How to buy gold and silver with a self managed super fund (SMSF)

WHAT IS AN SMSF?

When it comes to physical bullion, the only way to buy gold in super is through the creation of a self-managed super fund (SMSF).

An SMSF is a superannuation trust that has the primary purpose of providing retirement benefits to the members, where the members themselves act as trustees and plan their own independent investment strategy. This means that the members control and run the superfund, and choose what assets to invest in, which can include precious metals, and other asset classes that may not be available as an investment choice in a retail or industry super fund.

There are many companies and financial institutions that offer the service of setting up an SMSF and advising clients on the specific details, so it is best to seek professional advice independently.

If you already have an SMSF established you can simply create a Bullion Account account here.

HOW AN SMSF WORKS

Once an SMSF is established, all fund flows in and out of your SMSF bank account. SMSFs can accept contributions and rollovers from many sources. Some of the most common contributions are:

• superannuation guarantee contributions (employer compulsory contributions)

• from your employer where you have salary sacrificed

• personal contributions (voluntary contributions) – concessional and non-concessional

• transfer or rollover from another super fund.

The diagram below is a simple illustration of how an SMSF works.

BUY GOLD OR SILVER USING YOUR SMSF

If you already have an SMSF, you can register an account with both Guardian Gold and Guardian Vaults under the name of your fund, in order to buy gold using your super. You would also need to provide a copy of the SMSF trust deed, ABN, and ACN of any companies acting as trustee, along with a few forms of ID documents for the individual trustees.

Ordering metals works the same as an individual account transaction, with the price locked in and payment made via BPAY or bank transfer within the hour. You can then also establish a storage option under the name of the SMSF.

Due to the sole purpose test, only SMSF related documents and investments can be stored in your SMSF safe deposit box and nothing else. Many of our clients will have two separate safe deposit boxes, one for their individual investments and one for their SMSF.

SMSF STORAGE AND AUDITING

Stroing metals with an SMSF is easy and you can store remotely using our Key Registered Vaulting option at no additional cost above our standard lease fees.

Each SMSF goes through an end of financial year audit of the fund. During this time, you can arrange an inventory statement from Guardian Vaults that lists your holding and valuation at end of financial year, which you then forward on to your SMSF accountant.

Our experienced staff check and verify your precious metals and email you a statement and photograph of your holdings in your own unique deposit box or safe.

We only charge $40 +GST per 30 minutes for a metal inventory, with the vast majority taking less than 30 minutes.

See more on our storage options here.

IS AN SMSF RIGHT FOR ME?

This is something we cannot help with. An SMSF is not right for everybody, it would depend on your individual circumstances. Guardian Gold cannot provide advice as to whether an SMSF is suitable for you or not. This is something you would have to research independently or seek professional financial advice externally.

HOW TO SET UP AN SMSF

The setup of an SMSF usually starts by engaging with your accountant, financial advisor or SMSF admin firm.

An SMSF administration firm assists in the establishment and ongoing accounting of the SMSF. There are many examples of different firms that provide unique solutions at different prices, so it pays to shop around and find advice.

For those who already have an SMSF established, you can simply register an account with us and choose SMSF as the client type. With a long history of helping SMSF clients through their precious metals investment journey, you can feel free to call us at any time if you have any questions.

Our seamless solution should make the process as easy as possible, with purchase, storage, insurance, audit statements and liquidation of your investment all in the one place.