Invest in Physical Gold and Silver

ESUPERFUND clients are permitted to invest in Physical Metals and Commodities including Gold and Silver directly.  Important information when purchasing Physical Metals in your SMSF is detailed below.

How to Purchase

It is at your discretion as the SMSF Trustee as to how you purchase Physical Metals.  It is however preferred that Physical Metals is purchased using a reputable dealer such as the Perth Mint, noting that this is not compulsory at this time.  You should however not acquire Gold and Silver Jewellery which can be used for personal use in your SMSF.  This is strictly not allowed.

Purchase Documentation

The purchase of Physical Metals must be made in the name of your SMSF.  At financial year end ESUPERFUND will request a copy of the Purchase Documentation evidencing the purchase of the Physical Metals.  Detailed below are examples of the name to be included on the documentation when purchasing Physical Metals:

Example 1:

If your SMSF has Individual Trustees (eg Barney Spot and Buffy Spot) and the SMSF Name is Spotty Superannuation Fund then the purchaser on the Purchase Contract will be:
Barney Spot and Buffy Spot as trustee for the Spotty Superannuation Fund.
All Trustees of the Fund must sign the Purchase Contract.

Example 2:

If your SMSF has a Company Trustee (eg Spotty Pty Ltd) and the SMSF Name is Spotty Superannuation Fund then the purchaser on the Purchase Contract will be:
Spotty Pty Ltd as trustee for the Spotty Superannuation Fund.
All Directors of the Company Trustee must sign the Purchase Contract.

Minute the Purchase

When you purchase Physical Metals for your SMSF you will need to minute how the Investment conforms to your Investment Strategy.  Typical reasons for the purchase of Physical Metals are for capital appreciation, a hedge against inflation or a hedge against a depreciating currency.  A Standard Minute can be found here.

Evidence of Holding at 30 June annually

At financial year end ESUPERFUND will request details of the Physical Metal Holdings at 30 June and the market price of the Holding at that date.  Typically Holdings Statements are provided by the Dealer you purchase the Physical Metals from.  If you cannot source an external independent Holdings Confirmation at 30 June, confirmation of the Holdings at 30 June by you as the SMSF Trustee in writing will be acceptable.

Storage

It is at your discretion as the SMSF Trustee as to how you store the Physical Metals.  It is however preferred that Physical Metals are professionally stored in a third party vault with for example a Bank or a reputable Dealer such as the Perth Mint.  Whilst it is possible to store Physical Metals in a home safe the reasons for doing so will need to be included in the Purchase Minute prepared when purchasing the metal (see above). 

Insurance

It is at your discretion as the SMSF Trustee as to whether you insure the Physical Metals.  It is however preferred that the Physical Metals are insured.  In particular to the extent that the Physical Metals are stored in a home safe it is strongly recommended that they are insured.  If they are not insured, again you must minute why you have elected not to insure the Physical Metals.