Time to buy oil?

Oil just dumped to >2$ (WTI)
It is being obliterated

Anyone jumping in here??
Downside will be banks selling $gold

I would give some more time on how things changes on Corona.

I want to learn on how to commodities such as oil, gold and silver.
Wish I could buy oil at 10 cents and sell at 15$. I believe oil will be back to 50 in few months.

Not sure what to buy during unprecedented times. A lot of options and choices but limited money :slightly_frowning_face:

I wish I could get a 100k loan with a 3% interest from banks now. Then, I would buy Oil, gold, silver, cryptos, stocks, and real estate at lower prices.

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You can’t buy and hold oil like crypto. Trading in commodity futures and options contracts is very complicated and risky. Commodities prices are very volatile and there are chances to get huge profits and loss.

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The main issue is that you can’t actually buy oil at spot. You can only gain exposure to oil through exposure to companies who rely heavily on oil, i.e. ExxonMobil, Tullow Oil etc. Or by investing in derivatives such as Oil futures.

The problem with the latter option however, is that you need to be able to take delivery of it and therefore store it somewhere if you are unable settle any oil futures due to lack of demand which is what caused the price to turn negative in the first place.

So in summary, I would suggest that you carry out thorough research on investing in oil before doing so, in order to ensure that you don’t end up in the same position as those who ended up being forced to sell their positions at massive losses!

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I agree with @harvw

I think investing in crypto, stocks, oil, gold etc depends more on one’s point of view. There are quite a few factors to be considered in any investment. Even in a bear market, there are some stories of fortunes being made.

I almost felt like putting some money in a few oil stocks, since eventually the world will go back to normal and people will start to travel again.

But after thinking about it, I decided for a wait and see approach due to the massive amounts of oil already available, some countries’ economies will require more oil production in the future, and the fact that we are continuously moving toward alternative energy resources.

Better to invest in deflationary Bitcoin and select Crypto for the long term, imho.

Hodl on!

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Fully agree :wink:
I am in crypto majority
But I am aiming for some innovation stocks as well (I am eying illumina, square and Tesla - already have Roku)

I think innovation - THE right ones - will do great even if market would bottom again
Oil stocks will be steady but don’t expect a boom coming years - but also don’t forget - they Wont die (THE major ones). They are still needed for to produce products which all require oil. THE cost to produce just went down a lot.

Invested in EXCON Mobil, The Apple of Oil Industry

Lets go to the mooooon…

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In reality, the fall in the oil futures price truly exemplifies what can happen to an asset, oil, whose demand is based on consumption which in turn is influenced by other external factors.

We can blame Coronavirus for this but the distribution and decentralization of Bitcoin has so far countered its effect.

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