Like many other investors, you may have considered investing in silver or already hold silver. Like gold, silver is considered a long-term investment and a portfolio diversifier. The precious metal is incorporated in investment portfolios as a safety net against market volatility, and utilised as a safe haven from currency devaluation and economic uncertainty.

As a testimony to the above – at the time of writing this article – the silver chart on Kitco.com showed that silver has increased by 220.71% over the last 20 years. 

Simply put, silver and other precious metals such as gold, are integral to a well-balanced investment portfolio.This is because precious metals perform well in volatile markets and do not correlate with traditional asset classes, and thus serves as a preservation of wealth.

Ways to Invest in Silver

There are a number of ways to invest in silver, thereby gaining access and exposure to the benefits of the precious metal. These methods include silver ETFs, mining company shares, silver derivatives, silver futures, unallocated or pooled accounts, and mutual funds.

However, these are all options to buy paper silver. The real benefits of investing in silver comes from purchasing and holding physical silver, which is separated from the fluctuations and determinations of the stock market.

Compared to other precious metals like gold, silver is generally more affordable and therefore an easier way to enter into the precious metals market. You can purchase physical silver in the form of silver bullion, silver coins, silver ingots or even by the gram. But how can you make sound decisions when it comes to buying and selling silver?

Gold and Silver Ratio

A popular tool used by investors is the gold to silver ratio. As explained by Investopedia.com, “The gold/silver ratio represents the number of ounces of silver required to purchase one ounce of gold. Investors use the fluctuating ratio to ascertain the relative value of silver compared to gold. This comparison allows the trader to determine the optimal time to purchase one metal over the other. It also helps investors diversify their precious-metal holdings.”

The gold/silver ratio is important to mention, as this indicator has been the topic of much discussion lately. In a recent article, the Economic Times asked the commodities guru, Jim Rogers which commodity he would invest in if he could only choose one. 

Mr Rogers said silver would be his choice. He explained that, “If you look at the ratio of silver and gold, it is the highest it has ever been in recorded history. Never in history has silver been this cheap compared with gold… if I had the option, I would own silver just because it is cheaper.”

Furthermore, trading based on the gold/silver ratio is considered by many as a trusted strategy for accumulating these precious metals. If you look at the chart below you will see that recently the gold/silver ratio climbed to 101.3:1. This means that 101.30 ounces of silver are needed to purchase one ounce of gold. 

But how may you apply the gold/silver ratio to your investment strategy? Considering the above example, the current ratio is relatively high when compared to historical data. While these figures will continue to fluctuate, an opportunity has presented itself. 

By comparing the current ratio to historical data, you may expect the ratio to increase or decrease and eventually normalise. If you are expecting the ratio to decrease, you have the chance to trade an ounce of gold for 101.3 ounces of silver.

If the ratio decreased to, say the 35-year low of 31.06 ounces of silver to an ounce of gold, you would then be able to purchase just over three ounces of gold using your silver, thereby increasing your total holdings of gold – and vice versa when your aim is to increase your holdings of silver.

Purchasing Silver is Simple and Easy

In essence, compared to gold silver is a more affordable way to enter the precious metals market, and the precious metal has become readily accessible via a range of innovative products.

Silver is a highly liquid asset that you can buy and sell anywhere in the world; and unlike currency, silver can not be readily reproduced. Today it is easy to invest in gold and silver, and adding to or selling your silver is simple. You can purchase and sell back to retailers and online traders instantly, based on the spot price.

If you’re new to silver investment, Private Vaults Australia is here to answer any questions you may have about buying silver bullion and other products. PVA is a secure safe deposit box facility and gold and silver bullion dealer servicing the Sunshine Coast and Brisbane region.

For more info on investing in silver, contact PVA or read the PVA blog for more interesting news, tips and ideas to guide you.

As the latest horror stories unfold on the global financial markets, the need for you as an investor to diversify and adjust your investment plan and portfolio has become more a topic of importance than ever. So, what can investing in precious metals offer you?

With the ASX falling again on a tumbling oil market, and the housing market pinned as the next to plunge, your everyday Australian investor is running out of options for a sure thing to peg their bets on.

Precious Metals Against Uncertainty

However, options still exist that may just help you sing a song of faith. As reported by Nine News in the past week, “Gold soared nearly 2.0 per cent to hit its highest since late 2012, with investors rushing to the safety of bullion as the coronavirus ravaged economies worldwide…”

The report goes on to state that, “The global economy is expected to shrink by 3.0 per cent during 2020 in a coronavirus-driven collapse of activity that will mark the steepest downturn since the Great Depression.” 

However, at the time the article was published, gold soared nearly 2.0 per cent to reach its highest since late 2012, silver increased 2.3 per cent, palladium went up 1.2 per cent, and platinum gained 3.6 per cent.

As with much of the financial market, there has been a rise and fall across all asset classes with some more dramatic than others, however – like gold – during times of economic uncertainty, precious metals are sought after by many as a store of wealth and a hedge used to mitigate and manage portfolio risk.

Trading in the Precious Metals Group

With gold being the most well-known precious metal, included in the mix is silver, platinum, palladium, rhodium, ruthenium, rhenium, iridium, indium, and osmium. However, what does investing and trading in precious metals entail?

There are varied ways to gain access and exposure to the precious metals market, including through metal ETFs, mining company stocks, the derivatives market, and mutual funds. However, these are all options to secure paper gold – something that is noted as a risky choice considering that you rely on the health of financial markets and on fund managers to do their job properly.

The other option is to purchase the physical precious metal. As noted by Forbes, “Holding metals is a way of spreading portfolio risk during times of economic upheaval… in this uncertain environment, buying metals represents a safe-haven approach to diversification and a partial hedge against equities.”

In his article titled, ‘5 Questions To Ask Yourself Before Buying Precious Metals‘, Olivier Garret points out that, the main benefit of buying physical precious metals in the form of coins and bullion for example, is that you own the precious metal and that, “Furthermore, you own an asset that can be stored outside the financial system, which reduces counterparty risk.”

Mr. Garret goes on to explain that, “The best way to buy physical precious metals is through an online dealer that offers a buy-and-store program… Investors should avoid taking physical possession of their gold or silver unless they believe there is an emergency.  It’s much safer to have your bullion stored in a secure vault.”

Storage and Insurance Are Essential

At Private Vaults Australia, we offer safe deposit box services in our state-of-the-art storage facility, as well as the sale, purchase and secure storage of your precious metals, such as silver and gold bullion.

For more info on investing in precious metals, contact PVA or read the PVA blog for more interesting news, tips and ideas to guide you.

A home inventory list provides you and your home contents insurer with a thorough assessment of the contents of your household, as well as the approximate worth of each item, should you have to lodge a claim. 

This list, in conjunction with the appropriate insurance cover, is used to protect your financial well-being in the event that your home contents, assets and other valuables are damaged, stolen or lost due to unforeseen circumstances, such as theft and natural disaster.

For example, the importance of a home inventory rang true during the recent bushfire crisis experienced in Australia. As reported by the ABC, the Insurance Council of Australia (ICA) issued recommendations that you should carry out, “a room by room inventory of goods well before bushfire season, so should the worst happen you’re not trying to remember what belongings you had after a fire.”

Why You Need a Home Inventory

A home inventory list as a part of your home and contents insurance is not only focussed around what nature can take away from you. As made apparent in this article by 7 News, the recent bout of panic induced by the Coronavirus or COVID 19 saw a “Brisbane restaurant allegedly targeted by thieves who stole pasta and other unusual items,” after two men went out of their way to break into the premises using an angle grinder. 

The above raises the concerning questions of, what happens when the country is really in trouble? If the above example is a product of panic, then what will happen when the people around you are truly desperate? The simple answer being, that you will see a rise in theft, home invasions and overall crime rates.

No matter what the risks may be, these uncertainties do exist and having a detailed list of your home contents will help you to remember what assets and items you had, as well as the associated value of these so that you’re not left guessing after it is too late.

What to Include in Your Home Inventory

Considering that creating a home inventory is a step that you can take now to support any future claims you may have to make, you will want to create a list recording all the items of value in your household. As recommended by the ICA, you should undergo a room by room inspection of your household. 

While the whole experience may be overwhelming, you may simplify your process by starting with newer items and working through items according to categories. Also, remember to include basic information in a description of each item and attach a proof of purchase like a receipt or an appraisal, and where possible note the serial number that exactly identifies with any particular item.

Most Importantly, Store Your Inventory Offsite

When you have completed your home inventory, it is important to keep the photo or video evidence, as well as your home inventory list away from your household.  It can be as simple as recording all your assets room on your smart phone and then converting this to a USB drive. The reason being, you do not want to risk misplacing your home inventory list, or for the list to be stolen or damaged along with your household goods due to unforeseen events.

Fortunately, there are several measures you can take to safe-keep your home inventory. For example, there are a number of home inventory software options that allow you to record your home inventory in an app and back up your info from the convenience of your pocket. 

Store Your Home Inventory in a Safe Place

While the above is worth looking into, the fact is that data is just as vulnerable as your household possessions, as the premises that store your data are just as susceptible to natural disasters, theft and human error. Therefore, you will need to keep a physical records offsite, as well as have a digital record available.

Furthermore, you may have items in your household that are of higher value and will necessitate separate insurance, raising the cost of your overall home contents insurance plan.

An example that comes to mind to show the importance of this approach is the story of a friend whose home burned down recently. He and his wife went to the shops on a Saturday morning and came home to find 3 fire brigade units surrounding the smouldering remains of their family home.  They argued for 9 months with their Insurer to receive their pay-out. This placed undue stress and angst on them. All their family photographs and records of their assets were on their home computer which was destroyed in the fire along with all of their possessions. 

As they had an acreage property along with animals (horses and goats and chickens),  they ended up buying a camper van to live on-site to tend and care for their animals and sort through the ashes. Their lives had been thrown into disarray and the uncertainty over their future lasted for 9 months until a settlement was reached. All this could have been avoided if they had a home inventory or video evidence of their belongings, and a secure, off-site location to store these. 

At Private Vaults Australia, we offer a solution a step above the rest, with a complimentary insurance starter offering of $20,000 on any size safe deposit box in our fire and flood safe, secure storage facility, which affords you the safest place to store your valuable items while lowering your home contents insurance at the same time.

For more info on safe deposit boxes and your home inventory, contact PVA or read the PVA blog for more interesting news, tips and ideas to guide you.

Safety Deposit boxes, otherwise known as safe deposit boxes or SDBs, have re-emerged in our society as a secure way to protect your possessions and valuables, build wealth and secure a future for yourself and further generations of your family. With increased ways for you to take control of your financial well-being, and an increase in widespread natural disasters and crime rates, SDBs have been re-established as a home base for security against uncertainty.

Whether you are looking for secure storage for yourself or for your business, we all have at least a handful of items, which if we lost our lives would be adversely affected. We all know that there is more than just a few items that are vital and highly valuable, so what other items and documents should you consider? In this article, we explore your safe deposit box checklist and what items are conventionally stored in a SDB.

The Ultimate Storage Solution

Today, SDBs and privately-owned secure storage facilities have a renewed relevance by the fact that these services may offer unparalleled security and privacy, unmatched by your traditional bank hosted SDB.

Most commonly SDBs are put to use by those of us who live in areas that often come under threat by floods and fires. SDBs have also become a key component for those who choose to take control of their superannuation and manage their own self-managed super fund, as secure storage, thorough documentation and added insurance are required by law. Closer to the cities, some have turned to SDBs as a measure to protect their home contents from theft – and often choose to lease an SDB for short-term periods while away on holiday or out of town or even move their valuables to an SDB to bring down their home content insurance. Then of course, having a SDB all year round is the preferred option for most people.

Get Inspired with these SDB Checklist Ideas

Below is a list of items that you want to consider storing in a SDB. Included are items that are valuable to you personally, as well as items that fall under the categories of personal records, electronic records, legal records and business records.

Valuables:

– Collectibles

– Coins

– Stocks Certificate and Bonds

– Rare Stamps

– Medals

– Jewellery

– Precious Metals

– Other valuable items

Personal Records:

– Birth Certificates

– Health Information

– Immunisation Records

– Adoption Paperwork

– Marriage Licenses

– Divorce Paperwork

– Custody Agreement

– Death Certificates

– Army/Navy/Public Service Records and Awards

– Vehicle Titles

– Lease Agreements

– Photographs/ Video Evidence of Home Contents

– Household Inventory

– Property Deeds and Warranties

– Bank Account Numbers

– Investment Account Numbers

– Academic Transcripts

– Pet ID information

Electronic Records:

– Digital Library of Family Photographs

– Hard drives, USB Drive, CDs, DVDs and Other Storage Media

– Digital Music Library

– Education Enrolment Transcript

– Other Digital Records

Legal Records:

– Passports

– Copies of Driver’s Licenses

– List of Credit Cards and Account Numbers

– Copies of Insurance Policies

– Power of Attorney Paperwork

– Last Will and Testament

– Trust Related Documents

– Tax returns

– Contracts and other Legal Paperwork

– Insurance Information

Business Records:

– Tax File Number (TFN)

– Australian Business Number (ABN)

– Australian Company Number (ACN)

– Blueprints

– Architectural Designs

– By-Laws

– Patents, Trademarks and Copyright Paperwork

– Tax Returns

– Insurance Information

Preparing to Make the Move

Creating your own checklist will help you get your head around what is valuable enough to warrant secure storage in a SDB, but there are some other considerations that will help. If you have included any important original documents on your SDB checklist that you still require from day to day, then you will need to make a certified copy  that have been witnessed and signed by a Justice of the Peace or solicitor. It is best to have 4 to 6 copies, so you never need to touch the original, and once all the copies are used you still have your original to make further copies.

Another important task is to video all your homes possessions (best done yearly) to have a record for your insurer should anything happen.  You will be surprised how this cut’s through the many issues when making a claim.

One other thing that creating a SDB checklist will do is give you an idea of what size box you will require, as SDBs come in varying sizes depending on who is providing the service.

You must also keep in mind, items that shouldn’t be stored in your safe deposit box include: illegal firearms, illegal substances and narcotics, or any item that is related to a crime or a criminal offence, liquids of any nature.

Secure Storage for Your Convenience

Private Vaults Australia (PVA) is a secure storage facility and gold and silver bullion dealer based in Brisbane, where you can secure a safe deposit box for as little as the price of a cup of coffee a week and receive complimentary $20,000 insurance on any size SDB. 

At PVA, we’re here to help and have included a downloadable PDF template of your safe deposit box checklist for your convenience. To learn more, contact PVA or read the PVA blog for more interesting news, tips and ideas to guide you.

Biometrics is the measurement and statistical analysis of a person’s unique physical and behavioural characteristics. Quite simply, by combining biometrics and your safe deposit box you have greater protection against identity theft; and this should be a serious consideration for you if you are looking for the safest of places to store your valuable assets, documents, and properties. Though, when considering secure storage facilities, what level of biometric security works best?

Biometric identification measures come in varying forms and have undergone many developments and advancements over the years. However, not all providers of safe deposit boxes and private vaults employ the use of biometrics and most protocols used by institutions, including banks, are outdated and high risk.

Issues with Access Protocols in Banks

As an example, typically a bank requires a simple protocol for accessing their safety deposit boxes. It often begins with the client’s personal key, followed by using the bank’s master key, then by the client’s signature, and ends with entering a pin code or password. However, banks often don’t permit entry to the back of house where your safe deposit box is stored. Instead, a staff member on duty retrieves your requested item from your security box – a rather unnerving idea considering a different stranger could be handling your possessions during any given visit.

While the above may seem to be more or less adequate, times have changed and criminals have grown smarter and more tech savvy making this system obsolete, insecure and prone to human error. Bank attendants may mistakenly give access to the wrong person due to identity theft and altered signatures. This possible lapse in security could result in unauthorised access to safe deposit boxes and in illegal, fraudulent activity.

A State-of-the-Art Solution

Biometric systems have been utilised by various institutions worldwide because they focus on identifying individuals by their inherent and unique characteristics based on their physical features.

Therefore, biometric technology have traditionally offered a higher level of protection against fraud since the modalities used by these systems are non-transferrable, safe from guesses, offer non-repudiation benefits since no two individuals have the same patterns on their body, and are only limited by the quality and standard of the system design.

The above means that by using biometric technology, a business like a secure storage facility is able to offer you a better level of customer service and a higher standard of security.

The most common types of biometric systems are palm vein recognition, fingerprint recognition, iris recognition, voice authentication. On the top end of all the technologies is 3D facial recognition technology.

Facial Recognition (FR): A Top Choice of Biometrics

In a research paper written by two European professors , it was noted that:

“Badge or password-based authentication procedures are too easy to hack. Biometrics represents a valid alternative but they suffer of drawbacks as well. Iris scanning, for example, is very reliable but too intrusive; fingerprints are socially accepted, but not applicable to non-consentient people. On the other hand, face recognition represents a good compromise between what’s socially acceptable and what’s reliable…”

The latest FR technologies use a 3D camera to project light onto you while the camera’s sensors trace the features and shape of your face, storing this information as a point of reference for verification. This means that 3D FR technologies can achieve far greater accuracy than previous 2D versions and other versions of biometrics. 

The advancements that separate the methods, have allowed 3D FR to provide users with a more efficient, secure, safe and personalised process, which when combined with traditional security measures like a PIN code becomes even more effective. This not only makes FR the most thorough method of authentication, but also an extremely quick, convenient and secure way to verify your identity.

Biometrics will Define Your Choice of Storage Facility

At Private Vaults Australia (PVA) we offer you secure access control by combining 3D FR, a pin code, an exclusive access key, a guarded escort and private viewing rooms at the back of house. To learn more about Biometrics and Your Safe Deposit Box, contact PVA or read the PVA blog for more interesting news, tips and ideas to guide you.

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Between 2012 and 2013, the Republic of Cyprus experienced a financial crisis that set a troublesome precedence not only for other countries in Europe, but in other parts of the world as well. 

Today, we’ll take a look at what Cyprus teaches us about safe deposit boxes in the midst of bank bail-ins and an economic crisis.

The Cyprus Bank Bail-In At a Glance

On March 25, 2013, a €10 billion international bailout by the Eurogroup, European Commission, European Central Bank and International Monetary Fund (IMF) was announced as a solution to the economic turmoil the country was facing. In turn, Cyprus had to agree to close the Laiki Bank and impose a one-time bank deposit levy on all of its uninsured deposits, as well as 47.5 percent of uninsured deposits in the Bank of Cyprus.

As reported by the BBC in 2013, “People in Cyprus have reacted with shock to news of a one-off levy of up to 10% on savings as part of a 10bn-euro (£8.7bn; $13bn) bailout agreed in Brussels.” Citizens in Cyprus with less than 100,000 euros in their accounts would have to pay a one-time tax of 6.75%, while those with funds greater than 100,000 euros lost 9.9% of their deposits.

This meant that depositors had no option but to take losses. One day their savings were safe and sound in the bank but the next day, people were frozen out of their savings. The public was shortchanged, to say the least, all because the government and its banking system had accumulated too much debt. The worst part is it happened without a warning.

What this Means for The Rest of the World

The Cyprus Bail-In set a dangerous precedent for European countries and other parts of the world as well. It provided a proof-of-concept of sorts for other governments and for big financial institutions. If Cyprus can use depositors’ hard-earned money to get out of a rut, then other countries could replicate it and on an even bigger and ominous scale; as we have seen in Australia with the passing of the Financial Sector Legislation Amendment (Crisis Resolution Powers And Other Measures) Bill 2017 bail-in law.

To add to the shock and uncertainty, in 2017, Greece, as a countermeasure to its failing banking system, had confiscated the contents of bank controlled safe deposit boxes as well as securities and wealth stored in private homes. Greeks could not withdraw the cash they left in safe deposit boxes as a result of the level of capital control the government had implemented.

Governments and financial institutions tend to take drastic measures during economic turmoil, so there’s no telling when this same event will happen in other parts of the world. Even in the case of Australia’s bank deposit bail-in law, the government could steal your savings in the event of a nationwide financial emergency.

With the knowledge of what Cyprus teaches us about safe deposit boxes, it’s important to know that there is a smarter option for your safe deposit boxes; especially if you’re in Australia where there are private safe deposit box facilities on offer in every major region.

A Smarter Option for Safe Deposit Boxes

Today, independent facilities like Private Vaults Australia (PVA) are proud to offer secure storage completely separate to the banking system. To learn more about What Cyprus Teaches Us About Safe Deposit Boxes, contact PVA or read the the PVA blog for more interesting news, tips and ideas to guide you.

The passage of the Bank Bail-In Law in February, 2018 via a voice vote left many financial analysts and experts wary of its ramifications for all Australians; and for good reason.

In this article, we explore the Bank Bail-In Law, discuss why it is important to seek an alternative separate to the banking system, and briefly discuss how a private vault secures your assets from the Bank Bail-In Law.

The Bank Bail-In Law at a Glance

The Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017 or the Australian Bail-In Law gives the Australian Prudential Regulation Authority (APRA) “crisis powers” allowing it to, among other things:

1. Secretly step in and run distressed banks;

2. Bail-in distressed institutions using the creditors of the bank instead of using taxpayers’ money filtered by the government;

3. Confiscate and write off certain types of bonds and hybrid securities;

4. Confiscate cash savings of self-managed super funds (SMSFs).

This puts depositors in a compromised position should banks in Australia come to be in crisis. Moreover, despite the existence of the government’s Guarantee Scheme and the depositor’s $250,000 guarantee under the Financial Claims Scheme, these are currently inactive and can only be activated by the Government at their discretion.

What’s more, if you store assets in a bank-operated safe deposit box, there is no guarantee that your valuables are safe, as the government has proven with Bank Bail-In Law to amend and pass legislation without warning. There’s no telling whether or not what happened in Cyprus in 2013, where the banks confiscated the deposits of clients, will also take place in Australia. Most seem to believe that it is only a matter of time.

Concerns Surrounding Bank Bail-In Laws

At its core, this piece of legislation brought Australia in line with the bail-in agenda of the Bank of International Settlements (BIS), which was agreed upon at the 2014 G20 Summit in Brisbane, Australia.

As reported by the HuffPost, the passing of the bill, “May have been the day deposits died as money,” as bank accounts and pension funds now stand the risk of being completely wiped out and sacrificed in the event that a major financial institution fails. Though the warning signs have been made clear over the past years.

In the wake of the Cyprus financial crisis, in 2013 Naked Capitalism criticised similar bail-in laws in the U.S. reporting that, “One of the big lessons of the fraught negotiations over bailing out (or more accurately, in) Cyprus’s banks is that deregulating institutions with an implicit or explicit state guarantee is a bad idea. You’ve just given them a license to gamble with the public’s money.”

The idea of converting the funds of depositors into capital, including your savings as an everyday depositor, has come under fire from individuals and organisations far and wide. The website Barnabyisright.com explained that, “A critical aspect of what the bail-in scheme is intended to do, is to prioritise the payment of banks’ derivatives obligations to each other, ahead of depositors. In other words, it is about stealing the public’s bank deposits…”

Private Vaulting vs. Bank Bail-In

While the combination of all-time low interest rates and returns on bank accounts, and the severely risky and compromised structure of the banking system is a frightening notion, there is good news. The major alternative that you have is the option to protect your investments by transferring your assets to a private safe deposit box.

With the advent of digital technologies such as online cloud storage systems and cryptocurrencies, you may question the relevance of private safety deposit box facilities as a service to secure, protect and build wealth. What’s important to note is that these private service providers ensure multiple levels of state-of-the-art security, shorter transaction times, insurance against theft or damage, and anonymous safety deposit box rentals.

Unlike financial institutions such as banks, private vaulting facilities offer better security for the assets you’ve worked so hard to acquire. Since these facilities are not regulated by the government, they are safeguarded from legislations like the Bank Bail-In Law. This means that the items you store in these private facilities, be it fiat currency, precious metals like gold and silver, family heirlooms, and the like, are in safe hands.

Your Best Bet?

Today, facilities like Private Vaults Australia (PVA) are proud to offer secure storage completely separate to the banking system. To learn more about how a private vault secures your assets from the Bank Bail-In Law, contact PVA or read the the PVA blog for more interesting news, tips and ideas to guide you.

How would you feel if you lost all your savings? This became a very real concern for every depositor with funds in an Australian bank when the Global Financial Crisis (GFC) rippled through the global economy in 2007-2008, as governments and financial institutions scrambled to secure dropping depositor and creditor confidence in an effort to maintain economic stability.

Amidst what has been deemed the worst economic disaster since the Great Depression of 1929, the Australian government responded to the Global Financial Crisis with the Financial Claims Scheme (FCS) and depositor guarantees to bolster confidence in the banking system and the security of funds. Though many may have been left wondering – and this is most certainly an important consideration for future crises – how safe is the FCSs $250,000 guarantee?

The FCS was a Lead Balloon

As usual, governments are quite good at giving themselves a pat on the back, such as is the case with the Australian government in relation to its actions during the financial crisis. In their March Quarter 2016 bulletin, in which the Reserve Bank of Australia (RBA) reported on the state of the FCS and the banking sector after the GFC, the government was held in high regard. 

Authors made reassuring claims such as the scheme was “successful in supporting confidence in ADIs and ensuring they had continued access to funding during the global financial crisis, and therefore supported financial system stability and the flow of credit to the economy.”

However, set at a cap of $250,000 per depositors under the FCS with a limit of $20 billion per failed authorised deposit-taking institution (ADI), the above claims by authorities lend to the thought that this so called safety-net scheme was simply smoke and mirrors used to create a false sense of stability.

Considering the level of deposits held by the major banks, it doesn’t take much investigating to understand that according to the assurances of the FCS, none of your hard earned savings and investments are safe should history repeat itself and the scheme is activated again.

If you take a look at the latest report by KPMG titled, Major Australian Banks: Full Year 2019 Results Analysis you will see that at the end of the 2019 financial year the major banks reported customer deposits between $300 billion and $600 billion each.

You can only conclude that the $20 billion promised per ADI is nowhere near enough to cover the deposits referenced above. As you can see, the FCS would be lucky to return cents on the dollar and most depositors would be left in the lurch to wait for the government to first recover their funds issued to ADIs before depositors could claim any of their lost deposits against an insolvent or bankrupt institution.

Furthermore, it is important to note that an ADI may encompass more than one institution. This means that even if your savings are spread across multiple banks, if those banks fall under the same ADI then you are only covered for one claim of $250,000 across all your accounts.

Protect and Secure your Financial Well-being

If you ever become uncertain of the safety of your deposits under the modern banking system, there are alternative options for safeguarding your wealth, such as through your own safe deposit box. If you’ve invested in stocks and bonds, precious metals like gold, silver, and platinum, in rare gems, or even in cryptocurrency and cash savings, then a private and secure storage facility is a recommended added precaution for you.

At Private Vaults Australia we are independent of the banking system, and offer safe deposit boxes in a world-class secure, flood-free and fireproof storage facility to business and individuals.

For more info on how safe is the FCSs $250,000 guarantee, contact PVA or read the PVA blog for more interesting news, tips and ideas to guide you.

In Australia we are fortunate to have a superannuation system in place that exists to ensure that we all have the right to control our own destiny and create for ourselves a good quality of life in retirement. 

The question is, how can you make the most of this opportunity and establish a foundation of wealth that will sustain you in retirement, and even provide future generations of your family with a legacy they can depend on? In this article we will explore the different considerations involved with a self-managed super fund (SMSF) and how you can diversify your SMSF with gold bullion.

The Significance of SMSFs

Compulsory superannuation contributions were first introduced by the Keating government in 1992 as a solution to alleviate the stresses of an ageing population on the Australian economy and expand the opportunity of wealth generation for all. As Mr. Keating explained in an article online, “Back in the 1980s, only wealthy people were in the stock market, but I felt mums and dads should be able to share in the bounty of the wealth of the nation. Owning a home was fine but they needed more.”

So came the introduction of managed funds that were apart of a system designed to be simple, affordable and understandable. However, since the ascension of the Superannuation Legislation Amendment Act in 1999 that introduced SMSFs and Small APRA Funds, more and more people have turned to SMSFs to beat the disappointment of lower than expected returns from managed funds – where risks are taken by managers but the losses are worn by the beneficiaries of the fund.

The Benefits and Obligations of an SMSF

SMSFs affords members ultimate responsibility for their super funds and the ability to closely control how they invest their retirement savings, offering more investment choices, as well as considerable tax concessions and other benefits.

SMSFs are private funds that are regulated by the Australian Tax Office and are allowed up to four members who are the trustees of the fund and may benefit from the ability to pool their assets, purchase property using debt, and benefit from a capped tax concession rate of 15% on income derived from investments outlined in the investment strategy. On top of this, members are permitted to make in specie contributions. This means that, as a member of your SMSF, you may transfer the ownership of shares or property belonging to a business to your fund without selling the asset itself.

As the trustee of an SMSF you are responsible for: setting out and following your investment strategy that meets your retirement needs and accounts for the risk your portfolio is able to handle, researching investment options, managing the fund, budgeting for ongoing expenses, keeping comprehensive records, organising insurances such as income protection and total and permanent disability cover for super fund members, and arranging a yearly audit by an approved SMSF auditor.

By including a broad range of investment options in your investment strategy, this allows you flexibility in what you choose to invest in and the ability to better balance, adapt and diversify your investment portfolio. As the trustee of your SMSF you have the choice to invest in shares, property, cash and term deposits, bonds, property, cryptocurrencies, collectables and physical assets such as gold bullion.

Gold Bullion and your SMSF

As stated in an article published last year by the ABC, making money out of money isn’t as easy as it used to be. With an all time low Reserve Bank of Australia (RBA) cash rate of 0.75%, term deposits aren’t making the returns that investors usually rely upon. This is why more and more SMSF members are looking to gold as a portfolio diversifier and an insurance against economic uncertainty and a method for hedging losses.

While you may be 100% committed to your SMSF and building a comfortable retirement for yourself, taking control also means taking appropriate measures in your investment strategy to diversify and protect your portfolio from the risk of possible loss of investments and market volatility. 

Gold is a physical commodity with inherent value that is held in high regard as a long-term investment option that rises in price as stocks markets drop. Taking into account that we watched the price of gold rise to a near all time high in 2019, have you considered including physical gold in your self managed super fund investment strategy?

When considering physical gold as a part of your investment portfolio, it is important to note that gold bullion is preferable over gold coins because the price of gold bullion is based on the spot price of gold, while gold coins are classed as collectables and are subject to stricter rules because the value of the coin is more complicated to determine.

While it is completely legal for your SMSF to invest in gold bullion, there are a few important considerations to take into account and rules you must comply with. Firstly, and most importantly, gold bullion must be an allowable investment according to your investment strategy. 

When purchasing gold bullion the invoice must be made out in the name of your SMSF. Once purchased, members of your fund are responsible for keeping adequate records that prove the existence of the gold bullion, as well as show the decision of where the investment is stored and how it is insured. 

For example, it is a requirement that the gold is stored in a secure storage facility and insured for its market value. As stated in an article by the Australian Financial Review, “Whether it’s bullion or it is classified as a collectable, storage and insurance will be top priorities.”

Furthermore, you are required to provide all relevant documents concerning the above to your independent auditor to assist with annual audits of your fund. If you don’t comply with the investment restrictions, the ATO may impose significant penalties such as higher tax rates, and disqualify you as a trustee or even prosecute members.

At Private Vaults Australia we specialise in the purchase and sale of gold and silver bullion, offering expert advice on SMSFs purchasing and storing precious metals, as well as complimentary insurance of $20,000 with each safe deposit box lease.

For more info on how to diversify your SMSF with gold bullion, contact PVA or read the PVA blog for more interesting news, tips and ideas to guide you.

Protect Data that is Important to You

The process of recovering data is a place that you would never wish to find yourself and the thought alone is enough to make a person anxious. However, whether your data is for personal use, or if you’re a sole trader or company, how can you back your data up like a pro and why should this concern you?

Without a data management plan in place, combined with a lacklustre approach to data backup and data storage, many of us put ourselves in a position of great risk, where we can expect to lose time and money to the process with no promise of a full data recovery. Basically, all the facts point towards the idea that an internal hard-drive on your main computer at home or your laptop at work is just not enough. 

Today the threats are endless and data can be lost in many ways. These range from physical damage to hardware due to floods and fire events, to data corruption, malware, ransomware, and human error. We also can’t forget that there is always the chance of a black swan event, such as the Carrington Event of 1859 when a solar storm wiped out telegraph systems across Europe and North America – lending a frightening insight into what consequences an event like this, and other extreme natural disasters, would have on our lives in this digital age.

The above factors have led to a boom in the data recovery and data storage industries in Australia, as reported by The Australian,  in which the experts are cleaning up financially due to the simple fact that you may not have planned ahead. Such as the case of a traveller who took a trip around the world, accumulating 44GB of photographs only to accidentally delete them all because he thought he had backed up his library of photos.

On a larger scale, in the lead up to Christmas in 2019, a tele-marketing company based in Arkansas, U.S.A was forced to make 300 employees redundant and temporarily close their doors after the company was ‘held hostage’ by a ransomware incident, which left the business massively out of pocket and forced a restructure in order to survive.

Plan Ahead and Explore your Data Backup Options

Fortunately, there are many different hardware and storage media options, as well as cloud storage services available to you in order to build an air-tight data management plan. A widely published approach is the 3-2-1 Backup Rule, which recommends that you maintain at least three backups of your important files using two different on-site storage media and one storage media that is kept off-site.

Storage media options include hardware such as SSD drives, flash drives, USB drives, and your internal hard drive, while off-site locations include online cloud storage services and safety deposit boxes (SDB’s) in a secure storage facility. 

Important considerations surrounding storage media that dictate the capacity of your data backup plan to meet your needs include durability, portability, transfer speeds, storage capacity and first and foremost the security of the hardware.

Depending on the size of your files and whether the documents you store are high impact, you will need to make a decision on the quality of storage media and services you utilise in your 3-2-1 Backup plan based on the nature of the data, the frequency of use of the data, and the sensitivity of the data.

However, in order to preserve documents that are essential to your business or simply important to you, you should remember that at the end of the day on-site storage media are destructible; and while cloud services are great for file sharing and vary in affordability, they too rely on servers in a centralised location – often located off-shore – and are just as susceptible to destruction, theft and corruption as your internal storage media.

Safe Deposit Boxes and your Data Backup Plan

The above is why individuals and business owners are advised to take advantage of all facets of data management and storage. It is recommended that you to take the extra step to protect highly important documents that are essential to the continuation and wellbeing of your business, or an important part of your life story. Make copies of important documents for sharing, have them witnessed and signed by a Justice of the Peace for validity, and move them off-site where they are out of harms way and may be accessed later at your convenience.

At Private Vaults Australia, we provide the ultimate off-site solution for your data backup plan, offering safe deposit boxes in a world-class, flood-free and fireproof secure facility to individuals and enterprises who mean business and are serious about protecting what is valuable to them. 

For more info on how to back your data up like a pro, contact PVA or read the PVA blog for more interesting news, tips and ideas to guide you.