USO

[Anonymous No.18604385]

Why the fuck shouldn’t i go all in USO? Aren’t ETFs basically indestructible? Seems like an easy 5x + moon eoy. Isn’t this basically free money?

I mean, in the highly unlikely possibility that it does crash, we are all going to die anyways. Oil is like the blood of the economy and transportation is the veins and arteries.

[Anonymous No.18604420]

we don't need oil anymore. welcome to the future.

[Anonymous No.18604445]

>>18604385
>Why the fuck shouldn’t i go all in USO? Aren’t ETFs basically indestructible? Seems like an easy 5x + moon eoy. Isn’t this basically free money?
you are an aboslute retard who don't understand how ETF's work, especially commodity ETF's

[Anonymous No.18604992]

>>18604445
???? Stocks go up, etf goes up. That’s all that matters and all i need to know, nigga

[Anonymous No.18605000]

>>18604385
good luck catching that knife

[Anonymous No.18605018]

>>18604385

[Anonymous No.18605021]

>>18604385
>literally no more storage left to store oil
>people are willing to pay you to take it off their hands cuz they have no where to store it
>oil usage will not rise for at least two more months
>oil rigs still pumping even though there is no storage because if they stop they might as well go bankrupt
Now ask yourself, who is going to buy this newly pumped oil? Where will they store it if they do? And how long can they keep this up with no real useage?

The answer is that america is fucked. There is no escaping the coming collapse.

[QQQ fanboi No.18605022]

>>18604385
>shills looking for bagholders or genuine article?

You Decide!

[Anonymous No.18605041]

>>18605021
>America is fucked because of too much oil

imagine being this delusional

[Anonymous No.18605051]

>>18604992
>???? Stocks go up, etf goes up. That’s all that matters and all i need to know, nigga
please be bait

[Anonymous No.18605063]

>>18604445
can you please explain? What would be some worst case scenarios. Like could the ETF be stuck on some -40$ futures and basically go bankrupt?

Also what if the opposite happens. Imagine one day gold futures basically sky rocket, because the longs demand physical delivery, but the shorts can't get any gold anywhere. Maybe the whole future system would collapse, because suddenly everybody wants to get their physical, but it doesn't exist. How would a gold ETF react to this, especially one that is based on physical storage.

[Anonymous No.18605076]

>>18605041
Well along with the upcoming defaults on literally everything, yes. Not being able to profit off oil exports is a significant blow.

[Anonymous No.18605091]

U should have

[Anonymous No.18605113]

>>18604420
Thanks guy who read a blog once

[Anonymous No.18605138]

>>18605063
since you seem like a decent gu, ill tell you - but I dont feel like typing paragraphs so youll also have to do your research

USO is a commodity ETF, gold is MUCH easier to store than oil. Since USO has no place to store their oil they'll have to continually sell at a loss exacerbating their contango problem, most of their contracts that they bought for $24 expire next month. take that as you will

[Anonymous No.18605171]

>>18605063
This is exactly what's going to happen and these ETFs will be dissolved, but might could make a quick buck in the interim

[Anonymous No.18605191]

>>18605041
There are 10mil americans that work in the oil industry. Once oil pumping has stopped (and it will very soon) most of them will be fired.

Pic related btw

[Anonymous No.18605215]

>>18605018
Did this guy end up sudokuing himself?

[Anonymous No.18605227]

>>18605191
Furthermore the leases/loans of the oil companies will default especially since theyll need to find a way to fund plugging an oil well (VERY VERY expensive)

[Anonymous No.18605305]

>>18605171
>>18605138
What about the opposite? What if the the contracts can't be fulfilled because their is not enough physical material on the planet? This might sound silly, but everbody knows that there is way much gold traded than it actually exist. Normally this is not a problem. But people are getting already nervous, because you can't buy gold and silver atm. and I think those companies are now all trying to get it from the futures market. I can't imagine that it will be bad for the ETFs, the price will simply skyrocket. But what happens if basically nobody wants to sell anything anymore, because there literally is nothing to get. Would the ETFs simply pause? Did something like this ever happen, when there was a shortage of something?

[Anonymous No.18605459]

>>18605305
So I basically found this about gold:
https://finance.zacks.com/can-comex-default-delivery-11599.html

>Investment fans of gold and/or silver say there is enough potential for COMEX to default on delivery and that at some point, the prices of precious metals must go much higher. According to the imagined scenario, a large number of futures contracts presented for delivery would force the COMEX to go into the spot market to buy the metal it needs to deliver on those contracts. The extraordinary demand would quickly push gold or silver higher, forcing the COMEX to default when it cannot afford to pay for or even find the gold or silver it needs to fulfill its contractual obligations. However, the nature of futures contracts and the COMEX rules make this outcome very unlikely and -- according to one silver value expert interviewed by the TF Metals Report -- it is possible that the futures exchange could just elect to settle contracts in cash in a worst-case scenario.

So an physical gold based ETF should be somewhat fine, even in that scenario. Maybe they have to temporarily shut it down, for example when COMEX goes bankrupt. But as long as the ETF really has all the gold they claime they have, losses should be acceptable. It might be difficult to get the money out for a while, but it's not like they will be able to simply steal this from you.

[Anonymous No.18605491]

>>18605191
Good thing stonks are green every time unemployment moons

[Anonymous No.18605523]

>>18605305
To issue a future somebody has to have the item in stock. Also somebody is always willing to sell, if nobody is willing to sell the prices skyrockets until somebody is willing to sell.

If there is fraud then the buyers of the ETF are fucked a la 2008

[Anonymous No.18605582]

>>18605459
>but it's not like they will be able to simply steal this from you

He doesn't know.

[Anonymous No.18605585]

>>18605523
well but maybe nobody can sell, because the material simply doesn't exist.

What happened in 2008? Where the ETFs a fraud, or where they investing in fraud. So basically if it would turn out that COMEX was a huge fraud all along, would ETFs who are storing physical gold in their basements still have a problem?

[Anonymous No.18605610]

>>18605491

Issue everyone stonks as part of their severance. Have the Fed do it because they own most of the stonks market.

[Anonymous No.18605670]

>>18604385
> Aren’t ETFs basically indestructible?

Roughly 25% Of ETFs Closed During Past Five Years
SEPTEMBER 25, 2019 • JEFF SCHLEGEL

https://www.fa-mag.com/news/roughly-25--of-etfs-closed-during-past-five-years-51860.html

[Anonymous No.18605689]

>>18605585
>would ETFs who are storing physical gold in their basements still have a problem?

You think they actually have all that gold? I guarantee they just have IOUs like everyone else, and those IOUs are on gold that's leveraged 10x or 20x.

[Anonymous No.18605711]

>>18605459
At that point if you have connections you might just want to cash out and see if you can obtain at least some physical from someone who would be willing to sell...but that's dicey.

[Anonymous No.18605716]

>>18604385
ETFs are not indestructible. Nothing is indestructible but physical Gold. We just saw that even oil can go below 0.

[Anonymous No.18605767]

>>18605689
Well some of them are clearly a scam like GLD. But I trust the ZKB and UBS ones for example.

[Anonymous No.18605866]

>>18604385
post yfw you bought the dip

[Anonymous No.18605938]

>>18605767
>But I trust the ZKB and UBS ones for example.

Paper gold is paper gold. If you're investing in it to gamble while the world is stable then that's fine, but if there's an actual crisis you won't get your delivery of gold and you can expect the ETF to go bankrupt while the price of physical gold moons.

[Anonymous No.18606015]

>>18605063
ETFs and even Index funds are in giant trouble because they eliminate natural price discovery. Read what Michael Burry said about them.

[Anonymous No.18606089]

>>18605063
they shouldn't be selling more than they have physical supply anyway

[Anonymous No.18606153]

>>18604385
>Urals is actually up
>Amerimutts on suicide watch

[Anonymous No.18606204]

>>18606015
>>18605938
Ok thanks I will further look into this. Like I said I kinda trust ZKB and UBS. Especially ZKB it is basically the official state bank of Zurich (Switzerland). They are known to be trustworthy and are regulated heavily. Also if they scam me, I can easily walk up to them with my torch.