Is There a Fidelity Gold Index Fund?

Disclaimer: We are reader supported.  We may be compensated from the links in this post, if you use products or services based on our expert recommendations. Please read our Advertising Disclosure.

Fidelity does not allow investors to hold physical gold directly inside a standard IRA account.

The brokerage offers a wide range of gold-related investments, including ETFs, mutual funds, and mining stocks, but the actual metal, whether bars or coins, cannot be stored through Fidelity's custodial platform.

Investors who want IRS-approved physical gold in a retirement account need a self-directed IRA (SDIRA) through a specialized custodian, not a conventional brokerage.

Key Takeaways

• Fidelity IRAs do not support physical gold holdings; only gold-linked securities are available.
• A self-directed IRA with an approved custodian is the required structure for owning physical gold in a retirement account.
• Physical gold in an IRA must meet IRS purity standards and be stored in an approved depository, never at home.

What Fidelity Actually Offers for Gold Exposure

Fidelity gives investors several ways to gain exposure to gold without owning the metal itself. These options trade inside a standard IRA the same way stocks do, with no special custodian or storage requirements.

• SPDR Gold Shares (GLD): The largest gold-backed ETF in the world by assets under management, tracking the spot price of gold bullion. As of early 2025, GLD held over $70 billion in assets.
• iShares Gold Trust (IAU): A lower-cost alternative to GLD with an expense ratio of 0.25%, compared to GLD's 0.40%.
• Fidelity Select Gold Portfolio (FSAGX): An actively managed mutual fund that invests in gold mining and precious metals companies. Its five-year annualized return through 2024 was approximately 12.8%.
• VanEck Gold Miners ETF (GDX): Tracks a basket of major gold mining companies globally, available through Fidelity's brokerage platform.
• Sprott Physical Gold Trust (PHYS): A closed-end fund holding allocated physical gold in a Canadian vault, though the investor holds fund shares, not direct metal ownership.

These instruments provide price correlation with gold and fit neatly into a traditional or Roth IRA at Fidelity. For most retirement savers, they accomplish the same portfolio diversification goal without the complexity of a self-directed account.

Related: Can I Buy Physical Gold in My Fidelity IRA?

Why Physical Gold Requires a Self-Directed IRA

The IRS permits physical gold inside IRAs under rules established by the Taxpayer Relief Act of 1997, but the structure has strict requirements.

A standard brokerage IRA, including those at Fidelity, Vanguard, or Schwab, is not designed to hold alternative assets like physical metals, real estate, or private equity. A self-directed IRA uses a specialized custodian that administers non-traditional assets on the account holder's behalf.

The custodian does not provide investment advice. They handle the paperwork, IRS reporting, and coordinate with an IRS-approved depository where the metal is physically stored. The investor directs every transaction, which is where the "self-directed" designation comes from.

Common SDIRA custodians that support gold holdings include Equity Trust Company, GoldStar Trust, and New Direction Trust Company. None of these are affiliated with Fidelity.

Setting up an SDIRA typically involves an account setup fee ranging from $50 to $300, plus annual fees between $100 and $300 depending on the custodian and the value of assets held.

Related: Does Fidelity Have a Fund That Invests in Gold?

IRS Rules for Physical Gold in an IRA

The IRS does not allow just any gold coin or bar inside a retirement account. The metal must meet specific fineness standards and come from an approved mint or refinery.

Purity Requirements

• Gold bars and rounds: minimum 99.5% purity (.9950 fineness)
• Gold coins: minimum 99.5% purity, with one notable exception
• American Gold Eagle coins are IRS-approved despite being only 91.67% pure gold, because they are U.S. government-issued legal tender

Approved Gold Coins

• American Gold Eagle (1 oz, 1/2 oz, 1/4 oz, 1/10 oz)
• American Gold Buffalo (99.99% pure)
• Canadian Gold Maple Leaf (99.99% pure)
• Austrian Gold Philharmonic (99.99% pure)
• Australian Gold Kangaroo/Nugget (99.99% pure)

What Is Not Allowed

• Collectible coins, even if made of gold
• South African Krugerrands (only 91.67% pure and not U.S. government-issued)
• Gold jewelry or any fabricated gold items
• Gold held personally or stored at home

Storing IRA gold at home, sometimes marketed as a "home storage gold IRA," is not permitted under IRS rules. Doing so is treated as a distribution, making the entire account value taxable in the year of the violation, plus a 10% early withdrawal penalty if the account holder is under 59½.

Where the Gold Must Be Stored

All physical gold in an IRA must sit in an IRS-approved depository. These are specialized secure storage facilities that carry high-value insurance and provide regular account statements to the custodian. The investor never takes physical possession while the metal is held in the IRA.

Major IRS-approved depositories include:

• Delaware Depository (Wilmington, Delaware): Insured for up to $1 billion through Lloyd's of London
• Brinks Global Services (multiple U.S. locations)
• International Depository Services (Dallas, Texas and Wilmington, Delaware)
• CNT Depository (Bridgewater, Massachusetts)

Storage fees vary by depository and storage type. Segregated storage (where the investor's specific coins or bars are kept separate) runs roughly 0.5% to 1% of metal value annually.

Commingled storage, where metal is pooled with other investors' holdings of the same type, costs less, typically 0.1% to 0.3% annually.

Gold Market Context and Performance Data

Gold hit an all-time high of $3,167 per troy ounce in April 2025, driven by central bank buying, inflation concerns, and geopolitical instability. Central banks globally purchased 1,045 metric tons of gold in 2023, the second-highest annual total on record according to the World Gold Council.

In 2024, net purchases remained above 1,000 metric tons for the third consecutive year.

The U.S. dollar's sustained weakness against major currencies through 2024 and early 2025 added upward pressure on gold prices, as the two assets have historically moved in opposite directions.

The 10-year annualized return on gold through March 2025 was approximately 9.1%, which compares favorably with the Bloomberg U.S. Aggregate Bond Index over the same period.

Portfolio research from various academic and institutional sources generally suggests a 5% to 10% gold allocation can reduce overall portfolio volatility without significantly reducing long-term returns.

Whether that allocation is achieved through an ETF or physical metal is a separate question from whether it belongs in the portfolio at all.

Comparing Physical Gold vs. Gold ETFs in an IRA

Steps to Open a Gold IRA Outside of Fidelity

For those committed to owning physical metal in a retirement account, the process involves several steps:

1. Choose an SDIRA custodian that specializes in precious metals. Verify they are IRS-approved and check their fee schedule in detail before signing anything.
2. Open the self-directed IRA account. This involves completing custodian paperwork and designating the account type (traditional, Roth, SEP, etc.).
3. Fund the account. This can be done through a direct contribution (subject to annual IRS limits), a rollover from an existing 401(k) or IRA, or a transfer from another IRA custodian.
4. Select a dealer. Purchase approved gold through an authorized precious metals dealer. The custodian will often have a list of dealers they work with regularly.
5. The custodian pays the dealer directly. The investor never receives the metal personally. The metal ships directly to the designated IRS-approved depository.
6. Receive confirmation. The depository issues a receipt, and the custodian updates the account to reflect the holding.

The entire process from account opening to metal delivery typically takes two to four weeks for a new SDIRA funded by rollover. Direct contributions can move faster once the account is established.

Tax Treatment

Physical gold in an SDIRA follows the same tax rules as any other IRA asset. In a traditional gold IRA, contributions may be tax-deductible and growth is tax-deferred until withdrawal. In a Roth gold IRA, contributions are made with after-tax dollars and qualified withdrawals are tax-free.

When gold is sold inside the IRA, no capital gains tax applies at the time of sale. The tax event occurs only when distributions are taken. At that point, traditional IRA distributions are taxed as ordinary income, regardless of whether the underlying asset was gold, stocks, or bonds.

This is one distinction worth noting: gold held outside an IRA is taxed as a collectible at a maximum federal rate of 28%, which is higher than the long-term capital gains rate on stocks. Inside an IRA, that distinction disappears.

Who This Actually Makes Sense For

A gold SDIRA adds cost and complexity compared to buying GLD or IAU inside a standard Fidelity IRA.

The additional layer makes the most sense for investors with large account balances where the fixed custodian and storage fees represent a smaller percentage of holdings, investors with a strong preference for direct metal ownership over fund structures, and those specifically concerned about counterparty risk in financial instruments.

For most retail investors with under $500,000 in retirement assets, the cost-adjusted case for physical gold in an SDIRA over a low-cost gold ETF in a standard IRA is thin. The price exposure is nearly identical, and the ETF route avoids custodian fees, storage fees, and dealer spreads on buying and selling.