PRECIOUS METALS & SUPERANNUATION
Investing in Gold & Precious Metals Through Your SMSF
Physical gold and precious metals can form part of a Self-Managed Super Fund investment strategy when acquired and held in accordance with Australian superannuation rules.
TRUSTEE SUPPORT
Support for SMSF trustees purchasing and holding physical bullion.
DIVERSIFICATION
A tangible asset class for a balanced SMSF investment strategy.
SECURE STORAGE
Private vault storage in Noosa for SMSF precious metals.
CLEAR DOCUMENTATION
Guidance on ownership, invoicing and record keeping.
UNDERSTANDING SMSFS
Can an SMSF Invest in Gold and Precious Metals?
An SMSF can invest in physical gold, silver and certain other precious metals, provided the investment complies with superannuation legislation, the fund’s trust deed and its documented investment strategy.
For trustees considering physical bullion, there is more to think about than simply choosing a gold or silver product. Ownership, invoices, record keeping, valuation, storage and eventual sale all need to be considered as part of the fund’s administration.
Sovereign provides a straightforward pathway for trustees who have already determined, with their advisers where appropriate, that precious metals are suitable for their SMSF investment strategy.
HOW IT WORKS
Buying Gold or Silver Through an SMSF
Determine your strategy
Before purchasing bullion, trustees should ensure precious metals are permitted under the SMSF trust deed and are consistent with the fund’s investment strategy.
Select your bullion
Choose from eligible physical gold, silver and precious metal products available through Sovereign Vault & Bullion.
Purchase in the SMSF’s name
The transaction and supporting documentation should correctly identify the SMSF as the purchaser and owner of the investment.
Arrange secure storage
Choose an appropriate storage arrangement and maintain the records required for the ongoing administration and audit of your SMSF.
PHYSICAL OWNERSHIP
Why Do SMSF Trustees Consider Precious Metals?
Gold and silver are physical assets with characteristics that differ from shares, cash, property and other conventional investments.
Some SMSF trustees consider precious metals as part of a broader diversification strategy or because they value direct ownership of a tangible asset. Gold in particular has a long history as a store of value, while silver has both investment and industrial uses.
Like any investment, however, precious metals involve risks. Prices fluctuate, returns are not guaranteed and trustees need to consider factors including diversification, liquidity, storage, insurance and their fund’s individual circumstances.
Sovereign does not provide personal financial advice. We recommend seeking independent financial, taxation and legal advice when determining whether precious metals are appropriate for your SMSF.
COMPLIANCE & DOCUMENTATION
SMSF Gold & Precious Metal Requirements
SMSF trustees are responsible for ensuring their investments comply with Australian superannuation legislation and the fund’s investment strategy.
Ownership & invoicing
Purchase documentation should clearly identify the SMSF as the owner of the bullion.
Investment strategy
The investment should be consistent with the fund’s documented investment strategy and permitted by its governing rules.
Related-party rules
SMSFs are subject to restrictions concerning the acquisition of assets from related parties. Obtain professional advice where there is any uncertainty.
Valuation & records
Trustees need to maintain appropriate records and provide information required for the fund’s annual accounts and audit.
Storage & evidence of ownership
Retain appropriate documentation regarding where bullion is held and be able to substantiate the fund’s continued ownership.
Insurance
Appropriate insurance should be considered as part of the fund’s approach to protecting physical assets.
SECURE BULLION STORAGE
Secure Storage for SMSF Gold & Silver
Where and how physical bullion is stored is an important consideration for SMSF trustees.
Sovereign provides private vault storage in Noosa for physical gold, silver and precious metals, allowing trustees to keep their SMSF bullion in a secure facility rather than at home.
Our team can assist with the practical process from purchasing bullion through to arranging secure storage and maintaining relevant transaction documentation.
GOLD & SILVER
Gold or Silver for an SMSF?
Gold Bullion
Gold is widely recognised as a physical store of value and is available in a range of investment-grade bars and coins.
Silver Bullion
Silver provides exposure to another precious metal at a lower price per ounce. It is available in bars and coins.
FREQUENTLY ASKED QUESTIONS
SMSF Gold & Precious Metals FAQs
Yes. An SMSF can generally invest in physical gold bullion where the investment is permitted by the fund’s trust deed, is consistent with its documented investment strategy and meets the sole purpose test. The gold should be purchased in the name of the SMSF and paid for from the fund’s bank account.
Yes. The same principles apply to silver as to gold. Silver bars and coins can be held by an SMSF where the investment complies with superannuation rules, the fund’s trust deed and its investment strategy.
Generally, no. SMSFs are restricted from acquiring assets from members and other related parties, and physical bullion is not one of the limited exceptions. Bullion intended for your SMSF should be purchased directly by the fund. Speak with your SMSF accountant or adviser if you are unsure.
SMSF assets must be kept separate from the personal assets of trustees and members, and must not be used for anyone’s personal benefit. Many trustees choose professional vault storage so there is clear separation and documented evidence of where the fund’s bullion is held. Your adviser or auditor can confirm what is appropriate for your fund.
Keep the tax invoice or purchase confirmation in the SMSF’s name, evidence of payment from the fund’s bank account, storage agreements or statements, and details of the items held such as product, weight and any serial numbers. The fund will also need a market valuation each year for its financial statements and audit.
No. Sovereign Vault & Bullion does not establish SMSFs or provide financial, taxation or legal advice. We recommend speaking with an SMSF specialist accountant, administrator or licensed financial adviser. Once your fund is established and precious metals form part of its strategy, our team can help with purchasing and storage.
Yes. Bullion owned by your SMSF can be sold, with the proceeds paid to the fund’s bank account rather than to an individual. Our team can explain the selling process and the documentation your fund will need.
Yes. SMSF precious metal investments must meet the sole purpose test, be consistent with the trust deed and investment strategy, and comply with related-party and in-house asset rules. The assets cannot be used or displayed by members or related parties. Some items, such as collectable or numismatic coins, may be treated as collectables and subject to additional rules. We recommend seeking independent professional advice.
PRECIOUS METALS, CLEARLY EXPLAINED
Considering Gold or Silver for Your SMSF?
If you have decided to include precious metals within your SMSF strategy, our team can help you understand the practical process of selecting, purchasing and securely storing physical bullion.