Investing in Oil and Commodities

bengal_tiger · Post by **bengal_tiger** » Wed Sep 26, 2007 10:43 pm

Oil prices seem to be on an upward trend and since the dollar is falling,
the effective price of oil may go up even higher. I was wondering what are
the various options of getting invested in enery/commodities?

I was thinking of the following:
1) Invest in individual oil company stocks, diversify globally by buying
Chinese, Russian and Indian oil stocks.
2) Buy mutual funds invested in the oil/energy sector.
3) Any ideas on funds that track the value of commodity prices? Just like
FXE tracks the value of the Euro, is there a fund that tracks
oil price per barrel? Wheat? Corn?

Any other tips on investing in the energy and commodity sector? I am
looking for a no-load type investment and moderate to low-risk.

vivmat · Post by **vivmat** » Thu Sep 27, 2007 1:28 am

This might help

http://www.r2iclubforums.com/clubvb/showthread.php?t=2117&highlight=barclay

bengal_tiger · Post by **bengal_tiger** » Fri Sep 28, 2007 1:12 am

Thanks vivmat! This was really very useful indeed.

dvfinance · Post by **dvfinance** » Fri Sep 28, 2007 10:10 pm

Is the energy fund also commodity fund?

donut · Post by **donut** » Fri Sep 28, 2007 10:49 pm

Has anybody done any research on investing primarily in precious metals (PMPIX,GLD etc) Vs investing in overall commodities(DJP) ?
The reason I am asking is recently I David Darst in a program where he was stressing more on precious metals than on commodoties. Note that DJP has a 33% allocation for precious metals but also has ordinary metals(Aluminium,STeel), Food , Energy etc.

I looking to for some thing like Correlation coefficients, inflation hedge etc

Jaggudada · Post by **Jaggudada** » Sat Sep 29, 2007 12:28 am

Under what different circumstances Gold may lose value? I know it's very vague question. Right now large quantities of gold is used for ornaments. What happens if people lose interest in ornaments? For e.g. Like in India in old days, women used to wear lot of jewelry but now days you don't see much.

Gold is no more a reserve currency.

What happens if suddenly large reservoirs of gold is found around the world?

The above two scenarios changes, supply/demand equation and may suddenly change the price of the bullion.

Some gold is used in semiconductor industry. Unless, there is persisting demand and limited supply, GOLD can dwindle.

I'm looking to invest in a Gold for a long period and not worry about short bumps here and there but not sure of the above.