Silver in an RRSP, TFSA or FHSA

RRSP and RRIF

What is allowed: Same rules as gold, with a minimum purity of 99.9% for silver coins and bars. Rare or collector coins are not qualified investments. Listed silver ETFs qualify as listed securities.

Storage: The plan trust must hold the investments. The Royal Canadian Mint says registered-account metal is bought through a regulated dealer or brokerage that services these accounts, with allocated or unallocated storage, and that storage and insurance costs apply. The CRA material opened does not describe storage rules.

Watch out for:

• Coins valued mainly for rarity, or worth more than 110% of their metal content, do not meet the regulation.
• Bullion must come from the producer or a regulated 'specified corporation', not from any seller.
• Holding a non-qualified or prohibited investment in a registered plan leads to tax; the two categories are taxed differently.

TFSA

What is allowed: Same rules as gold, with a minimum purity of 99.9% for silver coins and bars. Rare or collector coins are not qualified investments. Listed silver ETFs qualify as listed securities.

Storage: The plan trust must hold the investments. The Royal Canadian Mint says registered-account metal is bought through a regulated dealer or brokerage that services these accounts, with allocated or unallocated storage, and that storage and insurance costs apply. The CRA material opened does not describe storage rules.

Tax: If a TFSA acquires a non-qualified investment, the holder owes a tax of 50% of its fair market value when acquired (or when it became non-qualified), reported on form RC243. The 50% tax can be refunded if the investment is disposed of by the end of the next calendar year, unless the holder knew or should have known it was non-qualified. Income from it can face a 100% advantage tax.

Watch out for:

• A 50% tax applies to non-qualified investments, plus a possible 100% tax on income they earn.
• No refund of the 50% tax if the holder knew or should have known the investment was non-qualified.
• If an investment is both non-qualified and prohibited, the CRA treats it only as prohibited.

FHSA (First Home Savings Account)

What is allowed: Same as gold: the FHSA is covered by the same qualified investment rules; the CRA FHSA page does not mention silver.

Storage: As for other registered plans, investments are held by the FHSA trust through the issuer.

Tax: If an FHSA trust acquires a non-qualified investment, the tax is 50% of the property's fair market value when acquired or when it became non-qualified; it may be refundable in some cases.

Watch out for:

• The 50% tax on non-qualified investments applies to FHSAs as it does to TFSAs.