Posted by fishbait on 26th of Jun 2011 at 02:18 pm
In 2 words, they suck. If they are held very long you will
lose time value . Also they may be invested wrongly by the
managers of the fund. DXO is a good example of how things can go
wrong. In 2009 it had to be shut down because it did not gain value
when oil rebounded. For the short term a commodity may work
but remember the contract time value loss. Long term only works for
indices for ETF's.
Natural Gas
Posted by 35061 on 26th of Jun 2011 at 07:18 am
Hello,
I would like to invest in natural gas and feel that now may be a good time.
What do you suggest as a good vehicle to do this?
I am considering either: purchasing the natural gas price futures contract OR purchasing an ETF such as UNG.
Which would you suggest is a better bet for a medium to long term play?
By the way, I live in Australia and trade only via CFDs (Contracts For Differences).
I only want to know the best way to play natural gas via CFD's, not whether natural gas is a good play or not.
Thanks and I look forward to anyone kind enough to post an honest reply.
oil & gas ETF
Posted by fishbait on 26th of Jun 2011 at 02:18 pm
In 2 words, they suck. If they are held very long you will lose time value . Also they may be invested wrongly by the managers of the fund. DXO is a good example of how things can go wrong. In 2009 it had to be shut down because it did not gain value when oil rebounded. For the short term a commodity may work but remember the contract time value loss. Long term only works for indices for ETF's.
Read this first
Posted by toothdoctor on 26th of Jun 2011 at 08:56 am
http://www.nytimes.com/2011/06/26/us/26gas.html?_r=1&hp