Oil Replaces Gold as the New Inflation Hedge [View article]
sorry, but oil will never become a real hedge against inflation. the reason is very simple: nobody can effectively store and exchange it. all you can do is play it via some ETFs or via futures - but this is as imperfect as it gets. I fully expect the US govt to effectively shut down commodity ETFs over the next couple of years as they bring in additional demand further straining supplies. with gold you have the ability to store it, carry it arround, exchange it. buying good oil stocks may offer protection, too.
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sorry, but oil will never become a real hedge against inflation. the reason is very simple: nobody can effectively store and exchange it. all you can do is play it via some ETFs or via futures - but this is as imperfect as it gets. I fully expect the US govt to effectively shut down commodity ETFs over the next couple of years as they bring in additional demand further straining supplies. with gold you have the ability to store it, carry it arround, exchange it.
Jun 12 09:53 am
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All Comments by fxtrader07 »Oil Replaces Gold as the New Inflation Hedge [View article]
buying good oil stocks may offer protection, too.