Benefits of Bullion in Super

Discussion in 'Superannuation' started by Ausecon, Nov 19, 2011.

  1. Ausecon

    Ausecon Member

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    Hi - assuming one is looking to invest in bullion, and is of working age, paying above 15% tax, why would one buy bullion in an SMSF, when presumably you would save more from buying out of super (though tax on interest for example if in TD etc).
     
  2. hiho

    hiho Active Member Silver Stacker

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    umm there is no tax on bullion mate unless you sell for profit then the CGT cuts in, however assuming you hold the bullion for 12 months then the CGT is reduced to 10% from memory

    I think you need to discover that gold and silver are not an investment, they are a preservation of wealth. Gold and silver do not appreciate in value, it is fiat currency that depreciates in value
     
  3. boston

    boston Well-Known Member Silver Stacker

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  4. Yippe-Ki-Ya

    Yippe-Ki-Ya New Member

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    Unfortunately that ruling was made before the thieving CGT was introduced.

    However, I still believe that a case could be made that bullion does not appreciate in value and hence CGT is not payable.
    CGT on bullion is simply theft using inflation
     
  5. Ausecon

    Ausecon Member

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    Thanks guys, i think you misunderstand my question.

    My question is if I have $1k i could put it in the bank or buy gold/silver.

    If i buy in my own name, I forgoe the interest on the 1K and save paying tax in the interest (at a rate presumably greater than 15%).

    If i buy in an SMSF, i forgoe the interest on the 1k and save paying tax on the interest at 15%.

    So by buying outside of super, i am better off on a net basis after tax.

    My question was directed at the opportunity cost on the interest, not the capital appreciation.

    Any thoughts?
     
  6. hiho

    hiho Active Member Silver Stacker

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    wouldnt you be better off buying gold in both circumstances?
     
  7. perthsilver

    perthsilver Member Silver Stacker

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    Depends what other choices you have to invest in with your super. Id rather have a percentage of my super in something tangible, than 100% paper assets, like shares or cash, that can crash to nothing or be inflated away.
     
  8. nonrecourse

    nonrecourse Well-Known Member

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    Spot on Hiho about preservation of wealth as opposed to speculating for a capital gain. Having said that with fiat the way its going appreciation for the next 20 years is almost a given. There is also no CGT if you hold onto your gold or silver until you go into pension mode and then sell it.

    Kind Regards
    non recourse
     
  9. Matthew 26:14

    Matthew 26:14 New Member

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    Super AT PRESENT is the best (from capital available+tax benefits) method of investing but THEY KEEP CHANGING THE RULES!

    And so if you are in your 50's then super is more of a "known" than if you are in your 20's or 30's.

    For example, the old age pension has been raised from 65 to 67. If you are in your 30's now, I bet that by the time you reach 60 in say 25-30 years time, the preservation age of Super will not be 60 anymore, more like 65.

    And the argument will be that "oh people are living longer" and all that usual crap. The fact is, Governments want money held in Super for as long as possible so that:

    a) People will work into older age
    b) The funds kept in Super get to be taxed longer (currently if you are under 60 its at 15%)
    c) The Fund Managers get to play around and make hefty commissions off the sheeples money who dont have an SMSF or havent bothers to condense funds or shop round for low fees.

    Whichever way you turn, its about screwing the little guy (by that I mean YOU!) out of accumulating and using your own money as much as possible.
     
  10. Yippe-Ki-Ya

    Yippe-Ki-Ya New Member

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    The merits of having a socialist/fascist form of government... ENJOY!
     

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