Gold bullion.

 

Gold is used by some clients to diversify and enhance their investment portfolio. Investment grade gold bullion is the only physical commodity that can be held within a self invested pension.

Prescriptive rules for holding gold bullion

The following rules must be applied for gold bullion to be held within a SIPP or SSAS:
 
  • investment grade gold bullion has a specific exemption from being ‘tangible moveable property’ thus allowing it to be held within a SIPP or SSAS
  • the gold bullion must be of a purity of not less than 995 thousandths and held in the form of a bar or wafer, of a weight acceptable by the bullion markets
  • the pension scheme member cannot hold the gold bullion personally
  • it must be placed in a secure vault to the order of the trustees
  • the pension scheme member must have no use of the gold – it is held for investment purposes only.

The most simple and secure method of investing in gold bullion is via a UK direct gold investment service. Dentons uses the services of The Royal Mint and Sharps Pixley.

These services provide the required gold storage arrangements and have sufficient controls in place to ensure that any monies are paid back to the pension scheme bank account only.

Due diligence checks will need to be undertaken by the client's financial adviser and Dentons before any instruction can be given to the gold bullion dealer.

Please note: Gold bullion can be a volatile investment asset with no guarantee of future returns.