How Gold Has Performed Against Super Funds
Let's look at a real example. If you'd invested $500,000 in gold in June 2009, when gold was $1,200 per ounce, that investment would be worth $2.67 million today with gold at $6,400 per ounce.
Compare that to the same $500,000 invested in industry super funds over the same period. The best performing fund would be worth $1.87 million today. That's $800,000 less than gold. The worst performing fund would be worth $1.38 million. That's a $1.3 million difference.
Over the last year, gold has been up 40% in Australian dollars. This year it's up over 50%. Industry super funds typically return 10 to 13% per year. Even in just the last few months, gold is up over 30% while super funds are up around 3%.
This isn't just a recent phenomenon. The last time inflation was as bad as it is today was in the 1970s. Between 1971 and 1980, gold went from $35 USD per ounce to $850 per ounce. Silver went from just over $1 per ounce to $50 per ounce. That's a 35 times return in 9 years.
Why Add Precious Metals to Your SMSF
How to Buy Bullion Through Your SMSF
Purchasing bullion for your SMSF is straightforward. The only difference from a personal purchase is the documentation we need to comply with superannuation regulations.
To transact with an SMSF, we require:
- Superannuation fund name, registered address, and contact details
- Superannuation fund ABN
- Trust deed showing who is eligible to act on behalf of the fund
- Personal ID for each director or trustee of the fund
If your fund has a corporate trustee, we'll also need a copy of your last annual company statement or company extract from ASIC.
You only need to provide this information once. We'll keep it on file for future purchases. We require all documentation before we dispatch your metal or make it available for pickup.
Storing Your SMSF Bullion
Storage requirements depend on what you've purchased.
Bullion Coins
Coins are classified as collectables under SMSF regulations. This means they need to be insured in the fund's name, stored independently in a secure facility, and audited regularly.
Bullion Bars
Bars aren't captured under the collectable rules. However, some SMSF managers still recommend independent secure storage. We're not advisors in this area, so check with your SMSF manager to confirm what's required for your fund.
Many of our SMSF clients use The Melbourne Vault for storage. It's located in the same building as Liberty Bullion at 257 Collins Street, Melbourne, which makes logistics simple.
