C$1,576.35 | C$55.00 |
| TD Precious Metals | C$1,616.35 | C$95.00 |
| Royal Canadian Mint | C$1,631.35 | C$110.00 |
| Border Gold | C$1,591.35 | C$70.00 |
📊 Market Analysis — December 19, 2016
❓ 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
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.
Tax-Efficient Gold Investing: Maximize TFSA contributions first — all gold gains are 100% tax-free. Then use RRSP for tax-deductible contributions where gains are tax-deferred. Keep non-registered gold purchases for emergency reserves, as the capital gains inclusion rate is 50%.
⚖️ Unit Conversions (CAD)
| Unit | Price (CAD) |
|---|---|
| Per Troy Ounce (31.1g) | C$1,597.42 |
| Per Gram | C$51.36 |
| Per Kilogram | C$51,358.17 |
| Per Pennyweight (1.555g) | C$79.87 |
| Per Tola (11.66g) | C$599.03 |
📚 Learn more: How to Buy Gold in Canada · Gold Tax Guide · 25 Year Price Analysis · All Guides