Commodities and Precious Metals

What this video covers

• Why physical metals and bullion-backed funds produce zero income, and why a mining stock is equity exposure, not metal exposure
• The five commodity vehicles: physical metal, bullion-backed funds, futures, producer stocks, and sector funds, plus the costs and risks unique to each
• Spot price versus futures price, and how contango and backwardation shape roll yield for futures-based funds
• Negative roll yield in contango: why selling cheap near-term contracts to buy expensive later-dated contracts erodes returns
• The 28% maximum collectibles tax rate on long-term gains for physical metals and many physically backed metal trusts
• The 60/40 rule for regulated futures: 60% long-term and 40% short-term treatment regardless of holding period, plus mark-to-market at year-end
• Why the 60/40 rule applies only to qualifying regulated futures, not to producer stocks, physical metal, or other commodity-related investments