Why don't we all just become oil speculators?

[taterguy]

Apparently it's a form of legalized theft.

We'd make so much money we wouldn't have to worry about gas prices.

Who's with me?

[ProgressiveProfessor]

1. There are funds that do that...very risky and the rate of return is less than you might think

A lot of companies and funds are hedging their bets with oil futures. It is what is driving the cost up as much as true speculators.

[lunatica]

2. I've been speculating on how long I can keep driving when the amber light is on

It's a gamble.

[Bosso 63]

3. Buying a car is an act of oil speculation in a way.

Projecting the future price of fuel when making vehicle selection is an important part of the total cost of ownership, not to mention the impact on the environment.

[think]

4. +1

Hummers were a bad hedge.

[unblock]

5. as soon as enough "little people" are long oil, they'll sell, drive the prices down, and burn you.

then when you admit defeat and take your losses, they'll buy and drive the prices right back up again.

all you will have accomplished would be to give them yet more money.

this is a key disadvantage of playing that game without the resources to ride out "temporary" losses, and a key advantage of wealth.

[deadinsider]

6. Excellent post n\t

[Nye Bevan]

7. YES, like how being a tech stock speculator in 1999-2000

was a guaranteed road to riches.

Remember how that worked out?

[taterguy]

8. No one complained about tech stock speculators

Oil is an essential commodity.

Totally different scenarios.

[dkf]

9. People who bought houses they couldn't afford thinking the value would go up were speculating.

Many landed up losing their shirts.

Good luck with the oil thing.