Friday, December 18, 2009

How Do I Buy Oil And Gold?

Where online can I buy Oil and Gold. Is it a good time to buy oil since the price is low and OPEC decided to cut production which will likely drive up the price of oil.How Do I Buy Oil And Gold?
I once owned $675,00 of oil futures this summer, and I hate to say it but it just won't be the same again.





I would avoid commodities cause China's GDP is down 22% for 2008, and their exports are down 11% for 2008. China has a bought a stockpile of commodities, and soon they will have to sell them to pay the huge unrest they are fighting. We only had 2% GDP drop for the year to put in terms, and the only thing saving China's exchanges is that the government is printing money to by down their loses. That is right the Chinese government owns 47% of the current stock volume in China, and when their inflation numbers come out the will be selling commodities like it is out of style to save their economy this February.





I would buy stock in logistic businesses cause a sticky price will, and low gas prices will lead 2 good quarters.





Low oil prices in a recovery means industrial growth, and that means millions of jobs %26amp; huge jumps in GDP.





OPEC only controls 32% of the worlds oil, and 40% of its member countries are not in the Islamic world.





The problem with OPEC making production cuts that has slowed them is only Saudi Arabia can afford it as some OPEC members already are down to 50,000 barrels a month, and the bigger problem is that OPEC often makes cuts while members tend to just pump any way defying OPEC.





OPEC only produces 1,380,000 barrels a day already, and the United States consumes 19.6 million barrels per day. OPEC has 32% of the reserves but less then 10% of production, and 4 million barrels a month the current cut is only 125,000 barrels a day. This will not even have physiological impact because reserves being explored in non OPEC nations are increasing 11% a year, and the futures market sets oil prices. A 11% increase is 1/3 of OPEC's total reserve just this year made pointless, and oil was inflated for so long that these falls have been long in the makingHow Do I Buy Oil And Gold?
Hello Darren,





It would be prudent to do a further study and analysis with respect to both crude oil and gold. Let's look at each of them seperately.





Crude oil has been on the down slide as there has been a cut down in demand for it by the end user. There exists a demand-supply mismatch, with the excess being on the supply side. This would firstly require a cut back in production by OPEC countries to more closely balance the supply with demand. This would take time. So the price of crude oil is expected to remain at its lower band till such time that there is an oversupply in the market. Crude oil being a commodity would require you as an individual to purchase futures contracts for the same through the commodities exchange in your country.





Gold was and still is the base on which all currencies of the globe are printed on. It is considered to be a safe investment by most. But it's past, present and future prices are dependent more on the demand and supply of it to the end user for the finished products. As an individual you may deal in this commodity through ETFs or consider trading it in the commodities exchange of your country. Here you would again be dealing in futures contracts.





As you seem to be inclined to transacting in futures of commodities, it may be a good idea to read the following book:





Option, Futures and Other Dervivatives by John C. Hull





For a further selection of suitable books you may consider doing a search at www.amazon.com





Sincerely,





Akash


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If you want to buy these, look at the etf's - OIL %26amp; GLD. Both of these are so narrowly focused, I would not have more than 5% of my portfolio in each. Oil might be a good bet - long term - 5, 10 yrs. Gold, I think has hit it's peak (in my opinion).
you may check it out from this site. they allow trading in oil, gold and silver. if you are new to this, you may register and download a Free Ebook and a Free Demo Account as well. all the best.
you can buy actual gold or oil like stock it can only be bought in large amount through special brokerages you can invest in oil and gold mining companies though.
To buy gold you call the superior gold group and also you want to buy pre 1933 coins read the confiscation act of 1934

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