Invest in oil
Oil is perhaps the most famous commodity that has created enormous wealth for nations as well as individuals. Learn the secrets of effective investments in oil.
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oil is a non-renewable resource. When we used it, it's gone forever. New technology will come, but it takes time and it costs a lot of money to introduce new energy solutions.
Jim Rogers was right in his comments about the oil market in the book about profitable commodities, where he explains details about the conditions that will affect oil prices in the coming years.
How do I invest in oil?
It is very easy to invest money in oil. All you need to do is tie you up against a broker service that offers trading in oil.
Now it is of course not the case that one buyer barrels, although it is theoretically possible. So it is with gold too. Although it is possible to buy gold bars and store them in a safety deposit box or safe, it is not common practice. The buying derivatives or contracts for difference for the current raw material. Let us explain.
Instead of buying a physical commodity, you buy a derivative. A derivative is a security whose value is determined by the underlying asset - such as raw oil. There are a wide variety of derivatives (including options, futures, forwards and more). Fortunately, you need not do so sophisticated.
So easy it is to invest in oil:
buyer ie not the actual commodity, but a security that follows the prices of raw materials. If the oil price in the market goes up, also all related securities reflect this inflation. The same applies to the market goes down or if the market is at a standstill.
It is a simple process and the requirement to deposit is so low that everyone should be able to afford it. You will then have an opportunity to try your hand at real commodity trading even with a small deposit. Some brokers require you to deposit larger amounts, it is therefore not the case here.
Oil is more expensive
Should you invest in oil you need to understand what affects the price of oil. Like everything else it is central to the price movement supply and demand.
market has become accustomed to a world where it produced enough oil to meet demand worldwide. There will be big changes in the coming decades. A long-term investment in oil derivatives will probably be worth gold, the price of oil will rise sharply in the coming years.
All oil is declining and demand is increasing. This is a continuing trend. Not enough with that offer in the market falls, but also the availability of oil will be less for each day the draining of the world's oil reserves.
It took millions of years to produce this oil, and during more than 100 years is mostly used up. Although petroleum as a raw material has been used by humans for over 4,000 years, it is only over a hundred year period consumption has been so great that it has been of particular importance for oil reserves.
It is highly unlikely that oil prices will fall in the coming years, and the oil market should be very attractive to anyone who has money to invest.
Further development of oil
Shortage in the availability of oil is a more important factor than any new technology in alternative energy sources. New oil discoveries have significant bearing on the current oil reserves are highly unlikely, and even with revolutionary innovation and resistance from authorities, new research findings and policy decisions will oil prices continue to rise.
Long term trading vs. daytrading of oil?
There is nothing that can stop a development in oil prices over the long term. The long-term trend will be rising oil prices until 2020 and possibly until 2050.
The current picture is however different. A number of factors are involved in influencing oil prices from day to day and every minute. Financial turmoil and economic crises is a factor, political events, new discoveries, wars and conflicts, new technology is helping to move the oil price up and down.
Although oil prices in the long term is likely to go up, it is in the short term you can really achieve incredible returns, where you can make money in both rising and falling oil prices, and even when the market is not in you can earn money (more on this below). Daytrading and short-term investments in oil are therefore very interesting for every investor and trader.
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