Tax Implications of Gold ETFs and Other Commodity and Currency ETFs

Some investors may have thoughts about diversifying into non-traditional investments that may help hedge against inflation. You can now buy Exchange Traded Funds (EFT) that have holdings in many kinds of commodities and currencies. However, as this WSJ article warns, you may not be aware of the tax consequences:

These funds are taxed so differently, and at such higher rates than traditional investments, that many investors now wish they had looked before they leaped.