Gold Investment in an SMSF

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Gold Investments in Australia

A lot of Australians are turning to SMSF to take control of their superannuity. SMSF is like any other kind of fund, except it allows members to take full control of their fund as well as hold more assets than any other type of super account, similar to the retail industry, or even corporate funds.

Diversification is important since it allows people to have balance in their assets and risk profile. If you want to buy gold using your superannuation, you need to have a Self Managed Super Fund (SMSF).


Can you purchase gold with a super fund?

Yes, an SMSF can purchase gold and silver. There are three ways to invest in gold or get exposure to the gold market using your superannuation.

  • 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.

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.
Investing in the precious metals market is a nice way to diversify your portfolio.

Buying physical gold using SMSF

Investors can use a part of their super for physical gold investments. In Australia, there are several bullion dealers who offer this kind of arrangement including the Perth Mint, Australian Bullion Company and Ainslie Bullion. Remember, owning physical gold comes with a huge responsibility. Investors may see a list of responsibilities associated in owning physical gold on on BullionVault’s site. One of the most important responsibilities that investors should keep in mind is to have a proper storage facility for the precious yellow metal. Insuring gold is optional when investing in it using SMSF.

Buying gold exchange traded funds (ETFs)

Investing in gold-backed ETFs is a cheaper alternative in getting exposure to gold. Gold ETFs can be found on the Australian Stock Exchange (ASX). They allow investors to buy gold-backed securities that are about 1/10th of a gold ounce in Oz dollars. Gold ETFs have a huge market and are in demand, making them a very attractive investment vehicle for investors.

Buying gold mining shares

You may also invest in mining stocks using your super funds. The best way to do this is to buy stocks using a brokerage service or buying shares at the IPO of mining stocks. You may also obtain gold mining shares through your company if it has connections to gold mining firms.

Visit Superannuation Warehouse’s gold investments page for more information on how you can get exposure to the gold market using SMSF.


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