HOW TO INVEST IN OIL

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					HOW TO INVEST IN OIL
When seeking way in which to invest in oil it wise to understand why it is such a good investment.
Oil is fundamentally linked to the Worlds economies. It is essential to both the developed and
emerging markets. We are dependent upon it. In the rapidly developing markets demand is on the
increase. China for example, has been rising since 1993 and had the largest demand increase since
2008 of 7.2%. This ‘black gold’ commodity has a traditionally low correlation with equities. Oil
related investments within a portfolio provided an element of diversification together with a hedge
against inflation.

Risks

Risks for oil investing are low because of the ever-increasing demand and rise in oil costs. The rising
oil demand trend is set to continue and there are several ways to enter the market for both oil and
oil equipment. It’s wise to note that the entry costs are often high on the cash side, so a route stocks
or ETFs would be the best place to start.

ETF’s

Exchange-Trade Funds in particular present the best option to invest in oil stocks via a good broker.
Nevertheless, precaution along with a thorough understanding about the marketplace trends are
essential to stop monetary losses. Exchange Traded Commodity (ETC) focuses on oil. ETF’s mirroring
a particular index or market provide investors with day trading opportunities like ordinary shares do,
but with the added bonus of being free from stamp duty charges in most cases. Ultimately when
looking into how to invest in oil remember that commodity stocks are highly volatile so spreading
your investment is highly recommended

				
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