How does the IRS tax options of the precious metal ETFs, SLV and GLD?

[wz5mz]

How does the IRS tax options of the precious metal ETFs, SLV and GLD? Are they treated as 1256 contracts and taxed at the blended 60/40 rate? Or are they treated as collectibles and taxed at the 28% long-term capital gains rate?

Thanks in advance!

[Anonymous_ · Accepted solution]

Those ETFs (which are essentially grantor trusts) are treated as collectibles, but the options are treated as non-equity options and, therefore, 1256 contracts.