SMSF - Physical Silver/Gold possible?

Hi guys,

I don't know much about super having mine in an industry fund, but am interested in setting up a SMSF in the future.

I'm particularly interested at this point in time in Silver and Gold, and was wondering if it was possible to invest in physical bullion, and hold it in say a safety deposit box, or some other way.

I'm aware that places like the Perth Mint allow the holding of allocated or unallocated bullion as well which is another option, and was wondering if the former was also possible within a SMSF?

Also, while I'm on a roll, does anyone know of any good resources either online or book about SMSF's?

Many thanks in advance, and successful investing!

Martin

check out asx code "GOL" one share represents a beneficial interest in approximately 1/10th of one fine troy ounce of physical gold.

http://www.goldbullion.com.au

Hi Marty,

It is possible. You'd have to speak to a SMSF specialist to get it up and running. As YoungGun said, another alternative is to buy it on the ASX (well, get your super fund to, there are a few super funds who will let you buy any direct shares).

Keep in mind that commodities only have capital appreciation or depreciation and no income component, a bit like a rental property which is empty (or speculative shares), your not receiving the weekly rent which you may receive elsewhere (like a rental property with a tenant or blue chip shares, etc).

Cheers,

Dan

PS Before making a SMSF investment speak to an FPA registered financial planner who specialises in SMSFs.

Thanks for the replies guys.

Is there anyone out there who actually has physical gold or silver in their SMSF?

Marty

It's good to see that you are thinking outside the square.

I am not holding any gold at the moment.
If I was to invest in gold I think the easiest way would be to invest through the ASX because buying physical gold involves contracts, security arrangements, insurance in case of loss etc etc.

The SMSF deeds won't stop you from buying physical gold, but does it meet the sole purpose test which states that all investment activity has the sole purpose of providing retirement funds to the members of the fund?

Cheers

He's trying to say that you can rub it and feel rich
As this wouldn't meet the sole purpose test..

Cheers,

Dan

Hi, I would imagine that gold being considered a hedge against inflation, therefore a means of preserving wealth, would be enough to satisfy the sole purpose test, but I'm definitely no expert.

Gold has been considered "money" since the beginning of civilization, I'd be pretty peeved off if it was not allowed, especially considering what's been going on in the sharemarket since the credit crisis reared its ugly head. I think there are big things ahead for gold (and silver).

Cheers guys.

By the way, does anyone know any good resources for SMSF's, and/or any knowledgeable people on the subject in Adelaide?

Thanks

Hi Marty,

I was trying to say

"The object of the sole purpose test is to ensure that regulated superannuation funds (SMSFs) are maintained for the purpose of providing benefits to members upon their retirement, or their dependants in the case of the member’s death before retirement. The trustee of a regulated superannuation fund must comply with the sole purpose test to be eligible for the taxation concessions available to a complying superannuation fund" SMSFs - Sole Purpose Test - Wealth Within

Hence, if you rub it (for gold) or walk into it (if your SMSF owns a property) by deriving a benefit before retirement, it may not meet the sole purpose test, hence don't rub it or walk into it. Your SMSF specialist will be able to help you with this.

Cheers,

Dan

PS Speak to your Self Managed Super Fund specialist before making a SMSF decision.