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Gold is one of the oldest forms of currency known to man. It has always been valued for its rarity, beauty, and versatility, making it popular amongst some investors as an inflation hedge in uncertain times.
Many investors like gold because it's a universally accepted medium of exchange and is not controlled by any country's central bank or government. The price of gold has been on the rise for years, but few investors know that Fidelity Investments (FID) has a platform to trade gold through their mutual fund family, including Fidelity Funds and ETFs. Fidelity's mutual funds include some of the top-selling precious metals funds in the world, such as Gold and Silver Leaders Portfolio Fund (AGGL), which owns approximately 50% of all U.S.-traded gold held in investor accounts (including through IGI).
American Capital Corporation is a wholly owned subsidiary of Fidelity that holds physical gold and silver bullion. American Capital Corporation and Fidelity hold the gold in a vault, which is "cold storage," meaning that the gold is away from the reach of potential rioters, thieves and potential terror strikes.
This is important because it means there is no need to worry about protecting the gold from theft. In some cases, the gold is insured for up to $1.5 million for free. The minimum investment for a precious metals mutual fund is $2,500, which is fairly low considering that the price of gold can be upwards of $1,300 an ounce.
Moreover, you don't need a special tax form; you can use your 1040. Fidelity has been around since 1946 and has a good rating with AM Best Company and S&P. For its convenience services and trading platforms, Fidelity's funds are unique in their low-cost structure.
Fidelity is trusted by the investment community and has over $1 trillion in assets under management. If Fidelity offered to sell gold, you would likely be tempted to buy it.
Why Should You Invest in Gold?
Gold has always been a valuable piece of jewellery for eons; the pure yellow metal is used for more than just that. Gold has many uses; it makes up medical products like stents and is also used in computers and mobile phones.
Gold is considered one of the safest investments you can spend money on. Gold prices increase with demand and decrease with supply, making it a lucrative investment opportunity. Gold as an investment option is rising because investors are flocking to it in larger numbers in the wake of recent financial crises.
The price of gold has increased significantly over the last few years due to an increase in global demand. Gold is a safe investment that people can use to lock in gains. Gold prices have been rising for years, and the trend shows no sign of abating.
Analysts have said that gold can serve as a portfolio hedge against market volatility. The gold price has been rising for years, but it is still considered a safe investment. In the recent past, there have been unpleasant events in the United States and Europe. Terrorist attacks have also taken place that could have impacted the global economy negatively.
Investing in gold can help investors hedge against these risks. People are risking their money and assets in a country with high unemployment rates and low economic performance. When you invest in gold, you are putting your money somewhere that will give it growth regardless of what might happen to the US or US stock markets.
Gold prices often move opposite to stocks like other precious metals, meaning they usually go up when stocks go down and vice versa. Many investors like gold because it's a universally accepted medium of exchange and is not controlled by any country's central bank or government.
How Can You Get Started With Fidelity?
There are several ways to start investing in gold through Fidelity. You can start by opening an account with Fidelity online or at retail locations. Once this is done, you can purchase physical gold, which will be delivered to your doorstep.
You can also invest in Fidelity mutual funds that hold gold or silver in allocated accounts. Banks and financial institutions will hold these, but you won't have direct access to the gold or silver.
You can also invest in precious metals exchange-traded funds which are the easiest way to own gold and silver. You can buy any of these investments through Fidelity and learn as much as possible about them before you put your money into them.
What Are the Risks Involved With Fidelity?
Investing in gold through Fidelity is similar to investing in gold through a private bullion dealer. The only difference is that you need to open an account with Fidelity and buy their investment products. With private dealers, you can arrange for them to come over and deliver your gold or silver.
You don't necessarily need a specialized tax form for investment into gold because the IRS allows you to use your 1040.
The biggest risk is the fees associated with trading physical gold and silver bullion, which vary by Fidelity product and account type. Trading precious metals more broadly may also involve greater potential risk, including greater volatility due to market forces beyond your control.
Fidelity can be used for more than just buying gold; it is also a great platform to invest in stocks and other financial products like bonds. It is endorsed by financial regulators and has been in business since 1946.
The biggest advantage of using Fidelity to trade your gold is that you can buy at regular intervals. If you make many transactions throughout the day, this may be your best option.
Since gold is heavy, it might be hard to transport it between accounts or buy physical bars. When investing in gold stocks, you need to look at their dividends and how long they have been in business because new companies don't always stay around for a long time.
Fidelity is not the best option for an investor with little money. If you have a small amount of money, investing in ETFs or mutual funds may be better.
This is because there are associated fees that are deducted from your investment. The minimum investment for opening an account with Fidelity is $2,500, but if you want to purchase physical gold bars, it can cost $10,000.
There are a few negative issues with gold investments at Fidelity. Fidelity isn't an IRA specialist company. If you automatically move funds into a form of IRA, you won't be able to use it for gold investments.
Fidelity needs more staff for personalized customer care. So if you have any questions about your account, you won't be able to talk to a specialist in person. Although the staff is great about getting back to you by phone or email within 24 hours, that is only sometimes good enough for investors.
Due to these shortcomings, it is advisable to venture into better companies offering excellent services. This article recommends the top three companies you can rely on.
Top 3 Companies to Invest In Gold
There are many reasons for you to consider investing in gold with Goldco. The gold brokerage market is a small niche with a huge demand for gold investment services, and Goldco offers some of the best services you can find on the market. If you are looking for highly-regulated, protected metals depositories and fast customer service, you can count on Goldco.
There are many good reasons to buy high-quality gold with Goldco. Goldco is highly reputable and can be trusted, especially since it has been around for more than ten years. The company is also very established in the United States, and many customers who have invested in gold prefer to buy this way because of the geography.
Pros & Cons of Goldco
Augusta Precious Metals offers investment services for both experienced investors and newbies. It is an excellent company for you to buy gold with because of its low fees and high-quality bullion, and the Federal Depository Insurance Corporation insures it. You can also invest in coin collections through Augusta Precious Metals, and there are no storage fees associated with these investments.
Clients gain a piece of mind when buying gold with Augusta Precious Metals because it is highly trusted and has a good reputation throughout the United States. It is also FDIC-insured and privately held, which means the company isn't likely to go out of business.
The company was established in 2012, and over ten years of experience means they know what they're doing when buying/selling precious metals. Their staff is very accommodating and can answer any questions you may have.
Augusta's dependability, effectiveness, and convenience make them a great company for buying gold. They are very committed to customer satisfaction and will do whatever it takes to ensure their clients leave happy.
Pros & Cons of Augusta Precious Metals
This company is one of the most well-established companies you will ever find. The company has deep roots in the precious metals industry. This means that you can always count on them to be around when you need help with your investment or if you need to sell your bullion back to them.
One of the best things about American Hartford Gold is that they offer online research, so if you want to research bullion bars and coins, you can use this feature.
The prices people pay when buying/selling gold with American Hartford Gold are competitive because they have low-cost storage facilities throughout the country and are also a part of a highly-regarded precious metals company.
Pros & Cons of American Hartford Gold
Can I buy gold with my fidelity account?
No, you must have a brokerage account to invest in gold with your fidelity account.
Is there a storage fee for the bullion I buy?
Storage fees are never ideal, but they are better than some companies can be - so if you're willing to pay this fee, Goldco is an option for investing in gold.
Do you have to pay taxes on the gold you sell back?
You don't have to pay tax on the return of your investment if you hold a physical certificate.
Due to the weaknesses in the quantity of staff and limited services offered, there are better alternatives for gold investment than Fidelity. However, there are excellent alternatives, as recommended in this article.