Overview
Self-Managed Superannuation Funds (SMSFs) in Australia can invest in gold as part of their portfolio.
1. Regulatory Compliance and Investment Strategy
- Alignment with Fund Documents: The investment must fit within your SMSF’s trust deed and written investment strategy.
- Sole Purpose Test: Gold must be held exclusively for providing retirement benefits. It cannot be used, displayed, or stored personally by trustees or related parties.
- Acquisition Restrictions: Cannot buy gold from related parties (e.g., trustees, family members) unless it’s a listed security or meets exceptions.
- Arm’s-Length Transactions: All purchases must be at market value, with proper documentation to prove compliance during audits.
2. Types of Gold Investments
SMSFs can invest in various forms of gold, each with different considerations:
| Type | Description | Key Pros | Key Cons | Examples |
| Physical Bullion (Bars, Coins) | Direct ownership of gold, e.g., investment-grade bullion (99.99% purity). Must be bought for metal value, not collectible premium. | Tangible asset, hedge against inflation. | High storage/insurance costs; less liquid. | Perth Mint bars, ABC Bullion coins. |
| Gold ETFs or Listed Securities | Indirect exposure via exchange-traded funds or shares in gold miners/holders. | Easy to trade via ASX, no physical storage needed. | Market volatility | PMGOLD ETF, Newmont shares. |
| Allocated Storage Programs | Gold stored in secure vaults (e.g., Perth Mint), with the SMSF holding title. | Secure and compliant; audited storage. | Ongoing fees; reliance on custodian. | Perth Mint Depository. |
| Gold Mining Shares | Stocks in Australian gold companies. | Potential dividends; easier diversification. | Company-specific risks beyond gold price. | ASX-listed miners like Northern Star. |
Choose based on your strategy—physical gold suits long-term holds, while ETFs are better for liquidity.
3. Storage and Insurance Requirements
For physical gold (not applicable to ETFs or shares):
- Approved Options: Use independent, secure facilities like bank vaults, professional depositories (e.g., Perth Mint, Guardian Vaults), or allocated storage programs. The storage must be in the SMSF’s name, with regular audits.
- Insurance: Mandatory to insure against theft, loss, or damage. Include it in the fund’s risk management, and keep proof for auditors.
4. Documentation Maintain records of purchases, valuations, storage agreements, and insurance policies.
