Quote:
Originally Posted by sandman!
let me explain how you buy oil.
you buy a future with a date lets say the date is March 1st on march 1st you become the owner of the oil in question unless you sell the future before then.
there is no other way to buy oil that i know of and most people that will post in your thread are idiots and wont get anywhere near your question.
if you are in the usa and need a brokers to explain it to you i know a few brokers.
if your not in the usa find yourself a broker spend the 10 min's on the phone with him and ask your questions.
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I spent 10 minutes on the phone with two brokers today. They were not very helpful and wouldn't tell me what is possible outside of the services they offer. That said, I do not want to invest in oil if I have to do via a contract that expires (or says I must purchase on a certain date, like a future) or if I have to take physical possession.
Quote:
Originally Posted by After Shock Media
Kard63 why would someone let you get an oil IOU for 1,000 barrels that you can cash in at any time in the future? I mean what would be in it for them, the 40,000 in cash they can already get right now? Leaving futures off the table since you claim you do not want them.
What happens if you buy 1,000 barrels today at 40 each and then next week it drops to 30 bucks a barrel? Or in your mind should you be allowed to hold onto it for as long as you want through stagnate periods and lows, until it reaches an acceptable high where then you would sell it at a profit? Without ever actually having it in your possession.
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The upside would be them getting to use that 1,000 barrels of oil from the time I make my purchase until the time I sell without ever paying anything. If it went down $10 a barrel and I sold I would lose $10 a barrel. If I don't want to sell I wont sell. How is this confusing? I want to buy some stuff that I dont want to take possession of because of transportation and storage costs so I am willing to loan it to a company for free. All they have to do is pay me back for it when I ask. They might get a loan for 10 years for free. I am amazed that doesn't exist.