Uk-based oil ETFS ... currency flucs could eat my gains?

[seveets]

hi there

first of all, i am educated and aware but rather inexperienced - but my question is simple, i think

i am in the UK
i have a pot to invest, £25K and $25K
i have decided (no discussion, no philosopy required) to, long-term, invest in crude oil

so, i found CRUD etfs in London which i can trade with my online brokers and within my SIPP

but it is in US$ - and the online brokers i have come across all seem to trade only in £ and to convert from $ at transaction time

so, i need to convert from cheap pounds to expensive $... but then what happens if oil goes up 40-50% (year, two three, four years) and the pound recovers 20-40%+

if that happens (oil and pound both up) are my investments not pretty much negated?

so i don't actually make any real money.

- - is there a £-based Crude ETFS type instrument that will let me gain from oil but not lose if the pound should ever do well again?

help - and thanks!!

 

[normbeef]

You should visit ETF Securities Ltd

you will find a great deal of information on ETF's, you may find that what you are proposing to do actually carries different risks than you thought..

And yes the ETF will be affected by currencies... They might also be affected by counter party risks.. (Like AIG insurance for example)

you are not buying Physical OIL at todays price.. (or you would find a tanker on your drive) , and you should take note of how the ETF price is calculated , Contract Roll over - NAV values etc etc..

Sorry - forgot to Add you could always take out a Currency hedge against the USD/GBP pair if you think the pound will strengthen over the next couple of years..

 

[seveets]

thanks - will check out the site and do a little more self-education!