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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (111899)	10/15/2008 11:51:05 AM
From: The Reaper	Read Replies (1) \| Respond to of 206212

The only way that I can see is to go ahead and buy the USO with it's inherent flaws and write out of the money calls to offset the slippage every month and hopefully generate a little income along the way. Just make sure they are well out of the money. Premiums are pretty good. USO is pretty much the same price as it was the last week of Sept. 2007. Crude is practically the same price so slippage is not that bad over the long term. There are some days that USO will not shadow crude.

To: peter michaelson who wrote (111899)	10/15/2008 12:21:27 PM
From: Paul Kern	Read Replies (2) \| Respond to of 206212

I want to start accumulating oil for the long haul - 10 years say. Buy a futures contract. I believe that they go to eight years out. Buying and storing oil won't work. You would pay about a dollar a barrel a month to store and insure it so storing it for 10 years would cost $120 plus inflation cost increases. Also, it degrades over time.

To: peter michaelson who wrote (111899)	10/15/2008 3:06:26 PM
From: energyplay	Respond to of 206212

Oil for ten years - That is a tough question. You may want to buy it in the ground. Since we don't certificates for the Strategic Petroleum resereve, that means buying wells and/or leases, which have operational risks and are not diverse. Or buying royalties or over riding roylaites on wells with a long life time. There are a number of firms in Texas that buy and sell these. This results in current income in additon to long term appreciation, which may be different than what you want. There's a lack of diversity, nd you may end up with only a small number of wells. The other way is to get over your distates for owning stocks, and buy resource accumulators, like Gasco GSX (which is gas and not oil, however) Also consider TXCO, which has oil sands in Texas, and companies finding oil, like BZP. Best of luck.