Fidelity Gold, Silver, Platinum, and Palladium Trading

Discussion of the Gold portion of the Permanent Portfolio

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whatchamacallit
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Fidelity Gold, Silver, Platinum, and Palladium Trading

Post by whatchamacallit » Sat Dec 24, 2022 9:30 am

When did this happen? I just learned of this from snedgar in the other thread. This at least feels like lower counter party risk with some higher fees.

https://www.fidelity.com/trading/invest ... r-platinum

Buying and selling fees:
Fees5
Gross amount Percent charged on gross amount
Buying
$0–$9,999

$10,000–$49,999

$50,000–$99,999

$100,000

2.90%

2.50%

1.98%

0.99%

Selling
$0–$49,999

$50,000–$249,999

$250,000+

2.00%

1.00%

0.75%
Storage fees:
Fidelity charges a quarterly storage fee of 0.125% of the total value or $3.75, whichever is greater. Storage fees are prebilled based on the value of the precious metals in the marketplace at the time of billing. For more information on these other investments and the cost of a specific transaction, contact Fidelity at 800-544-6666. Minimum fee per precious metals transaction: $44. Minimum precious metals purchase: $2,500 ($1,000 for IRAs). Precious metals may not be purchased in a Fidelity Retirement Plan (Keogh), and are restricted to certain types of investments in a Fidelity IRA.
snedgar wrote:
Sat Dec 24, 2022 9:11 am
One other option that I forgot to mention is that Fidelity offers segregated allocated storage of Gold Eagles within both Roth and Traditional IRAs.

While it is not as efficient, we also use that as a tool to hold physical while not having to withdrawl from the IRAs.

As @flyingpylon mentions, earlier in this thread, there needs to be more discussion about the need to balance the types of accounts where we save/invest. You have to dig pretty deep, or experience it yourself before you even realize there was a problem.
coasting
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Re: Fidelity Gold, Silver, Platinum, and Palladium Trading

Post by coasting » Sat Dec 24, 2022 5:37 pm

whatchamacallit wrote:
Sat Dec 24, 2022 9:30 am
When did this happen? I just learned of this from snedgar in the other thread. This at least feels like lower counter party risk with some higher fees.

https://www.fidelity.com/trading/invest ... r-platinum

Buying and selling fees:
Fees5
Gross amount Percent charged on gross amount
Buying
$0–$9,999

$10,000–$49,999

$50,000–$99,999

$100,000

2.90%

2.50%

1.98%

0.99%

Selling
$0–$49,999

$50,000–$249,999

$250,000+

2.00%

1.00%

0.75%
Storage fees:
Fidelity charges a quarterly storage fee of 0.125% of the total value or $3.75, whichever is greater. Storage fees are prebilled based on the value of the precious metals in the marketplace at the time of billing. For more information on these other investments and the cost of a specific transaction, contact Fidelity at 800-544-6666. Minimum fee per precious metals transaction: $44. Minimum precious metals purchase: $2,500 ($1,000 for IRAs). Precious metals may not be purchased in a Fidelity Retirement Plan (Keogh), and are restricted to certain types of investments in a Fidelity IRA.
snedgar wrote:
Sat Dec 24, 2022 9:11 am
One other option that I forgot to mention is that Fidelity offers segregated allocated storage of Gold Eagles within both Roth and Traditional IRAs.

While it is not as efficient, we also use that as a tool to hold physical while not having to withdrawl from the IRAs.

As @flyingpylon mentions, earlier in this thread, there needs to be more discussion about the need to balance the types of accounts where we save/invest. You have to dig pretty deep, or experience it yourself before you even realize there was a problem.
This isn't new. It has been mentioned in posts over the years (I think I recall Sophie posting about it in the past). Note the fine print in footnote 1:
" 1. 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.
ScotiaMocatta is a division of Bank of Nova Scotia and is not affiliated with Fidelity Investments.
Orders to buy and sell precious metals by customers of Fidelity Brokerage Services, LLC (FBS) are handled by National Financial Services LLC (NFS), an affiliate of FBS. NFS processes precious metal orders through FideliTrade or ScotiaMocatta, which are not affiliated with either FBS or NFS.
The bullion or coins that are stored for customers at FideliTrade or ScotiaMocatta are insured against theft and disappearance. Fidelity customers’ holdings at FideliTrade or ScotiaMocatta are held in a separate account under the Fidelity name. Both FideliTrade and ScotiaMocatta maintain $1 billion in “all risk” insurance coverage at Lloyds of London for bullion held in its high-security vaults, and $300 million in contingent vault coverage. Bullion and coin investments in FBS accounts are not covered by either the SIPC or insurance “in excess of SIPC” coverage of FBS or NFS. For detailed information, please contact a Fidelity representative. "


You could also open an account directly with FideliTrade at https://fidelitrade.com/ bypassing Fidelity altogether. But if you need an IRA account, going through Fidelity probably does makes sense. From FideliTrade website at https://fidelitrade.com/who-we-serve/in ... us-metals/
FideliTrade can help you purchase precious metals for your IRA. Precious metals have been permitted as an acceptable asset class in IRAs for over 30 years. FideliTrade has built relationships with several trust companies who allow metals as an asset class for IRAs.

In any case, bullion is stored at FideliTrade subsidiary Delaware Depository vault. I looked into FideliTrade about a year ago for a taxable account. Ended up going with HAA instead, but I would not be opposed to using FideliTrade either directly or through Fidelity in an IRA account. Was focused on U.S based operation, so did not look into ScotiaMocatta and cannot comment regarding.
ppnewbie
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Re: Fidelity Gold, Silver, Platinum, and Palladium Trading

Post by ppnewbie » Mon Jan 02, 2023 2:26 am

One interesting thing is I researched this a while back and Google mapped the company / storage facility that Fidelity uses for this service. On the website they have a very tight close up of the company sign. When I zoomed out it looked like a shack in an urban parking lot and I was pretty sure I had the correct building.
Last edited by ppnewbie on Mon Jan 02, 2023 7:02 pm, edited 1 time in total.
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mathjak107
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Re: Fidelity Gold, Silver, Platinum, and Palladium Trading

Post by mathjak107 » Mon Jan 02, 2023 3:35 am

In the early 1990s I took delivery of the gold I bought at fidelity ….

I bought a bunch of eagles .

Much to my surprise I was charged sales tax on the purchase since fidelity had offices in nyc….

Nyc has changed the taxing of gold since then , but make sure if you do take delivery of it that your locality does not charge sales tax if the company has offices in your locality
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