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:
- buying physical metals from a provider like Ainslie Bullion, Perth Mint or Bullion Capital,
- buying Gold Exchange Traded Funds (ETFs) and
- buying shares in Australian gold producing companies.
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
We may receive commissions from any of the providers noted above.
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.
Questions and Answers
Make sure gold and other precious metals are a valid investment option by reviewing the Investment Strategy of your SMSF. You can download an Investment Strategy template here.