Comment by yieldcrv
16 days ago
If people could use oil as an investment they would. It’s perishable and toxic to store.
I understand your position. It doesn’t matter that you overlook key economic relationships in environmentally friendly methods, and you don’t recognize how illiquid balance sheets drive markets through lending and collateral or consider that utility, the goal post moves to disliking the extraction method occurring at all.
I recognize that my counterpoints are all capitalist rationalizations and can be used to rationalize anything.
So I’m just watching at this point.
The difference between oil and silver / gold is only the scale of economic loss.
People have used physical oil as an investment, unrefined oil is stable across millions of years. The underlying economics mean people only attempt it in the short term when the price is unusually low. Or as a state sponsored hedge https://en.m.wikipedia.org/wiki/Strategic_Petroleum_Reserve_...