A precious metals and bullion specialist has released a new product that will allow investors in gold to draw down on their holding and receive regular cash flow without imposing any lock-in periods.
The Gold Decumulation Plan (GDP), launched by ABC Bullion on 19 August and accessible to all investors, including SMSF trustees, requires an initial investment in the precious metal with plan members then selecting the dollar amount they want to receive as a monthly cash payment.
ABC Bullion will fund that cash flow by automating the buyback of the required amount of gold, based on spot prices at the end of each month, fractionally reducing the amount of the precious metal held in an investor’s GDP account.
The firm added this would allow clients to benefit from dollar-cost averaging, withdrawing a fixed-dollar amount at regular intervals, which smooths out price fluctuations and reduces the need for constant market monitoring.
Investors would not be subject to lock-in periods that are present in products such as term deposits and transactions, holdings and portfolio valuations can be monitored through the ABC Bullion website, which also allows the conversion of GDP investments into physical gold.
ABC Bullion general manager Jordan Eliseo said: “GDP is likely to be particularly appealing to Australians either already in or approaching retirement, including the more than 1 million Australians who self-manage their superannuation.
“SMSF trustees have been major allocators to precious metals in the past 15 years, and with SMSF assets already making up the largest component of Australian superannuation assets held in pension phase, GDP uniquely caters to their investment needs.
“An Australian investing $100,000 in gold at the end of 1999 and requiring a monthly cash flow of $500 (which equates to 6 per cent per annum on their original investment) would have received $153,000 in cash from fractional sales of gold by the end of June 2025. They would also still have a gold holding worth over $420,000, more than four times their original investment.
“Gold has outperformed mainstream asset classes like shares and property over the past 25 years, averaging nearly 10 per cent annual growth since 2000. With the RBA (Reserve Bank of Australia) again cutting interest rates in August, and the likelihood of lower rates to come, savers and investors continue to look for alternative investment solutions.”