Just wondering if anyone can tell me the performance of $20k of gold bought with super money that the govt let people have during covid vs if it was left in super. I have a friend that wants to know.
For the simple fact that the money was extracted out of super the most regulated entity hands down into your personal account is well worth it. Think about it, its in your hands and there is zero regulation on it. Timmy
Assuming you made the purchases in end December 2020, you'd be better off in gold by approximately 7.5% Rough calcs (all in AUD) 1. Gold was $2589 giving you 7.725 oz, meaning at todays spot it would be worth $25,198* 2. A200 (assuming 100% super) was 110.87 meaning 180 units, at todays current trading price it would be worth $23,427** *** * don't recall the rules, but assume you'd have had some tax implications to extract the $20k from super ** less as your super would have had fees charged *** if you'd managed to add to the super prior December the return would have been much better Which option did the friend choose?
If it was Crypto such as ETH your 20k would be appprox 375k AUD If it was BTC im big guessing $73k AUD Just an interesting comparison. REDBACK
Thought my friend was doing great until you guys mentioned the crypto's. You had to go and ruin it didn't you!
A SMSF can purchase gold. It can also purchase global equities, property, cash and anything that qualifies as investment grade. This question is like saying what is longer, rope or string. The advantage of superannuation is tax. Let's assume tax is not relevant in the comparison. Therefore, making some assumptions, the question is actually, compare each of these asset classes: 1. Gold 2. Equities ( https://investor.vanguard.com/investment-products/etfs/profile/vt - VT is probably a reasonable proxy) 3. Property - VAP could be a proxy 4. Cash A few google searches will answer the question. Precious metals provide no income, unlike most other investments, but they are a hedge in certain situations and have a negative correlation with other assets, and therefore can be considered as a part of a balanced portfolio.
That's one ounce of gold... no btc https://coins.ha.com/itm/cryptocurr...btc-2012-pr68-ultra-cameo-ngc-/a/3118-32017.s
Looks like it was never loaded. Would've been pretty cool though - when Caldwell was selling these loaded in 2012 the price was US$5,500. Today a loaded one would be worth... US$59,7M (+ the ounce of gold).
I member the shit I coped for being in crypto years ago. Thankfully my wife reminded me it was all her idea in the first place.....
Approximately 75% increase for the AUD. Im taking this from the bottom of 2020 at $71 aud per gram. It’s a great result in anyones book, especially for those that don’t like to gamble on the sharemarket and crypto. The beauty is the increase in value is tax free and no cost to hold. Now if you consider inflation, bank deposit interest even super fund returns, gold has out performed by a country mile. I’m predicting a 100% plus increase since Covid by mid 2025
If you sell gold at a higher price than when you purchased it you will be liable for CGT. The cost to hold gold when you don't pay storage costs is referred to as an "opportunity cost" ie the profit/income forgone from holding one asset in preference to another asset that may provide an income stream or a greater profit.
What about CLR (Capital Loss Refund) ? Or is the Govt only a silent 3rd party in a transaction where you make money?
Net capital losses can be offset against capital gains. There are certain restrictions eg losses on collectibles can only be offset against losses on collectibles. I made my comment in order to caution members when making comments around tax compliance. Comments posted on this forum have been used in courts in the past.* * smiles and waves at the ATO web scraper.
OT, assuming a 5% annual return in a balanced portfolio (5% annual return is industry average for balanced funds) the SMSF portfolio would now be worth about $25000, gold about $30000. Depends upon the portfolio selected and fees and charges. For a visual, the XJO v Gold in AUD, gold is the red line: Anyone having done it would probably be sleeping OK now, some 4 years after mind you.
