What is a Gold SMSF / IRA? (Ultimate Guide for 2023)

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Gold IRA – Individual Retirement Account &

Gold SMSF – Self-Managed Super Funds

An real, physical quantity of gold, silver, platinum, or palladium bullion is kept in a gold IRA, also known as a precious metals IRA, as part of your retirement savings.

These are retirement accounts that have been set up with a custodian that is prepared to hold actual precious metals, including specific coins, bars, and rounds, and who has received government approval for holding Gold.

With a precious metals SMSF / IRA, you may diversify your retirement savings portfolio and protect it from inflation and stock market volatility.

With so many reasons to acquire Gold, let’s explore what a Gold SMSF and IRA are and how you might benefit from understanding them.

An Australian has over $500 million in super.
How is that even possible?

SBS News Article:

See details here

The Association of Superannuation Funds of Australia (ASFA) calculated how many self-managed super funds (SMSFs) had sizable balances based on information from Australian Taxation Statistics.

In a study published the previous year, ASFA identified 27 SMSFs, including the lone mega-fund with $544 million in assets, that each owned more than $100 million in assets.

Read more in the online article by SBS…

Self-Managed IRA's

You can have greater direct control over the assets in your retirement funds when you possess a self-directed SMSF / IRA, such as a gold or precious metals SMSF / IRA.

If you hold a mutual fund, a money manager decides when to purchase and sell without consulting you.

If you own stock, the Money Manager (CEO) will make choices without your input as a shareholder.

On the other hand, a self-directed SMSF / IRA allows you to manage all elements of your investments, including all purchase and sell choices for each asset.

You can no longer hold paper assets such as mutual funds, stocks, and bonds with self-directed SMSF and IRAs.

Inside your IRA, you can also possess hard, tangible assets such as precious metals, real estate, land, tightly held businesses, partnerships, and Limited Liability Companies (LLCs).

Several methods exist to invest in precious metals, including equities, bonds, mutual funds, and Exchange Traded Funds (ETFs).

Precious Metal Gold SMSF / IRA Custodians

Gold SMSF and IRAs are not supported by the majority of Stock Exchange financial firms and insurance companies that provide SMSF and IRA accounts.

This is because they are not designed to profit from gold or precious metal trades.

They are also not set up to function as an IRD-approved (Government) Individual Retirement or Superannuation Portfolio Account (IRA) custodian and depository facility, which is required to retain substantial quantities of actual Gold, Silver, and other precious metals.

The custodian often contracts with one or more secure third-party depository vault storage facilities to retain your coins, bars, or rounds on your behalf.

A Gold SMSF and IRA can be a Precious Metal or Superannuation Portfolio.

You can contribute to any account ifs you fulfil the income requirements for a Superannuation Portfolio IRA.

The terms “gold IRA” and “precious metals IRA” are interchangeable for this article.

Gold SMSF & IRAs are subject to the same tax and money-laundering regulations as a regular or Superannuation Portfolio IRA.

Gold IRA Benefits

A gold or precious metals IRA offers all of the benefits of a classic or superannuation IRA.

The specifics vary depending on the sort of IRA account you open.

Both types of IRAs are subject to the same tax and money-laundering regulations as a regular or Superannuation Portfolio IRA.

Gold Is Not Directly linked to Stock Markets

Nevertheless, with cash rates at historic lows and expected to remain so for some time, many trustees are asking what to do with the money sitting in cash and term deposits, which generally account for 20% of SMSF portfolios.

While purchasing additional shares in dividend-paying companies is one possibility, it just concentrates risk in their portfolios, as they are already exposed to share market swings.

Gold is an appealing option since it has a low connection to the Australian stock market, in contrast to other assets such as real estate investment trusts and overseas shares, which tend to move in lockstep with the local stock market.

Benefits of a Gold SMSF & IRA

Contributions to a standard Gold SMSF / IRA grow tax-free as long as the assets in the account remain in the account.

Because physical Gold does not pay dividends, dividend taxes are not a problem. Capital gains taxes are also usually not a problem.

Please talk to Tax advice for more details or the ATO – see below

Inside an IRA, you may purchase and sell an infinite amount of gold – or anything else – without incurring capital gains tax obligation.

How much tax do you pay on your superannuation?

Super contributions are normally taxed at 15%, and withdrawals are tax-free if you are 60 or older. Your super investment profits are likewise only taxed at 15%.

Further Info …

For additional information, consult your financial adviser or a tax specialist on Gold SMSF / IRD ATO Tax Regulations.

Disadvantages of a Gold SMSF / IRA

Gold SMSF & IRA accounts have the same drawbacks as regular IRAs or any other tax-deferred retirement plan.

Tax on withdrawals

The amount of tax you may pay on any withdrawals from your super depends on your age, when you were born, and your work status.

You may be able to access your super early under special circumstances like financial hardship or compassionate grounds. If you are under 60, any lump sum payments are generally taxed between 17% and 22%.

If you are 60 or older, you will not be taxed.


Advantages of a Gold SMSF / IRA

Lump Sum Withdrawals

You may be able to take a lump sum from your super account tax-free. To do so, you must fulfil a condition of release connected to your age and employment position.

When you may withdraw your super depends on your age, when you were born, and your employment position.

If you are under preservation age, the tax you will pay is 22%

The low rate cap** applies if you withdraw up to $230,000. You will have to pay no tax 0%.

If you are under the age of 60 and withdraw more than the low rate maximum of $230,000, the tax you will pay is 17%.

** Low rate cap amount. The low rate cap amount is the limit set on the amount of taxable components (taxed and untaxed elements) of a super lump sum that can receive a lower (or nil) rate of tax. It applies to members that have reached their preservation age but are below 60 years. To learn more about this visit https://www.ato.gov.au/Rates/Key-superannuation-rates-and-thresholds/?anchor=Lowratecapamount#Lowratecapamount

Major Advantages of a SMSF

  • Investing Flexibility: Conventional superannuation funds restrict your investment options. You cannot, for example, hold actual gold and silver and other assets such as boutique share funds, property, and art. An Gold SMSF allows you to invest in a broader support selection, which can help enhance returns and reduce risks.
  • Savings: According to Rainmaker Research, employer workplace funds have an average cost of 1.24%, while personal funds charge 1.49%. Several online programmes can let you operate your SMSF for less than $2,000 annually. Compared to percentage fees, such fixed expenses can add up to significant savings over an ordinary Australian’s working life.
  • Control: In a standard superannuation fund, the trustee is the corporation that manages the money, which means that they, not you, have legal authority over your assets. Legal power is in your hands with an SMSF.
  • Tailored Insurance: Keeping insurance in superannuation can be an excellent strategy to free up cash flow. The issue is that standard superannuation insurance is not tailored to your unique needs. With an SMSF, you may create a unique insurance solution for you and your family.
  • Involve the Family: One of the most significant benefits of an SMSF is having up to four members. This implies that you and your partner and your children or siblings can pool your assets into a single fund. This provides for even more significant cost savings over time, as well as a larger pool of funds with which to invest.

Superannuation is the most valuable financial asset that most Australians will accumulate throughout their working years. Having the Gold SMSF, which you manage and tailor to your requirements (rather than being one of the hundreds of thousands of members of a more significant fund), might be a terrific approach to maximise this critical asset.

Open your Gold SMSF or IRA

If you have a larger super balance, the most straightforward option to gain physical gold exposure is through a Self-Managed Super Fund (SMSF). Running your super fund with the assistance of an SMSF service provider is simple, cost-effective, and provides several benefits. It’s no wonder, therefore, that there are 598,582 SMSFs with over $746 billion in assets under management on behalf of 1.1 million members. If you join this group, you will be in excellent company.

Open a IRA / SMSF

There are a few crucial stages to establishing a Self-Managed Super Fund.

To begin, you must decide on the trustee structure for your fund. There are two types of trustee structures: individual trustee structures and corporate trustee structures. The former is more common and less expensive, whereas the latter is typically regarded as superior by experts and the ATO. An SMSF service provider can give you information on the advantages of both alternatives.

When you’ve chosen the trustee structure, an SMSF service provider will set up your SMSF. This includes supplying you with the following:

  • Complete fund documentation, including a trust deed, minutes/resolutions, membership application, trustee statement, and other required documents;
  • The SMSF must be registered as a regulated super fund and get an ABN and TFN.

You may create a bank account in the name of your Gold SMSF with any Australian bank after you have an ABN and TFN.

This is the account to which you may direct your existing superannuation fund to roll over your superannuation funds and where you can direct future contributions from your employer.

It is also the account into which you will deposit any investments made in the name of the SMSF, such as bullion (Gold, Silver, Palladium, etc) acquired through a Bullion Supplier.

The entire procedure, from hiring an SMSF service provider to transferring funds to your SMSF bank account, can take up to eight weeks.

Search on the Internet for an SMSF setup agency:

A link to the registered ATO SMSF

Work with a Reputable Precios Metal Dealer

Do any laws govern precious metals merchants?
Dealers in precious metals, precious stones, or jewels must follow the information-sharing procedures outlined in this subpart to combat money laundering and terrorist activities.

Find a Bullion Directory and Search by Territory total of 94 as of March 2023, and ask if they are supporting IRA or SMSF:

Bullion Dealers in Australia by SCS Media

First 8 Displayed

Just for information on Perth Mint Bullion Company in the 9News on March 2023

Perth Mint, WA mines minister knew about gold doping for months before the scandal became public

Ensure Everything is Legal

Be certain that anything you contemplate purchasing for your gold SMSF or IRA is a legal investment.

Send Written Instructions

Give precise directions to your new Gold SMSF or IRA custodian or third-party administrator on which precious metals dealer you want to buy from, what assets you want to buy, and at what price.

Monitor your Gold SMSF or IRA

Keep an eye on your statements to ensure the transaction is completed successfully.


Precious Metal Investment

SMSF Products

SMSF trustees’ desire for Gold and Silver has skyrocketed in the previous fifteen years. Trustees are flocking to gold and silver for various reasons, including their high long-term returns. They are also viewed as a hedge against global economic downturns, low-interest rates, and money printing.

The following sample goods are most suited to SMSF portfolios because they offer the lowest trading margins, are easy to store, and are efficient to purchase and sell.

Please note: all bar, tablet and coin measurements listed are a guide only; slight variations may occur.

Out of simplicity, ABC recommended selection was used as a sample – Date March 2023, prices will vary to market trends

Be Cautious of Precious Metal Storage

Are your Bullions Stored with your Bullion Dealer Insured?

Storage would be in either pooled metal or secure in premium storage. Any precious metals kept with a Bullion Dealer should have free insurance. Insurance underwriters such as Lloyd’s of London handle this. There is also the option of extra insurance to safeguard your assets if you keep your precious metals in a private box at Custodian Vaults.

Is the storage of bullion with a Bullion Dealer independently audited?

All precious metals deposited with a Bullion Dealer, whether in pooled metal security or premium storage, should be audited externally. External audits should be performed yearly or annually by an independent Chartered Accountant.

Should I keep my bullion at home?

While no regulation says you can’t hold bullion at home, it is risky, less liquid, and more difficult to value for Gold SMSF reasons. For these reasons, most investors prefer to deposit their bullion with a Bullion Dealer Custodian Vaults or a  private vaulting arm. Bullion held with a Bullion Dealer is most likely insured and appraised regularly, and some are available for trading 24 hours a day, seven days a week.

Storing at home can make the end-of-financial-year auditing procedure much more complex, so checking with your auditor to see what they require is essential.

Tax on Superannuation Portfolio

Whether the money in your super account is tax-free or taxable when you withdraw it generally depends on the type of contributions made and whether tax was paid on it. Non-concessional (after-tax) contributions – those made from income after you paid tax on it – are tax-free when withdrawn from your super account.

How tax applies to your super | Australian Taxation Office

and Further Info …

SCS Media Owners or its employees are not registered investment advisors and do not provide financial advice. Comments on this page are only an expression of opinion. While we attempt to illustrate the potential benefits of investing in precious metals, remarks, links, or advertising on this website should not be interpreted as advice to purchase or sell a commodity at any time. While PWD Media makes every effort to ensure that all of our comments are genuine and correct, we employ third-party data and rely on our reputable sources’ credibility. Before making any investment decisions, SCS Media suggests you contact a knowledgeable investment advisor.

Securities disclosure.: I, Beat Süess, have no direct investment interests in any of the companies mentioned in this article.

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We’ve also got a special eBook for you.

Latest Update on March 10, 2023

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Beat B. Süess
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I am a professional web designer who loves to help others and go above and beyond with every project. I love to delve into my clients' problems and solve them with modern technology.

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