Issue

How do I set up an investment in gold or other precious metals in Class? 

Background

Scenario 1: As a Collectibles

Generally, we recommend clients use a Collectibles holding account to record gold or other precious metals in Class. This is the most appropriate method if it is a unitary asset, for example, treating each purchase of gold as a unit. This method will not track a partial sale of the holding.

Scenario 2: As a Security Issue

There are situations when trustees choose to invest in physical quantities of gold, silver,etc, in the form of ingots or bars. If a fund has gold or other precious metals in this form, then a new security issue should be created.  

Resolution

Scenario 1: As a Collectibles

Refer to the User Guide, Collectible Setup,for detailed steps on setting up Collectibles.

Scenario 2: As a Security Issue

Navigate to Fund level > Investments > Investment Accounts

1. Enter the "Security Issue"
2. Click on "Create Security Issue"
   
   
3. Enter "Description"
4. You will initially classify the Market Type as "Unlisted Market" and Security Issue Type as "Unlisted Company"
5. Click on Save
   
   
6. Tick the checkbox to "Enable Reporting Categories" to change the settings, refer to the below screenshot with the changes
7. Click on Activate
   
   
   

When creating these security issues, you will need to ensure you apply unique codes, for example, if GOLD is already used, please create a different code.

To update the market value, refer to User Guide, Revaluation for Unlisted Securities or detailed steps 

Further information

How to process acquisition and disposal for Gold or Other Precious Metals

How to record the related income/expense for Gold and other Precious Metals