- 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.