The September 2018 SuperConcepts Investment Patterns report reveals gold and silver hauls dominate the big ticket items held in SMSF funds.
SuperConcepts funds analysts looked at 2450 SMSF funds with assets totaling $3.2 billion for Q3-4 2018.
The biggest gold haul in a single SMSF fund was 144 1oz bars valued at $245,000.
The biggest silver haul in a single SMSF fund was 486 1kg bars valued at $306,117.
“Gold and silver are considered relatively safe investment options because they sustain demand and tend to retain their value even during economic downturns,” said SuperConcepts analyst Phil LaGreca.
“They can be volatile in the short term but gold and silver have always maintained their value in the long term because they are tangible unlike shares,”
“Over the past 16 years gold has increased over 260% in value and silver increased over 220% in value, so investors have experienced good capital gains from these assets,” says Mr LaGreca.
Another tangible investment common among SMSFs is artwork, with the highest value single piece being a painting titled Kalaya Witja, valued at $16,500.
“The one-off nature of art makes it rare and collectible and investors are banking on the value increasing as a result of those factors,” says Mr LaGreca.
“This particular fund held over $150,000 in Aboriginal artworks which is being kept for capital appreciation rather than income generation.
“Accredited art consultants will determine the current market values based on recent sales of similar classes of artwork by these artists through galleries and auction houses during the past 5 years.
“The art market is flat at the moment compared to a peak in 2007, so some artworks have decreased in value and investors would generally need to wait several years before they recover their former values,” says Mr LaGreca.
The highest single value exotic investment in an SMSF for Q4 2018 was a marina berth at a Queensland-based yacht club valued at $245,000.
“It’s basically a car space for boats, so this investment is about income generation because people pay to use it,” says Mr LaGreca.
“The fees for marina berths vary around the country and like any property style investment it’s all about ‘location, location, location’ that ultimately determines its return rates.”
SuperConcepts SMSF Q4 2018 Investment Patterns
Biggest gold haul: 144 1oz bars - $245,008
Biggest silver haul: 486 1kg bars - $306,117
Highest value art work: Kalaya Witja - $16,500
Highest single value exotic asset: Yacht club marina berth - $245,000