Scotia Bank recently launched an online store selling a limited selection of gold and silver bullion products. The eStore carries Scotiabank gold bars, Maple Leaf gold coins from the Royal Canadian Mint, Scotiabank silver bars and silver maple leafs and will deliver its products to anywhere in Canada. While it is innovative for a big bank to sell bullion through an online store, smaller retailers such as Vancouver-based J & M have been selling bullion by mail order for many years now. A quick comparison between J & M and ScotiaMocatta shows that the latter is a pricier way to buy bullion:
- Precious metal products, which are exempt from GST, are subject to sales tax in many provinces but not in BC. As a Vancouver-based retailer J & M does not charge sales tax on pure bullion products but ScotiaMocatta does based on the buyer’s province of residence. An Ontario resident buying an 1 ounce Maple Leaf gold coin could save close to a $100 by buying through J & M.
- J & M’s prices on the same bullion products appear to be cheaper than ScotiaMocatta’s. Recently, J & M quoted $1,132 on an 1 ounce Maple Leaf gold coin and $1,106 on an 1 ounce gold bar compared to ScotiaMocatta’s price of $1,173 and $1,121 respectively.
- J & M charges a 2% fee only when paying through a credit card but they also accept bank drafts and direct deposits at no extra charge. ScotiaMocatta, on the other hand, charges an administration fee of 3% plus $12 on all orders.
Add it all up and you could save as much as $200 extra when buying an 1 ounce Maple Leaf priced at around $1,000 through J & M instead of ScotiaMocatta.
Note: I have no affiliations with J & M. I have simply purchased bullion from them in the past without any problems.