How do you buy oil barrels?

[Coronita]

With the price of crude oil around $1/barrel, or soon to be negative dollars/barrel, I’m just wondering there’s got to be some way you can store it somewhere for a future date….

I’m only half joking, but I can’t imagine things staying this way for a long time.

https://finance.yahoo.com/news/oil-crashes-lowest-level-since-113552445.html

[The-Shoveler]

LOL Wife is going crazy trying to figure this out.

I figure this will eventually boomerang back to $80-100 given production cut as things open up.

So far uso is what she bought this morning.

[Coronita]

oil just went negative….. wow. Can I just take delivery and store some barrels in my garage? lol

[scaredyclassic]

It is dirty and hard to clean. Maybe it is worth less than zero.

Still, buying and holding USO seems like a possible strategy. I think.

Can an ETF go negative. And call u up for more $.

I would not buy USO.

Seriously, oil futures, uso, this shit is complicated, buying uso is not a direct bet.

[Coronita]

This is awesome. Gas prices are also floored. I’m wondering when refined motor oil is going to tank too.

Crude oil is like -$33/barrel now. Lol.

[The-Shoveler]

Yea there is a cost to hold USO, she only bought a little.

I think there are better ways but IMO Oil will rebound at some point.

This is just one of those times when the world went crazy with policy etc.. and mis-priced things IMO.

[scaredyclassic]

https://seekingalpha.com/article/4338311-betting-on-higher-oil-prices-uso-is-not-right-vehicle

i dont know, but ive read things like this on other etfs; it’s not just the cost of the etf. . this is not a simple bet. you can appear to win and lose. it doesn’t always track.

better to just buy barrels of oil, probably

[Coronita]

I want to sell some of my gold bullion and exchange it for barrels of oil….

It’s pretty amazing. One ounce American Eagle that was once $1100 is now over $1700 and can buy a shitload of barrels of crude oil..

Gold is nothing more than bling bling. It really doesn’t have that much utility except for some reasons, humans have assigned a remarkable value to it. Crude oil, on the other hand, is actually something useful….Without it, you can’t power machines to mine everything else, like gold….

I wonder how much it costs to rent a public storage locker….There’s probably a hazmat issue doing that though.

The other problem is, I can’t find a local dealer that is still open to sell the gold coins, lol….

[scaredyclassic]

[quote=Coronita]I want to sell some of my gold bullion and exchange it for barrels of oil….

It’s pretty amazing. One ounce American Eagle that was once $1100 is now over $1700 and can buy a shitload of barrels of crude oil..

Gold is nothing more than bling bling. It really doesn’t have that much utility except for some reasons, humans have assigned a remarkable value to it. Crude oil, on the other hand, is actually something useful….Without it, you can’t power machines to mine everything else, like gold….

I wonder how much it costs to rent a public storage locker….There’s probably a hazmat issue doing that though.

The other problem is, I can’t find a local dealer that is still open to sell the gold coins, lol….[/quote]

1100?

hell, the price of gold was $270.00 just 20 years ago.

As for it being useless bling bling, you could use it as money during biblical times and in every civilized society that has ever existed on planet earth for thousands of years.

so it’s not “for some reason” that it is assigned value.

it had value way before the DJIA was a glint in some capitalist’s eye, it will have value for the remainder of the current world order (of that i am certain, as certain i am that I exist) and if the world descends into some true post-apocalyptic hellscape, it will STILL have value.

i absolutely guarantee it.

no one will throw gold away with their old useless paper money or 401k statements of defunct corps.

it certainly would seem it has way more objective value than the wallet full of paper you carry around, esp if the gov. throws a few more trillion of those papers into the system next week. another thousand trillion of stimulus. sure. why not…

is it a good bet going forward? I have no idea. but the idea that it is “worthless” or a “barbarous relic” is just not true.

i am biased in favor of gold, sentimentally and irrationally, due to a good bet on a gold stock (a good gain on gold formed a sizeable chunk of the downpayment i made on a house in 2010,and because the timing of the purchase and the investment worked so well for me, gold melted into an irrationally soft place in my grubby little heart)), and also because it is so ancient and irritating to normal investors and contrary to growth and capitalism and modern economics.

that said, I have also been

way

way down on some gold stock price bets. it’s not like im starry eyed or optimistic or always a winner. I am definitely a loser too. win some, lose some. the reason i still defend it is perhaps because it just is.

so do not take any of this as bragging or advice.

. I think people can get burned with it if they jump in and out, or invest in gold mines, and i think the upside is not huge, but i seriously doubt gold is going to fall back down to 270 an ounce.

i dont know where the floor is. My gut says 1250, and my gut is always wrong, so it’s probably way lower than what my gut says, 900? 1000, 500?)? and the upside? gold bugs say 5,000, 10,000, but they’re nuts, even nuttier than me.

. To me, 3,000 sounds reasonable, so the correct answer is probably 9,000, or 25,000 an ounce.

would central banks really be filling their vaults with bling? are they that vain? does money in the bank really seem all that secure? if oil can be worth negative money, why couldnt gold be worth 10k an ounce? at least youc an carry it around. try carrying or even rolling a barrel of oil.

https://www.bloomberg.com/news/articles/2019-04-23/central-bank-gold-buying-gets-boost-as-india-s-reserves-to-swell

[The-Shoveler]

Gold I don’t know,

Could we get into hyper-inflation?

Don’t know, Seems we can’t print enough LOL.

[scaredyclassic]

all that said, I agree, if you can make a good direct bet on oil prices, seems like it has to come back at some point.

[barnaby33]

The price went wildly negative today, $-37 at one point. The problem is it’s for the “front month” contract. You have to show up in Cushing Oklahoma to claim it. You’ll have the same problem as everyone else though, where are you going to store it? That’s what drove the price negative in the first place.
Josh

[gzz]

Coronita, I got good news for you. The paper price of gold is 1700, however the cash price for physical gold is 1800 and up. You will have no problem getting $1800 from a reputable dealer, ebay, etc.

Silver has an even larger physical premium of $3+ an ounce, though $1 is normal. Silver Eagles normally sell for $2 above spot silver, now it is $6 to $9 above.

ApMex is a large reputable seller, and they want $28 for silver eagles, and they can’t even keep them in stock.

https://www.apmex.com/product/196100/2020-1-oz-silver-american-eagle-bu

[svelte]

[quote=barnaby33]The price went wildly negative today, $-37 at one point. The problem is it’s for the “front month” contract. You have to show up in Cushing Oklahoma to claim it.
[/quote]

I lived about 20 miles from there for five years.

[Coronita]

AH! While La Jolla Coin Shop is now closed, its sister location San Diego Coin and Bullion is still open by appointment only….

Home 

1 Golden Eagle must be worth at least 100 barrels of crude oil now, lol….

I remember when Apmex were selling these for $1000-$1100 just a few years ago, even better when ebay was rebating 10% with the ebay buck rewards program for coin purchases AND ebay credit card had a 2% cash back reward for charging it too. Although there was a limit on how much you eBay Bucks you could get per quarter, it wasn’t a problem if you had more than one account, heh heh. Well, at least until people kept doing it and ebay finally changed their policy so that coin purchases would no longer qualify for the eBay Bucks reward program. Otherwise, it was nice to get roughly -9% below spot prices with the Bucks program + the credit card promo cash back offers combined.

See, that’s how you milk the system Josh. Playing with the mortgage forbearance game is way too much effort for what you get out of it 🙂

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