It strikes me that the chances of oil being worth more when I retire are good and thus there's some benefit in buying oil. If I don't want to buy oil company stocks, and I don't want a physical barrel of my oil stored somewhere at my expense, is there a way to own "virtually" a nominal barrel of oil?
FoFP
Isn't this what futures are for?
Could be. Where would I get 20-year futures?
FoFP
Dunno, but they'll be bloody expensive.
Indeed, so might there be a better way? I have some virtual gold through an Exchange Traded Fund. Is there anything similar where I could hold some virtual oil for 20 years?
FoFP
You could buy a barrel of oil today and sell a 20 year future on it.
Will you make loads of money on this deal? I doubt it.
Presumably at 50 USD a barrel it is pointless investing in less than about 20 barrels. This quantity is just going to compound the storage difficulties
tim
I hold actual gold in an ETF. The idea seems to be that they reserve the ETF certificates with gold in a vault somewhere and make a small annual charge for warehousing. It's delimited in one tenth of an ounce shares and is priced in Dollars.
Canadian Income Funds. Can't remember of a ticker in particular, but you'll probably find out one easily.
Looks like this might be a solution to my question:
FoFP
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