Discover the right way to buy gold and silver on Fidelity. Learn about investing in stocks, coins, gold bars, precious metals mutual funds, ETFs, and more for beginners on Ally Invest.
Is It Possible to Invest in Silver and Gold at Ally Invest or Fidelity?
Not only is it possible to buy or short gold and silver on Ally Invest or Fidelity, they even provide a number of ways to invest in these commodities. Would you like to learn how? Continue reading to find out how to begin your journey.
Unlike Fidelity, it is not possible to buy physical precious metals through Ally Invest. But don’t be dismayed with this fact, because investors can purchase other securities that reflect the differing spot prices of varying precious metals.
There are certain ETFs available to account holders that for purchase that provide exposure to gold and silver. There’s also have an opportunity to invest in the ultra-popular GLD, and buy the exchange traded fund without incurring any fees whatsoever.
Even better, Ally Invest makes it possible to trade options on these ETF securities. This opens up another avenue to make the most of the rising gold prices by purchasing calls or selling puts.
As an alternative, investors can sell a call or by a put on IAU will GLD as well if they prefer this strategy. It’s a strategy that one would employ if they believe the price of gold will continue to decline.
Securities trading, as opposed to buying physical precious metals, is a solid investing strategy for anyone currently bearish on gold at the moment. It’s also possible short gold ETFs to capitalize on a gold price drop.
Another possibility is to begin treating gold mining stocks. Stock ticker GOLD represents Barrick Gold, which is one security that invests trade in on Ally Invest. Best of all, this investment firm doesn’t charge commissions on stock trades for this ticker symbol or any others. The current GOLD dividend yield is 0.92%.
As a customer of Fidelity, investors have an opportunity to purchase or sell different types of coins, bars, and bullion through their brokerage account. The options available include buying and selling platinum, silver, palladium, and gold.
Some examples of their top-flight investments include the Australian Kangaroo gold coin which is 99.99% pure, American Eagle coins, and South African Krugerrands as well.
For physical gold trading, buying and selling can only take place from 8 AM to 3 PM Eastern Standard Time on weekdays when the market is open. To buy precious metals, it’s necessary to make a purchase order over the phone.
Investors need a taxable account and must make a $2500 minimum investment when opening said account. All subsequent investments require a minimum of $1000 in purchases. All trades must contain whole ounces or whole numbers of coins as well, because fractional coins or ounces are incapable of being traded.
All Fidelity investors much pay a quarterly storage fee. The fee encompasses $3.75 per quarter, or 0.125% of the total account value, depending on which one is greater.
Account holders must also pay a percentage-based fee when buying and selling precious metals. The range includes 0.75% to 2.90%, depending on the transaction amount.
To eliminate trading costs altogether, avoid buying physical silver and gold and purchase stocks and ETFs instead through Fidelity. They have many securities that directly tie into the spot price of gold, silver, platinum, and palladium.
The ever popular GLD SPDR ETF is available on their site amongst dollars. Investors can also purchase the commission free iShares gold ETF using ticker symbol IAU. Each of these funds owns physical gold, so the price movement tracks directly according to the gold spot price.
Or if it’s preferred, investors can buy gold mining stocks as an alternative.
Verdict & Recommendation
Trading futures through Ally Invest or Fidelity isn’t possible on either of these platforms. So, using these brokerages means investors must miss out on trading precious metals futures contracts. If this is something you’re interested in, Tastyworks brokerage house includes precious metals futures trading, as well as Schwab and Interactive Brokers.
As for owning physical silver or gold, we believe the commission structure at Fidelity is on the expensive side when compared to buying precious metals funds, which usually charge a 0.50% fee and annual expenses, or offer commission free trades in some instances.