Investments · Module 2 of 5
Metal, and what people collect
Gold, silver, raw materials and collectibles: what you really pay for them, and the paper versions that skip the storage.
Key terms in Metal, and what people collect
- Commodity
A commodity is a basic good that is interchangeable with others of its kind, such as wheat, gold, oil and cattle. The category spans metals, energy products, agricultural goods and livestock. Prices are set largely by supply and demand, and they can be highly volatile.
Source: FINRA, Futures and Commodities
- Futures contract
A futures contract is a derivative in which one party agrees to buy or sell a specific quantity of a physical commodity at a set price on a particular future date. Commercial businesses are the main users. Because contracts are usually bought with borrowed leverage, both gains and losses can be magnified.
Source: FINRA, Futures and Commodities
- Collectible
In U.S. tax rules, a collectible is a tangible item such as a work of art, antique, coin, gem or bullion held as property. Gains from selling collectibles are treated differently from gains on stocks, and the maximum rate on long-term collectible gains is higher than the standard long-term capital gain rates.
Source: Internal Revenue Service, Topic no. 409, Capital gains and losses
Every term on Lever is in the money glossary.
About this module
Metal, and what people collect is part of Investments, one of 15 subjects in Lever. It’s a short run of 5 lessons, about 13 minutes in all, so you can finish it in one sitting.
Every lesson takes one idea at a time. You read it with the math worked out step by step, answer a question that puts it to use, then see why the right answer is right and why the others aren’t.
It’s for anyone who was never taught this, and you don’t need to know anything first. Every lesson is free. Lever works out what you already know, so you can start here or let your path bring you to it.
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5
A piece of one company, not many
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Try this module
It’s part of Investments. Lever will bring it to you when you’re ready, or you can go straight there.