SMSF gold valuation with troy ounce – avoid misstatement risk

How to Value Gold and Silver in Your SMSF Correctly

November 04, 20242 min read

If your SMSF holds gold or silver as part of its investment strategy, accurate valuation is essential. One simple oversight we often see involves the unit of measurement, which can cause serious errors in reported fund value.


Understand the Troy Ounce

When you see gold prices quoted on the market, they’re referring to troy ounces — not standard ounces you might use in the kitchen. The difference matters.

  • 1 troy ounce = approximately 31.1 grams

  • 1 regular (avoirdupois) ounce = approximately 28.35 grams

This small discrepancy can result in a big valuation error, especially across multiple holdings.


Why It’s Easy to Get Wrong

Investors sometimes assume an ounce is an ounce. But when valuing precious metals, using the wrong unit can lead to:

  • Overstated or understated asset values

  • Misleading fund balances

  • Compliance red flags during your SMSF audit


Real Audit Consequences

At SIS Logic, we have audited funds where trustees mistakenly used standard ounces for gold or silver assets. While the intent was never dishonest, the outcome can still cause issues.

Incorrect valuation may:

  • Distort member balances

  • Delay audit sign-off

  • Trigger re-reporting or ATO scrutiny


How to Value Gold and Silver Correctly

If your SMSF holds bullion, be sure to:

  • Use troy ounces for all valuations

  • Match spot pricing sources to the same unit

  • Document your valuation method clearly in fund records

These simple steps can save you time and protect your fund’s compliance.


Final Thought

Precision in SMSF record-keeping is key — especially with physical assets like gold and silver. A small unit mix-up can become a big problem. If in doubt, it’s always better to double-check or seek professional guidance.


✅ Need a Trusted SMSF Auditor?

SIS Logic provides fully in-house audits by experienced Australian professionals. We help ensure every asset is valued correctly and your fund stays compliant without the stress.

📞 Get in touch with our team

Neil Ashton is a Certified Practising Accountant (CPA) and ASIC-registered SMSF Auditor with over 25 years’ experience in the accounting industry. As founder of SIS Logic—servicing Sydney, the Central Coast, and beyond—Neil has conducted more than 10,000 self-managed super fund audits and specialises in SMSF administration. His commercial, risk-based approach ensures fast, compliant audits that deliver strategic insights and peace of mind. Neil’s dedication to personalised service and proactive guidance makes him a trusted partner for trustees and advisers navigating the complexities of SMSFs.

Neil Ashton

Neil Ashton is a Certified Practising Accountant (CPA) and ASIC-registered SMSF Auditor with over 25 years’ experience in the accounting industry. As founder of SIS Logic—servicing Sydney, the Central Coast, and beyond—Neil has conducted more than 10,000 self-managed super fund audits and specialises in SMSF administration. His commercial, risk-based approach ensures fast, compliant audits that deliver strategic insights and peace of mind. Neil’s dedication to personalised service and proactive guidance makes him a trusted partner for trustees and advisers navigating the complexities of SMSFs.

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