Gold and silver holdings dominate the big-ticket items held in SMSFs, followed by artwork, according to a specialist SMSF administrator’s study.
SuperConcepts’ “Investment Patterns” report revealed the biggest amount of gold being held in a single SMSF fund was 144 one ounce bars valued at $245,000.
The biggest amount of silver in a single SMSF fund was 486 one kilogram bars valued at $306,117, the firm said.
SuperConcepts analyst Phil LaGreca said gold and silver sustain demand and retain their value even during economic slumps.
“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,” LaGreca said.
“Over the past 16 years, gold has increased over 260 per cent in value and silver increased over 220 per cent in value, so investors have experienced good capital gains from these assets.”
Artwork is another tangible asset common in SMSFs, with the highest value single piece being a painting titled Kalaya Witja valued at $16,500.
“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 five years,” LaGreca said.
“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.”
The highest single value exotic investment in an SMSF for the fourth quarter of 2018 was a marina berth at a Queensland-based yacht club valued at $245,000.