Oil & Commodities

The prices of commodities generally do tend to drop as economic activity slows during a recession. However, certain commodities like gold, for example, are viewed as a safe haven during market crises and tend to increase in value. In general, commodities are lowly or negatively correlated with traditional assets like stocks and bonds, and they do tend to provide protection against inflation. 

How you're taxed on commodities depends on how you invest in them. Commodity ETFs have special tax rules, with the exact impacts depending on the legal structure of the ETF and whether it's a futures-contracts or physical commodity ETF. You can expect to receive a Schedule K-1 or a Form 1099 from the ETF issuer each year detailing your tax reporting obligations. Meanwhile, gold and other precious metals are categorized by the IRS as collectibles, which are taxed at the long-term capital gains tax rate of 28% when held for over a year. This includes precious metals ETFs.