FAQs Archive - Page 2 of 2

Why are dealer prices different than prices on TV?

Most financial programs display the futures price or spot price of gold, silver, platinum and palladium. Dealers quote the current bid/ask price at that particular moment in time for a specific product and the cost of that product includes manufacturing costs, and supply and demand premiums.

The dealer quote may also include delivery, insurance, and sales charges.

What makes precious metals “precious?”

Gold, silver, platinum and palladium possess six innate attributes that render them unique in all of nature. These attributes are Beauty, Utility, Rarity, Indestructibility, Portability, and Inherent Value.

No other elements known to man manifest all these characteristics, and it is for this reason that mankind has always considered these metals precious.

Where is my metal held in custody?

FideliTrade utilizes the custody services of its subsidiary Delaware Depository. Located in Wilmington, DE, Delaware Depository is an exchange-approved depository and is fully qualified to hold IRA assets.

Delaware Depository also has locations on the west coast and offers international custody services in Toronto, Canada and Zurich, Switzerland.

Taking delivery vs custody?

There are advantages and disadvantages to taking personal possession or holding your investment in a custody account. A quick review of your motivations and objectives will help you make that right for you.

	Advantages	Disadvantages
Custody	Greater liquidity and expedited transactions High-security vaulting facilities Convenience Insurance	Custody Fees Like a bank or brokerage account, your assets are held by someone other than yourself
Personal Possession	Satisfaction of having complete control of your asset. Direct custody of investment.	Liquidation Delays; Lack of Security, Insurance

What’s the difference between large products vs small?

There is no single answer to this question.

Large bars (100-ounce gold, 1,000-ounce silver, 50-ounce platinum or 100-ounce palladium bars) generally have lower premiums and smaller bid/ask spreads, thereby making them the lowest cost alternative when buying. However, they require a larger investment and can only be liquidated in large units. Delivery can be burdensome and redelivery for liquidation may require assay and refining. Storage costs must be factored into the decision.
Small bullion bars and coins generally have higher premiums and larger bid/ask spreads than larger bars. However, they can be bought and sold in small unit sizes, are easily shipped, and typically do not require assay when redelivered for liquidation. They can be easily stored in a commercial vault or safe deposit box.

Should I add precious metals to my company’s product mix?

3% to 5% of Americans invest in precious metals
69% of precious metals investors want to buy from their established financial institution, yet only 21% actually do
Banks and brokerage firms that offer precious metals investments attract approximately 70% of their precious metals clients from other financial institutions
Precious metals investors tend to be affluent and well educated

Demand for precious metals investment products, such as gold, silver, platinum and palladium bullion, has increased dramatically over the years. While only a few thousand Americans had invested in precious metals in 1975 when gold ownership was legalized in the U.S., that number has grown substantially. Independent research shows that 7.5 to 12.5 million Americans now invest in precious metals; these investors are generally college-educated professionals with above average incomes. The same research indicates that individuals who have purchased precious metals, as well as those who plan to do so in the future, prefer to make these purchases from their bank or other trusted financial institution.

Precious metals services help banks and brokerage firms retain and enhance customer relationships
Precious metals services generate fee income
Precious metals services can be offered with no risk and little or no investment in support activities
Precious metals services provided in Delaware may have significant tax advantages

FideliTrade offers its correspondent institutions many concrete benefits. First, and perhaps most important, FideliTrade enables correspondents to meet customer demand for precious metals services and broaden the relationships now enjoyed with existing customers. By expanding the array of investment services to include precious metals, correspondents reduce the possibility of losing assets and customers to competing full-service institutions. At the same time, precious metals services provide a source of transaction fees. FideliTrade’s services can be offered through existing retail, brokerage, trust and private banking departments with virtually no risk and little or no investment. It requires no direct handling of precious metals products, no maintenance of physical inventories and no additional staff. FideliTrade offers total marketing, trading and operational support.

In addition to its services, FideliTrade is strategically located in Wilmington, Delaware. Delaware imposes no sales tax on the purchase, administration or storage of precious metals. Furthermore, there are no corporate net worth, personal inventory or transfer taxes applied to physical bullion transactions. And, unlike some other states, the sale of bullion does not create a nexus status for state income tax purposes.

My Account – How do I change my account information?

For your protection, FideliTrade requires address and name changes in writing. Telephone numbers and email addresses can be changed over the telephone after your identity has been verified.

Address change. Send a letter or email from the email address on file. Include the old address, new address and your account number.

Account Title Change. The person removing their name will submit a notarized letter instructing FideliTrade to remove their name. A new account application will be completed by the remaining party on the account.
A new account is required when changing the entity of an account (ex: Individual to Trust).
Trust, estate, and corporate accounts may require additional information.

Death. Submit a certified copy of the death certificate, Letters of Testamentary or Administration, a letter of instruction, and a new account application.