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There is FDIC insurance on it, so it has capital preservation.

No, that is not what FDIC insurance means. FDIC insured means that in the event the bank goes under, the government will guarantee the value of the CD. It does not mean that the CD will not lose money. Commodities is a broad term and there is no certainty in its such an investment's upward mobility.

Who has not heard of such an instrument and would triple check to see that it cannot lose value...
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