Physical bullion (gold, silver and platinum) can be one way for a Self-Managed Super Fund (SMSF) to diversify its investments and manage risk.
Potential benefits of holding bullion in an SMSF
Physical bullion may offer:
Diversification
Bullion behaves differently to shares, property and fixed interest.
It can reduce reliance on a single asset class or sector.
Hedge against inflation and currency risk
Precious metals have historically been used as a store of value.
In periods of high inflation or currency weakness, bullion may help preserve purchasing power.
Tangible asset
You hold a physical asset, not a purely digital or derivative exposure.
There is no direct counterparty risk to an issuer in the same way there can be with some financial products.
Liquidity
Investment-grade bullion is widely traded.
Important
Ainslie does not provide personal financial advice.
You should seek advice from a licensed financial adviser or SMSF specialist before deciding if bullion is appropriate for their fund.