Fellow SMSF investors, We have recently have had several inquiries into which bullion product is the best to buy with your SMSF money. A lot of people enjoy purchasing what we deem as the "collectable" bullion product - the American Eagles, Canadian Maples, Perth Mint Designs (lunar horse, Koala, Kookaburra, etc) and so on. The design of the product is often an attractor, but it comes at a initial heavy price. A "collectable" bullion product is usually a year minted product, and one with limited quantity of production. While the value of a collectable product can dramatically increase in a few years after the initial purchase, you are limited to selling them on the second hand market via avenues like eBay, private collectors or forums such as silver stackers to see the best return. And the price you try to sell these collectable bullion products for is subjective depending on how collectible the product is. For example some years of the Koalas sell well and fetch a fair increase above spot, but other years they do not. They are the same product, generally the same mintage amount, but the people's take on the design can affect its value year to year. If you are going to invest your SMSF into precious metals, then the plain genetic gold and silver products in bar form are the best way to go because: 1) Their initial price above spot is significantly lower than collectable products 2) They are readily available from most dealers and distributors 3) When it comes to re-sell, you can always base your price on spot, and it is not subjective to a collectible value 4) Plain generic products are more recognisable as investment tools for precious metals than collectable ones, increasing your market for re-sell 5) Investing in collectables opens you up to additional rules from ATO, where as plain bars are not seen as collectables and therefore has less restrictions As a SMSF is a long term investment, chasing the collect-ability of a bullion product can be exhaustive and often not as beneficial than if you invest in plain generic products. In the end silver is silver, and gold is gold. For collectables all you are paying for is a fancy design, and the possibility that the collect-ablility of a product will sky-rocket. Why take the additional risk? If you would like to know more about using your SMSF for precious metals, drop us a line at [email protected] Or you can visit our newly formed SMSF information section here https://www.bullionfoundry.com/smsf.php Thank you - The Bullion Foundry Team www.bullionfoundry.com
http://www.ato.gov.au/Super/Self-ma...-personal-use-assets---questions-and-answers/ Here it is, straight from the proverbial horses's mouth.
Thanks for that great piece of info! As you can tell, investing in the coins using your SMSF ads that unnecessary piece of complexity to your investment. This adds to the reason why investing in the plain bar products makes sense when using your SMSF.
The above is from a poorly written FAQ, not from legislation. Interesting that XAG bullion rounds are therefore NOT collectible as their metal value can by definition NEVER be more than than their face value.
The regulation including coins is too out of date and ambiguous. A 1kg coin of Ag worth ~$800 today with a $100 face falue will never be traded at face value. Sale for 10kg coins, what is their face value. Platinum coins can be $200 face value. The face value of coins today by the nature that the mints release them in is irrelevant.
How about buying bars...is there anything stopping me buying that lovely 100oz bar Engelhard from Perth Bullion, which is like $120ish more expensive than a Perth Mint ones? Do they work on certain percentage of spot?
