Commodities/Gold Strategies?

[rockket]

Been reading more into commodities plays, especially with everything going on with oil right now. Anyone have good resources about getting started?

 

Especially interested in different ways to express a long view in oil. Don't feel E&Ps are cheap enough, and seems ETFs are structurally disadvantaged due to roll.

[Lance]

Rockket, check out USL, it's not perfect, but seems to be one of the better ETFs as it buys the next 12 months, thus perhaps negating some of the problems with roll.

 

Thanks,

Lance

 

[constructive]

If you are a value investor posting on COBAF, your circle of competence / comparative advantage is a lot more likely to be commodity equity investments than commodities.

 

If they don't seem cheap enough, just wait until they do seem cheap enough.

[rb]

Rockket,

 

My advise to you is to forget about commodities because they are a loser's game. Investing in them is like swimming against the current. It's much easier to find something where the current helps you and swim with the current.

 

That being said, if you are hell bent on investing in oil and find that the E&P producers are too expensive (which I agree they are) and you want to be leveraged oil, then go with physical oil and invest in oil futures. Though in this case I must warn you that they are highly technical and they will bite you if you don't know what you are doing. So make sure you are well within your circle of competence if you decide to do anything like that.