IRAs are subject to federal laws and restrictions that govern their investments in precious metals. The only precious metals that can be bought in one. We offer trading in gold, silver, platinum and palladium bars, and coins. When trading precious metals, Fidelity only acts as an intermediary. We do not hold stocks of precious metals, nor does Fidelity buy or sell by taking positions on the market.
We send your orders directly to the precious metal investment companies we use, Fidelitrade or ScotiamocattatTM, which buy and sell for us on the precious metals market. In general, the custodian takes care of all the paperwork you don’t want to worry about, while the Gold IRA firm helps you with things like shopping and training. While most IRA investors invest in more traditional assets such as stocks, bonds, and funds, the tax code allows investments in precious metals such as gold and silver through specialized IRA accounts. Younger investors who have less money to invest in gold are better off with a traditional IRA if they invest in gold equivalents, such as gold ETFs or gold mining stocks, until they’ve accumulated enough to meet the higher minimum requirements of gold IRAs.
Many Gold IRA companies work with a custodian, and either the custodian or the Gold IRA company may select a custodian bank. Securing wealth over the long term is an important goal of almost all gold IRA investors, and a precious metal IRA offers a safe, reliable and effective tool for sustainable long-term wealth growth. However, there is no way to burden your portfolio with gold unless they are economic assets made of paper gold, not actual gold bars. Certain types of gold coins, gold bars, platinum coins, platinum bars, silver coins, silver bars, and palladium bars are among the approved types.
The IRS has set guidelines for metal fineness standards to determine whether gold or silver in the form of gold bars or coins is acceptable for a gold IRA. Like a traditional IRA, a gold IRA allows pre-tax contributions, and investment income can then accumulate on a tax-deferred basis. Fidelity’s size in particular doesn’t make it the best choice for IRA investments in precious metals. On the other hand, your Fidelity Gold IRA was likely bundled with all the other plans the company offers, with you only controlling the amount of assets in question.
Traditional IRA accounts can be easily set up and managed through a custodian bank, but setting up and managing a Gold IRA involves a few more steps. A Fidelity Gold IRA may look good on paper, but what you actually get is a much lower quality product due to its brand strength. The fact that it takes a long time to find out whether Fidelity even offers a Gold IRA should let you know their priorities.