Comments on: Four Commodities… Four Ways to Profit http://www.investmentu.com/2010/February/four-ways-to-profit-with-commodities.html Investment Advice and Investment Research with a Contrarian Point of View Thu, 09 Feb 2012 16:06:49 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Tom Healy http://www.investmentu.com/2010/February/four-ways-to-profit-with-commodities.html#comment-35869 Tom Healy Mon, 15 Feb 2010 17:57:34 +0000 http://www.investmentu.com/IUEL/2010/February/four-ways-to-profit-with-commodities.html#comment-35869 I agree with Mark that GLD and SLV hold the physical commodity. Both of them will have a slow slippage in price, because some of the commodity has to be sold each month to pay expenses. And because these are considered grantor trusts, if you hold them in taxable accounts, you need to report that sale each month on Schedule D. And Stephen has a point that it can be confusing to write about the prices of oil futures and USO as though they are related. USO is a limited partnership (issues a Schedule K-1 to investors). While it tries to track the price of West Texas Intermediate Crude, the relationship between the price of USO and the price of oil depends on additional factors because of the partnership structure, including how much of its net assets are invested in oil futures at any given time. I agree with Mark that GLD and SLV hold the physical commodity. Both of them will have a slow slippage in price, because some of the commodity has to be sold each month to pay expenses. And because these are considered grantor trusts, if you hold them in taxable accounts, you need to report that sale each month on Schedule D.

And Stephen has a point that it can be confusing to write about the prices of oil futures and USO as though they are related. USO is a limited partnership (issues a Schedule K-1 to investors). While it tries to track the price of West Texas Intermediate Crude, the relationship between the price of USO and the price of oil depends on additional factors because of the partnership structure, including how much of its net assets are invested in oil futures at any given time.

]]> By: stephen hunter http://www.investmentu.com/2010/February/four-ways-to-profit-with-commodities.html#comment-35868 stephen hunter Mon, 15 Feb 2010 17:52:20 +0000 http://www.investmentu.com/IUEL/2010/February/four-ways-to-profit-with-commodities.html#comment-35868 Sorry your figures still don't add up uso is still at $36.80 today 2-15-2010 not $74.00and slv etf are still dead. Sorry your figures still don’t add up uso is still at $36.80 today 2-15-2010 not $74.00and slv etf are still dead.

]]> By: Mark Koss http://www.investmentu.com/2010/February/four-ways-to-profit-with-commodities.html#comment-35644 Mark Koss Wed, 10 Feb 2010 19:13:19 +0000 http://www.investmentu.com/IUEL/2010/February/four-ways-to-profit-with-commodities.html#comment-35644 Lee, You have made a mistake with respect to GLD and SLV. These ETFs are not trying to track the front month future as they both hold the physical commodity. Although there are questions as to if their accounting and inventories are accurate Lee,

You have made a mistake with respect to GLD and SLV. These ETFs are not trying to track the front month future as they both hold the physical commodity. Although there are questions as to if their accounting and inventories are accurate

]]> By: stephen hunter http://www.investmentu.com/2010/February/four-ways-to-profit-with-commodities.html#comment-35640 stephen hunter Wed, 10 Feb 2010 18:32:58 +0000 http://www.investmentu.com/IUEL/2010/February/four-ways-to-profit-with-commodities.html#comment-35640 your prices are full of it uso is 36.00 NOT74.00 your prices are full of it uso is 36.00 NOT74.00

]]> By: stephen hunter http://www.investmentu.com/2010/February/four-ways-to-profit-with-commodities.html#comment-35638 stephen hunter Wed, 10 Feb 2010 18:24:26 +0000 http://www.investmentu.com/IUEL/2010/February/four-ways-to-profit-with-commodities.html#comment-35638 Dear Sir;I like your thinking but I can't see were you are getting your figures at?You see I have futures in july calls in USO and the price that its going for right now today is $36.19 not $74.00 that your quoting,were you getting these numbers at?I also have slv options and they are droping like dead dogs in the street you have me very confused on your prices.I would be greatful if you can put me on the right path. Dear Sir;I like your thinking but I can’t see were you are getting your figures at?You see I have futures in july calls in USO and the price that its going for right now today is $36.19 not $74.00 that your quoting,were you getting these numbers at?I also have slv options and they are droping like dead dogs in the street you have me very confused on your prices.I would be greatful if you can put me on the right path.

]]>