Saturday, August 28, 2004

Buy Crude Futures, Save the environment (and make money)

We all know that the price of oil is going to rise as demand overtakes supply. Buying a futures contract allows you to buy oil at $35 at sometime in the future, when the market rate will probably be $45 or $55. Buying 1 contract (1,000 barrels) of oil should cost $35,000. But since you buy it on margin, it only costs you $3,500. In 5 years you sell it for $45,000 or $55,000 and make either $10k or $20k. Not bad for a small investment. If the price goes down to $25/barrel you will lose $10,000. But if you go long, the chance of that happening is quite small.

If everyone did this,[people already are] this will drive up the price of oil and force people to conserve. It is a win win situation! You are banking on the fact that Americans are too lazy to conserve and GM is too stupid to make hybrid cars before 2007. If you can't change Americans, then just take their money.

0 Comments:

Post a Comment

<< Home