The Advantage of Investing in Crude Oil In these financial times that have become increasingly defined by economic turmoil, crude oil WTI has become an attractive investment option for those looking to potentially supersede the volatility of the open market. There are several main reasons why crude oil WTI represents such an attractive opportunity, so let us have a brief look at some of the most common motivating factors behind this choice. Return on Investment Otherwise known as ROI, this is defined as how much an investor will profit over a given period of time. While many equities have taken massive losses and others prove to offer only modest growth, the last few years have witnessed crude oil WTI positions increase by as much as one hundred percent. Thus, more profit can be made in a shorter period than with other positions. A Limited Resource Another key determinant is that oil will not last forever. Therefore, it represents an excellent long-term strategy, for the price of crude oil WTI will continue to increase as the supply dwindles. This approach is used by many investors to secure a guaranteed longitudinal profit over the course of a decade or more. Less Volatility Unlike investing in an individual equity, crude oil WTI is less volatile than other positions on the open market. This being said, the investor will be less prone to see a massive drop in prices in a short amount of time. This is one of the reasons that a holding in crude oil WTI is present in many conservative hedge funds and other investment schemes. No Chance of a Total Loss While even a blue chip company may go bankrupt, one of the defining characteristics of commodities such as crude oil WTI is the simple fact that there will always be a demand. Thus, it will always hold a value. This will obviously prevent against a total loss on a position. These are but a few of the reasons why crude oil WTI represents one of the safest havens for an investment opportunity in these modern times
Posted on: Sat, 25 Jan 2014 23:19:23 +0000