ETFs

By Tony Dong, MSc, CETF on October 19, 2025
Estimated reading time: 8 minutes

By Tony Dong, MSc, CETF on October 19, 2025
Estimated reading time: 8 minutes

Physical gold isn't the only option. How ETFs, closed-end funds, and gold miners compare for Canadian investors.

Gold prices are flying. As of October 17, the spot price of gold is trading at $5,928 per ounce in Canadian dollars, or roughly $4,227 in U.S. dollars. The surge comes on the back of what Wall Street has dubbed “the debasement trade.” In simple terms, this refers to investors reacting to long-term macroeconomic trends such as loose monetary policy, ballooning U.S. debt, and erosion in the real value of paper currencies. When fiat money can be created endlessly, hard assets that cannot be debased—like gold—stand out as stores of value.

Images of people lining up at gold dealers around the world have become common again, and Canada is no exception. As early as September 2023, Global News reported a “gold rush” at Costco, where one-ounce gold bars were selling out within hours of being listed online.

But before giving in to the fear of missing out, it may be worth considering some alternatives to physical gold. Investment case aside, there are several practical reasons why owning bullion directly may not be the best approach for many investors.

This isn’t an argument against owning gold directly. I have a few Gold Maple Leaf coins myself and there’s something almost primal about holding them. The weight, the shine—it taps into an ancient fascination with the metal that no security can replicate.

But objectively, buying and storing physical bullion has never been the most seamless or efficient way to gain gold exposure.

The first issue is the bid-ask spread. When you buy from a dealer, you’re not transacting at the spot price you see quoted online. Dealers make their money on the spread between what they sell at and what they’ll buy back for. As of October 17, for example, Vancouver Bullion & Currency Exchange (VBCE) listed one-ounce Gold Maple Leaf coins as follows:

That’s a spread of $175, or about 3%. In other words, gold prices have to rise by at least that much just for you to break even.

Then there’s the matter of security. I keep mine in a heavy-duty, bolted-down, fireproof safe that wasn’t cheap. Hiding it under a mattress or burying it in the backyard isn’t advisable.

If you decide to store it at the bank, you’ll pay annual fees for a safety deposit box and, more importantly, reintroduce counterparty risk. The whole point of........

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