Exchange Traded Funds - iShares?

[Magistrate]

Does anyone know how I can invest in a particular commodity price?

For example, if I thought Crude Oil was a bargain at $90 per barrel, how could I invest in this price?

I thought iShares was this sort of thing, but when I look into it, they are just a tracker of an index, and this index diversifies too much into other things. i.e. the nearest I can get is a fund which invests 55% into 'Energy' which obviously includes Gas/Electricity/Oil/Etc.

[anonymous-user]

You could spread bet on it

IGindex for instance offers markets in various types of oil

http://www.igindex.co.uk/spread-betting/commoditie...

As do most other spread bet firms

[ellroy]

I've got a 5 litre can of Castrol you can invest in Maggo!

Very reasonable up front fee and the spreads really narrow.

[Magistrate]

ellroy said:

I've got a 5 litre can of Castrol you can invest in Maggo!

Very reasonable up front fee and the spreads really narrow.

Cheers matey! But I prefer Shell.

I've located those ETFS on the B/stockbrokers site and they look just the trick. Even a specific Crude Oil one! Cheers

[ringram]

OILB.LSE

http://www.etfsecurities.com/en/updates/document_p...

Personally I wouldnt touch it though. Contango means when the contract is rolled over monthly you get rolled over too!
I bought in under $60 USD ages ago, Im still waiting to break even. Ill be selling out when I think the time is right.
Personally I would avoid pure commodity ETF's unless you only intend to hold for short periods.

Your money is better in something like OILS.LSE, which is european oil majors (and some minors)

[Magistrate]

Thanks for the info ringram. I'll watch out for this Contango situation, I'd not seen this before.

So if I purely wantead to invest in Crude Oil at $90/barrel, what's the best, most cost effective way of doing this? Is the CRUD.LSE a better option?

[anonymous-user]

Magistrate said:

Thanks for the info ringram. I'll watch out for this Contango situation, I'd not seen this before.

So if I purely wantead to invest in Crude Oil at $90/barrel, what's the best, most cost effective way of doing this? Is the CRUD.LSE a better option?

did you look at the spread bet option? remember that any gain from that would be tax free too

[ringram]

Contango and Backwardation are inherent components of futures trading.

As per above spread bet or cfd might be a better play for the same reasons. Even if you are behind the trend at the right point the rolling of the contracts will mess you up. So avoid the physical stuff outright unless you know what you are doing and use one of the other plays... of course you should know what you are doing with them as well.