Individual and Self-directed RRSP's?

[tpurcell4]

Hey Beyond,

I am wanting to know if it is possible to invest directly into tangible assets (precious metals, gem stones, art, antiques, etc) through an RRSP.

First, is this possible? I know it can be done for Real Estate, but I'm not sure on smaller assets.

Second, how does one go about setting this type of RRSP up?

Thirdly, what are the limitations and restrictions on such a program?

Thanks for you time and help on this in advance!

Todd

[sputnik]

Tangible assets are ineligible for RRSP portfolios.

[Sugarphreak]

...

[roopi]

Originally posted by Sugarphreak


I think Scottia Bank might have a hard asset program with registered Gold. My understanding is they store the gold on your behalf.

Are Precious Metals RSP eligible?
Gold and silver are qualified investments in tax-deferred accounts such as RSPs and RIFs. Certificates can be held within a Self-Directed RSP at ScotiaMcLeod Direct Investing.

For more information about opening a Self-Directed RSP at ScotiaMcLeod Direct Investing, call 1-800-263-3430 or visit your local Scotiabank branch.


How do I hold physical bullion inside my RRSP or my IRA?

Quite often we get asked how people can hold physical bullion (gold and silver) inside their registered plans (RRSP, RESP and TFSA).

Unfortunately, even if you hold bullion inside your plan you can't actually take physical possession of the product, you can only get exposure to the price/value of the commodity. All investments inside these various plans must be paper based, however you must do your homework and due diligence and verify that there is actual bullion backing the paper.

In Canada, there are a couple of options that we believe have physical bullion backing their paper and are public companies so you can review their annual filings to satisfy yourself before making any investment decisions.

Central Fund of Canada CEF.A units can be bought inside any Sprott Physical Trust. Both Gold PHY.U and Silver PHS.U can be bought as well.

For our U.S. clients, you can also hold bullion inside your IRA account. Please call 1-888-300-8809 for details.

[sputnik]

Originally posted by Sugarphreak


I think Scottia Bank might have a hard asset program with registered Gold. My understanding is they store the gold on your behalf.

Correct. Forgot about that option. However it is only for .995+ investment grade bullion gold and they have to hold it for you the entire time.

Other assets (gems, antiques, classic cars, real estate etc) have no regulatory mechanisms for trading and valuation so one can not really put a value on them for RRSP purposes.

Additionally, you wouldn't never be able to enjoy them because (if even such a program existed) the brokerage firm would have to retain possession of your assets so that you couldn't sell them out from under the tax man.

[e36bmw///]

nm

[tpurcell4]

Thank you for the info everyone! Roopi, I will send you a quick message here to get some more information and run a few things by you.

Thanks

Todd