
How to Value Gold and Silver in Your SMSF Correctly
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.