A UNIQUE NEW PLAY ON THE OIL MARKET – OWN THE NEW ‘RED CRUDE’
“I own commodities because there are serious supply problems facing the world in commodities. If the world economy gets better, wherever it gets better prices are going to get higher because of the shortages. If the world economy does not get better I would rather own commodities because governments are going to print money. They will print more money, and throughout history when governments have debased currencies, when they have printed money, the way to protect yourself and to make money is to own real assets”: – Jim Rogers
Capital Alternatives has teamed up with Oil Barrel, the leading oil acquisition specialists (www.oilbarrel.ae) to offer a unique physical asset that is a direct play on world oil markets – where prices in recent weeks have fallen to the point that leading commentators believe a major buying opportunity now exists.
Oil is a very liquid market in more ways than one, and is as easily traded around the world like gold and diamonds. It is one of those assets that can quickly be turned to cash, and the investment opportunity here takes full advantage of the ability to trade quickly. In fact, Capital Alternatives is able to offer investors clear pricing and swift dealing in one of the world’s best alternative assets.
- Goldman Sachs’ forecasts suggest 40% uplift in value over the next 12 months
- Other oil analysts predict doubling of price within five years
- Purchase price at 5% discount to spot values (as long as the asset is held for a minimum of six months)
- Direct ownership of the asset, fully certified and verified
- Secure free storage for up to two years as part of the investment package
- One of the most liquid asset markets available, offering ease of exit
- Premium product that is not environmentally controversial
- Sell via Capital Alternatives at full spot price on day of transaction
- Limited stocks available for Capital Alternatives’ clients
The problem for private investors has always been that they cannot directly own a ‘barrel’ of oil. Crude oil prices are measured in barrels, but the commodity is no longer kept in them, and there is no easy storage or stock point between crude oil coming out of the pipeline and entry to the refinery. This means there is no way for investors to hold the world’s main fuel stock – unless you can buy a tanker full!!
However, the development of bio-fuels offers a way for individual investors to buy and hold their own barrels of potential fuel oil, thereby participating in what is expected to be a medium to long-term rally in fuel prices.
Red Palm Oil is now a major component in world fuel production, being used to supplement or replace crude oil in the production of diesel and other fuels. As a result, the price of Red Palm Oil has begun tracking global crude prices – as the charts below demonstrate.
The good news is that, whilst it is not possible for private investors to own a barrel of crude oil, it is possible – and Capital Alternatives and its partner can make it easy – to own barrels of Red Palm Oil.
We now offer the opportunity to own barrels of Red Palm Oil stored securely in West Africa, close to where the oil is produced and where it is likely to be used.
However, we must point out that there is limited availability on this offer, as our partner has set aside a fixed amount for sale to private investors.
The opportunity includes the following -
- We are offering investors the chance to buy a minimum of 840 palm oil barrels at 5% discount to the ‘spot’ Red Palm Oil price.
- All storage costs up to 2 years are included in the purchase price.
- Investors can buy as many multiples of the minimum contracts to receive free storage.
- The price quoted is based on the calculation – Per tonne US$ spot price for Red Palm Oil ÷ 6.837 (number of US 42-gallon barrels in a tonne of palm oil) x intra-day spot Sterling/US exchange rate ÷ 100 x 95.
- We offer a sales price based on commodity and also the currency spot price for the day of transaction, as well as the Red Palm Oil spot price.
- Palm oil is stored in 5 gallon drums and the palm oil prices are set to increase from the given level. These are based on investors holding the stocks for a minimum of 6 months from the date of purchase.
The document is the letter of support from the Sierra Leone government for Capital Alternatives and Plantation Asset Management projects. The government of Sierra Leone recognizes the projects as an effort, which is part of its vision and growth plan.