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Buying OIL to protect wealth

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  • Wed, Jan 22, 2014 - 05:06pm

    #1
    rockstar82

    rockstar82

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    Buying OIL to protect wealth

With the stuff running out, is it a good idea to buy oil (I was thinking ETF's that trade in futures) with an eye on the inevitable price increases? Am I missing something? I read somewhere that because of peak oil the demand for it will be destroyed once the price goes above a certain point… what to do?

 

 

  • Sun, Feb 09, 2014 - 11:33am

    #2
    rockstar82

    rockstar82

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    No thoughts?

Any thoughts about this subject?

  • Sun, Feb 09, 2014 - 11:18pm

    #3

    KennethPollinger

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    I agree

and have been thinking the same.  But, just like junior gold mines, how know what to buy or even when.

Hope there are some brilliant minds in this community willing to share expertise.

  • Mon, Feb 10, 2014 - 12:59am

    #4

    Oliveoilguy

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    XOM is safe

Just bought some XOM last week on the latest dip. I agree with Kenneth that Juniors are risky, so my strategy going forward is that when investing in a sector, also secure a dividend, and own a company that is too big to fail. I agree that oil is a good play going forward. 

  • Mon, Feb 10, 2014 - 03:21pm

    #5

    Jim H

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    Buying Oil

One type of oil-based investment vehicle that I have commented on here before are the Sandridge oil well trusts PER, SDT, and SDR.  With these trusts you are buying a slice of the future oil revenues from groups of mostly fracked wells, and if you take a look at the stat's for these, you will see some pretty outrageous dividend rates;

PER = 19% div

SDT = 20.7 % div

SDR = 21.6 % div

What I have noted in the past is that you can't fool the market when it comes to the relatively short lifetimes of these fracked wells… the (relative) dividends have gone so high because the share prices have compressed, based on the rate of fall-off in oil volumes.  That being said, if we get into a period of significant inflation, and oil goes up rapidly, this may be one pure play on oil that could turn out to be a really nice total return investment if there were to be a period ahead where both the share price, and the dollar value of the dividend, were to increase concurrently.  Please do your own due diligence.           

  • Sun, Feb 16, 2014 - 01:42pm

    #6

    KennethPollinger

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    Sharing about MINERS

For some time I have been asking for help in deciding which miners to buy and which oil stocks to invest in.  A little here and there but nothing really substantial.

So, for a change I'd like to share some of my good (lucky) fortune with you folks.

Here is what has happened to me over the last month or two when many thought the miners had hit bottom or at least were close to it.  So, enjoy, and pass on similar nuggets of metals, or oil, please:

 

                            Symbol        Last      Cost        Total       

                                                                           Change
 
                                ABX       20.34     19.28      4.82%
                                AG         12.19       9.37     29.82
                                EXK         5.60        3.35    66.17
                                GG         27.55      24.50   12.22
                                     
                                HMY         3.19        2.46    29.15
                                MGPHF      .615        .49    24.91 (graphite)
                                MUX          3.07        2.33   31.20
                                NEM         23.83      33.02 -27.90 (only ONE loss)
                                OSKFF       6.32         6.08    1.49
                                PAAS        14.24       11.60  22.55
                                SA                9.42         8.21  13.95
                                SSRI          10.33         6.62  55.55
                                TGD             1.59         1.38  14.39
  • Sat, Jan 10, 2015 - 05:37am

    #7
    hydrodog

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    January of 2014 .. Is it time to buy the oils?

Oil prices have been hammered …. Oil at about 49/ barrel…. IS This Time To Buy in ???   I'm sticking mostly with the majors but will try a smaller good company with dividend and not too much debt…. both foreign and domestic….

Have kept my TOT

Just bought Chevron

Looking at EXXon and Petrobras

I feel the dividend is an important component.  

If time is on your side …. I can't see this oil price staying low.  To me it should be a way to increase your wealth without lots of risk.    Been hurt bad with stocks in the past ….. so it a little at a time ….   Next buy in will be on a dip to 46 dollars a barrel.    Hate to buy a lot to early …. the stock market as a whole looks to be near a top.  

Any comments or other ideas …..

  • Thu, Oct 29, 2015 - 02:03pm

    #8
    hydrodog

    hydrodog

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    Still hurting with my oil stock buy….

But the dividends have mittagated  the loss…  Am hurt but not too bad….   Few people follow thru on what has worked or has not worked. 

  • Thu, Oct 29, 2015 - 03:26pm

    #9
    Edwardelinski

    Edwardelinski

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    Hydrodog

You may have to rethink strategy.What was once unthinkable is now reality.The price per barrel of oil a year ago was in the neighborhood of a 100 dollars,today it is half that.Oil producing nations based future economic projections on the 100 dollar price point.Today they are paying dearly for those flawed projections.The IMF among others have figured that countries like Saudi Arabia will burn thru excess cash reserves within five years.That is a nice way of saying they will be broke.This week the US announced they will be dumping our strategic oil reserves into the global market place to make up for budget shortfalls.Economies of the world are collapsing every day.This morning marathon oil reported and they will be cutting the dividend 76%.Privately held Conoco Phillips out of Houston will be cutting capital expenditures in the neighborhood of 8 billion.Shell oil reported,staggering losses.They are early in the game.With little demand from industrial nations like China it doesn't look like it will reverse course anytime soon.Good luck.

  • Thu, Oct 29, 2015 - 03:28pm

    #10
    Edwardelinski

    Edwardelinski

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    Hydrodog

You may have to rethink strategy.What was once unthinkable is now reality.The price per barrel of oil a year ago was in the neighborhood of a 100 dollars,today it is half that.Oil producing nations based future economic projections on the 100 dollar price point.Today they are paying dearly for those flawed projections.The IMF among others have figured that countries like Saudi Arabia will burn thru excess cash reserves within five years.That is a nice way of saying they will be broke.This week the US announced they will be dumping our strategic oil reserves into the global market place to make up for budget shortfalls.Economies of the world are collapsing every day.This morning marathon oil reported and they will be cutting the dividend 76%.Privately held Conoco Phillips out of Houston will be cutting capital expenditures in the neighborhood of 8 billion.Shell oil reported,staggering losses.They are early in the game.With little demand from industrial nations like China it doesn't look like it will reverse course anytime soon.Good luck.

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