Questrade Inc. and Kitco Metals Inc. today announced a new product that will give Canadians the opportunity to purchase gold to invest in registered savings accounts such as RRSPs and RESPs.

Questrade, an online broker, provides the self-directed registered accounts for investors, while Kitco, a dealer of precious metals, will secure the gold products. The Royal Canadian Mint, with its world-class refinery and security protocols, will produce and store the gold.

The new product marks the first time Canadians have direct access to buying, holding and trading physical gold within RSPs. Questrade registered accounts, including RRSPs, RRIFs and RESPs, are not charged any annual administration fees.

Physical precious metals have only been eligible to be held within registered accounts since February 23, 2005, when the Canadian government amended investment regulations, tabled in the 2005 Federal Budget. Since the amendment, Canadians had access to RSP-eligible gold only through individual shares, funds and certificates. Now they can own real gold as well as trade it within their registered plans.

“Holding actual commodities in a registered plan is significant for investors,” said Edward Kholodenko, president and CEO of Questrade, in a news release. “Not only will the registered plan owner save on the management fees associated with funds, he or she will be able to buy, hold and trade real gold on the spot market. This means plan owners can take immediate advantage of market movement instead of waiting for the fund manager to do it.”

Traditionally, gold ownership has appealed to investors hoping to safeguard at least part of their investments from currency instability and stock market volatility. Portfolio diversification is also a major reason for owning gold and other commodities in a registered savings plan.

Eligible gold products are investment grade bars and Royal Canadian Mint coins with a minimum purity of 99.5%.