Guide · Taxes
Taxes when you sell gold or silver
How Canadian tax works on a profit from selling gold and silver, in plain words. Capital gains, the $1,000 rule, inherited and gifted metal. Not tax advice.
Last updated October 7, 2026
This is a plain-language summary of Canadian federal rules, not tax advice. Rules change and your situation may differ. Check with a tax professional or the Canada Revenue Agency (guide T4037, Capital Gains).
You only pay tax on a gain
Tax is due on the profit: what you sold for, minus what you paid (your “adjusted cost base”), minus selling costs. If you sell for less than you paid, there is no gain.
Half of a gain is taxed
A profit on gold or silver is usually a capital gain. Half of it is added to your income for the year. You pay federal and provincial income tax on that half, at your own rate. The other half is not taxed.
Example: you paid $2,000 and sell for $3,000. The gain is $1,000. $500 is added to your income.
It does not matter how long you owned the item.
The $1,000 rule for jewellery and coins
Jewellery and coins you own for personal use are “listed personal property”. For these, both your cost and your sale price are treated as at least $1,000.
- Sell an item for $1,000 or less: no gain to report.
- Paid $300 and sell for $1,400: the gain is $400.
- A loss on jewellery or coins can only be used against gains on other listed personal property.
Pieces normally sold as a set can count as one item.
Inherited and gifted metal
- Inherited: you are usually treated as having bought the item at its market value on the date of death. If you sell soon after, the gain is often small. Our gold price history can look up the market price in Canadian dollars on a single day since late 2003.
- Gifted: you are usually treated as having bought it at its market value on the day of the gift. Write that value down. Gifts between spouses follow different rules.
If you trade often
If you buy and sell bullion regularly to make money, the Canada Revenue Agency can treat the profit as business income. Then all of it is taxed, not half.
Keep records
Keep receipts for what you bought and the dealer’s written receipt when you sell. If you have no purchase records, a tax professional can help you make a reasonable, documented estimate.
Dealer records
Dealers in precious metals follow federal anti-money-laundering rules. For large deals they must check your ID and keep a record. Whether or not a dealer records anything, you are responsible for reporting a gain.
Sales tax is different
GST, HST and provincial sales tax apply when you buy, not when you sell your own items. Jewellery is taxed. Investment bullion usually is not. See tax on gold by province and how tax works when you buy.
Selling inside an RRSP or TFSA
Metals held in a registered plan follow the plan’s rules instead. See gold in an RRSP or TFSA.