As I sat at the pump filling up my car today for $4.53/US Gal for premium, it dawned on me that gas is becoming an appreciating commodity. Bear with me for a second. As we look at the national average for lets say a 5 year CD, we see and APR of 3.62%. The latest number on inflation from April 2007 to April 2008 (based of CPI) is 3.9%. In other words the 5 year CD would not keep your green back buying power up with inflation.
Now for the sake of this argument lets look at something a bit shorter, say 2 months. US national average for a 2 month CD is 1.87%. Lets compare this to the increase in gasoline prices in California over the last to months (April 2008 to June 2008); in this 2 month period gas prices have risen a staggering 9%.
So in this inflationary time should I be investing in gas? Should I be saving my milk cartons to fill with gas and then keep in my garage to use in my car later or maybe sell to my neighbors? Kinda makes you think.......Happy driving.
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There's got to be a better way to invest in gasoline. You could just sink your money into oil company stock....
Oil companies have very little control over setting oil prices. They are at the mercy of the exporting countries. Probably one of the best ways to invest in oil, in this time of skyrocketing prices, is investing in the equipment Mfrgs of refinery and drilling equipment. However, by doing that you are speculating that indeed these oil prices are not a bubble.....