What is the best way of accounting for Precious metals transactions?

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I want to know what is the best way to handle Precious Metals in Reckon Personal Plus 2019?
I have started buying physical silver and gold and at the moment I record them as a "Bond" purchase, and have set up "silver" and "gold" as Asset Types. What "Asset Class" do I record them as?

Is this the best way to account for them and will it give me the best outcome in reports?
Any help appreciated. 
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Shane Smith

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Posted 3 weeks ago

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Albert

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In my opinion you should set separate accounts in Reckon for each and create 2 "currencies" XAU and XAG. Set the exchange rate for each currency as the prevailing spot price (update as frequently as you like). You will buy in troy ozs or grams. Those can be the units in your XAU and XAG accounts

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Shane Smith

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Albert, thank you for the reply. I have separate accounts in AUD and in USD with the gold and silver broker, because they sell in AUD or in USD.
But i am not clear on what you mean by XAU and XAG?

And should I use the "Bonds Bought" in the Enter Transactions window or some other way?
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Kevin Russell, Accredited Partner

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This is NOT the place for accounting advice. Why dont you talk to your tax advisor?
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Albert

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I do not think Shane is asking for accounting advice. He is merely looking for a way to set up a physical metal account within Reckon.

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Albert

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Shane - do you buy the metal in grams or troy ounces?
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Kevin Russell, Accredited Partner

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Al you and I disagree
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Shane Smith

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Albert, you are right, I am looking for the best way to set it up in Reckon so I can see my exposure to all precious metals and track cost basis and prices etc., and see on the Pie graph my relative exposure to it or stocks, or property.

I am just starting to buy physical gold and silver and I buy in troy ounces and the Broker stores it. There are no categories for precious metals or commodities in Reckon and I want to set it up correctly from the beginning so I don't have to go back and make dozens of changes later. I think buying it as a "Bond" in the Transactions box is better than treating it as a Stock, although I stand to be corrected? I would like to set up a new "Asset Class" for Precious metals, but there is no option to do this at present, so i set it as "Other".
I can track prices by adding them manually from time to time, and I will have a separate USD and AUD account with the Broker.
Can you advise anything else that might help?
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Albert

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Shane - I would try:
1. set up a new currency and call it Gold (that is where XAU comes from). Set the exchange rate for "Gold" as the current spot price
2. Set up a new account and call it Gold Holdings
3. Transfer from any currency into Gold Holdings
4. So say you buy 5 grams at A$53.50/gram
5. Total outlay will be A$267.50
6 Transfer the A$267.50 into Gold Holdings and set the amount received as 5 (grams)

I will have some time this weekend and will give it a try myself. I have been using Reckon / Quicken since 1995 and find it can do almost anything if you put your mind to it.

Please let me know


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Shane Smith

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Thanks very much for the help Albert, I will give it a try as soon as i can.