How to Buy Gold on Fidelity: Step-by-Step Guide

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Last Updated: November 21, 2023

Investing in gold and other precious metals has long been a cornerstone strategy for those looking to diversify their investment portfolios. Fidelity Investments offers a robust platform for buying gold, silver, platinum, and palladium, providing investors with an accessible way to hedge against economic uncertainty and inflation. This article aims to guide you through the process of how to buy gold on Fidelity, covering everything from opening an account to understanding the market dynamics.

Key Highlights

  • Diverse Precious Metals Options: Fidelity Investments provides a range of precious metals trading options, including gold, silver, platinum, and palladium, in various forms like coins, bullion, ETFs, and mutual funds, offering a comprehensive approach to diversifying investment portfolios.
  • Specific Investment Requirements and Fees: There are minimum investment requirements and specific trading hours for precious metals on Fidelity. The platform also has a tiered fee structure for buying and selling precious metals, with additional fees for delivery and storage.
  • IRA Investment Opportunities and Limitations: Fidelity allows for precious metals investment in IRAs, subject to certain purity standards and federal regulations, offering a tax-advantaged way to invest in gold and other precious metals.

a gold IRA investing kit

Understanding Precious Metals Trading on Fidelity

Precious Metals Overview

Fidelity Investments offers a unique opportunity for investors to delve into the world of precious metals trading. The primary metals available are:

  • Gold: Historically, gold has been a go-to investment during times of economic uncertainty and inflation.
  • Silver: Known for its industrial applications, silver also serves as a popular investment option.
  • Platinum and Palladium: These metals offer additional diversification in the precious metals market.

Market Dynamics

Investing in precious metals on Fidelity provides a hedge against various economic conditions:

  • Economic Uncertainty: During turbulent financial times, precious metals like gold and silver have shown resilience.
  • Inflation: As a traditional store of value, gold, in particular, has been a popular choice to protect against inflation.

Benefits of Investing in Precious Metals

  • Diversification: Adding precious metals to your portfolio can reduce risk by diversifying your investments.
  • Long-term Stability: Precious metals have a historical track record of maintaining value over the long term.

How to Trade Precious Metals on Fidelity

a trader buys precious metals on Fidelity

Opening a Brokerage Account

To start trading precious metals on Fidelity, you first need to open a brokerage account. This process involves:

  • Verification: Providing personal and financial information for account setup.
  • Approval: Once your details are verified, your account will be ready for trading.

Minimum Investment Requirements

Trading precious metals on Fidelity involves certain minimum investment requirements:

  • Initial Investment: A minimum of $2,500 is required to start trading in precious metals.
  • Order Type: Investments must be made in whole ounces or whole numbers of coins.

Trading Hours and Limitations

There are specific trading hours and limitations to keep in mind:

  • Trading Hours: Orders can be placed from 8:00 a.m. to 3:00 p.m. ET, subject to market volatility.
  • Order Placement: Orders must be made through a Fidelity representative during these hours.

Types of Precious Metals Available on Fidelity

Gold Options

On Fidelity, investors can choose from a range of gold options, each with its own unique features:

  • Gold American Buffalo: Known for its 99.99% purity, this coin is a popular choice among gold investors.
  • Gold American Eagle: Available in various sizes, these coins have a purity of 91.6% and are widely recognized in the gold market.

Silver Options

Silver investments on Fidelity include:

  • Silver American Eagle: This coin, with its 99.9% purity, is a sought-after option for silver investors.

Platinum and Palladium Options

For those interested in diversifying further:

  • Platinum American Eagle: A platinum coin with 99.95% purity, providing an alternative investment option.
  • Palladium: Offers additional diversification in the precious metals portfolio.

Purity and Face Value

Each metal comes with specific purity standards and face values, which are critical in determining their market worth.

Alternative Ways to Invest in Precious Metals on Fidelity

Mutual Funds and ETFs

Investors looking for indirect exposure to precious metals can consider:

  • Mutual Funds: These funds invest in companies involved in the production and mining of precious metals.
  • Exchange-Traded Funds (ETFs): ETFs like GLD (for gold) and SLV (for silver) provide exposure to the physical metals or companies in the precious metals industry.

Benefits of Indirect Exposure

  • Diversification: Investing in funds allows for a broader range of exposure across the precious metals market.
  • Lower Risk: Indirect investments can potentially lower the risk compared to direct metal purchases.

Considerations for Investing in Precious Metals in IRAs

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Permitted Metals for Gold IRAs

When investing in precious metals through an IRA, it’s important to understand the restrictions:

  • Eligible Metals: Gold American Eagle, Gold American Buffalo, Silver American Eagle, and Platinum American Eagle coins are among the permitted options.

Restrictions and Federal Laws

There are several federal laws and restrictions to be aware of:

  • Type of Metals: Only certain types of precious metals are eligible for IRA investments.
  • Purity Standards: The metals must meet specific purity criteria to qualify for IRA investments.

Trading Limitations in IRAs

When trading precious metals in an IRA:

  • Minimum Investment: A minimum of $1,000 is required for initial investments.
  • Trading Hours: Similar to a regular brokerage account, trading is limited to certain hours.

Fees and Charges for Trading Precious Metals on Fidelity

Fee Structure

Trading precious metals on Fidelity involves specific fees:

  • Buying Fees: The fees are tiered based on the purchase amount, ranging from 2.90% for smaller orders to 0.99% for orders above $100,000.
  • Selling Fees: Similar to buying, selling fees are also tiered, with lower percentages for higher sale amounts.

Additional Charges

Additional charges to consider:

  • Delivery and Storage: Opting to take delivery of physical metals incurs additional charges like taxes and delivery fees. Storing with Fidelity’s partners, FideliTrade or ScotiaMocatta, involves a quarterly storage fee.

Next Steps and Additional Resources

Researching the Metals Market

To make informed decisions:

  • Stay Informed: Continuously research the precious metals market for the latest trends and insights.
  • Fidelity Resources: Utilize Fidelity’s research tools and reports to stay updated on market movements.

Contacting Fidelity for Assistance

For further guidance:

  • Fidelity Representatives: Reach out to Fidelity’s customer service for personalized assistance in trading precious metals.

Conclusion

Investing in precious metals through Fidelity Investments presents a unique opportunity to diversify your investment portfolio and hedge against economic uncertainties. Whether you’re interested in physical gold, silver, platinum, palladium, or prefer indirect investments like ETFs and mutual funds, Fidelity offers a comprehensive range of options to suit various investment strategies.

It’s important to consider the associated fees, market dynamics, and eligibility criteria, especially for IRA investments.

As with any investment, it’s advisable to conduct thorough research and consult with a financial advisor to align these options with your overall investment goals.

a gold IRA investing kit

FAQs on Buying Gold on Fidelity

Does Fidelity Offer Gold and Other Precious Metals?

  • Variety of Options: Fidelity provides options to purchase gold, silver, platinum, and palladium directly through their platform.

Can I Buy Physical Coins and Bars Through Fidelity?

  • Physical Metals: Investors have the option to purchase various physical precious metals, including coins like the American Eagle and Buffalos, as well as bullion bars.

Purchasing Precious Metals Through an Online Brokerage Account

  • Process: Purchases must be made by calling a Fidelity representative during specific hours. The option for online purchasing is not available for precious metals.

Gold Options Available on Fidelity

  • Range of Products: Fidelity offers a wide selection of gold, silver, palladium, and platinum in different forms like coins and bullion bars.

Fidelity’s Charges for Gold Offerings

  • Cost Structure: Fidelity charges a percentage of each trade, with the fee structure varying based on the order size.

Requirements for Opening a Gold IRA with Fidelity

  • Investment Minimums: A minimum initial investment is required, along with adherence to specific trading hours and restrictions on the types of metals that can be traded.