If you are looking for a solid asset to include in your investment portfolio, precious metals have been considered fundamental to a well-balanced portfolio for hundreds of years. Gold and silver have unique properties as an asset class, and a modest allocation in either can protect and enhance the performance of an investment portfolio.

Investors and funds, such as SMSF, should select precious metals with several key factors in mind:

1. Liquidity and speed in transactions: The choice of precious metals should focus on those that are liquid, facilitating their purchase and sale in the market.
2. Correlation with other assets: Diversifying the portfolio is essential to mitigate risks. Evaluating the correlation of precious metals with other assets in the portfolio is crucial.
3. Purpose of the asset: Some investors choose precious metals, such as gold, as a hedge against crises or inflation protection. This purpose should be in line with the investor’s investment objectives and strategies.
4. Costs: Careful consideration should be given to the costs associated with the acquisition and retention of precious metals, including audit fees and insurance costs.

It is essential that investors thoroughly understand these factors before making investment decisions, seeking professional legal and financial advice to ensure alignment with their financial objectives and applicable international regulations.