Quick Answer
Tax treatment and security classification are where the exam trips people up. Physical metals and bullion-backed ETFs are taxed as collectibles; regulated futures always use the 60/40 blend; digital assets are always property. Bitcoin is a commodity, but other tokens can be securities if they meet the Howey test.
This page ties commodities, precious metals, and digital assets together at the points where the exam most often tests them across topics: which tax rate applies to which vehicle, and which regulator has jurisdiction over which asset.
How Do the Tax Rates Compare?
| Asset Type | Tax Rate | Key Rule |
|---|---|---|
| Physical precious metals | Max 28% collectibles | Internal Revenue Service (IRS) classifies as collectibles |
| Precious metals exchange-traded funds (ETFs) (GLD, SLV) | Max 28% collectibles | Treated same as physical |
| Regulated futures contracts | 60/40 blended | Regardless of holding period |
| Commodity producer stocks | Standard 20% long-term capital gains | Taxed as equities |
| Digital assets (most types) | Standard capital gains rates | IRS treats as property; some NFTs can get the max 28% collectibles rate instead |
Who Regulates Each Asset?
| Asset | Is It a Security? | Regulator |
|---|---|---|
| Physical gold/silver | No | Commodity Futures Trading Commission (CFTC). Its exclusive jurisdiction covers metals futures; its anti-manipulation authority also reaches the physical market. No SEC registration applies |
| Commodity futures | No (commodity contracts) | CFTC |
| Commodity ETFs | Yes (fund shares) | Securities and Exchange Commission (SEC) |
| Bitcoin/Ethereum | No (commodities) | CFTC. Its exclusive jurisdiction covers their futures; its anti-manipulation authority also reaches the spot market |
| Most initial coin offering (ICO) tokens / altcoins | Yes (meet Howey test) | SEC |
| Security tokens | Yes | SEC |
Regulator does not automatically equal "not a security" everywhere: a digital asset that meets the Howey test is a security under both federal law and the Uniform Securities Act, so it also falls under a state Administrator's jurisdiction regardless of the SEC's own posture.
Cross-Topic Exam Gotchas
Exam Tip: Gotchas
- Physically-backed precious metals ETFs (like GLD, SLV) are taxed at the 28% collectibles rate, not the standard 20% equity rate a non-physically-backed commodity ETF gets
- Regulated futures contracts get the 60/40 blended rate regardless of holding period
- Contango = futures price higher than spot (normal); backwardation = futures price lower than spot
- Bitcoin is a commodity, not a security. The CFTC has exclusive jurisdiction over its futures and options, and anti-manipulation authority over the spot market. The Howey test determines which digital assets are securities
- "Utility token" label is irrelevant. The Howey test applies to economic substance
- All digital assets are property for IRS purposes. No special currency treatment. Every crypto-to-crypto swap is taxable
- Mining and staking rewards are taxed as ordinary income when received
- Neither Federal Deposit Insurance Corporation (FDIC) nor Securities Investor Protection Corporation (SIPC) covers digital asset holdings
- Private key loss = permanent fund loss. No recovery mechanism exists
What Should You Check on Exam Day?
- Match the vehicle to the tax rate: physical or bullion-backed ETF gets 28% collectibles, futures get the 60/40 blend, producer stocks and non-physical commodity ETFs get standard equity rates, and all digital assets are property.
- Match the asset to the regulator: commodities and their futures answer to the CFTC, not the SEC, because the commodity itself is not a security; security tokens and Howey-test tokens answer to the SEC; and every digital asset's tax treatment answers to the IRS.
- A digital asset's classification follows what it does, not what the issuer calls it, whether you are applying federal Howey analysis or the same test under state law.