The Bullion Exchange

The Victoria Bullion Exchange is pleased to announce we can now purchase Precious Metals through our RRSP’s and LIRA’s. Questrade, the first brokerage in Canada is the vehicle which offers contributors to directly place gold and silver bullion in their RRSP's

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As of 2005, the Canadian Revenue Agency (CRA) now allows Canadian RRSP’s and other retirement vehicles to invest in pure investment-grade precious metals coins.  Other major Canadian banks only offer gold and silver certificates, which provide no real protection in case of a major recession or dollar collapse.  

Questrade offers the ability to hold physical gold and silver as part of an RRSP, TFSA and other retirement vehicles.  Questrade seems to be the best option for 2 reasons: 

1.    They have the best pricing

2.    They allow you to purchase your metals from The Royal Canadian Mint

Whether it’s planning for the future or otherwise, there are many factors to consider when decidinghow much gold to include in your retirement portfolio. It depends on your age,your tolerance for risk, what other investments you own, and your confidence in the economy and the methods you choose to gain exposure to the precious metal.

Why precious metals?

Because they tend to retain their value more than other assets, precious metals have traditionally acted as a buffer against instability. Market upheavals usually have a lower impact on precious metals like gold and silver than on other assets. Financial experts have always recommended placing about 10% of your funds in precious metals as a prudent strategy.

You can place gold and silver in any of 15 different account types that include registered retirement savings plans (RRSP's), tax free savings accounts (TFSA's),individual or family registered education savings plans (RESP's), life income funds (LIFs) and registered retirement income funds (RRIF's). Placing gold and silver in your RRSP also allows you to trade the metals on the spot market and take immediate advantage of favorable market movements.

• Tax-efficient savings which bolster your future wealth or provide an income.
• Protects against vulnerability in the financial markets.
• Preserves your purchasing power with a diversified pension investment portfolio.

RSP-eligible gold and silver products

The following .9999 fine products from The Royal Canadian Mint can be placed in your RRSP:

Gold

• 1 oz Gold Canadian Maple Leaf Coins
• 1 oz Gold Royal Canadian Mint Bars
• 5 oz Gold Royal Canadian Mint Bars
• 10 oz Gold Royal Canadian Mint Bars
• 1 kg Gold Royal Canadian Mint Bars

Silver

• 1 oz Silver Canadian Maple Leaf Coins (25-coin tubes only)
• 10 oz Silver Royal Canadian Mint Bar
• 100 oz Silver Royal Canadian Mint Bar

Our preferred relationships ensure that clients receive only premium RRSP approved products, directly from The Royal Canadian Mint.  No secondary market product is ever delivered.

The Royal Canadian Mint acts as a custodian, holding your precious metal assets through an exclusive arrangement, where the Victoria Bullion Exchange supplies premium RRSP approved gold and silver products -the RRSP contributions are made through Questrade.

The Royal Canadian Mint is a Crown Corporation owned and backed by the Government of Canada.

Why Questrade?

• First Canadian broker to offer individuals the option of holding gold and silver in RRSP's
• Simple set-up and no hidden fees
• Start with as little as $1,000
• Registered with the Investment Industry Regulatory Organization of Canada (IIROC)
• Member of the Canadian Investor Protection Fund (CIPF)
• Gold and silver for RRSP's stored in the high-security vaults of the Royal Canadian Mint

     To get started please call:

1-416-227-9876

Toll Free:  1-888-783-7866

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How do I hold physical bullion inside my IRA?

Position your IRA for growth and provide a hedge against market downturns by adding Gold or Silver to your retirement portfolio. It is smart, safe and positioned for growth.

The IRA Account

So what is an IRA? Available to investors since the 1974 Employee Retirement Income Security Act, an Individual Retirement Account (IRA) is a savings account with special tax advantages. Since inception, IRA's have played a prominent role in America's retirement preparedness and have become the standard for building household savings over time. In the almost four decades since its creation, the IRA has become a mainstream investment vehicle as more Americans have become eligible, contribution limits have been increased, tax savings have been improved, and different types of IRA strategies have been created.

But despite their many advantages, traditional IRA's give account owners little control over where their money is placed. With most accounts vested in traditional stocks, bonds and mutual funds (paper assets) portfolio diversification can be challenging, leaving many IRA accounts susceptible to market fluctuations and loss of value.

The Precious Metals IRA Advantage

Precious Metals IRA account is backed by Gold, Silver, Platinum or Palladium and is an ideal diversification tool. For instance, a Precious Metals IRA can reduce portfolio volatility and help preserve value and purchasing power despite inflation. Since gold has outperformed the stock market by over 400% in the past decade, a golden IRA from allows investors to increase returns without increasing risk.

You will need to choose between a Traditional IRA and a Roth IRA for your Precious Metal IRA. Traditional IRAs are funded with before-tax fund and will be subject to taxation upon fund withdrawal. Conversely Roth IRA's are funded with after-tax funds. They will not be taxed when the funds are withdrawn. Some investors choose to have both.

• The benefit of a Self-Directed IRA is that you can invest in what you know.
• Your Self-Directed IRA account can buy precious metals, real estate, notes, limited partnerships, commercial paper and many other types of assets.
• The IRA Custodian maintains and updates all documentation relating to your IRA.
• Select a custodian of your choosing to purchase, receive and hold your precious metals. You can roll over existing IRA or 401k into a Metal IRA.
• Once you have opened and funded your metal IRA, purchasing precious metals with The Bullion Exchange is a simple phone call.

Please call 1-888-300-8809.

WHAT'S IN STORE FOR THE METALS IN 2024?

Gold investing has garnered a lot of attention in the last year or so. Gold prices soared, hitting their highest point in over a year, and discount retailer Costco even started selling gold bars online.

Despite all this, though, gold prices do fluctuate in the short term. In September, for example, the average price dipped below $1,850 per ounce. By the end of November, prices jumped over $2,000. Will prices top that in 2024?

Will gold prices increase in 2024? 

THE ECONOMY & INFLATION - One of the big reasons gold has become popular lately — and pricier — is stubborn inflation. And while the Fed has hiked interest rates many times to help quell it, the central bank is still far from its 2% goal. And according to some of the experts, it will stay that way for a while.

The forecast currently projects a 3.1% inflation rate at the start of 2024 and a 2.60% rate by the third quarter. This persistently high inflation could push up demand for gold and, subsequently, gold prices.

Forecasts aren't always right, though. And while forecasters are currently predicting gold prices to hit a new all-time high next year, if economic conditions worsen, demand for gold could rise considerably, sending prices up even more.

Geopolitical tensions and the election could drive up demand for gold

Inflation is an important factor to watch next year if you're tracking gold prices.  Geopolitics are another.

Periodically, geopolitical risks, and a flight to safety drive up the demand for gold.  Recently, the Israel-Hamas conflict has driven up the geopolitical premium in gold.

After the conflict between Israel and Gaza began in early October, gold prices soared, reaching points not seen since mid-2022.

Gold is often seen as a safe-haven asset. In times of economic uncertainty or market volatility, investors tend to turn to gold, putting upward price pressure on the yellow metal.

Another time investors might flock to a safe-haven investment like gold is during a presidential election, when some might view a change in leadership as a risk to their finances.

Given the U.S. presidential election in 2024, we expect retail demand for gold to remain high as investors turn to the metal to hedge against what they feel is a risk of an adverse outcome.

“Gold is money. Everything else is credit.” – J. P. Morgan

WHY ARE GOLD PRICES RISING IN 2024?

• Momentum – winners keep winning: Gold rose again last year, increasing by more than 10% in USD terms. Momentum matters, with the path of least resistance to the upside.
• Silver is cheap relative to gold: In past periods, you have needed barely thirty ounces of silver to afford one ounce of gold. Today you need more than eighty. That suggests silver could outperform gold significantly.
• Interest rates are set to fall: Lower interest rates lower the opportunity cost of owning gold. With rate cuts on the agenda across the developed world in 2024, a tailwind for higher precious metal prices is on its way.
• Recession risk and a falling USD: Despite the fact the world enjoyed reasonable growth in 2023, risks abound, with economic output set to stagnate. That is typically bad for the USD dollar, which can boost gold for local investors.
• Central banks to keep buying: Nation states have accumulated vast sums of gold in the past fifteen years, buying more than 5,000 tons. They will likely add another 400 to 500 tons minimum this year. 
• ETF holders to re-enter market: Gold ETF investors have shunned gold in the last three years. This part of the market moves in cycles. The next leg in that cycle is likely to be investors adding to their gold ETF holdings. History suggests that is bullish.
• Speculators to add to their positions: Speculative investors largely abandoned gold in the last couple of years. There are signs they will soon get back involved on the long side of the market, adding upside price pressure.
• Expensive share markets at risk of falling: Gold is a great diversifier, having traditionally been the best performing single asset class when share markets fall. Given valuations, excess froth (or greed) in share markets, and the cloudy economic outlook, a major pullback in the market would not surprise. If it happens, gold will likely benefit.
• Inflation still a problem: Inflation is no longer at nosebleed levels near to 10% per annum as it was 18 months ago or so. But it is still way above levels that consumers and households can deal with. Investors seeking a hedge against it may turn to gold, as they have in the past.
• Geopolitical risks: Finally, the geopolitical outlook remains sadly fraught. Any escalation in tensions in any number of geopolitical hotspots around the globe could ignite a safe haven bid.

With precious metals marching higher as we head toward 2024/2025, many investors are weighing up what percentage of their precious metal allocation they should dedicate toward gold, and what allocation should be dedicated toward silver.

While gold exhibits lower volatility, has delivered excellent long-term returns, has proved a reliable inflation hedge and is the more reliable diversifier in periods the share market falls, there are multiple reasons to be looking at silver as well.

Indeed, if history is if any guide, it will not surprise to see silver lead the way higher in 2024, and through the next precious metal bull market.

Six Reasons to add Silver to your Portfolio
 

Inflation Protection: Silver typically outperforms gold in periods of rapidly rising consumer prices, with average returns of close to 18% in years in inflation is high.

Bull Market Runs: In precious metal bull markets, silver typically leads the way, with the precious metal delivering average returns of close to 500% in five major bull market periods since the 1970s.

Industrial Use: Industrial demand for silver has hit all-time highs in 2023.  This will help support the market going forward, with demand from this segment of the market set to increase with investment in green technology.

Historically Cheap: The gold to silver ratio (which measures how many ounces of silver you need to buy an ounce of gold) is currently sitting at close to 84.23. This number has averaged closer to 60 over the long-run and has been below 30 in the past. This suggests silver is cheap relative to gold and reinforces idea it may strongly outperform in the next precious metal bull market.

Liquid and Portable: Silver is very liquid, highly portable, and available in small denomination investments including 1oz coins and 10 oz cast bars. This can be very useful for investors who like to hold tangible wealth in smaller sizes that are not only liquid but easy to trade.

Momentum Matters: Silver has rallied by more than 10% in the last month, and has historically done well in December 2023, with an average gain of 7% in the month of December in the last 6 years. This current rally has precious metals looking like they are on the cusp of a major break out.

RECAP FOR PRECIOUS METALS:  

The willingness of people to park their paper in financial products is astounding. 

The admission that the economy is so weak that it needs more QE is going to destroy the narrative that the U.S. economy is in great shape and it’s no longer going to be the safe haven for capital around the world…it’s going to prick the bubble in the dollar…and people are going to realize that we’ve never recovered from anything, the economy is sicker than ever.

The Fed’s going to make it even sicker with more of its toxic monetary policy, the dollar’s going to tank and the price of gold is going to skyrocket – and people need to prepare for that now. 

POINTS TO CONSIDER FROM THE BULLION EXCHANGE

In reality, there are many fundamental reasons to hold precious metals.  These fundamentals stronger now than at any time in U.S. history:

• Unlimited monetary stimulus
• Unchecked fiscal stimulus
• Record fiscal deficits
• Runaway national debt levels
• Positive real interest rates after a decade or more of negative real rates
• Interest rates rising the quickest pace in over 40 years
• Dollar debasement and loss of purchasing power
• Higher consumer prices
• Currency wars - global competition to devalue sovereign currencies
• Geopolitical conflicts

Remember, gold and silver's value transcend fleeting political cycles.  These metals are not just investments; they are long-term assets that store value and outlast any single election cycle.

The changing shape of global gold demand and supply alongside fundamental structural changes in the precious metal markets will decide the metal’s price in 2024.

1-888-300-8809

www.thebullionexchange.ca