Can I invest in precious metals like gold and silver through Selfmade?
You can invest in precious metals like gold and silver through Selfmade, although there are some rules to comply with.
There are many ways to gain exposure to precious metals. Here are three main ways to invest in gold, for example.
Exchange traded funds - you can purchase gold-based exchange traded funds (ETF’s). This can be done on a trading platform such as the Macquarie Online Trading platform, which every new SMSF gets when set up through Selfmade.
Gold bars – you can purchase physical gold as an investment. Trustees are responsible for deciding how to store the gold. Many trustees choose to store their gold in a professionally managed storage vault or a mint for security reasons. The independent SMSF auditor will need to be satisfied each year that the storage vault is a genuine investment service. It is prudent therefore to choose a reputable one.
Gold coins – while it’s possible to invest in gold coins, extra rules apply since these will count as collectables under the super laws. Selfmade may charge non-standard fees if this type of investment is made, since it’s more complex to administer. You should check with Selfmade before investing in collectables. In general terms, SMSFs that invest in collectables must:
- not use the collectable for personal enjoyment of a member or a related party
- not be stored in the private residence of a member or related party
- buy the asset in the SMSF’s name and insure the collectable within 7 days of purchase
- use a qualified independent valuer to determine the market value on sale
The same rules generally apply to other precious metal investments.