Fidelity and Gold


Fidelity and Gold Hero Image

 

As one of the largest asset managers in the world, Fidelity is a one-stop-shop for retail and institutional investors alike. But unlike many of its peers, Fidelity actually allows investors to purchase precious metals like gold in their portfolio.

We will examine the gold and gold-related products offered by Fidelity, along with their stipulations and fees.

What does Fidelity do?

Fidelity is a financial services company based out of Boston, Massachusetts. With over 50,000 employees and $4.9 trillion assets under management, the institution provides its customers with a host of financial services, including:

  • Brokerage Services – Online and mobile brokerage with commission-free trades
  • Wealth Management – Dedicated investment advisors to assist you in growing your wealth over time
  • Retirement Planning – Flexible planning and preparation for each step of the retirement planning process

 

Commonly Asked Questions

Does Fidelity offer gold and other precious metals as investment options?

Yes, Fidelity users can purchase gold, silver, platinum, and palladium directly through the online brokerage.

 

stacks of gold barsCan I buy physical coins and bars through Fidelity?

Yes. On Fidelity, users have the option to purchase a variety of physical precious metals coins and bars.

 

Can I purchase precious metals through my online brokerage account?

Purchases of precious metals through Fidelity can only be made by calling a Fidelity representative. These purchases cannot be made through your online brokerage account.

 

Does Fidelity offer precious metals in IRAs?

Yes, Fidelity customers can purchase certain precious metals inside of an IRA.

 

Can I rollover a Fidelity 401(k) into a Gold IRA?

Yes, you can always rollover your Fidelity 401(k) into a Gold IRA. The experts at Birch Gold Group provide you with easy, step-by-step instructions on how to convert an already existing retirement account into a Precious Metals IRA.

 

What gold options does Fidelity offer?

Physical precious metals

Unlike most other online brokerages, Fidelity offers physical gold and precious metals options for investors.

Coin or Bar? Purity Weights
Gold American Buffalo Coin 99.99% 1 oz
Gold American Eagle Coin 91.6% 0.10 oz, 0.25 oz, 0.5 oz, 1 oz
Gold Australian Kangaroo Coin 99.99% 0.10 oz, 0.25 oz, 0.5 oz, 1 oz
Gold Austrian Philharmonic Coin 99.99% 0.10 oz, 0.25 oz, 0.5 oz, 1 oz
Gold Canadian Maple Leaf Coin 99.99% 0.10 oz, 0.25 oz, 0.5 oz, 1 oz
Gold South African Krugerrand Coin 91.6% 0.10 oz, 0.25 oz, 0.5 oz, 1 oz
Gold Bullion Bars Bar 99.5%-99.99% 1 oz, 5 oz, 10 oz, 100 oz, 400 oz, 1 kg
American Silver Eagle Coin 99.9% 1 oz
Silver Australian Kookaburra Coin 99.9% 1 oz
Silver Canadian Maple Leaf Coin 99.99% 1 oz
Silver Bullion Bars Bar 99.9% 1 oz, 10 oz, 100 oz, 1000 oz
Platinum American Eagle Coin 99.95% 0.10 oz, 0.25 oz, 0.5 oz, 1 oz
Platinum Canadian Maple Leaf Coin 99.95% 0.10 oz, 0.25 oz, 0.5 oz, 1 oz
Platinum Bullion Bars Bar 99.95%/td> 1 oz, 10 oz, 50 oz
Palladium Canadian Maple Leaf Coin 99.95% 1 oz
Palladium Bullion Bars Bar 99.95% 1 oz, 10 oz, 100 oz

Mutual Funds

Fidelity offers a variety of precious metals mutual funds. The company’s flagship gold mutual fund, Fidelity Select Gold Portfolio (FSAGX), allocates about 80% of its capital to companies that engage in gold-related activities, with up to 25% of its capital going directly into gold and other precious metals. FSAGX, and other Fidelity-managed mutual funds, come with no transaction fees.

 

Exchange-Traded Funds (ETFs)

Any over-the-counter traded ETF is available for purchase through Fidelity. This includes major gold ETFs such as SPDR Gold Trust (GLD), iShares Gold Trust (IAU), and SPDR Gold MiniShares Trust (GLDM), among others. ETFs are beneficial because they are highly liquid like stocks but are composed of multiple assets. While ETFs can be traded commission-free, they do come with a management fee baked into their valuation.

 

Individual stocks

As a full-service brokerage, Fidelity customers can purchase individual stocks to provide them with exposure to gold and precious metals. All stock trades are commission-free, making it affordable for anyone to buy gold stocks. Suppose you are looking for exposure to gold via individual companies. In that case, it’s best to focus on gold mining and exploration companies that profit from extracting gold from the ground and selling it at market prices. These include companies like Newmont (NEM), Barrick Gold (GOLD), and Kinross (KGC).

 

Gold IRAs

gold american eaglesFidelity offers its customers a retirement account option within which gold and precious metals can be held. However, according to federal laws, only certain precious metals coins and bars can be purchased within an IRA. These include:

  • Gold American Eagle Coin – 0.10 oz, 0.25 oz, 0.5 oz, 1 oz
  • Gold American Buffalo Coin – 1 oz
  • Silver American Eagle Coin – 1 oz
  • Platinum American Eagle Coin – 1 oz
  • Bullion Quality Bars

Oddly, though, Fidelity keeps its precious metals transactions at arm’s length. If you read the extremely small print here, you’ll learn that instead of actually selling you physical precious metals, Fidelity passes your order to an affiliate, FideliTrade. This pass-off adds extra costs to each transaction.

FideliTrade Incorporated is an independent, Delaware-based corporation that provides precious metals sales and support services, including buying, selling, delivery, safekeeping, and custody services to both individuals and companies. It is not affiliated with Fidelity Investments. FideliTrade is not a broker-dealer or an investment advisor and is not registered with the Securities and Exchange Commission or FINRA. Additionally, the purchase of gold in Fidelity’s account is not made in a true self-directed IRA.

 

What does Fidelity charge for its gold offerings?

Fidelity charges a fixed percentage of each gold trade based on the purchase or sale price of the order. This fee is determined on a per-order basis, with decreasing fees on larger orders. If you decide to take delivery of gold, additional fees like taxes and delivery will also apply.

Gross amount Percent charged on gross amount
Buying
  • $0–$9,999
  • $10,000–$49,999
  • $50,000–$99,999
  • $100,000
  • 2.90% ($44 minimum)
  • 2.50%
  • 1.98%
  • 0.99%
Selling
  • $0–$49,999
  • $50,000–$249,999
  • $250,000+
  • 2.00% ($44 minimum)
  • 1.00%
  • 0.75%

You can store your gold with one of Fidelity’s partners, FideliTrade or ScotiaMocatta, for an additional quarterly storage fee of 0.125%, or $3.75 (whichever is greater). If using this service, your gold will be stored in high-security vaults and insured against theft, with both company’s maintaining $1 billion all-risk insurance coverage via Lloyds of London.

 

Other things to know

Several other stipulations are essential to understand before purchasing gold or other precious metals through Fidelity.

  • There is a minimum initial investment into precious metals, starting at $2,500 for a non-retirement account (and a minimum $1,000 subsequent investment)
  • A two-day settlement period for all gold trades
  • Trades can only be made in whole ounces or number of coins
  • Hours for trading precious metals are 8 am – 3 pm Eastern Time
  • Fidelity does not buy or sell gold for you and instead works with FideliTrade or ScotiaMocatta to place the orders on your behalf