Decoding 1 Oz Gold and Silver Prices in Canada
Understanding 1 Oz Gold and Silver Pricing in Canada
Understanding the current Canadian price of 1 oz of gold or silver is crucial. One troy ounce of gold or silver is priced at the spot price. A 1 oz bar or coin's price includes a premium for manufacture, distribution, and the dealer or mint's profit margin.
Canadian price depends on the exchange rate. Many dealers base their prices on the U.S. spot pricing and add a 5% premium. Check if the price of 1 oz gold or silver bars, rounds, or coins includes the product premium when comparing vendors. Premiums depend on product and market factors. Due to demand and notoriety, the Canadian Maple Leaf and American Eagles cost more. Premiums are lowest for plain bars and rounds.
What Influences 1 Oz Gold and Silver Prices in Canada
Supply and Demand
Gold price and silver price chart depend on supply and demand. Low supply or great demand raises prices. As supply increases and demand declines, prices fall. Demand and prices rise when gold and silver are viewed as safe-haven assets during market or geopolitical turmoil.
Inflation and Currency Value
Inflation and currency depreciation are hedged by precious metals. To protect their money, investors acquire metals. Alternatively, metal prices may fall when inflation or the currency rises.
Interest Rates
Bonds offer greater yields, which lowers gold and silver prices. Precious metals, which pay no interest, lose value as rates rise. Metal prices rise as investors seek alternate assets as interest rates fall.
Political and Economic Uncertainty
War, terrorism, and political instability increase demand for gold and silver, raising prices. As investors hedge market risks, economic insecurity, price swings, and recessions can enhance precious metal prices.
In Canada gold prices are around $2600 CAD and the silver price is %31 CAD in Sept 2023. The GST or HST may apply to precious metal purchases in Canada. Gold coins having a purity of 99.99 percent are free from these taxes.
