Gold Investments

An SMSF can purchase gold and silver. Remember to have the invoice for the purchase of metals made out in the name of the SMSF and make sure it’s an allowable investment per the investment strategy.

There are three relatively easy ways to buy gold or get exposure to the gold market:

With providers like Ainslie Bullion, Perth Mint or Bullion Capital you can buy gold coins or gold bars and elect to take physical delivery of the bullion or have it stored securely under a custodial arrangement. The Perth Mint is backed by the WA Government. You’ll need to open an account and go through full identification checks – so allow about a week to get an account set up.

So, what are the costs to trade? For a 1kg gold bar, the spread is around $1.50/oz or 0.10% and the execution fee is around 1.00%. The storage fees on a 1kg gold bar will also be less than 1.00% for the year.

Download more information about Gold Investments

 

Getting started

One of the providers noted above is Bullion Capital and there is a brochure explaining  more on gold allocation. To open up a gold purchasing account with Bullion Capital, click here.

Commission

We do not receive any commissions from any of the providers noted above.

 

Collectables

Make sure your SMSF purchases precious metals for the weight value of the metal. If there is a premium for the metal because it is in coin form, it is classified as collectables under the SIS act. The Tax Office has introduced a set of more stringent rules when investing in collectables and personal use assets. For more info, please see our collectables and personal use assets page.

 

  • Duncan

    Is a SMSF the only way to purchase precious metals with super? I.e. Can it done via comerical super fund?

    • Hein Preller

      Duncan, as far as I know, no other type of super fund allows for an investment in precious metals. The only way to have control of your super and invest in this asset class is to set up an SMSF.
      Its this flexibility that make people set up an SMSF. You can do a Google search to confirm.
      Thanks

      • Duncan

        Thanks Hein. As I suspected. I will have do more research on SMSFs.

  • reg

    If I was to purchase physical gold bullion bars in my SMSF and take delivery of said bullion what are the initial and ongoing year on year audit requirements to satisfy the act rules . I wil not be using a storage facility so there will be no storage statement..
    How do I ensure “comfort over valuation and existence” as an audit requirement.
    Thanks in anticipation of your help.
    Reg

    • Hein Preller

      Reg, please send us a dated photo at year end showing the metals, displaying the serial numbers of the bars. We will also ask you to do a representation letter, so you tell us the quantities owned. This will confirm the existence of the asset.
      For valuation, we will use year end rates to determine the year end market values for the gold and silver. We will reflect these market rates in the Financial Statements of the SMSF.
      Also remember if there’s buys and sells during the year to send us those invoices.
      Thanks

  • Norzaini Amin

    I’d like to set up an individual SMSF Fund to invest in Precious Metals but only have 37K in my super. how would i go about setting this up?

    • Hein Preller

      Norzaini,
      Your question seems to have two parts to it, namely is $37k enough to set up an SMSF and how do you purchase metals in an SMSF.
      I can answer as follows:
      1. There’s no legal minimum or maximum amount you can have in Super. Its ultimately your choice. In an SMSF there’s a fixed fee, so if your balance is low, the annual charges may be a relatively bigger portion. However, you may still want to proceed if you plan to add substantial amounts to your SMSF or want to control your assets in a class not offered by retail or industry super funds;
      2. To get the process going, apply on our website: http://www.smsfwarehouse.com.au/smsf-setup/
      We will give you a call to discuss. But remember its ultimately your decision and it has to work for you.
      Keep well,
      Hein

      • Norzaini Amin

        Thanks for the reply, another quick question, when I proceed to the signup page, the form requires “compulsory” two trustees. that would be me and another investor? (partner). but what if I wanted this to be an individual setup?

        • Hein Preller

          Norzaini,
          An SMSF is a type of Trust and therefore needs either:
          1. Two Trustees as individuals, note you can be the only Member
          2. A Corporate Trustee
          In an SMSF you have two capacities, that of a Member (money in the SMSF) and each Member must be a Trustee (a Trustee act like a manager for the SMSF). The second Trustee does not have to be a Member.
          You can ask a spouse, friend or sibling to be a Trusteer with you in the SMSF. They do not necesarily have to be a Member though. More on Trustees duties and guidance can be found on this page, especially the second booklet, discussing Setting up an SMSF:
          http://www.smsfwarehouse.com.au/smsf-guide/
          Trust this helps

  • Che Guy

    Hi Id like information please on rolling over my Super to a SMSF to
    purchase bullion. Im a single entity, I have a registered P/L company,
    and I have $100k plus in my current Super account. Can you provide information whether this is possible? Thanks, Che

    • Hein Preller

      Che, if you have an existing company to use as a corporate Trustee, we can utilise this and would therefore not charge you to set up a company. You will only pay the $150 to set up an SMSF.
      To proceed, click on the orange tab on top of this page, noted as “SMSF Setup”. Go on to the individual set-up section so it cost you $150 only and add the name of the company in the notes section. As it will ask you for details of a second Trustee, add any info in there, just a fake name or repeat your details in order to go through to the next screen. We will phone you and discuss before we set it up with the ATO.
      Trust this answers your question.

  • Jas

    What are the insurance requirements for taking physical possession of your smsf’s gold. We would want to keep it in our home.

  • Scott

    A few people below have mentioned about ‘Taking Possession’ & ‘Physical Possession’ of the bullion and ultimately not paying any storage fees. I was under the impression that you cannot in any way benefit from any SMSF asset, i.e you cannot store it at home?

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We are Melbourne based with clients throughout Australia. Our SMSF administration service is mostly paperless. This enable us to charge a fair fee, resulting in a good value-proposition for you.

No Advice

Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.