How Do I Buy Gold on Fidelity?

General Discussions Forum
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Hi everyone, I’ve been thinking about diversifying my investment portfolio, and I’m particularly interested in buying gold. I have an account with Fidelity and have heard that it’s possible to purchase gold through them. I once dabbled in stock trading on another platform, but I’m pretty new to commodities like gold. Can anyone guide me through the process of buying gold on Fidelity? Any tips or things to watch out for would be greatly appreciated,

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Using stockcharts.com, $gold:$usd

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Fidelity offers several investment options for gold:

  1. Physical Gold: Fidelity allows trading in bullion bars and coins, providing ownership of physical gold stored securely in a vault.
  • Pros: Tangible asset, potential hedge against inflation.
  • Cons: Higher minimum investment (around $2,500 initial, $1,000 subsequent), storage fees, less liquidity.
  1. Gold ETFs (Exchange-Traded Funds): These funds track the price of gold, where investors buy shares similar to stocks.
  • Pros: Lower minimum investment compared to physical gold, easy buying and selling, no storage fees.
  • Cons: Ownership is in ETF shares, not physical gold.

Choosing the Right Option for You:

  • Investment Goals: If you seek physical gold ownership, bullion or coins are suitable. For lower investment minimums and easier management, consider a Gold ETF.
  • Risk Tolerance: Gold is less volatile than stocks but can still fluctuate. Assess your risk tolerance before investing.

Step-by-Step Guide to Buying Gold on Fidelity (using an ETF):

  1. Research Gold ETFs: Explore available options like SPDR Gold Shares (GLD) or iShares Gold Trust (IAU).
  2. Access Your Fidelity Account: Log in and go to the trading section.
  3. Place Your Order: Enter the ETF’s ticker symbol, specify the investment amount (in shares).
  4. Review and Submit: Verify details (price, shares, total amount) and submit the order.

Tips and Considerations:

  • Fees: Watch for transaction costs related to ETF purchases or sales.
  • Market Volatility: Gold prices can fluctuate; prepare for short-term price changes.
  • Investment Horizon: Gold is often a long-term investment.
  • Diversification: Include gold as part of a diversified portfolio rather than relying solely on it.