Investing

Why are investors turning to gold and silver in 2025?

It's not the way it glitters. Pick any era, and any country, and there's been one constant across all its change: gold.

This reliability is attractive, especially in a world that just keeps moving faster. That's why, throughout 2025's persistent volatility and inflation concerns, many investors turned their attention to this timeless, tangible asset.

It's not just for rings and necklaces—it's a sturdy addition to investment portfolios. This guide will show you how.

What types of investors invest in precious metals?

Precious metals have a home in many different kinds of investors' portfolios, including:

• The diversifier: The most common reason to invest in gold and silver is to diversify a portfolio that is heavily weighted in stocks and bonds. Because precious metals often move independently of the stock market, they can help cushion your portfolio during downturns.
• The long-term thinker: Precious metals are generally not a "get rich quick" asset. Their primary role is long-term wealth preservation. If your savings goals are focused on retirement or protecting your purchasing power against inflation over the next decade or more, the stability of gold and silver can be a strong fit.
• The cautious investor: If you have a moderate or conservative risk tolerance and are concerned about economic uncertainty, precious metals can provide a sense of security that other assets may not.

A spotlight on silver: why it's emerging in 2025

While gold often grabs the headlines, savvy investors in 2025 are paying close attention to silver, too, because of several key factors converging at once:

1. The green revolution is fuelled by silver

Unlike gold, which is primarily a monetary asset, over half of all silver demand comes from industrial applications.

As of 2025, that demand is surging. Global and Canadian initiatives are accelerating the build-out of solar energy infrastructure, and every solar panel requires silver as a key conductive layer.

Similarly, the push towards electric vehicles (EVs) is increasing demand, as every EV uses more silver than a traditional internal combustion engine car. This creates a strong, consistent demand floor that is independent of investor sentiment.

2. The Affordability Factor

With gold prices remaining at historic highs, silver offers a much more accessible entry point. An ounce of silver costs just a fraction of an ounce of gold, allowing new investors to purchase meaningful quantities without a large capital outlay.

This accessibility has drawn a new wave of retail investors into the market this year.

What are the main ways to invest in precious metals in Canada?

For Canadians, there are four paths, each with a different balance of convenience, cost, and connection to the physical asset itself.

Path 1: The digital gold rush (precious metals ETFs)

This removes almost every barrier to entry for owning precious metals in your portfolio. A gold exchange-traded fund (ETF) holds physical gold bullion for its investors—without you having to find room in your home to store it.

Precious metals ETFs work the same way as other stocks or ETFs in your self-directed account, letting you buy or sell when you want, and is the easiest way to get exposure to the price movements of gold, silver, or other metals.

Path 2: The pure form (physical bullion)

This is the traditional way to invest in gold: you own the physical metal itself, either in coins or bars. Some investors find comfort in being able to hold a tangible asset in their hands, knowing it is theirs completely independent of the financial system.

However, there are two sides to this coin. To own physical precious metals, you'll likely pay a premium over the market price, and you'll have to find secure, insured storage for them.

Path 3: Invest in the source (precious metals companies)

Buying shares in the companies that discover, produce or distribute these metals is another way to get exposure in your portfolio.

When you buy stock in a gold or silver mining company, your investment is tied not just to the price of the commodity, but also the company's operation efficiency, management, and profitability.

Again, there are two sides to this. On the one hand, it can lead to greater returns if the company performs well, but it also injects additional business-related risks that are separate from the price of the metal itself.

Path 4: Consider the future

For experienced traders, futures and options contracts offer a way to speculate on the future price of precious metals. These are complex financial instruments that use leverage, meaning you can control a large position with a relatively small amount of capital.

While this can amplify gains, it can also amplify losses, making it a tool best suited for sophisticated strategies.

Where should you hold precious metals investments?

If you choose to own physical precious metals, you'll want to prioritize finding a secure—and insured—location. But buying shares of precious metals, either through companies or ETFs, has its own set of choices.

Where you hold your precious metals investments impacts how your returns are taxed and how much flexibility you have. For Canadian investors, there are two main categories.

Registered accounts (like a TFSA or RRSP)

Registered accounts are government-sponsored accounts that offer significant tax advantages to help you save for your goals.

• The benefit: The primary advantage is tax-sheltered growth. In a Tax-Free Savings Account (TFSA), your investment gains are completely tax-free. In a Registered Retirement Savings Plan (RRSP), your contributions are tax-deductible, and your investments grow tax-deferred until you withdraw them in retirement.
• What you can hold:
  • Precious metals ETFs and stocks: These are the most common and straightforward way to hold precious metals in a registered account. As long as they are listed on a designated stock exchange, they are fully eligible to be held in a TFSA, RRSP, or other registered accounts like a LIRA or RESP.
  • Physical Bullion: Holding physical gold or silver bars and coins is possible but much more complex. The Canada Revenue Agency (CRA) has strict rules. The bullion must meet "investment grade" purity standards (e.g., 99.5% for gold, 99.9% for silver) and must be purchased directly from the issuer and stored with an approved third-party trustee. You cannot simply buy gold and keep it in a safe deposit box under your RRSP. Due to these complexities, most self-directed investors prefer the simplicity of ETFs for their registered accounts.

Non-registered accounts (Margin or Cash accounts)

These are standard investment accounts with no contribution limits or special government registration and tax benefits.

• The benefit: The main advantage is flexibility. You can contribute as much as you want, whenever you want, and withdraw your funds at any time without penalty. This type of account gives you the freedom to invest in a wide range of products, including physical bullion that you can take possession of yourself.
• The main consideration: taxes. Unlike in a registered account, any investment gains in a non-registered account are subject to tax. When you sell an investment for a profit, you realize a capital gain. In Canada, 50% of your total capital gains are added to your income for the year and taxed at your marginal rate.

How to buy precious metals with Questrade

You can do it all from a self-directed account, giving you full control over your investments.

1. Open your account: The first step is to open a self-directed investing account. The process is entirely online and only takes a few minutes.
2. Fund your account: Once your account is open, you'll need funds to buy the precious metals with and can easily transfer funds from your bank.
3. Choose your investment: Whether it's a low-cost gold ETF or a specific mining stock, you can find it using the platform's search tools.
4. Place your trade: With just a few clicks, you can place your order to buy your chosen investment.

Your portfolio, fortified for the future.

In a world of constant change, adding an asset with a thousand-year history of stability isn't a step backward—it's a strategic move forward.

Whether you choose the digital simplicity of an ETF or the tangible security of bullion, investing in precious metals is about more than just diversification. It's about building a stronger, more resilient portfolio, giving you confidence and peace of mind for whatever the future may hold.