Supercharging Your SMSF: The Benefits of Investing in Pink Diamonds and Other Alternative Assets

As the name suggests, self-managed super funds (SMSFs) give their members control over their retirement savings, including how they invest and grow their nest egg. With this control comes responsibility, but also the potential to supercharge their investments by diversifying their portfolio with alternative assets like Pink Diamonds.

Investment-grade Pink Diamonds have proven to be a unique and profitable addition to SMSFs, offering stability, longevity, and a hedge against market volatility. Unlike stocks or property, Pink Diamonds are a physical asset that is not tied to any particular market or industry, making them a strong choice for SMSF diversification.

Moreover, Pink Diamonds are a rare and finite resource, and as such, their value has only increased over time. The Argyle Pink Diamond Tender, which is held annually, showcases some of the rarest and most valuable Pink Diamonds in the world, with prices that have consistently exceeded expectations. In fact, the Argyle Pink Diamonds have consistently outperformed other assets in terms of capital growth, making them an attractive choice for SMSFs looking to maximize their returns.

One of the benefits of investing in Pink Diamonds within an SMSF is that they are 100 percent allowable. This means that SMSF trustees can purchase Pink Diamonds as part of their investment portfolio without breaching superannuation regulations. This is because Pink Diamonds are considered a physical asset and therefore classified as a collectible rather than a financial asset.

However, it is important to note that there are some restrictions when it comes to investing in collectibles, including Pink Diamonds, within an SMSF. The Australian Taxation Office (ATO) has strict rules in place to ensure that SMSF investments are made solely for the purpose of providing retirement benefits to its members. For instance, collectibles cannot be stored in the SMSF trustee's home or used for personal use, which includes wearing Pink Diamond jewellery.

Another consideration when investing in Pink Diamonds within an SMSF is affordability. While investment-grade Pink Diamonds can start at around $25,000, the price can quickly escalate depending on their size, colour, clarity, and cut. It is important for SMSF trustees to assess whether Pink Diamonds are an affordable option for their fund, and to ensure that they do not put all their eggs in one basket by investing too heavily in one particular asset class.

Nevertheless, the benefits of investing in Pink Diamonds within an SMSF cannot be denied. Pink Diamonds offer a unique investment opportunity that has consistently outperformed other assets in terms of capital growth. They are also a physical asset that is not tied to any particular market or industry, offering stability and longevity to an SMSF's investment portfolio.

In addition to Pink Diamonds, SMSFs can also consider other alternative assets such as artwork, fine wine, or rare coins. The key is to diversify the investment portfolio to spread risk and maximize returns. This approach also enables SMSF trustees to take advantage of market opportunities that may not be available through traditional investments.

In conclusion, investing in Pink Diamonds within an SMSF can provide a unique and profitable opportunity for trustees looking to diversify their investment portfolio. However, it is important to note that investing in collectibles such as Pink Diamonds within an SMSF comes with certain restrictions and affordability considerations. It is therefore important for SMSF trustees to seek professional advice and conduct their due diligence before making any investment decisions. By doing so, they can put the 'super' into their self-managed funds and potentially reap the rewards of a diversified and profitable investment portfolio.