SIPP with Gold Bullion Holdings

jsmp01

Hi

I have just recently switched to being self-employed and wanted to set up a SIPP pension which I could hold about a 33% of the portfolio in physical gold bullion.

Does anyone have an experience of SIPPs holding physical gold buillion in a vault please?

What things should I look out for?

Are there any fees that I need to pay particular attention to that may mount up over time?

Many thanks for taking the time to read my post and any advice is much appreciated.

kidmugsy

Why hold your gold in a SIPP? Gold sovereigns are free of VAT and CGT: why not just buy some and store in a safety deposit? Then you'll have access before age 55.

Otherwise I've no experience, but a vague memory that a firm called Berkeley Burke (or vice versa) does gold in a SIPP. It can't be alone; have you tried googling?

jsmp01

The reason to do it as a pension, is that a pension comes out before tax

kidmugsy

First google:
https://www.bullionvault.com/info/gold-sipp-pension-plan

https://www.bullionbypost.co.uk/gold-pensions/?gclid=COigy_bUscQCFTDKtAod-TkAvQ

jsmp01

Thank you, I read those, they both have an interest in selling you gold and I was hoping people could tell me what to look out for

redbuzzard

Do you already own the gold?

If not, is there any reason not to do it via a physical gold ETF such as GBS?

Fact sheet

Vaulted in London, custodian HSBC, trustee Law Deb.

jsmp01

The main reason is to physically own the gold, even if it has to held in a vault and secured by someone else.

bowlhead99

But you can't physically own the gold because you want your pension fund to own the gold, that's how you get the tax break.

So whether the key to the vault is held by a pension fund trustee or whether the pension fund trustee holds a share certificate for an ETF which holds the physical gold... the exposure is, perhaps, similar in concept.

redbuzzard

jsmp01 wrote: »

The main reason is to physically own the gold, even if it has to held in a vault and secured by someone else.

Which as far as I can see is what a physical ETF does.

You just have to trust the fund managers, trustees and custodians, but we have to trust somebody unless we keep it under the bed (which would probably be difficult to arrange with the trustee of your SIPP).

You can in law I think be your own trustee but only jointly with regulated provider and as far as I know that doesn't happen, unless possibly you are a millionaire with your yacht in your SIPP. At any rate, HL won't do it;)