Can gold form part of my SIPP or SSAS pension?

Can gold form part of my SIPP or SSAS pension?

Yes, gold can form part of your pension. UK customers can purchase 'approved' types of gold through a SIPP / SSAS and gain up to 40% tax relief on your investment. Customers in the US can purchase gold in the form of a Traditional, SEP, or Roth IRA pension.
DownloadPension Fund: Account Administrator Authorisation form

Our specialist pension solutions


safest form of gold

Up to 40% tax relief - on gold investments and no
capital gains tax
 

safest form of gold

Safest form of gold - physical, segregated bars
eliminate ETF and gold gram risks

SIPP / SSAS approved procedures

SIPP / SSAS  - approved gold products and procedure

Secure storage / direct control

Secure storage / direct control - most secure
independent LBMA vault in the UK - relocation
on demand

lowest prices on 1 kilo gold bars and 12.5k gold bars

Lowest prices - on 1 kg gold bars and 12.5kg gold
bars - with price match promise - live prices

expert analysis

Expert analysis & market insight - latest market
analysis / client access to our chief economist


How does GoldMadeSimple provide the safest form of gold?

Gold Made Simple pensions Physical gold - no counterparty risk  - we supply real physical, allocated and most importantly 'segregated' LBMA gold bars, with individual serial numbers, which  simply means that you are buying individual physical gold bars, which are legally owned by the beneficiary of the pension fund. This removes the counterparty risk associated with other forms of 'paper gold' (ETF, futures, funds, shares, options etc...).  

'Segregated Gold' - Individual Client Security Boxes - each client has their own individual box with a security seal, inside the vault, which removes counterparty risk associated with 'gold grams'. We are currently the only UK bullion dealer to offer this 'segregated gold' service.

Highest security storage - storage and insurance is provided by Via Mat International, which is the only independent LBMA approved vault in the UK. Our Global Account provides our clients with delivery and storage options at any of their international vaults.

Physical Control of your Gold - buying segregated bars gives you full control over the storage location and enables the pension administrator to change storage provider at will, unlike ETFs or gold grams.

LBMA Gold Certification - all our bars sourced from LBMA (London Bullion Market Association) refiners, the most respected global standard, guaranteeing the purity as 24 carat 99.99% pure. This maximises the resale value and enables you the option to sell the gold back to ourselves at a guaranteed rate or to any bullion dealer.


Why are segregated bars less risk than ETFs?

With Exchange Traded Funds (ETFs), you are not buying allocated gold and have no legal entitlement to any individual gold bars, which exposes you to counterparty risk in the event of failure of the ETF provider. Often, the ETF does not even guarantee to be 100% backed by physical gold and may use complex 'paper' derivatives instead of physical gold. For our Chief Economist's in depth analysis of risks associated with ETFs, contact us

   

Why are segregated bars less risk than gold grams?

Segregated gold gives you physical control of your gold, enables you to sell to anyone you choose and removes counterparty risk - gold grams do not.

Your gold grams are not physically segregated from other client's gold and you are prevented from changing storage provider or selling your gold to any other bullion merchant. Converting your gold grams into individual bars can be extremely expensive and in the event of the failure of the gold gram provider, access to your investment could be subject to delays and complications.
 


What is a SIPP pension?


In April 2006 the UK government introduced Self Invested Personal Pensions (SIPPs).  The introduction of SIPPs has made it possible for UK citizens to invest in certain types of gold bullion as part of your pension provision.  SIPPs allow you to invest in ‘investment grade’ gold which is an approved asset class in the government guidelines surrounding SIPPs. They also allow investors to have control over the investments within the portfolio, subject to SIPP rules and guidelines.


If you do not already have a pension, you can start a new one, you can open a SIPP alongside an existing pension or you can transfer an existing pension into a SIPP. SIPPs are more flexible than many other types of pension and enable you to select certain types of approved investment categories, including gold.


Gold Made Simple pensions
Your pension provider acts as trustee of the SIPP, ensuring the SIPP reporting and rules are adhered to and you are able to chose which investment you wish to make. When you come to retire, you can use the SIPP investment to provide a retirement income or purchase an annuity from an insurance company.

 

What is a SSAS pension?

An alternative type of pension to a SIPP, is a small self administered scheme (SSAS), which is an occupational pension scheme. This type of pension is designed for fewer than 12 members and often has an independent trustee, who is often a professional trustee. This type of pension is relatively flexible and enables tax relief of up to 40% to be obtained on gold investments, within certain HM Revenue & Customs (HMRC) rules and guidelines.


What type of gold is approved for pensions?

SIPP rules require the type of gold purchased to be ‘investment’ gold, which must be ‘good delivery’ bars of a purity of at least 99.5%, in effect being bars that are accepted by the recognised bullion markets such as our 12.5 kilo gold bars and 1 kilo gold bars that come from LBMA approved suppliers and stored in our ViaMat LBMA approved vaults.


Other forms of gold, such as Gold Sovereigns and Gold Brittanias and other gold coins are excluded. Silver is also excluded from the approved types of bullion investments for SIPPs. The London Bullion Market Association (LBMA) publishes a list of accredited suppliers of ‘good delivery’ bars and specifies the ranges of weight and dimensions, to which the bars must conform. Good delivery bars must also have been kept within LBMA accredited vaults, to ensure the quality and purity of the gold is maintained.


GoldMadeSimple supplies gold from LBMA accredited suppliers, stored in LBMA accredited vaults and ensures that the gold meets these SIPP requirements.

Why Gold is popular as a pension investment


Gold is often considered to be an attractive asset to hold within a pension in view of its reputation as both a 'safe haven' asset and also potential for capital growth.

With interest rates on cash accounts typically lower than inflation rates, cash savers are seeing their buying power being eroded.

Gold has averaged growth of around 17% per year for 11 consecutive years and many experts consider that significant capital growth will continue for the foreseeable future, in view of the economic climate, quantitative easing, sovereign debt issues, banking crisis and inflationary pressures. 



How do I set up a SIPP / SSAS Pension?

Clients often use an FSA approved Independent Financial Advisor (IFA), wealth manager or pension provider to set up your SIPP. If you do not already have a preferred IFA, wealth manager or pension provider, contact us and whilst we are not able to recommend a SIPP / SSAS provider, we can let you know which providers we have been approved by.


SIPP / SSAS gold buying process

1   The pension trustee downloads and completes our Pension Fund: Account Administrator Authorisation form  to specify who is authorised to administer the account and what bank account transfer can be made from.
 
2   Register an account online or call our customer service team. ID documents need to be provided within 14 days of the account being registered.
 
3   Transfer funds to your GoldMadeSimple pension account. You will receive an email confirming once the funds have cleared our Client account.
 
4   Log in to your account, view live prices and buy SIPP / SSAS ‘approved’ gold bullion (ie gold bars for storage).
 
5   We deposit your physical gold bars into your individual sealed security box, in Via Mat’s London vault and send you confirmation of the purchase, the gold bar details, serial numbers and insurance details.


You can manage your account online and view transactions, buy or sell your gold or request withdrawl of funds.

Withdrawn funds are transferred to the bank account originally specified by the pension trustee.


IFA / Pension Provider Information


Gold Made Simple pensions

GoldMadeSimple SIPP accounts are set up with safeguards to ensure the funds are only used to purchase approved types of 'investment gold' and also that funds can only be returned to the bank account controlled by the SIPP / SSAS provider. These accounts are treated separately to our standard client accounts and have a 2 stage system of checks to ensure integrity of process is maintained.

Our SIPP / SSAS controls and approved procedures ensure:

  1. Only 'investment' gold (London Bullion Market Association good delivery) can be purchased - Preventing purchases of silver or coins.

  2. Only gold bars for storage at Via Mat (LBMA accredited storage) can be purchased - not bullion for delivery.

  3. Our system ensure that money can only be returned to the bank account registered when the account is initially set up - which prevents the client moving the money to anywhere, other than the account controlled by you
  4. The pension administrator specifies who is authorised to access the online account management facility

  5. A full record of all transactions is provided

AMPS Conference 

Declan Cosgrove, Managing Director, Goldmadesimple.com Ltd recently spoke at the Association of Member-Directed Pension Schemes (AMPS) Conference.

AMPS is the primary trade body that exclusively looks after self-invested pensions, or member-directed pension schemes which include SIPPS and SSASs.

You can download the presentation given by Gold Made Simple at the conference here.


Declan Cosgrove (seated second from left) & Andrew Roberts - Chairman of AMPS (seated third from left)


Client Benefits

Gain knowledge
Expert market analysis insight - to protect wealth by removing counter-party risk yet maintain opportunity of substantial capital appreciation (gold has averaged approx. 25% growth pa for past 11 years)

Reduce risks of 'paper gold'
Invest directly in physical gold bullion bars / capital gains tax free gold coins

Access to wholesale markets / Royal Mint
Live prices - low margins - UK and International storage and delivery

Investing in gold within a SIPP / SSAS
SIPP / SSAS approved procedures and gold products

Invest in Capital Gains Tax free gold
(outside the scope of a pension) direct account with Royal Mint

Control your gold
Full control of storage location of your bullion (unlike ETFs or gold grams)


How do segregated gold bar costs compare with ETFs?

The ongoing storage and insurance costs of our allocated segregated bars are similar to the typical ETFs annual charges and the margins on the larger bars such as 1 kilo and 12.5 kg gold bars can often be lower than many ETF set up charges. 


Individual Audits on Demand

An individual audit of your stored bullion can be arranged on demand for a fee of £200 ex VAT.  On completion of the audit you will receive written confirmation from Via Mat International of the bullion holding including serial numbers if applicable.


Next Steps

 Download the Pension Fund: Account Administrator Authorisation form  
  1. Download the Pension
    Fund: Account Administrator Authorisation form
    and return
    to the address on the form
    with the required documents.

  2. Contact us if you have any questions


Please Note: The articles that are published on our website are provided for background information only. GoldMadeSimple.com is not FSA regulated and cannot offer you investment advice. Any investment you make is at your own risk. Information provided on our website may be out of date at the time of reading and we would recommend that you verify all details elsewhere and consult your IFA before making your investment.