To buy silver in Canada, choose bullion refined to at least 99.9% purity from a chartered bank, a licensed bullion dealer, or an approved trustee if you want it inside a registered account. Qualifying bullion is exempt from GST and HST, every purchase requires government-issued ID, and cash transactions of $10,000 or more are reported to FINTRAC. When you eventually sell at a profit, the gain is taxed under Canada’s capital gains rules.
What Counts as Investment-Grade Silver
The purity number on the product does more work than most first-time buyers realize. Silver refined to at least .999 (99.9% pure) qualifies as a “precious metal” under the Excise Tax Act, which is what makes it exempt from sales tax and eligible to sit inside a registered account.1Department of Justice Canada. Excise Tax Act RSC 1985 c E-15 – Section 123 Anything below that threshold — sterling silver jewelry, most commemorative pieces, carat alloys — is treated as ordinary goods for tax purposes.
Two formats dominate the market. Bars come in weights from one ounce up to 100-ounce and 1,000-ounce institutional slabs, and they trade purely on metal content. Sovereign-minted coins carry a face value and legal tender status; the most widely traded Canadian option is the Silver Maple Leaf, produced by the Royal Canadian Mint at .9999 purity.2The Royal Canadian Mint. Maple Leaf Bullion Coins The 1 oz Silver Maple Leaf is stamped at five dollars, but its real value tracks the spot price. That legal tender status is what lets these coins qualify inside a TFSA or RRSP where bars from an unrecognized refiner cannot.
Where to Buy
Three channels serve Canadian buyers, and each fits a different situation.
Several major chartered banks operate precious metals desks. Premiums over spot tend to run higher than what independent dealers charge, but the settlement is straightforward and the counterparty is familiar. This suits buyers making large single purchases who value the institutional wrapper.
Private bullion dealers span online-only platforms and brick-and-mortar shops. Online sellers usually offer lower premiums because their overhead is smaller; local shops let you inspect the product and leave with silver in hand. Comparing premiums on the same product on the same day is the single best way to avoid overpaying.
Registered account trustees handle purchases going into a TFSA, RRSP, or similar plan. You cannot buy silver on the open market and drop it into your account; the trustee arranges the purchase and vaults the metal on behalf of the plan. More on that below.
Whichever channel you use, any dealer buying or selling precious metals of $10,000 or more is a reporting entity under federal anti-money-laundering law.3Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Dealers in Precious Metals and Stones
Sales Tax on Silver
Silver bullion that meets the 99.9% purity definition is treated as a financial instrument for GST/HST purposes and is not taxed at the register.4Canada Revenue Agency. Definition of Financial Instrument Provincial sales taxes generally follow suit. British Columbia specifically exempts gold, silver, and platinum in bar or coin form from PST, and Saskatchewan exempts precious metals bought as financial instruments. Across most of the country, qualifying silver escapes both layers of sales tax.
The exemption disappears the moment purity drops below the threshold. Sterling silver, jewelry, and certain commemoratives are taxed at the applicable GST or HST rate, running from 5% in GST-only provinces to 15% in HST provinces.5Canada Revenue Agency. Charge and Collect the Tax – Which Rate to Charge Check the stamped purity before you pay.
Identification and Reporting Rules
Every precious metals dealer in Canada must comply with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, enforced by FINTRAC.6Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). FINTRAC Act and Regulations Expect to show government-issued photo ID, such as a passport or driver’s licence, and provide your full name, address, date of birth, and occupation. The dealer verifies your identity and keeps the record for at least five years.
When a single cash transaction reaches $10,000, the dealer files a Large Cash Transaction Report.3Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Dealers in Precious Metals and Stones Splitting one large purchase into smaller ones does not avoid this. FINTRAC’s 24-hour rule requires dealers to aggregate multiple cash transactions of the same type totaling $10,000 or more within a 24-hour window when the same person is behind them.7Government of Canada. Reporting Transactions to FINTRAC: The 24-Hour Rule Structuring a purchase to duck the threshold is itself a flag that can trigger a Suspicious Transaction Report.
These are routine compliance steps that apply to every qualifying purchase. Dealers process them as ordinary paperwork.
How the Purchase Works
Once you pick a product, the dealer locks in your price against the current spot rate at the moment you confirm the order. You typically have one to two business days to submit payment, usually by bank wire transfer or certified draft. After payment clears, the dealer ships via insured courier with a signature required on delivery. Three to ten business days from payment to package on your doorstep is a normal range, depending on location and the dealer’s processing volume.
Save every receipt and invoice. Those documents establish your cost basis, which you will need when calculating capital gains at sale.
Storing Silver Safely
Physical silver comes with physical security. Three main options cover most situations.
A quality safe bolted down at home keeps the metal accessible and avoids ongoing fees, but standard homeowner’s policies cap coverage for precious metals at relatively low amounts. A rider or floater is usually necessary, and insurers may require a UL-rated safe.
Bank safety deposit boxes provide vault-level security at modest annual rent. The bank does not insure the contents — that term is nearly universal in Canadian box agreements — so you would carry your own coverage.
Private vaulting companies and some dealers offer allocated or segregated storage with built-in insurance. Fees are higher, and the coverage is purpose-built for bullion. This is the required option when silver is held inside a registered account.
Whichever route you pick, keep a detailed inventory: photographs, serial numbers on bars that carry them, purchase receipts, and assay certificates. That paperwork matters for insurance claims and for tax reporting.
Holding Silver in a TFSA or RRSP
Physical silver can be a qualified investment inside a TFSA, RRSP, RRIF, RDSP, or RESP, but the CRA imposes stricter rules than the open market.8Canada Revenue Agency. Income Tax Folio S3-F10-C1 – Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs, FHSAs and TFSAs
Silver bullion coins must be produced by the Royal Canadian Mint at a minimum purity of 99.9%, and the coin’s fair market value cannot exceed 110% of the market value of its silver content. That cap keeps collectible coins out. Bars, ingots, and wafers must come from a refiner accredited by the London Bullion Market Association, also at 99.9% purity, and must be hallmarked with the refiner, purity, and weight.
The silver has to be purchased from the Royal Canadian Mint directly, or from a Canadian-resident bank, trust company, credit union, insurance company, or registered securities dealer regulated by the Superintendent of Financial Institutions or a provincial equivalent. In practice you work through an approved trustee who handles the purchase, vaults the metal at an approved depository, and holds it for the plan. You cannot take personal possession of silver inside a registered account; doing so is treated as a withdrawal and triggers tax.
The upside is real. Silver in a TFSA grows and can be sold completely tax-free. In an RRSP, gains are tax-deferred and taxed as ordinary income only when you withdraw.
Capital Gains Tax When You Sell
Silver held outside a registered account is taxed on sale. Your capital gain is the proceeds of disposition (what you received, minus selling costs like dealer commissions) minus your adjusted cost base (what you paid, plus acquisition costs like the original purchase premium and shipping).9Canada Revenue Agency. Capital Gains
Ongoing storage fees and insurance premiums cannot be added to the cost base. The CRA treats those as current expenses and excludes them from the calculation. That is one of the quieter costs of holding physical silver compared with a silver ETF in a brokerage account.
Only part of the gain is added to your taxable income. For 2026, the federal government increased the inclusion rate from one-half to two-thirds on capital gains an individual realizes above $250,000 in a single year. Below that threshold, the inclusion rate stays at one-half.10Government of Canada. Government of Canada Announces Deferral in Implementation of Change to Capital Gains Inclusion Rate For most individual silver investors, gains fall well below $250,000, so half the profit gets added to income and taxed at the marginal rate.
Coins Versus Bars
Silver coins carry a wrinkle bars do not. The Income Tax Act classifies coins as “listed personal property,” a category that also covers jewelry, stamps, art, and rare books.11Department of Justice Canada. Income Tax Act RSC 1985 c 1 5th Supp – Section 54 Losses on listed personal property can only offset gains on other listed personal property, so a loss on silver coins cannot reduce a gain on stocks or real estate. Bars are regular capital property; losses on bars can offset any capital gain.
Listed personal property also carries a $1,000 deemed floor on both proceeds and cost, which effectively removes tax from very small coin transactions. Buyers dealing in meaningful quantities will usually be well above that floor.
Records to Keep
Track every purchase with the date, quantity, purity, price paid, dealer premiums, and any shipping or transaction costs. Record the same details for each disposition. If you buy in multiple lots, calculate a weighted average cost base across all units of the same type. The CRA can ask for documentation years after a sale, so keep the records for at least six years from the tax year in which you file the return reporting the gain.