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MEtallic

How Can I Invest In Oil?

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I'd like to invest in oil and my options as I see them:

1. Shares in an oil company, e.g., BP- downside is you are investing in the company, not the commodity.

2. Unit trust, e.g, JP Morgan Nat Resources is 28% invested in energy

3. Oil futures- know nothing about them- aren't they risky and more suited to trading?

4. ETF- someone mentioned OILB. What is this?

Any ideas please? I'd be investing for the long term, preferably by buying smaller quantities regularly.

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The fundamental problem with investing in oil, is that as the price of whatever oil derivative you hold

goes up, the value of money is going down. Maybe not noticeably if you are daytrading oil futures

but over the long-term this is a significant risk to be considered.

My view is you should be looking primarily to preserve the real value of your investment,

all of the things listed above are vulnerable to fluctuations in the value of currency.

Physical gold is the best way to go if you are strongly bullish on oil, imho.

If Iran kicks off and oil goes to $200 / barrel, you can rest safe that the value of your

gold will not have changed, I would be a bit more nervous if I was tied up in one of

the aforementioned financial products.

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I've since contacted my broker and OILB.LSE can be traded for the same cost as any other listed share.

I may well put some money into it, as it seems like a win/win (or lose/lose) situation to me. i.e., if oil price drops, so will the price of the fuel I use to drive my car and so will the inflation rate and vice versa. Looks like a good hedge to me.

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Guest muttley

I'd like to invest in oil and my options as I see them:

Any ideas please? I'd be investing for the long term, preferably by buying smaller quantities regularly.

Have you considered a spread betting account? It has the advantage of being tax free (assuming you gain), and you don't have to worry about cracked pipes in Alaska.

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Have you considered a spread betting account? It has the advantage of being tax free (assuming you gain), and you don't have to worry about cracked pipes in Alaska.

Far too risky for me. You have to set a time limit and I can't predict the future!

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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