Toronto Mike

Economic Fears Have Canadians Turning to Gold Assets

Stack of gold bars. bank or financial concept. Premium Photo
Credit: optimism_studio via Freepik

Has the ongoing pandemic prompted you to consider changing up your portfolio? There is a lot going on in the economy to worry about, and while the stock market has proven remarkably resilient throughout COVID-19, many investors are worried that a confluence of factors will to change the financial landscape in Canada as it emerges.

Investors are facing several concerns about Canada’s economic prospects in the near term:

  • COVID-19 aid has pumped billions of new dollars into the economy to keep people and businesses afloat, prompting inflationary fears once the economy gets rolling again.
  • A red-hot housing market driven by historically low interest rates has left many newer homeowners in a precarious position, as any rise in interest rates could lead to mass foreclosures.
  • Rising inflation and a financial crisis caused by a housing collapse could spell an economic disaster for the recovering Canadian economy.

As a variety of economic anxieties mount, Canadian investors are looking for off-stock market options to put their money. With a cautious eye on those long-term inflationary and housing risks, many are turning to gold as an asset known to appreciate when the economy gets into trouble. It’s a safe haven asset that can get through the worst of times and show considerable gains while other assets flounder.

Where to Buy Gold in Toronto

If you’re thinking about expanding your portfolio into gold, you’re not the only one. Pandemic fears have fuelled interest in gold and silver coins and bars to the point that mints are struggling to keep up with demand.

Start by going to bullion dealers in Toronto who will consult with you and help you meet your investment goals with bullion. Bullion dealers purchase gold and silver directly from mints and private refiners to sell to retail investors like you. They can offer advice when it comes to products available, storage and maintenance options, and how to buy tax-advantaged RRSP gold.

Gold is an asset that protects your wealth against inflation and doesn’t correlate to stock prices. When markets are up-and-down, gold provides an element of stability that you’ll be hard-pressed to find anywhere else. The right bullion dealer can help you maximize your ROI.

A Housing Collapse Could Derail Canada’s Recovery

At the moment, it seems like the entire Canadian economy is hinged on the housing market and government stimulus. Prices are unsustainably high, and there is fear that if the bubble burst, there would be widespread repercussions across the economy. It would affect manufacturing, where growth is almost entirely attributable to building materials, not to mention wholesale and retail sectors, as well as the booming construction industry.The inevitable burst could be bad news for investors. But that doesn’t mean it will happen, or that if it does, there aren’t mitigating factors. This is why investors both want to invest in a rapidly recovering economy and hedge their bets in case things go wrong. Attributing part of your portfolio to gold assets is a smart way to get the best of both worlds.

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