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GOLD PRICE IN ONTARIO — JANUARY 2006

C$637.22 avg/oz

During January 2006, gold dealers serving Ontario based pricing on CAD spot prices ranging from C$611.35 to C$649.97 per ounce, with a monthly average of C$637.22. The month opened at C$613.38 and closed at C$649.97, a gain of C$36.59. Investment-grade gold (99.5%+ purity) remains GST/HST-exempt in Ontario.

DAILY PRICES — JANUARY 2006

DateClose (CAD)Change
January 3, 2006C$613.38+12.72
January 4, 2006C$613.34-0.04
January 5, 2006C$611.35-1.99
January 6, 2006C$629.18+17.83
January 9, 2006C$641.13+11.95
January 10, 2006C$632.91-8.22
January 11, 2006C$635.73+2.82
January 12, 2006C$636.52+0.79
January 13, 2006C$644.35+7.83
January 17, 2006C$642.88-1.47
January 18, 2006C$637.60-5.28
January 19, 2006C$649.53+11.93
January 20, 2006C$640.95-8.58
January 23, 2006C$641.82+0.87
January 24, 2006C$642.86+1.04
January 25, 2006C$647.26+4.40
January 26, 2006C$643.04-4.22
January 27, 2006C$642.23-0.81
January 30, 2006C$648.41+6.18
January 31, 2006C$649.97+1.56

📊 Gold Market Analysis

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

❓ Is gold taxed in Canadian provinces?

Investment-grade gold bullion (99.5%+ purity) is exempt from GST/HST in all Canadian provinces under the federal Excise Tax Act. However, provincial policies may vary for numismatic coins, gold jewelry, and gold items below the purity threshold.

❓ Does provincial tax rate affect gold investment returns?

While GST/HST-exempt gold itself is unaffected by provincial tax rates, the marginal tax rate in your province affects capital gains taxes when selling gold. Provinces with lower marginal rates provide a slight advantage for non-registered gold profits.

❓ What about capital gains tax on gold?

Gold sold at a profit outside registered accounts (RRSP/TFSA) triggers capital gains tax in all provinces. In Canada, 50% of the gain is included in taxable income at your marginal rate. Keep purchase receipts for adjusted cost base calculations.

💡 Canadian Gold Investor Guide

When to Buy and Sell Gold: Consider buying when gold-to-stock ratios are low and selling when gold exceeds your target allocation. Profit-taking near historical highs and reallocating to undervalued assets can lock in gains. Avoid panic selling during short-term dips — gold rewards patient holders.

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.

⚖️ Unit Conversions (CAD)

UnitPrice (CAD)
Per Troy Ounce (31.1g)C$637.22
Per GramC$20.49
Per KilogramC$20,487.07
Per Pennyweight (1.555g)C$31.86
Per Tola (11.66g)C$238.96

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