An SMSF is a self-managed super fund that gives you more control over where your retirement funds can be invested. We take a look at how you can invest in gold with your SMSF, as well as some of the advantages and disadvantages of SMSF GOLD AND PINK DIAMONDS investing.
SMSF Gold and Pink Diamonds investing in an excellent, unrelated growth or hedge asset that can diversify an SMSF investor’s portfolio to reduce concentrating assets in real estate, stocks, and fixed-income securities. So, Gold investments can provide diversification and are excellent assets for protecting against a broader market slump or improving portfolio performance.
- Gold has been a fantastic store of wealth for nations and individuals all over the world for millennia.
- Pink diamonds are rare, and the closing of the Argyle Mine in Western Australia would reduce supplies, causing prices to rise. Pink diamonds may be a great asset to diversify your SMSF portfolio as it is uncorrelated to conventional assets like property and shares.
Pink diamonds mined in Australia are becoming increasingly popular among SMSF investors. Because of their steady rise in price and low volatility, an SMSF can invest in PINK DIAMONDS just like gold, as long as it is purchased with an account in the name of the SMSF at market prices and from an unrelated third-party provider. When an SMSF purchases Pink Diamonds, the storage and safeguarding of the pink diamond assets are primary factors.
Staying Compliant with Super Laws:
- Assets must meet the ‘Sole purpose Test’ and it must be securely stored and insured.
- Every 1–2 years, assets must be valued to determine their value.
- Where you hold Pink Diamonds you must update your investment strategy, and establish an exit strategy.
My SMSF provides arguably the cheapest price Pink Diamonds, SMSF Administration services, for $1,100 per year, which includes tax and audit work. My SMSF is a cloud-based platform for SMSF administration services.
Is gold bullion an allowable asset in your SMSF?
Many SMSFs seek to balance risks by investing a portion of Self Managed Superannuation Fund (SMSF) funds, in physical gold bullion.
Finally, gold bullion is available in a variety of sizes and shapes. Gold is a great hedge asset and a great SMSF portfolio diversifier. Unlike real estate or shares, gold or silver bullion is uncorrelated to conventional assets, allowing you to improve your SMSF’s investment diversity. In times of market corrections, gold has historically appreciated where other assets have depreciated.
Updating your SMSF investment strategy for SMSF GOLD AND PINK DIAMONDS:
If you are setting up or currently have an SMSF, you must develop an Investment Strategy to serve as the framework for making investment decisions in your SMSF. The following are essential investing concerns, according to the ATO:
Diversification (investing in a range of assets and asset classes) the fund’s assets’ liquidity, as well as the risk and likely return from investments, to maximize member rewards (how easily they can be converted to cash to meet fund expenses). Diversification, the risk of losses, and poor returns have historically been met by gold and silver bullion and Pink Diamond investments in an SMSF. It is not common knowledge that SMSF’s can invest in Gold, Silver bullion, and Pink Diamonds, and investment choice and ownership and control, as well as tax benefits, are key reasons for establishing an SMSF. The percentage of different assets held in an SMSF portfolio is determined, by its members and trustees of an SMSF. Some SMSF members may employ an adviser to assist them if required, to help with investment selection and management.
Is it worthwhile to invest in pink diamonds?
Even during periods of economic hardships and financial turmoil, the price of diamonds has never decreased since its opening in 1983, many pink diamond prices have risen by 367% percent in the last 11 years alone, making them a good and secure investment with potentially higher uncorrelated returns.
Are the values of pink diamonds rising?
The value of Pink Diamonds has consistently ascended over the existence of the Argyle mine, attracting rich investors and self–managed superannuation fund trustees looking to diversify their holdings.
Is it possible to buy gold and Pink Diamonds with my SMSF?
In principle, an SMSF may hold GOLD AND PINK DIAMONDS as long as it is, purchased at market price, from independent providers in the name of the SMSF, and is insured and valued annually. When an SMSF buys gold bullion or Pink Diamonds, these assets must be securely stored, insured, and valued to meet the requirements of the super laws ( SIS Act 93)
- Gold has always been regarded as a scarce asset, a store of value, which is a key driver of its value growth. In an SMSF, gold is used as a hedge against both inflation and deflation, as well as a portfolio diversifier, by many funds.
- Gold, as a global store of value, may give financial security in times of geopolitical and macroeconomic turmoil.
- Pink Diamonds; although a very niche asset class; has fared well during periods of economic hardship and financial strain, the price of diamonds has never gone down since its opening in 1983. Many pink diamond prices have risen by 367% percent in the last 11 years alone, making them a safe and reliable investment with high growth potential.
- Commodity assets such as Gold and Pink Diamonds, have performed well in times of geopolitical instability and have retained their value. Gold bullion and Pink Diamonds have been referred to as “crisis commodities” because when global tensions mount, people flock to it for its relative safety; during these periods; and they often outperform other investments. Gold prices, for example, have seen some good growth value this year as a result of the covid crisis.
- Clients should seek advice or make informed decisions before investing in SMSF GOLD AND PINK DIAMONDS as the investment responsibility rests with them alone.