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 for their portfolio.
In this guide, we will examine the gold and gold-related products offered by Fidelity, focusing on Fidelity gold IRAs and what stipulations and fees you can expect when opening one.
Table of contents:
- What Does Fidelity Do?
- Can You Buy Gold Through Fidelity?
- Does Fidelity Have a Gold IRA?
- How Can I Buy Gold Through Fidelity?
- Is a Fidelity Gold IRA the Best Gold IRA Option?
- Fidelity Gold IRA vs. Birch Gold Group Gold IRA
- Open a Gold IRA With Birch Gold Group
- Fidelity Gold IRA FAQs
- Key Takeaways: Fidelity & Gold
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, wealth management, and retirement planning.
As part of its investment management services, Fidelity acts as an agent to enable clients to purchase precious metals such as gold, silver, palladium and platinum. Orders are sent directly to the precious metals investment company and then fulfilled by transferring the precious metals to the client’s account.
Can You Buy Gold Through Fidelity?
Clients with Fidelity can purchase gold through Fidelity once they have an account. Gold, silver, palladium, and platinum can all be purchased within a relatively short amount of time (two days total transfer time). Gold and other precious metals can be added to non-retirement accounts with a minimum investment of $2,500 or retirement accounts such as Fidelity 401(k) gold funds or Fidelity gold IRAs with a minimum investment of $1,000.
Orders can be made for whole ounces or coins through Fidelity between the hours of 8 am and 3 pm ET; they are then sent through FideliTrade, completed, and sent to the client’s account.
Note that going through FideliTrade does add to the cost of the transaction when compared to more direct precious metals transfers. 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.
Does Fidelity Have a Gold IRA?
Fidelity offers a self-directed IRA (an SDIRA) that allows clients to invest in precious metals (including gold, silver, palladium, and platinum). SDIRAs function very similarly to IRAs in terms of their rules and regulations. Precious metals SDIRAs enable investors to take advantage of tax benefits while purchasing gold along with other potential perks depending on your financial situation.
Fidelity’s precious metals SDIRAs come with restrictions as to what exactly you can buy. You cannot purchase fractional amounts of an ounce, nor can you purchase a dollar amount of precious metals. Only whole ounces or coins can be purchased.
This means that you’ll be able to invest in gold American Eagle coins (0.10 oz, 0.25 oz, 0.5 oz, 1 oz), gold American Buffalo coins (1 oz), silver American Eagle coins (1 oz), platinum American Eagle coins (1 oz), and bullion quality bars.
How Can I Buy Gold Through Fidelity?
To start buying gold through Fidelity, you’ll need to start by setting up an account with them. First, you’ll need to open a SDIRA, then you’ll need to speak with Fidelity to make it a gold-backed IRA and ensure that the account is set up properly.
Along with opening a new account with a fresh purchase or deposit, you also have the option of making a 401(k) rollover or IRA transfer from an already existing Fidelity retirement account into a precious metals IRA. Rolling over an account involves making the account into a new kind of account, while transferring typically refers to moving funds from one account to another of the same type.
Rolling over accounts can be difficult to navigate, but here at Birch Gold Group, we’re here to help. Check out our guide to starting a precious metals IRA, or contact us and a Precious Metals Specialist will simplify the process for you.
Is a Fidelity Gold IRA the Best Gold IRA Option?
Although a premier financial institution, Fidelity’s Gold IRA comes up somewhat short when compared to other options. The biggest factor for most clients is the additional cost that comes from the use of FideliTrade. Other SDIRAs offer more direct transaction pathways to reduce costs and lower fees – and for most clients, the whole point of gold investment is to make the most of their savings.
Fidelity Gold IRA vs. Birch Gold Group Gold IRA
When it comes to investing in precious metals, deciding which company to work with is a big step. Fidelity earns its reputation as a financial institution with a broad array of services, but that means it isn’t specialized in handling precious metal IRA accounts. In addition, the added cost that comes from working through FideliTrade instead of having a direct relationship between your investment company and precious metal brokers is not ideal for maximizing overall returns.
At Birch Gold Group, by comparison, your precious metals SDIRA will be managed by precious metals experts. A dedicated IRA specialist will help you explore precious metals IRA storage options, and our support team is always ready to respond to any questions or concerns. Most importantly, there are no added fees when you want to add precious metals to your account – simply request the purchase and we’ll make the transfer, simple as that. It’s even easier to take physical possession of precious metals with Birch Gold Group, too.
Open a Gold IRA With Birch Gold Group
With unparalleled access to precious metals specialists and a support staff dedicated to helping you navigate SDIRAs, Birch Gold Group makes it easy to start a gold Roth IRA or a gold IRA, including determining which one is right for you. On top of that, you’ll know you’re making the most of your savings by not constantly paying added costs for no benefit.
If you’re more interested in learning how to buy gold with a 401(k), as precious metals experts, we can help with that, too.
Fidelity Gold IRA FAQs
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. Gold coins must have a purity of 99.99% (Gold American Buffalos and most other gold coins) or 91.6% (Gold American Eagles and Gold South African Krugerrands). Gold bullion bars must be at least 99.5% pure. For silver, you’ll need at least 99.99% purity, while platinum and palladium can be added when 99.95% pure.
Can I buy physical coins and bars through Fidelity?
Yes. On Fidelity, users have the option to purchase a variety of physical precious metals. Coins such as the American Eagle and Buffalos are available, along with bullion bars. Some investors prefer to invest in coins as they come with added face value as well as some degree of added collectability. Bullion bars tend to be in sizes ranging from one to one thousand ounces, meaning if you’d like to buy in bulk, bullion is a good way to go.
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 between the hours of 8 am and 3 pm ET. For IRA accounts, you’ll need to have a minimum investment of $1,000. You can only add to your account by purchasing whole ounces or coins (rather than buying a dollar amount of a certain metal, or buying fractional amounts). These purchases cannot be made through your online brokerage account.
What gold options does Fidelity offer?
Fidelity provides its clients with access to a wide range of precious metals in multiple forms. You can choose from the following gold, silver, palladium, and platinum options when investing in precious metals:
|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%||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|
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|
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.
What are the requirements for opening a gold IRA with Fidelity?
Several 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)
- Expect 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 limited to 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, adding cost
Key Takeaways: Fidelity and Gold
While Fidelity is a well-recognized brand name, when it comes to investing in precious metals, it’s important to consider whether you’d like to go with a general financial institution or specialized experts. At Birch Gold Group, our Precious Metals Specialists are constantly watching gold prices to be aware of any notable changes so you’ll know when to invest more and when to hold back. Our goal is to help our customers grow their retirement savings into the largest possible sum, and as a result, we’re committed to removing unnecessary fees and giving you direct access to purchasing precious metals whenever you’re ready to.