Gold bullion skyrockets in RSPs and TFSAs

Holding gold bullion in registered accounts, exclusively from Questrade and Kitco, with storage at the Royal Canadian Mint

TORONTO, Jan. 31 /CNW Telbec/ - Gold bullion in registered accounts is on track to set record levels, four years after Questrade Inc. and Kitco Metals Inc. introduced the product in the Canadian marketplace.

This service, which is the only one of its kind in Canada, gives investors access to the U.S. gold spot market, allowing them to purchase gold for investment in registered savings accounts, such as RRSPs, RESPs and TFSAs. The gold is allocated and securely stored at the Royal Canadian Mint.

"The price of gold has climbed steadily since we introduced gold bullion trading in 2007," says Edward Kholodenko, President and CEO of Questrade Inc. "And so has the gold trading activity of our clients."

The price of gold was about $635 U.S. per ounce in January 2007. Today it is above $1300 U.S. per ounce, an increase of over 100% in four years. Consumer demand for bullion has increased at a faster pace. Gold trades with Questrade have grown 268% year-over-year from June 2009 to July 2010.

"Holding actual commodities in a registered plan is appealing for our clients. Not only can the investor avoid the management fees associated with funds, he or she will be able to take immediate advantage of market movement instead of waiting for a fund manager to invest on their behalf."

Owning physical precious metals in registered accounts was made possible in February 23, 2005, when the Canadian government amended investment regulations. Previously, Canadians could only own gold in RSPs through gold equities, funds and certificates. Questrade and Kitco partnered in January, 2007, to offer the first gold bullion RSP. The federal government expanded the number of registered accounts available to Canadians in 2008 with the introduction of the Tax Free Savings Account (TFSA).

Questrade registered accounts, including RRSPs, RRIFs, RESPs and TFSAs, are no-fee: there are no charges to open an account, no annual fee, and no inactive account fee. Available gold products are investment grade bars and Royal Canadian Mint coins with a minimum purity of 99.5%.

Questrade Inc. is Canada's fastest growing online broker and provides the self-directed registered accounts for investors. Kitco Metals Inc, a leading dealer of precious metals, will secure the gold products. The Royal Canadian Mint, with its world-class refinery and security protocols, produces and stores the gold.

Disclaimer:
Investment values (i.e. gold prices) may fall as well as rise and investors may not get back the amount invested. Past performance is not a guarantee of future performance. Questrade, Kitco and the Royal Canadian Mint do not provide investors with any legal, tax or accounting advice or advice regarding the suitability or profitability of a security or investment in an investment account. Investors assume full responsibility for transactions in their account and for their investment decisions.

About Questrade:
Questrade Inc., headquartered in Toronto, provides Canadians with high-speed, direct access trading to the U.S. and Canadian stock and options markets as well as forex trading. Since its inception in 1999, Questrade has demonstrated its competitive leadership with a combination of outstanding service, advanced technology and competitive pricing structures.

About Kitco:
Since its founding in 1977, Kitco Metals Inc. has earned the reputation as one of the world's premier retailer of precious metals. Their worldwide recognition is a tribute to the success of www.kitco.com, the most frequently accessed precious metals information website. From the onset, Kitco Metals Inc. has maintained a singular objective: to provide the highest quality customer care to the widest range of customers in its industry.

About the Royal Canadian Mint:
The Royal Canadian Mint, an ISO 9001-2000 certified company, is the Crown Corporation responsible for the minting and distribution of Canada's circulation coins. Additionally, the Royal Canadian Mint refines and produces bullion products and has set the standard for purity recognized worldwide.  In operation since 1908, the Royal Canadian Mint is one of the largest and most versatile mints in the world. For more information on the Royal Canadian Mint, its products and services, visit www.mint.ca.

SOURCE KITCO INC.

For further information:

QUESTRADE:
Lynn Suderman
Manager, Communications
lsuderman@questrade.com
Tel: 416.227.7642
www.Questrade.com

KITCO:
pr@kitco.com
www.kitco.com

ROYAL CANADIAN MINT:
Alex Reeves
Senior Manager, Communications
reeves@mint.ca
Tel: 613.949.5777
Cell: 613.884.6370
www.Mint.ca

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KITCO INC.

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