SMSF GOLD AND SILVER ACCOUNTING [Best Step By Step Guide]

By September 22, 2021 September 26th, 2021 Blogs

A self-managed super fund (SMSF) is an excellent way to save for retirement since it gives you investment choice and full ownership and control over your investments and fund. SMSF Gold and Silver Accounting investments are one option for adding diversity, security, and value to your SMSF portfolio.

Gold and Silver has held their value and appreciated over decades, and these assets are uncorrelated to conventional assets like property and shares and are frequently regarded as a safe haven or market hedge assets, that may protect your wealth and hedge against inflation, and market downturns when financial markets are volatile.

SMSF Gold and Silver Accounting in an SMSF Portfolio:

Purchasing gold and silver bullion gained increasing popularity with SMSFs and their members, given the risks perceived in conventional investment asset classes. Industry and Retail super funds typically do not allow for the direct purchase of gold and silver or any collectible or Bitcoin asset in an SMSF. Adding Gold and Silver bullion allows younger and older Australians to manage their SMSFs risks and diversify their portfolios to improve returns. Gold and Silver bullion has become an asset of choice for many SMSF members approaching retirement in an SMSF.

My SMSF / My SMSF Property has a good history of supporting SMSF investors in alternative asset classes such as Gold and Silver Bullion and Crypto, Pink Diamonds. Having developed competencies over the last seven years in collectibles, including physical Gold and Silver bullion and other metals, My SMSF has one of the cheapest prices for SMSF Gold and Silver Accounting.  Many gold dealers and existing clients refer to our services, due to our low cost, experience, and knowledge of Gold, Silver, Metals, and Collectables SMSF Administration services with experienced auditors and tax accountants available to support our clients.

Securing, storing Gold, Silver, and Metals in an SMSF:

Physical gold and silver investments require special storage for safeguarding, and precious metals purchased through SMSFs are no exception.

Using a private third-party bullion vault-like Ainslie Bullion, or Custodian Vaults to keep bullion safe and secure is an option many of our clients utilize. These bullion providers offer to purchase, storage and valuation, and insurance for a reasonable fee. This compares very favorably with the second of self-storage at an SMSF Members’ home or business.

There are a variety of options to keep your valuables safe, such as deposit boxes and bullion vaults, which include sophisticated protocols and cutting-edge technology to safeguard your valuable bullion assets which are held in an SMSF.

Investing in gold and silver collector coins vs physical Gold and Silver:

SMSF Gold and Silver Accounting is very different from collectible coins. SMSF investors need to understand that the treatment from a tax and audit perspective and importantly from a value perspective is different for collectible compared with physical bullion assets such as Gold and Silver.

Gold coins labeled as “gold bullion coins” are essential, considered collectibles and not bullion, so SMSF investors need to be aware of the treatment of collectibles compared with Bullion. If you have collectible gold coins in your SMSF, you are subject to rigorous regulations.

You cannot hold these collectibles in the home of the SMSF members or gain any personal or present-day use of the asset.  Practices such as storing in a related party home or leasing to related parties of the SMSF members; referred to as part 8 associates; are a serious breach of super laws.

SMSF members, trustees must document all decisions on the safekeeping of valuable coins in writing, and the assets must be insured.

ETFs are used by SMSFs to invest in Gold and Silver:

With the development of exchange-traded funds (ETFs) on ASX, SMSF trustees can now get exposure to bullion through an ETF instead of having to store and manage physical gold.

These ETF funds often are a synthetic investment in Gold where some funds like the Perth Mint PMGOLD fund hold the equivalent gold that the fund performance and returns are based on.

ETFs are a good and simple way to gain Gold and Silver without the extra cost and responsibilities of storage, values, and ensuring Gold and Silver Bullion assets.

What method is used to audit the Bullion?

The auditor of the SMSF is primarily concerned with confirming that the gold exists/still exists (Existence) and that it is appropriately valued when auditing an investment that falls outside of the usual list of financial products; shares, bank accounts, etc., that can be easily checked with a bank or broker (Valuation). We meet the auditor’s requirements by:

  • Proof of purchase via a Deposit or purchase receipt is required for confirmation of the asset

  • Vault Providers provide a valuation statement or holding statement of Value for a fee

  • Insurance is often included by vault providers

  • Online valuations are more recently available for SMSF members

CONCLUSION:

When investing in gold or silver bullion in an SMSF, members have a choice between synthetic assets such as ETFs, SMSF Gold and Silver Accounting and Gold coins, and collectible assets. All of these types of assets have different characteristics, risks and return profiles, and import compliance and audit requirements.

How My SMSF Assists SMSF Gold and Silver Bullion Clients?

A growing number of SMSF members are investing in bullion assets to diversify and hedge against global market downturns.

At My SMSF we have extensive knowledge and experience completing auditing and tax work for SMSF holding Bullion, collectibles, and Diamond assets for one of the cheapest prices for this service in the Australian market.

Our auditors and tax accountants are comfortable and experienced where gold bullion instruments are invested in an SMSF.

Gold and Silver Bullion and collectibles are increasingly an asset of choice for many SMSF members and trustees. My SMSF has the expertise to assist and make the process of ongoing compliance of SMSF Gold and Silver Bullion easy for SMSF members. We offer a fixed price for SMSF Gold Administration and great support via our App.

To Know more about SMSF Gold and Silver Accounting visit our website:

https://www.mysmsfproperty.com.au/

 

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