Is It Crazy to Hold Gold in your Self-Managed Superannuation Fund?


Do you have a Superannuation fund? Self-Managed Superannuation funds allow you to take control of your financial planning for retirement. The term basically means you get to basically do-it-yourself superannuation fund. This gives you greater control on how you can invest to maximize the returns you will get. If you decide to do your do-it-yourself, you need to be aware of the compliance issues tied to SMSFs. Basically, you can use your SMSF to invest in high return assets like gold bullion. 

Why establish an SMSF?

The main reason why you would want to establish your own SMSF is to have an increased level of control, to have the freedom to make your own investment choices and the flexibility to look at other options like gold SMSF. You are basically the trustee of your own fund and major investment decisions fall on your head. 

Your SMSF can be used to invest in investments that are generally not available to the public. There are legal restrictions and limitations as well as regulations that you need to adhere to. This makes it possible for you to customize your SMSF portfolio to suit your precise requirements. 

Like all compliant super funds, SMSFs are subject to tax (at a concessional rate of about 15%). However, the tax concession is available to compliant funds, which are basically Superannuation funds that comply with all the rules as set out by the Australian Tax Office. 

There is a lot that can do to make the most of your self-managed Superannuation Fund. You can invest it in other assets. Some use it to invest in property but most choose to invest in gold. Before you branch out and look at other ways of maximizing returns from your SMSF, take time to investigate the benefits or disadvantages of investing in other asset classes and choose what will work best for you. 

Why Gold?

In these times where everything seems to be digital and virtual, hard currency is becoming a little less useful. The value of money almost sound like something conjured out of nothing. We don’t have bank books, ATMs are becoming less available and money is less tangible. 

Currencies are susceptible to geopolitical issues, falling economies, inflation, etc. a lot of countries have seen a lot of their currencies being rendered obsolete. There is something satisfying about having something that is less susceptible to falling economies and inflation like gold to rely on. It is tangible and from time immemorial, it has been highly regarded and used as currency the world over. There is something about putting your money in something tangible instead of stocks and bonds which can feel a little ephemeral. 

Let’s just go through some of the reasons you might want to buy gold bullion SMSF

  • Gold goes up when shares and other investments decline. It provides stability to your portfolio.
  • It acts as a safeguard against inflation
  • You only pay sales tax when you buy gold bullion but you don’t have to pay capital gains tax when you sell. 
  • You can own gold discretely with no one ever needing to know you have gold stashed away in some vault.   
  • You can use gold as currency to buy or sell even if you woke up one morning and found that your country’s currency has lost its value overnight.  

How to buy gold for your SMSF?

If you decide to buy gold bullion SMSF make sure you buy it from a reputable dealer. Choose a dealer that can do more than sell you gold but actually specializes with SMSF gold investments and will have a better understanding of how gold investments for Self-Managed Superannuation funds work. 


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