SMSF Bullion Storage & Insurance Guide

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The #1 SMSF mistake with metals

Trustees buy the metal correctly… then store it in a way that creates a compliance breach or can’t be defended in an audit.

If you want the lowest-friction path, treat storage like part of the investment, not an afterthought.

Key concept: not all bullion is treated the same

Some items can fall into strict “collectable / personal use asset” rules. This is where most mistakes happen, because the storage and insurance rules tighten significantly.

If you’re buying coin/collectable-style products or anything you plan to physically hold/display, assume this section applies and get professional advice.

Storage options (best to worst for audit simplicity)

1) Independent vault storage (recommended)

This is the cleanest option for SMSF trustees because it provides:

  • Strong separation from personal use
  • Clear ownership evidence (statements/receipts)
  • Straightforward audit trail

If you want simple compliance + clean documentation, this is usually the best route.

2) Secure non-residential storage (case-by-case)

This can be acceptable in some circumstances, but it needs to be defensible:

  • The storage arrangement must clearly avoid “present-day benefit”
  • You need documentation showing where it is, how it’s controlled, and that it isn’t used personally
  • Your auditor/adviser must be comfortable with the structure

3) Private residence storage (high risk)

For certain assets (especially “collectables/personal use assets”), storing at a private residence can be prohibited or can create a major audit issue.

Even when trustees believe “it’s locked in a safe, nobody touches it”, the compliance and audit defensibility can still be a problem.

If you’re considering any home storage: get advice first.

If your metal is treated as a collectable / personal use asset

Where the strict rules apply, trustees generally need to ensure:

  • The asset is not used personally (ever)
  • The asset is not leased to a related party
  • The asset is not stored or displayed at a private residence (member or related party)
  • The storage decision is documented in writing and retained
  • The asset is insured in the name of the fund within the required timeframe

If you’re not sure whether your specific item falls into this category, ask your SMSF accountant/auditor before you buy.

Insurance: what matters (SMSF perspective)

Insurance isn’t “nice to have” — it’s part of making the holding defensible and audit-ready.

Practical best practice:

  • Insure the holding in the SMSF’s name
  • Keep the policy schedule and evidence of cover
  • Make sure the insured address matches the storage location
  • Keep valuation support (how you determined insured value)

What your auditor will ask you for

To keep audits clean, you should be able to produce:

  • Proof the SMSF owns it (invoice showing trustee/corporate trustee as buyer)
  • Proof the SMSF paid for it (SMSF bank transaction)
  • Proof of where it is stored (vault statement/receipt, or written storage record)
  • Proof of insurance (policy schedule, certificate of currency, etc. where relevant)
  • Trustee minute/resolution documenting the decision (recommended)

If you can’t produce these quickly, fix your process before you scale holdings.

A simple storage record template (copy/paste)

Trustee Storage Minute – Precious Metals

Date: [DD/MM/YYYY]
Fund: [SMSF name]
Trustee / Corporate Trustee: [Name]

The trustee(s) resolved that the Fund will store the following precious metals at:

Storage location: [Vault/provider + address]
Access/control: [Who can access, how access is controlled]
Insurance: [Policy number + insurer + effective date]

Assets covered:

  • [Product, weight, quantity, serial (if applicable)]
  • [Product, weight, quantity, serial (if applicable)]

Reason: The trustee(s) determined that this storage arrangement supports compliance, security, and audit recordkeeping, and avoids any present-day benefit.

Signed: ____________________

What we can do (and what we can’t)

  • We can help you transact and keep the buyer/invoice details correct.
  • We can explain what documentation customers typically keep for smooth audits.
  • We can’t provide personal financial or compliance advice for your fund.

If you want the purchase process, read how SMSF should buy.
If you want to sell/buyback, read how SMSF should sell.

General information only. The Coin Chest does not provide financial, tax or legal advice. SMSF trustees are responsible for ensuring storage and insurance arrangements comply with the fund’s trust deed, investment strategy, and superannuation law. If you’re unsure, confirm with your SMSF accountant/adviser/auditor.