I recently sought clarification on if you could store PM's in a home safe and the reply I received was "The storage of the metal can be stored as deemed appropriate by the Trustees". For those of you who have setup your own SMSF and bought gold/silver, what direction have you gone with storage? A home safe or have you stored it in a security vault/bank vault? Experiences with audits if you have stored it in a home safe, any issues?
It would be a variety depending on the different people. The answer you got is why i like the idea of SMSF because it gives you control (good or bad) of your own money as the trustee. ps i would think alot of SMSF PM is stored at the bottom of the harbour.
kek - you are pretty much correct as per your comments on the first line. Its the response i also received from the auditors i will be using for my SMSF audit end of this year.....
Never had an issue. Up to the Trustees of the SMSF where/how the metal is stored. At the end of the day, as long as they acted "reasonably" if something goes wrong, you'll be ok. What's reasonable? I'd say a home safe would be reasonable but storing your metals in an unlocked car isnt. But then again it might be unreasonable to store say $1M in gold in a home safe but reasonable to store say $20k in a home safe. Its a pretty logical type of test. Just keep all the paperwork from the buying of your metals and make copies of them just in case so when you go to sell you have accurate records to calculate your "buy" price when working out Cap Gains / Loss. Also make sure you put in your SMSF Deeds that metals is an authorised investment class. www.esuperfund.com.au is a good place to setup for about $600 a SMSF and only costs like $200 a year in fees to run. Their "proforma" rules allow purchases of metals in the SMSF.
I have spoken to my local Bank branch and have arranged for a locked box (about shoebox size) to be stored in their vault at a cost of $65 per year. It is up to me to arrange insurance for whats in the box but the bank does not want to know whats in the box. Just have to find a good insurer for this purpose now.
Why would you insure the contents? The probabilities of a locked box theft are pretty darn low. If stored in your house sure 1 in 40 or something a year are broken into but a locked box in a bank, extremely unlikely.
Probably true - but on the other hand that would also mean that the cost of the insurance should be pretty minimal, right?
This is what i am thinking but i want to find the price of the insurance and if its good value i will take it..If its not good value i may spread the stash across a couple banks or so..i guess it depends on how much you are putting in one place as to value of getting insurance for it. If anyone has a hint to which insurer for this pupose i am all ears for suggestions.
I'm sure your stash will be safe with the greatest thieves in the world... Banksters. There are a few vaults around that do storage and insurance in one for around $200 a year.
there is already extensive info on the topic of insuring PM and the issue of storing PM in bank vaults, deposit boxes and private storage facilities......just do a search.....PM storage.....
