SAVING AND INVESTMENT CHOICES  Savings plans  Savings account  Certificate of deposit  Money market account  Securities  Stock investments  Bond investments  Mutual funds  Alternative investments  Real estate  Commodities  Collectibles SLID E 1

EVALUATING SAVINGS AND INVESTMENTS  Safety and risk  Potential return  Liquidity  Taxes SLID E 2

INVESTMENT PYRAMID SLID E 3

 SLIDE Other Investments Goal 1 Discuss types of commodity investments. Goal 2 Explain the use of collectibles as an investment.

SLIDE 5 KEY TERMS  commodities  futures contract  collectibles

SLIDE 6 COMMODITIES AND FUTURES  Commodity exchanges  Agricultural commodities  Gold, silver, and precious metals  Currency and financial instruments

Commodities & Futures  Commodity – A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.basis grade.

Commodities & Futures  Commodity Futures Contract'  An agreement to buy or sell a set amount of a commodity at a predetermined price and date. Buyers use these to avoid the risks associated with the price fluctuations of the product or raw material, while sellers try to lock in a price for their products. Like in all financial markets, others use such contracts to gamble on price movements. - Investopedia.

SLIDE 9 Checkpoint  What types of commodities are commonly used with futures contracts?  Types of commodities commonly used with futures contracts are agricultural commodities, such as grain and livestock, and precious metals.

SLIDE 10 COLLECTIBLES  Types of collectibles  Collectible values

SLIDE 14 Checkpoint  What are common types of collectibles?  Common types of collectibles are stamps, coins, sport trading cards, and antiques, as well as unusual items purchased as investments.