Investing in Canadian Gold Companies

• 1). Research individual gold mining stocks listed on the Toronto Stock Exchange, the principal exchange in Canada. Major gold companies include Barrick, Goldcorp and Kinross, but there are more than 300 companies.
  
  
• 2). Determine the level of risk you wish to bear. Larger companies offer good returns and operate in stable jurisdictions around the world. Smaller or junior mining stocks can offer higher yields but may be riskier.
  
  
• 3). Decide if you are buying the stock or buying the company. The share prices of so-called "pure play" gold-mining companies can track the rise and fall of the gold price. Share performance can be impacted by poor management, adverse affects to mining operations or political risk in the mining jurisdiction.
  
  
• 4). Seek investment advice from a professional brokerage firm if in doubt after your research.
  
  
• 5). Purchase stocks through a reputable brokerage or share dealer like iTrade or TD Waterhouse using your brokerage account.
  
  

Investing in Exchange Traded Funds (ETF) or Mutual Funds

• 1). Research and identify the best portfolio or exchange-traded fund, or ETF, that matches your investment expectation. ETFs can offer a close correlation to the gold price, but with the performance of the stocks that they represent. ETF's trade like stocks on the exchange.
  
  
• 2). Determine whether the basket contains the individual companies you wish to have. Some ETFs have higher risk and higher yields, while others have less risk and lower yields.
  
  
• 3). Pick out funds that offer low management overhead.
  
  
• 4). Purchase the funds through a reputable brokerage or share dealer like iTrade or TD Waterhouse.
  
  

Investing in Gold Bullion

• 1). Identify a brokerage house or dealer that enables investments in gold bullion. It should have an impeccable reputation, such as a major bank or the Royal Canadian Mint, which offers gold products, including gold bars.
  
  
• 2). Determine the price to be paid. This is normally tied to the gold spot price fixed in London each day.
  
  
• 3). Establish and account for any management costs associated with gold holdings such as storage and handling or shipping charges.
  
  
• 4). Purchase through the brokerage house or through Royal Canadian Mint