OIL – The Secret Scam That Can Make You Some Money

Slimy, Greedy, and oh so Seedy

So now it is 2009. Happy Freakin’ New Year to one and all. This is going to be a tough year on the psyche of humanity because of the screwed up mess caused by the greed and corruption running rampant through corporations, government, and individuals.

As an individual, there is not a lot you can do to change things in the world, except for yourself. Don’t be greedy, don’t be dishonest. Live by example and profit by using the scam against the very people out to screw you over…There are many but today I would like to focus on OPEC…our fun loving Arab buddies who are sitting on billions of dollars of black gold.

These guys are hurting. Their wealth is being sucked out of them just as fast as the oil they suck out of the ground. Instead of getting $140.00 per barrel for their elixir to the auto gods, they are getting only $37.00. This is not acceptable to them and they have taken the steps necessary to correct this.

December 17th, 2008. This is a very important date.

For on this date OPEC met with only one objective in mind. Get crude prices as high as possible…IMMEDIATELY! They want it at a minimum of $80.00 per barrel and are prepared to take drastic action to make it happen.

Back in 2007 when oil started its rise from $65.00 to the whacked out price of $140+ OPEC became addicted to high oil prices. However they realized that at $140+ consumers slowed their buying of petroleum products. OPEC, and other oil producers, with the help of the parasites known as ‘Speculators’ milked us for all we were worth.

This greed helped to unravel and unmask the screwed up nature of Wall St. who is/was leveraged to the hilt with bad investments, again made out of greed. This caused the whole of the economy to implode leading to this mess we find ourselves in today.

As of January 1, 2009 OPEC is holding oil hostage

This is not some conspiracy theory guessing game. This is fact. OPEC has committed to cutting the oil supply to such an extent that it will drive up the price because they will create a shortage. In fact on the very day they held their meeting they began the process by lowering production by 2 million barrels per day.

Now that the new year is here you will be hearing more and more ‘noise’ from these bozos announcing production cuts on almost a daily basis. They now full well that the market place could handle $80 oil but can it now? I don’t know…a lot of people are hurting right now. Employment is on the rise. I do think that $65-$70 is attainable and we will be there before the end of next summer.

Some Wall Streeteeze You Need to Know: ETN and ETF

It is simple. Buy an oil-based exchange-traded note or ETN as they are called in Wall Streeteeze. Sometimes they are confused with ETF (exchange-traded fund) but they are different. Both are great investment vehicles but both have risks associated with them. I will help you minimize the risk but you need to click the links above to understand what you are getting into.

With an ETN, if the issuer goes bankrupt you may be out of luck and with the ETF there is a bit of a scam at play. Take for example the ETF – SLV – silver. Some will say I am nuts for not buying this but DON’T get into silver with this. Why? It is simple. There is no silver to back it up. Silver is a scarcity, rarer than gold, and this little darling trades in digital silver that is some weird index tied to the price of the actual commodity. I don’t understand it but can do simple math. The company issuing this does not have the actual silver on hand. It is a house of cards that may collapse. Thanks but no thanks. I will buy actual silver.

Anyway do your own due diligence with this stuff and don’t trust Wall Street…ever!

So How Do You Cash in on Oil?

Buy DXO – PowerShares DB Crude Oil Double Long ETN (NYSE) I bought 350 shares at $2.29 per share and at time of writing it is $2.70 per share in after hours trading. So far I have made a tidy little profit but this stock is 7-8 times less than what it was at its peak.

So there are two risk factors to consider here:

1) DXO issuer going bankrupt
2) Price of oil dropping further – as the price of oil increases you get double the increase but the converse is true too. You can lose big time with large drops in the price of oil. You have to decide for yourself if oil has bottomed out.

I think oil has bottomed out and we are at the beginning of a price hike. I expect oil to reach $60 per barrel by the spring and rise to $80 by the end of the summer.

Disclaimer

I am not an investment broker, or a financial adviser. That is a good thing because what have they done for you lately?

I am just an average joe who does a lot of reading trying to find ways to stick it to the man at a profit. I tell you what I do, but do yourself a favor and do your due diligence and research before you drop money into the markets.

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