That, along with the worry of a stock-market crash, has prompted quite a lot of Canadians who by no means thought of proudly owning the valuable steel earlier than to wonder if this age-old asset ought to be a part of their portfolios. In any case, Canada’s largest robo-advisor, Wealthsimple, allocates 2.5% of its shoppers’ accounts to gold—and 10% in its halal portfolios.

Ought to it’s a part of yours? Or would you simply be shopping for in on the peak? There’s no strategy to know, besides in hindsight. There’ll all the time be “gold bugs” on the market urging you to promote all the things and purchase gold earlier than the world goes to pot. Their recommendation is greatest averted.

Right here as an alternative are some essential info round investing in gold that can enable you make a better-informed resolution.

Why is gold so valued?

Gold is used for a variety of merchandise—resembling jewelry, dental fillings and electronics—however most of it’s merely saved in vaults, within the type of gold bars. Like cash itself or cryptocurrency, gold is effective as a result of individuals have determined it’s. However in contrast to the opposite two, it’s resistant to manipulation.

As of early 2025, all of the refined gold on the planet, an estimated 216,265 tonnes, was value a staggering USD$21.5 trillion. Mines world wide poured one other 3,661 tonnes in 2024. So, the provision of gold is growing, however slowly. And there’s little anybody can do to vary that.

Why do buyers purchase gold in Canada?

As an funding, gold is classed as a commodity. That’s, it’s a standardized and graded substance that trades globally. However in contrast to, say, soybeans or Brent crude oil, you’ll be able to retailer a significant quantity of gold in your jewelry drawer or protected deposit field. It’s additionally uniquely non-perishable; a part of its enchantment in historic instances was the actual fact it didn’t corrode like different metals. So, you’ll be able to maintain it indefinitely.

Should you personal gold as an funding, it received’t generate any revenue; it’ll simply go up and down in worth in accordance with provide and demand. Over the very long run, its value tends to trace the speed of inflation.

Most significantly, gold has a historical past as a retailer of worth and unit of trade. Many central banks nonetheless maintain it to assist stabilize their currencies. In growing nations like India and China, many individuals think about it extra reliable than paper or digital cash. That is why it continues to carry a privileged place in funding portfolios.