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.
2. Past performance is no guarantee of future results.
3. The gold industry can be significantly affected by international monetary and political developments such as currency devaluations or revaluations, central bank movements, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries.
Fluctuations in the price of gold and precious metals often dramatically affect the profitability of companies in the gold and precious metals sector.
Changes in the political or economic climate, especially in gold producing countries such as South Africa and the former Soviet Union, may have a direct impact on the price of gold worldwide.
The precious metals market is extremely volatile, and investing directly in physical precious metals may not be appropriate for most investors.
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.
4. Details of various investment restrictions on IRAs and other retirement accounts may be found in Internal Revenue Code section(s) 408(m) and Publication 590.
5. There are delivery charges and applicable taxes if you take delivery.
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.
The direct purchase of precious metals and other collectibles in an IRA or other retirement plan account can result in a taxable distribution from that account (except as specifically provided under IRS rules). If precious metals or other collectibles are held in an ETF or other underlying investment vehicle, you should first confirm that such an investment is appropriate for a retirement account by reviewing the ETF prospectus or other issuing documentation and/or checking with your tax advisor. Some ETF sponsors include a statement in the prospectus that an IRS ruling was obtained providing that the purchase of the ETF in an IRA or retirement plan account will not constitute the acquisition of a collectible and as a result will not be treated as a taxable distribution.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Precious Metal IRA: How To Invest For Retirement With Gold And Silver
When the stock market gets rough, some investors seek out safe-haven investments like precious metals. While gold, silver and palladium are subject to their own forms of volatility, many believe them to be superior long-term investment choices.
You can’t hold physical precious metal in a regular individual retirement account (IRA). However, there are specially designed precious metal IRAs that let you invest for retirement using gold, palladium, silver and other valuable metals.
What Is a Precious Metal IRA?
A precious metal IRA is a special form of self-directed individual retirement account. Self-directed IRAs allow you to invest in a broad variety of unconventional assets, including precious metals, real estate and art, beyond the usual options available in a conventional IRA.
According to Kelli Click, president of the STRATA Trust Company—a self-directed IRA custodian that specializes in gold and other metals—precious metal IRAs are an avenue some people use as part of their retirement plan because gold, silver and palladium have historically grown in value over the very long term.
“Adding gold or precious metals to your retirement account may help protect your wealth in several ways, including reducing your potential investment volatility and risk, serving as a hedge in the event of an economic downtown and providing a tax-efficient shelter for potential gains,” she says.
How Much of Your IRA Should Include Precious Metals?
If you decide to invest in a precious metal IRA, you should do so conservatively. Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals.
The experts cite this low figure for a number of reasons. First, well-designed portfolios are diversified, which means they don’t take on unnecessary risk by investing strictly in one asset or type of asset. In other words, no trustworthy financial advisor would recommend that you invest all of your assets in precious metals.
Second, while gold and other metals have historically held their value over the long term, they typically lag the performance of other asset classes, such as stocks. Those looking to continue growing their retirement funds, then, may shortchange themselves if they own too many precious metals.
Finally, keep in mind that these “safe haven” metals may not even be that safe. While investors flock to them in times of trouble, they have been just as volatile as stocks historically. And though prices rise when the market struggles, they tend to fall once stocks recover.
Gold prices in 2020, for instance, are around where they were in 2011 after they spent much of the past decade at up to 40% lower. This may not make them quite the stable inflation hedge many people are looking for. Investments like high-quality bonds or Treasury inflation-protected securities (TIPS) may be better options for those seeking security and inflation hedging.
That said, if you want to include physical precious metals in your IRA, you have a few options.
What Precious Metals Can You Invest in for Retirement?
With precious metal IRAs, you can invest in gold, silver, platinum or palladium. That said, you can’t invest in just any gold, silver, platinum or palladium. The IRS has specific standards your precious metals have to meet:
• Gold must be 99.5% pure
• Silver must be 99.9% pure
• Platinum must be 99.95% pure
• Palladium must be 99.95% pure
Acceptable products that meet these criteria include Canadian Maple Leaf coins, Australian Koala bullion coins and PAMP Suisse bars. The IRS also allows American Eagle coins, despite the fact that they do not meet the 99.5% purity standard for gold. You cannot currently hold rare or collectible coins, Swiss Francs, British Sovereigns and German Marks in a self-directed IRA.
Special Considerations for Precious Metal IRAs
Because they involve the purchase and storage of valuable physical metals, you have to consider a few extra things when thinking about precious metal IRAs. Perhaps the most important is that precious metal IRAs are more expensive than other investment options, according to Drew Feutz, a certified financial planner (CFP) with Market Street Wealth Management Advisors.
“A precious metal IRA will have more fees than a normal IRA, including setup fees, transaction fees, custodial fees and physical asset storage fees,” he warns. You can’t avoid most of those fees either. You can’t, for example, store precious metals you’ve invested in your IRA in your own home, according to IRS rules. If you do, you risk additional taxes and penalties. And even if you could, storing precious metals at home is risky. If there were a robbery, for instance, you could lose at least a chunk of your retirement savings.
How to Open a Precious Metal IRA
Opening a self-directed IRA and investing in precious metals is slightly more complicated than opening a traditional IRA or Roth IRA. Here’s what you’ll need to do:
1. Select a Self-Directed IRA Custodian
Your self-directed IRA is held by a custodian. Custodians can be banks, trust companies or other entities approved by the Internal Revenue Service (IRS). Self-directed IRA custodians enable investors to invest in alternative assets, including precious metals, art and real estate.
2. Choose a Precious Metals Dealer
Next, select a precious metals dealer. You’ll direct the IRA custodian to send money to the dealer to purchase gold, silver, platinum or palladium.
“Before choosing a dealer and buying precious metals with your IRA funds, you’ll want to do your own research,” says Click. “Look for a dealer that belongs to industry trade groups like American Numismatic Association (ANA), Industry Council for Tangible Assets (ICTA) or Professional Numismatists Guild (PNG) to help with your search.”
3. Decide What Products to Buy
You’ll need to work with the dealer to select which products to buy. One of the most common choices is American Eagle Bullion Coins issued by the U.S. Mint.
4. Choose a Depository
Precious metals invested in a self-directed IRA must be stored in an approved depository, such as the Delaware Depository. Your IRA custodian can recommend a depository, but you can select one on your own that meets the Internal Revenue Code’s requirements. Remember: You cannot store precious metals for your IRA yourself.
5. Complete the Transaction
Once you have a custodian, dealer and depository, you can complete your purchase. The IRA custodian will handle the payments, and the dealer will ship your precious metals to the depository.
How Do You Make a Withdrawal from a Precious Metal IRA?
When you take a withdrawal, you have two options:
• In-Kind Distributions: You can have the actual precious metal shipped to you after the distribution.
• Depository Purchase: You can opt for the depository to purchase the metal from you, giving you the dollar value of your investment.
In either situation, you will contact your custodian to start the transaction. Remember, though, that precious metal IRAs are subject to the same rules as normal IRAs. Your investments can appreciate in value without taxation while they’re in the account, but when you withdraw them, you may owe taxes and penalties, depending on your account type and how old you are.
By that same token, you’re required to start taking required minimum distributions (RMDs) when you turn 72. These minimum withdrawals may become more complicated because you’ll be forced to take them in intervals matching the whole pieces of precious metal you own, and individual precious metals can retail for thousands of dollars per ounce.
This may result in you having to withdraw more value than you would if you were dealing strictly with U.S. dollars. And if you take in-kind distributions, you’ll have to sell your metals quickly or have cash available to pay the taxes you owe on the precious metals that are shipped to you.
Should You Open a Precious Metal IRA?
Precious metal IRAs may be a viable option for some investors concerned about inflation and market volatility. However, they are more expensive than some other investment options, and they may carry more risk than more traditional IRAs.
Precious metal IRAs generally only make sense if you have a strong portfolio and want to diversify your investments by setting aside a small portion for physical gold, silver, platinum or palladium.
If you want easier exposure to these investments without having to open a special kind of IRA or find custodians, dealers and depositories, consider investing in securities like exchange-traded funds (ETFs) or mutual funds that track precious metal indexes or prices. These can offer you the kind of exposure you may want to alternative assets with less cost and risk, and you can hold them in the retirement accounts you already have.
“It’s so easy and cost effective to hold precious metals through ETFs and mutual funds that there doesn’t seem to be a compelling factor to use a precious metal IRA,” says Feutz.
In either case, remember that precious metals and precious metal funds should add just a little sparkle to your retirement funds, not become your whole investment strategy.
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Commodity: Precious Metals
The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal).
ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.
This screen and the information about it was provided by the third-party identified above. The markets are unpredictable and past trends, events and performance may not be representative of future ones. Neither Fidelity nor the third-party can guarantee a particular outcome or provide any warranties as to the results obtained by the screen's use. The screen and its results are for educational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell securities, or a recommendation or endorsement of any security by Fidelity. Fidelity is not affiliated with the third party and does not recommend or endorse this screen. Fidelity does not endorse or adopt any particular investment strategy or approach to screening or evaluating securities.
Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.
Precious Metals ETFs
This is a list of all US-traded ETFs that are currently included in the Precious Metals ETF Database Category by the ETF Database staff. Each ETF is placed in a single “best fit” ETF Database Category; if you want to browse ETFs with more flexible selection criteria, visit our screener. To see more information of the Precious Metals ETFs, click on one of the tabs above.
* Assets in thousands of U.S. Dollars. Assets and Average Volume as of 2021-10-14 16:40:01 -0400
The following table displays sortable historical return data for all ETFs currently included in the Precious Metals ETF Database Category. For information on dividends, expenses, or technical indicators, click on one of the tabs above.
The table below includes fund flow data for all U.S. listed Precious Metals ETFs. Total fund flow is the capital inflow into an ETF minus the capital outflow from the ETF for a particular time period.
Fund Flows in millions of U.S. Dollars.
The following table displays sortable expense ratio and commission free trading information for all ETFs currently included in the Precious Metals ETF Database Category.
The following table includes ESG Scores and other descriptive information for all Precious Metals ETFs listed on U.S. exchanges that are currently tracked by ETF Database. Easily browse and evaluate ETFs by visiting our ESG Investing themes section and find ETFs that map to various environmental, social, governance and morality themes.
The following table includes sortable dividend information on all ETFs in the Precious Metals ETF Database Category, including yield, dividend date, and beta.
The following table includes basic holdings information for each ETF in the Precious Metals, including number of holdings and percentage of assets included in the top ten holdings. To see more detailed holdings information for any ETF, click the link in the right column.
The following table displays sortable tax data for all ETFs currently included in the Precious Metals ETF Database Category. To see information on dividends, expenses, or technicals, click on one of the other tabs above.
The following table contains sortable technical indicators for all ETFs in the Precious Metals ETF Database Category. For more detailed technical metrics on any of these ETFs, click the “View” link in the right column.
The following table contains links to detailed analysis for each ETF in the Precious Metals. To see holdings, official fact sheets, or the ETF home page, click on the links below.
The following table includes ETF Database Ratings for all ETFs in the Precious Metals. The ETF Database Ratings are transparent, quant-based scores designed to assess the relative merits of potential investments. ETFs are ranked on up to six metrics, as well as an Overall Rating. Certain metrics are available only to ETF Database Pro members; sign up for a free 14-day trial for complete access
Precious metals fidelity
Fidelity Select Gold Portfolio (FSAGX)
Fidelity Select Gold Portfolio
Fidelity Select Portfolios
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Fidelity to Merge Two Precious-Metals Funds
Shareholders have approved the merger of Fidelity Select Precious Metals & Minerals (FDPMX) into Fidelity Select Gold (FSAGX). A spokesperson for the funds said the merger is expected to be complete by February 29.
The merger makes sense because pure gold funds have taken it on the chin for years, and there isn’t a compelling reason for Fidelity to have more than one offering in the category. The merger also simplifies Fidelity’s Select lineup.
Manager George Domolky, head of both funds for the last three years, has tailored similar portfolios and pushed the same objective for each. The funds’ most recent portfolios show nearly identical top-10 holdings. Domolky has taken the conservative approach over the last year, sticking mainly with large mining companies in North America.
In a category long plagued by losses, Domolky’s funds typically have performed two or three percentage points better than their average peer. In the precious-metals group, though, success is relative. While the category averaged a disastrous three-year loss of 20%, Fidelity’s funds lost 18%. The merger doesn’t point to any particular improvements, just a way Domolky may better consolidate his efforts.
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Top 5 Precious Metals Mutual Funds
Typically, a precious metals portfolio focuses on mining stocks. Some funds, however, purchase a small to moderate amount of gold or silver bullion. Though primary allocation is given to gold mining stocks, many funds do offer a substantial amount of exposure to other precious metals, such as platinum and silver.
Precious metals companies span the globe, with many of the major firms headquartered in the United States, Canada, Australia, and South Africa. Like most commodity funds, precious metals funds usually carry more volatility than the average equity fund.
Below are five funds that are engaged in precious metals investing with information available as of June 12, 2020.
1. Wells Fargo Advantage Precious Metals Fund
Wells Fargo issued the Wells Fargo Precious Metals Fund (EKWAX) for the first time in 1998. The main goal of the fund is long-term capital growth.
Michael P. Bradshaw, the fund's manager, seeks to accomplish this objective by typically investing 80% or more of the fund's assets in companies that actively participate in the exploration, mining, and processing of gold, companies that deal in gold and other precious metals and minerals, or companies that generate a minimum of half of their revenues from such business. The fund may invest up to 40% of its assets into emerging market countries' equities and up to 25% of its assets into debt securities related to metals. Any dividends or capital gains are distributed annually.
The net expense ratio for this fund is 1.09%, above average as compared to similar funds. The five-year total return for the fund is 11.5%. The total portfolio assets for this fund are just over $389 million.
The risk level for the fund is rated as just slightly above average. The fund's major portfolio holdings include Barrick Gold, Newmont, Kinross Gold, and B2Gold. The fund has a total of 34 holdings.
2. Fidelity Select Gold Portfolio Fund
The Fidelity Select Gold Portfolio Fund (FSAGX) was established in 2006 by Fidelity Investments. This precious metals fund’s main focus is to provide investors with capital appreciation.
Under normal circumstances, fund manager Steven Calhoun invests a minimum of 80% of the fund’s total assets in the common stocks of corporations that participate in various forms of gold-related operations, and in gold bullion and coins. Investments are also made in additional precious metals, instruments with a value that are connected to the price of precious metals, and the securities of businesses that distribute products, such as jewelry, that contain precious metals and minerals. The fund is invested in both U.S. domestic and foreign-issued stocks.
The Fidelity Select Gold Portfolio Fund has a net expense ratio of 0.79%. The five-year average total return for the fund is 11.67%. Total portfolio assets for the fund are $2 billion. This fund is rated as having an above-average risk level. Some of the fund's major holdings include Newmont, Barrick, Franco-Nevada, and Agnico Eagle Mines. The composition of the portfolio is primarily gold related, with 92% of assets dedicated to the metal, and 79% of assets are invested in foreign equities.
3. Gabelli Gold Fund
The Gabelli Gold Fund (GLDAX) was issued by Gabelli Funds in 1994. The long-term appreciation of capital is the fund's primary objective.
Fund manager Caesar Bryan achieves this objective by investing 80% or more of the fund's total assets, along with any borrowed investment capital, into U.S. domestic and foreign-issued equity securities of corporations engaged in operations related to gold, and in gold bullion. The fund has total portfolio assets of $256 million.
The Gabelli Gold Fund has a gross expense ratio of 1.52%, well above average for similar precious metals funds. The five-year average annualized return for this fund is 0.74%. This mutual fund's risk level is above-average. Top holdings for the fund include Franco-Nevada, Newmont, Barrick, and Agnico Eagle Mines.
4. USAA Precious Metals and Minerals Fund
Issued by the USAA Group in 1984, the USAA Precious Metals and Minerals Fund (USAGX), with total portfolio assets of approximately $691 million, has two primary investment objectives: long-term capital appreciation and preservation of purchasing power of capital against inflation.
The fund's manager, Mannik Dhillon, aims to accomplish these objectives by ordinarily investing at least 80% of the fund's assets in foreign and domestic companies with foremost operations in the exploration, mining, or processing of gold, silver, platinum, diamonds, or other precious minerals.
The net expense ratio for the USAA Precious Metals and Minerals Fund is 1.27%. The fund's five-year average annual total return is 10.55%. This fund is rated as having a slightly above-average risk level. Some of the fund's major portfolio holdings are Newmont, Barrick, Kirkland, and Kinross.
5. Invesco Oppenheimer Gold and Special Minerals Fund
The Invesco Oppenheimer Gold and Special Minerals Fund (OPGSX), founded in 1983, seeks long term capital appreciation.
The fund's manager, Shanquan Li, invests in the stocks of mining companies that are focused on gold and other precious metals. The fund has a net expense ratio of 1.17% and total assets of $1.9 billion. The fund's five-year average annual return is 12.49%.
Primary holdings include Barrick, Kirkland, Newmont, and Evolution Mining. Gold makes up the majority of the portfolio at 82% of assets. The fund has an above-average rating when compared to funds in its category.