So my aunt came to me and want me to use her money to invest in crude oil. I'm not asking you if I should or not. I'm asking how to invest in it.
What website, account I need make?
Can I invest in crude oil directly? or is it a company I'm suppose to invest in?
My thought process. Create account on the website that let me buy the crude oil>link bank account>buy shares of crude oil.
>Yeah doing that kind of research is too much of a hassle
Do you type that to every thread?
I did do some research and it lead me to ETF so do I use scottrade and buy those popular ETF? The ETFs prices are way less than the price of crude oil so if the price of crude oil were to go up $10, for the equivalent ETF, how much does it increase? Honestly it's a lot to research on. And I just want to buy it, get it done and do my other stuff.
There's idiotic questions all across this board. She wants to buy it as soon as possible so figure a kind anon would point me to the fastest way possible for me to buy it.
Because I can probably figure out if the answer is bullshit or not? I might or might not get anything but from other boards, there's tend to be that one anon who decide to give a non bullshit close enough answer.
I don't think the question "How" is hard to answer. I can put all her money in the oil company through Scottrade but I figure someone here can have a better insight.
all good questions anon. fortunately you don't have to buy stock-- you can invest in oil directly, through futures. The symbol is CL. One contract costs about $5k, so if you are looking to invest 50k, you can buy and hold 10 contracts. Just set it and forget it, the price will eventually go up.
Do not buy USO or any other ETF without thoroughly researching how those instruments work, and specifically what effect contango has on rolling near term futures contracts.
USO invests only in the nearest term futures contract. The only way to make money in USO is when there is a violent move in oil prices in a very short time.
USL is a better bet over a longer time span than one month, but I still wouldn't recommend it. You're still subject to decay due to contango. It's just less than USO.
I hate when people won't answer a simple fucking question.
OP I suggest opening an account, Scottrade is fine, there are many to choose from though.
Then, and since you don't know a whole lot about this stuff I would avoid futures and even ETFs, I would suggest putting the money into a few different oil company stocks. If you're working with more than a few thousand dollars, I would do at least three. There's the big players, and I'd maybe look at some of the South American companies.
Good advice. These are not set it and forget it investments.
Honestly I am betting they have less oil than anyone thinks. The gwahar field has produced over 65 billion fucking barrels. They keep pumping more and more sea water into it to maintain production. They dont let any information about it out to the public. I think it could hit whats called "breakthrough" pretty soon and go into a pretty fast decline. Basically all they water they have used to displace oil will start to reach the producing wells and youl see the water production skyrocket and oil production decline quickly. I think over the next 10 years youre going to see saudi decline and youre going to see China and India demanding a whole shitload of oil. This could be the buying opportunity of a lifetime boys.
She wants me to put 10k in it. Whether it be oil company or the ETF, it doesn't matter. She doesn't look at stocks at all. She just wants to buy it(whatever it is) now and hold it and hope it goes up in 10, 20 years.
I already created an account with scottrade in her name and put 10k in it. I could just put it all in USL as he >>1047973 suggsted and move on since it is her money. So oil company is better bet than USL?
anon. have you never heard of delivery dates? with commodities like oil you have to deal with these monthly or every other month. great idea, have him go long a contract of CL, then next thing you know he has his broker calling him on the expiry date asking where he wants the 1000 barrels delivered.
USL is better than USO, but still has risk of time decay due to rolling futures contracts.
Best approach is probably to split the amount equally (in dollars not number of shares) between the 2 or 3 largest oil companies. Exxon-Mobil (XOM), Royal Duth Shell (RDS-A), and Chevron (CVX) are the three largest U.S. Traded companies by revenue. Any more than three and fees will eat into your trades, plus it's more to keep track of.
You could buy an ETF, but they have more exposure to smaller players that are likely to have cash flow issues and debt defaults. Stick with large companies with lots of cash in the bank.
aunts telling financial advice is a strong sign for leaving the arena desu for a while at least
oil will go all the way to 0.50$ then there will be a happening against saudi royal family that wont really overthrow them but oil price will go to 100ish because of the panic. a few weeks before this, jews will start doing buys through the price falling 10$-->2$ then sell half of it to fool goyim. screencap this post
yeah plus with crude you can't really do a efficient rollover like with /ES or /ZB and /ZN, so even if he did go long and just keep rolling over, the spread will eat his ass for lunch
first buy signal still 24, wont go short or long before dat. might never happen who knows
>buy the crude oil>link bank account>buy shares of crude oil
being this dumb.
Honestly over 50% of the posts on /biz/ are questions from idiots that won't take the time to read about economics/finance/markets
There's ETFs for that
Honestly mate why do you expect /biz/ to do the research for you.
>There's idiotic questions all across this board. She wants to buy it as soon as possible so figure a kind anon would point me to the fastest way possible for me to buy it.
A brokerage firm... duh.
>I plan on getting the ETF USO or just put it in the company like BP.
You want an ETF that is pegged to the price of crude oil. Magicians at brokerage firms create these financial instruments from a variety of equity, such as futures, stocks, bonds, cash, metals etc.
Buying shares in a vertically integrated petroleum company is not the same as purchasing shares of an ETF which is pegged to WTI. Companies have disasters, earnings, and are generally thought to carry more risk.
I'm a STEM grad student and did reading on my own. It would be prudent if you did the same.