Jared Pilon
Your dollar is not worth what it used to be. If you have been watching your savings account, you have likely noticed something unsettling: the balance stays the same, but the amount you can stretch those dollars is shrinking. This is not just a feeling, but a financial reality. In response, more business owners are moving a portion of their cash into precious metals.
We recently sat down with Luke Spicer, a precious metals specialist from Red Deer, for an episode of our Tax Talk podcast. Luke has spent years helping Canadians understand how silver and gold can hedge against inflation and currency devaluation. We are sharing a practical look at why precious metals deserve consideration in your wealth preservation strategy.
A quick note: this article is for educational purposes only and does not constitute financial or investment advice. Always consult with a qualified financial advisor before making investment decisions.
The Problem with Cash
Cash in the bank feels safe. It is liquid, accessible, and protected by deposit insurance. However, there is a hidden cost: purchasing power erosion.
Since 1913, the US dollar has lost approximately 97% of its purchasing power. The Canadian dollar has followed a similar trajectory. What cost $1 in 1913 now costs roughly $30. Your savings account might show the same number, but you’re able to buy less every year.
If you have cash sitting in the bank, you are losing money to inflation—even if the balance never changes.
This is not a new problem. Throughout history, over 6,000 currencies have failed. The average lifespan of a fiat currency is about 27 years. The current system, backed by government decree rather than tangible assets, has been in place since 1971, when the US abandoned the gold standard.
Why Precious Metals?
Precious metals, particularly silver and gold, have maintained value for thousands of years. They cannot be printed, inflated away, or devalued by central bank policy. They are tangible, portable, and universally recognized.
Here is what makes them a compelling investment opportunity for business owners:
Inflation Protection
When currency loses value, precious metals typically rise in price. This inverse relationship makes them a natural hedge against inflation.
No Counterparty Risk
When you own physical silver or gold, you own the asset outright. There is no bank, government, or third party standing between you and your wealth.
Portfolio Diversification
Precious metals move independently of stocks, bonds, and real estate. When traditional markets decline, metals often hold steady or increase.
Privacy and Control
Physical metals offer a level of privacy that digital assets and bank accounts cannot. You control the asset directly.
Silver vs. Gold: Which Makes More Sense?
Both metals have their place, but there is a compelling case for silver—especially for Canadian investors just starting out.
Silver is more affordable. You can begin building a position with a few hundred dollars rather than several thousand. This lower entry point makes it accessible for business owners who want to test the waters before committing significant capital.
Silver also has industrial demand. Unlike gold, which is primarily a monetary metal, silver is used in electronics, solar panels, medical devices, and countless industrial applications. This dual demand—monetary and industrial—creates additional price support.
Another advantage is that the gold-to-silver ratio historically sits around 15:1. Right now, as of 2025, it is closer to 80:1 or 90:1. That suggests silver is undervalued relative to gold.
For business owners looking to preserve purchasing power without tying up large amounts of capital, silver offers a practical starting point.
What About RRSPs and Traditional Investments?
This is a question we hear often as accountants. If you are already contributing to an RRSP or holding a diversified portfolio, why add precious metals?
The answer is simple: RRSPs and traditional investments are denominated in currency. If the currency loses value, your portfolio loses purchasing power—even if the account balance grows.
You might see your RRSP grow by 5% in a year. But if inflation is running at 6%, you are actually losing ground.
It is important to note that precious metals are a complement for traditional investments, not a replacement. A small allocation, typically 5% to 15% of your portfolio, can provide stability and protection without disrupting your overall strategy.
How to Get Started Investing in Precious Metals
If you are considering precious metals, we have a few practical steps.
Start Small
You do not need to overhaul your entire portfolio. Begin with a modest allocation and adjust as you become more comfortable.
Buy Physical Metals
Avoid paper proxies like ETFs or mining stocks. Physical silver and gold offer the benefits of true ownership.
Work with a Reputable Dealer
Working with someone who understands the Canadian market and can guide you through the process is essential. Look for transparency, fair pricing, and a track record of service.
Store It Securely
Whether you choose a home safe or a third-party vault, make sure your metals are protected.
A Time-Tested Tool for Wealth Protection
Inflation is not slowing down. Central banks continue to expand the money supply. The purchasing power of your cash savings continues to erode. Precious metals offer a way to preserve what you have built. They are not a get-rich-quick scheme. They are a time-tested tool for protecting wealth across generations.
Get the full dive deeper into this topic in our latest Tax Talk podcast episode.
For more information about precious metal investments, connect with Luke directly on LinkedIn.
If you have questions about how precious metals fit into your overall financial strategy, reach out to us at Legacy Accounting LLP. We are here to help you make informed decisions about your wealth.
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