abc bullion’s superannuation and precious metals report · it’s not only physical precious...

SINCE 1972 - Australian Bullion Company (NSW) Pty Ltd

ABC Bullion’s Superannuation and Precious Metals Report

Thanks for downloading ABC Bullion’s Superannuation and Precious Metal report. We’re glad you’ve taken an interest in understanding how physical gold and silver can help you build wealth, and enhance your superannuation fund.

This report focuses on three main topics:

• Why investing in precious metals using superannuation makes sense

• The advantages of having a Self Managed Superannuation Fund (SMSF)

• ABC Bullion’s specialist SMSF offering and how it can help you maximize your Superannuation and invest in physical gold and silver.

Whilst we can’t provide financial advice here at ABC Bullion, we are big believers in Superannuation, Self Managed Super Funds (SMSF) and of course in physical precious metals, so we hope this report contains a host of useful information which can help you maximize your retirement funds.

If you would like to arrange a time to discuss this report, and our offerings in more detail, please email us at [email protected] or call us on 1300 361 261 and we’d be delighted to discuss this opportunity in more detail with you.

Warm Regards

www.abcbullion.com.au | 1300 361 261

Jordan EliseoCHIEF ECONOMIST

ABC Bullion

Janie SimpsonCHIEF EXECUTIVE OFFICER

ABC Bullion

Used effectively, Superannuation is the ultimate long-term savings vehicle, giving Australians the opportunity to build up a significant pool of funds, which they can enjoy in retirement.

Indeed, Superannuation offers many benefits to Australians, including significant tax advantages whilst working. Better yet, when you retire, all the assets accumulated to that date in your Superannuation become tax-free. This can save tens of thousands of dollars.

As physical gold and silver are the ultimate long-term savings assets, many sensible investors make sure their Superannuation portfolio has a healthy allocation to precious metals, in addition to more traditional assets such as shares.

Some of the best reasons to include gold and silver in your Superannuation portfolio include:

• Gold and Silver returns have been incredibly strong this past decade, up 10% per annum, significantly outperforming traditional superannuation funds and their underlying assets, as you can see in the table below.

Asset Class Returns to June 2014

ASSET CLASS

1 YEAR (%)

5 YEAR (%)

7 YEAR (%)

10 YEAR (%)

Australian Shares 17.3 11.0 2.0 8.9

International Shares 20.4 11.5 1.8 3.9

Listed Property 11.1 14.3 -4.9 2.2

Unlisted Property 9.4 8.4 6.0 9.0

Australian Bonds 6.1 6.9 7.1 6.5

Australian Cash 2.7 3.9 4.6 5.1

Gold (in AUD) 4.3 4.1 9.1 9.6

• Performance over the very long run (+40 years is about the typical time period for people investing in Superannuation) is also very strong, at just over 9% per annum for both gold and silver.

• Returns for gold and silver tend to be even stronger when real interest rates (which take into account the impact of inflation) are low, like they are today. In environments like this, gold prices have risen by over 20% per annum on average

• Gold and silver are uncorrelated to equity markets. What this means is that when the stock market (where most superannuation money is invested) falls, gold tends to rise. A healthy mix of both stocks and gold often leads to better overall portfolio returns, with less risk of your portfolio falling along the way

Diversification: Gold vs. Stocks when Stocks Fall

ASSET ASX RETURN

GOLD (AUD) RETURN DIFFERENCE

2008 -40.38 28.02 68.41

1974 -26.93 86.96 113.89

1973 -23.31 48.97 72.23

1990 -17.51 -0.45 17.07

1982 -13.86 28.91 42.78

Average -24.40 38.48 62.89

• Gold and silver are an easy way to benefit from the rising wealth of both China and India. These two countries are already the largest gold buyers in the world, and demand for gold has risen alongside the growth in their incomes, as the following chart from the World Gold Council shows.

(a) Chinese gold expenditure per capita vs. income per capita

(b) Indian gold expenditure per capita vs. income per capita

050

100150200250300

0 50,00040,00030,00020,00010,000

Gold/capita

GNI/capita Gold expenditure per capita (renminbi)

0

500

1,000

1,500

2,000

0

2,500

20,000 40,000 60,000 80,000 100,000

Gold/capita

GNI/capita Gold expenditure per capita (rupee)

With high savings rates, favourable demographics and rising incomes, demand from both countries will continue to strengthen in the coming years

• Gold and Silver remain the best hedge and portfolio protection in todays uncertain world of high debts, rising unemployment and global money printing



Why Investing in Precious Metals using Superannuation Makes Sense



Self Managed Superannuation Funds (SMSFs) and their many advantagesSMSF’s are incredibly easy to operate, very cost effective, and bring with them a wealth of advantages. Indeed, you might be surprised to know that SMSF’s are the fastest growing and largest segment of the Superannuation industry, with over 1 million Australian’s now choosing to ‘self-direct’ their retirement funds,. You’ll be in good company if you join this group

The major advantages of having an SMSF include:

• Investment Flexibility: Traditional Superannuation funds are limited with what they will let you invest in. For example you can’t own physical gold and silver, even though gold and silver have returned 9.6% and 10% p.a. respectively for the last 10 years, which is far superior to traditional retail superannuation funds which were up only 6.3% over the same period (source: Chant West Media Release 22nd July 2014). It’s not only physical precious metals that are allowed in an SMSF, but also other investments like direct boutique share funds, property, and art. Having an SMSF gives you the flexibility to invest in a much wider range of assets, many of which have outperformed the major superannuation funds.

• Cost Savings: According to Rainmaker Research, the average Australian could pay approximately $175,000 in Superannuation fees over their working life, possibly more. For a couple, the total fees will be closer to $350,000, and you’ll be charged even more in retirement. ABC Bullion has an SMSF solution that can be run for as little as $1175 per annum, including administration and auditing. Over a 30-year period, that’s a saving of around $130,000 for an individual, and over $300,000 for a couple.

• Control: In a traditional superannuation fund, the company managing the money is the trustee, meaning they, not you, have legal control of your assets. With an SMSF, the control lies in your hands.

Superannuation is by far the largest financial asset most Australian’s will build over their working lives. Therefore having your own SMSF, controlled by you, and built for your specific needs (rather than you being just one of tens if not hundreds of thousands of members of a larger fund) is the best way of maximizing this key asset.

• Tailored Insurances: Holding insurances inside Superannuation is a great way to free up cash-flow in your day to day life. The problem is that insurances within traditional superannuation aren’t tailored to your specific needs. With an SMSF, you can customize a solution that works best for you and your families needs.

• Involving the family: One of the biggest advantages is that an SMSF can have up to 4 members, meaning you and your partner can combine your assets into one fund, and you can even involve your children or siblings etc.

This allows for even greater fee savings and gives you a larger pool of assets to invest with.



ABC Bullions SMSF Offering

Due to increasing client demand, ABC Bullion have partnered with specialist SMSF accounting company Super Accounting, a leading provider in their field, to offer Self Managed Superannuation Fund setups, as well as ongoing administrative support.

Super Accounting can help you with the following steps, which are required to set up and run a SMSF:

• Creation of your SMSF trust deed

• Documenting an investment strategy for your SMSF

• The opening of a bank account for your SMSF

• Application for an ABN and TFN, which are required to operate a SMSF

For a flat fee, Super Accounting will also help with the annual reporting, and the auditing that is required when you operate a SMSF.

The advantages of utilising this service through ABC Bullion and Super Accounting include the following:

• $100 credit towards Pool Allocated Gold or Silver, credited to your ABC Bullion SMSF account when you first transact with us through your SMSF.

• Set up fees paid directly from your SMSF (no out of pocket expenses)

• Discounted premiums on select gold and silver products purchased through ABC Bullion, as well as on your other accounts

• Discounted storage on SMSF investments stored with ABC Bullion or in a private vault with Custodian Vaults

• Customised and discounted access to Life and TPD insurance within your SMSF via our insurance partners. Contemplating the insurance needs of SMSF members is now mandatory for all SMSF trustees

• Priority access to all ABC Bullion Seminars and Events

• Complimentary membership with ASMA – the

Australian SMSF Members Association

• Quarterly Updates on developments in the SMSF and broader superannuation industry, highlighting opportunities for you to maximize your SMSF, as well as helping you stay on top of your obligations as trustees

For those who already have an SMSF, ABC Bullion, in conjunction with our partners, Super Accounting, will offer complimentary SMSF take over and trust deed upgrades, if you decide to move your SMSF administration and auditing.

Disclaimer: This publication is for education purposes only and should not be considered either general of personal advice. It does not consider any particular person’s investment objectives, financial situation or needs. Accordingly, no recommendation (expressed or implied) or other information contained in this report should be acted upon without the appropriateness of that information having regard to those factors. You should assess whether or not the information contained herein is appropriate to your individual financial circumstances and goals before making an investment decision, or seek the help the of a licensed financial adviser. Performance is historical, performance may vary, past performance is not necessarily indicative of future performance. Any prices, quotes or statistics included have been obtained from sources deemed to be reliable, but we do not guarantee their accuracy or completeness.

Please contact us to discuss this exciting opportunity in more detail

1300 361 [email protected]

abc bullion’s superannuation and precious metals report · it’s not only physical precious...

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