TD Precious Metals: Investing in Gold, Silver, & Platinum with Canada's Largest Bank

TD Bank (TD:TO) is one of Canada's big five, and its largest by assets under management. The bank operates over 1,100 branches and serves nearly 15 million customers across Canada. TD Bank offers retail banking services through its affiliate TD Canada Trust.

The bank's roots go back to the Bank of Toronto founded in 1855 and the Dominion Bank founded in 1869. In 1955 the two banks merged to form the Toronto-Dominion Bank. As the bank's business developed through acquisitions and new affiliates it became known as TD Bank Group.

TD Bank Precious Metals

TD offers the 3 main precious metals which are: gold, silver, and platinum. You can buy a variety of physical precious metal products from TD such as coins, bars, and rounds. You can also invest in precious metals through TD with other securities, which is a subject that we will touch on later.

Precious metals are only considered such when they are of the finest purity. In the case of gold and platinum they need to be at least 99.5%, while in the case of silver it needs to be 99.9%. The definition of precious metals allows you to avoid sales tax and include them in your RRSP. All products TD offers meet the standards required.

Physical Purchase Limits

All their stock is available online at preciousmetals.td.com. However, TD limits Online Purchases per 24 hours to $2,999.99 CAD for non-TD customers. While $9,999.99 CAD is the limit per 24 hours for TD and Verified.Me customers

To avoid these limits you can make your purchases in a TD branch or at one of TD's Foreign Exchange Centres. You can only make in-branch purchases from a TD Canada Trust deposit account. The account must be funded and in good standing at the time of the transaction.

TD Bullion

You can buy gold, silver, and platinum bars and coins from TD Metals. Their largest selections of bars and coins are in gold and silver. Their platinum offering may seem limited to some investors, but they cover the basics. All prices carry a small discount for volume and TD bank account holders.

Let's have a closer look at what they have to offer in each of the precious metals,

TD Gold Bars

TD offers a wide range of weights in gold bars. The smallest bar you will find is just 1/100th ounces, and the largest 1kg (approximately 35.3 ounces). All orders over $100.00 CAD come with free shipping.

1/100th Ounce Scottsdale Gold Bar

For the smallest of pockets, or perhaps as a gift to get your kids started in precious metals investing, this bar weighs 1/100th ounce. TD claims that this is the world's first and smallest, mass-produced, gold bar. The gold bar is of the highest purity of 99.99%.

Each gold bar bears the world-famous Scottsdale Lion hallmark, considered a regal symbol synonymous with quality and purity. Only one side is engraved with the Scottsdale emblem, weight, and composition.

1 oz Britannia Gold Bar

This bar is of a more characteristic weight than the one previously mentioned. It is made of 1 oz of 99.9% pure gold. The Royal Mint makes these bars which are designed by the renowned designer Jody Clark. The reverse shows the image of Britannia, while the obverse has the weight, purity, and emblem of The Royal Mint.

1 kg Royal Canadian Mint Gold Bar

The Royal Canadian Mint launched this bar as an update to its market-leading 1 kg 99.99% gold bar. The new 1 kg gold bar upholds the Mint's tradition of high quality and top-tier design. The Mint has added gold Maple Leaf design features which hallmark all their bullion products. And the serial number is now highlighted by serial vertical lines.

TD Silver Bars

TD sells silver bars in a variety of weights. The smallest weight for silver bars is 1oz and the highest weight is 100oz.

10 oz Royal Canadian Mint

These 10 oz bars represent a cost-effective way to invest in silver. They come from a globally renowned refiner, The Canadian Royal Mint. This silver bar has been updated with the characteristic Maple Leaf design, to reflect the heritage shared among all the Mint's bullion products.

The reverse shows the name of the mint in English and French, and the weight and purity. The distinctive features are the two maple leaves and the serial number. The obverse shows a pattern of a stylized version of a maple leaf.

100 oz Royal Canadian Mint Silver Bar

This is TD's largest silver bar with a weight of 100 ounces. This bar has the characteristic hallmarks of all their bullion products. It has the distinctive features of the Maple Leaf coin design, with the vertical line series surrounding the serial number.

TD Platinum Bars

In a slight reflection of how this precious metal is rather neglected, TD only offers platinum bars in one size of 1oz. And there are only two different types of bars.

1 oz Platinum Bar PAMP Suisse Lady Fortuna

We have chosen to highlight the 1 oz Lady Fortuna as it comes with an assay. This certificate guarantees the quality and authenticity of the platinum bar. This platinum bar was released in 2021 and features the image of Lady Fortuna on the Obverse. The Reverse showcases the weight, brand, serial number, and fineness.

TD Gold, Silver, & Platinum Coins

TD metals offer a wide range of coins and rounds. Only coin bullion made by an accredited refiner and purchased directly, or through a government-regulated financial institution, can be included in an RRSP. So, we'll take a look at coins only.

Gold Coins

TD offers an expansive variety of gold coins of various sizes. The smallest coin weighs 1/10th oz, the largest weighs the standard 1 ounce. They also scale up gradually with coins of 1/4 oz and 1/2 oz. On their website, they currently list 31 different gold coins.

Maple Leaf

This is Canada's classical and renowned gold coin, straight from The Royal Canadian Mint. It comes in 4 different sizes, 1/10th oz, 1/4 oz, 1/2 oz, and 1 oz. A new series is minted each year, with the first coins minted back in 1979.

Since the coin was first introduced, it has sold more than 25 million troy ounces. It was also the first bullion coin to achieve 99.99% purity. Below you can see an example of a 1 oz Maple Leaf gold coin for 2022.

Silver Coins

TD at present offers 21 different silver coins. Sizes come in weights from 1 oz to 1 kg. There are various weights in between which include 10 oz, 5 oz, and 1oz. All coins meet the 99.99% purity standard.

2 oz Silver Coin - Werewolf Creature of the North

This silver coin is 38mm wide and on the reverse features the image of a werewolf, a maple leaf, and a full moon. The imaginary creature is representative of Canadian culture. In the province of Quebec, the loup-garou werewolf is one of the most famous legends.

Platinum Coins

The platinum coin collection is limited to 4 coins. The list comprises 3 coins of 1 oz and 1 coin of 1/10th oz. TD offers the 1 oz platinum Maple Leaf coins from 2021 and 2022, together with the 1 oz platinum Britannia coin of 2021.

The fourth coin is the 1/10th oz platinum Britannia coin, pictured below. This coin is minted in the same style as its bigger brother of 1 oz. The reverse of the coin features the image of Britannia, which was first used on coins 2000 years ago by the Roman emperor Hadrian.

TD Securitized Precious Metals

Another way to invest in precious metals is through the use of Certificates. Buying securities allows you to access the price growth and benefits of precious metals without owning the physical asset. You won't have to be concerned with storage, transportation, or insurance.

One of the easiest ways to invest is through a fund. The most liquid and often the cheapest is through an ETF. These funds are quoted on exchanges and allow quick entry and exit for the asset exposure you desire.

Variety of ETFs

TD has a variety of funds you can invest in, and they also manage an in-house fund, TD Precious Metals. The fund invests in various precious metals companies in Canada and the US. The fund's objective is to obtain long-term capital growth by investing in deposit receipts, certificates, and companies engaged in mining, exploration, and production of precious metals.

The largest fund they offer is the iShares S7P/TSX Global Gold Index ETF (XGD:TO). The fund has $1.2 billion assets under management, compared to an industry average of $222.5 million. The fund is actively managed, meaning it can hold long and short positions. 63.2% of its holdings are in Canadian equity, 24.8% in US equity, and 11.9% in international equity.

The best performing fund over the past 5-year period is Horizons Enhanced Income Gold Producers ETF Common (HEP:TO). The fund has relatively low net assets at $132.95 million, yet the exchange still manages to trade close to 13,000 shares in daily volume.

How to Open an Investing Account

You can open both a Self-Directed TFSA or a Self-Directed RRSP through TD Bank. If you already have an account and online credentials, the website will take you through all the steps using your TD account details.

If you have a total of $100,000 in cash or investments you can also invest in ETFs with the help of a financial advisor. You can call them yourself, have them call you back, or follow the process online.

Or, if you are looking to invest without one of the structures mentioned above, you can open a margin account or a cash account. The process is straightforward and completed online. The main differences between the two accounts are listed below:

Wrapping Up

TD Bank offers a wide choice of physical precious metals of the highest quality. They have competitive pricing and take into account discounts for larger quantities and existing TD customers.

If you are looking to invest in precious metals through securities, they also offer a selection of ETFs. You have the possibility of trading on your own, through a tax saving and retirement account, or with the help of a financial advisor. You can find out all you need to know about setting up an RRSP in this brief walk through.

Gino D'Alessio is a Broker/Dealer with over twenty years experience in various OTC markets such as Bonds, FX and Derivatives. Currently a Financial Markets and Investments Writer & Analyst