speculation http://www.wisebread.com/taxonomy/term/12417/all en-US Dropping the Price of Gas to $2.50 a Gallon in a Week http://www.wisebread.com/dropping-the-price-of-gas-to-250-a-gallon-in-a-week <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/dropping-the-price-of-gas-to-250-a-gallon-in-a-week" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock_000014309022Small2.jpg" alt="Man frustrated at gas pump" title="Man frustrated at gas pump" class="imagecache imagecache-250w" width="250" height="137" /></a> </div> </div> </div> <p>If speculation can raise the price of oil, why can't it drop it?</p> <p>That's the question that's been taking up a big chunk of the conversation between my friends, and I have to admit, it seems very possible.</p> <p>President Obama announced recently that he plans to <a href="http://money.cnn.com/2011/04/26/news/economy/oil_tax_breaks_obama/index.htm?hpt=T2">withdraw the $4 billion in oil subsidies</a> because the companies are making too much money. They don't need them, they don't deserve them, and that money could go to much better use.</p> <p>You have no arguments from me on that one. Oil companies need tax breaks like millipedes need more legs. And when Republicans start agreeing with repealing the tax breaks, well, you know this is a non-partisan issue if ever there was one.</p> <p>But while I applaud President Obama's intentions and motives, I don't see this being the answer. In fact, I think it could make matters worse. And the reason comes down to one word &mdash; speculation.</p> <h3>Speculation Drives the Market</h3> <p>Right now, oil prices are being driven up by speculation, not by sudden demand or lack of resources. Yes, the wars are certainly not helping, but they do not account for the price rising by almost $2/gallon since the election of 2008. That's double the price in just two years. Has your salary doubled in two years?</p> <p>You may recall that a few years ago, the average price of a gallon of regular gasoline climbed well over $4. That was down to oil speculation, pure and simple. The oil companies made astonishing profits, and then the price fell again, below $2/gallon. (See also: <a href="http://www.wisebread.com/gas-efficient-driving">Gas Efficient Driving</a>)</p> <p>What happened? Did we find a massive reserve of oil bubbling below the surface of an easily accessible stretch of land? Nope. It was speculation, too.</p> <h3>Why Can't the President Use Speculation to Lower Oil Prices Right Now?</h3> <p>Is that a very naive outlook? Or could it actually work?</p> <p>For instance, what if he gave a huge speech tomorrow stating that America is...</p> <ol> <li>...putting billions of dollars into exploratory drilling.</li> <li>...opening up Anwar for oil extraction.</li> <li>...cutting major deals with Saudi Arabia and other oil-producing nations.</li> <li>...opening up access to our massive oil reserve.</li> <li>...siphoning oil from the Iraqi oil fields.</li> <li>...demanding a minimum 60 mpg in vehicles by 2018.</li> <li>...expanding wind, solar, and nuclear power programs, reducing the need for oil.</li> </ol> <p>What would happen? Oil prices would drop sharply, and quickly.</p> <p>It's a simple concept. More oil means less demand for what's out there right now, and prices fall. Gold continues to rise in value, but imagine what would happen to the price if an enormous gold mine, abundant in the stuff, was discovered.</p> <h3>Rare Is Valuable; Plentiful Isn't</h3> <p>Similarly, President Obama's intentions to cut the tax breaks mean one thing to me &mdash; higher prices. Sure, we get to stick it to the oil companies and save $4 billion, but that's money we aren't going to see any time soon. Remember, the country has quite the debt to pay off. But if oil companies are getting less money, that will only make the price of oil go up. If they aren't getting help to do more drilling, oil is even more valuable.</p> <p>Now, I'm not saying we do any of the things I suggest President Obama should say. The stock market runs on rumor and, yes, speculation. If there's the merest hint that oil is about to become a lot more plentiful, traders will dump oil in favor of something else. Probably gold. And that's fine by me. I don't need gold to drive to work. Gold does not play a major role in every single thing we use, from the computer in front of you to the food you'll eat today. Gold, silver, diamonds, platinum, and frozen orange juice, they can all hit record highs. But <a href="http://www.wisebread.com/what-is-in-a-barrel-of-oil">oil</a>, it's one of life's necessities, and it should not be traded in the same way. So, why not use speculation in our favor for once?</p> <p>I believe gasoline will hit $5/gallon this year. It may even reach $6/gallon. I also believe that some well-chosen words by our government, regardless of actual intention, could help avert that eventuality. Many of my friends agree. But what about you?</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/dropping-the-price-of-gas-to-250-a-gallon-in-a-week">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/epipens-and-other-ways-companies-have-profited-from-your-pain">EpiPens and Other Ways Companies Have Profited From Your Pain</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-your-new-tires-really-6-year-old-ticking-time-bombs">Are your new tires really 6-year old ticking time-bombs?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-get-your-car-stolen">How to get your car stolen</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/downside-of-the-rolling-jubilee">Downside of the Rolling Jubilee</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/gas-prices-begin-a-rebound-5-things-to-know-now-before-you-buy-your-next-car">Gas Prices Begin a Rebound: 5 Things to Know Now Before You Buy Your Next Car</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Cars and Transportation Consumer Affairs Financial News cost of gas lower gas costs oil prices speculation Thu, 28 Apr 2011 10:24:09 +0000 Paul Michael 532621 at http://www.wisebread.com Do You Own a Domain Name That’s Worth a Fortune? http://www.wisebread.com/do-you-own-a-domain-name-that-s-worth-a-fortune <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/do-you-own-a-domain-name-that-s-worth-a-fortune" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/344255312_d77659f6dd.jpg" alt="domain name speculation" title="domain name speculation" class="imagecache imagecache-250w" width="250" height="236" /></a> </div> </div> </div> <p>Chances are, many of you reading this already own a few domain names. At around $8 a year these days, they're cheap enough. I own several, usually because I have a &quot;bright&quot; idea that I think would make an awesome product or website and snag the domain name before someone else does. Then it sits there gathering internet dust.</p> <p>Many people do the same as I do, and then forget about those websites. The option to auto-renew makes it very easy to sit on a website name for years and not even remember that you own it. And some of those domains can be worth hundreds of thousands of dollars. Even millions.</p> <p>A highly publicized example of this was the sale of the domain name sex.com a few years ago. That particular domain name sold for $14 million dollars! That was clearly going to be a very popular web address considering the amount of money the online pornography industry is worth. I am by no means suggesting you go out and buy smutty web addresses, by the way. No, there is money to be made from any web address if the right person is in the market for it.</p> <p>A friend of a co-worker of mine recently sold a domain name he bought back in 1994. He received over $100,000 for it. Not bad for an $8/year investment. Do a little searching on the internet and you can find many examples of this. But how do you know if you have one of these domain name goldmines?</p> <p>Well, first, use a little common sense. If you look into your archive and see a domain name that is a short, popular word, it's going to be valuable. Three-, four-, five-, and six-letter word domains are generally very difficult to come by these days. If you have one, consider putting it up for sale. An auction site like <a href="http://sedo.com/us/home/getting-started/?tracked=&amp;partnerid=&amp;language=us">sedo.com </a>is a great way to sell off your domains, minus a small percentage for the service.</p> <p>Next, remember that .com addresses are still the most sought after. The .info, .tv, .net and .org addresses can still be worth a ton of money though, so don't rule them out. But generally speaking, .com is where the money is.</p> <p>If the domain name you own isn't obviously popular, it still doesn't mean it's not valuable. You could have a made-up word like &quot;plunty&quot; or &quot;gigazig,&quot; and although it's meaningless, it could be the next Napster or Starbucks. If you put it up for sale, you may be surprised to find that a startup business wants it.</p> <p>There is also a growing business in domain name speculation. This is NOT cybersquatting, which is buying a domain name with the bad faith intent to profit from the goodwill of a trademark belonging to someone else. For instance, buying nikeshoes.com and waiting for a big fat check from Nike.</p> <p>This is speculation, pure and simple. You buy a domain name that's free and hope that someday you can sell it for a profit. For instance, I could see if &quot;gigazig.com&quot; is free, and if it is, I could snap it up. It will probably be worth nothing for many years, but hey, you never know. For a while I owned &quot;goalfrenzy.com,&quot; which was going to be a website dedicated to the best goals from soccer matches around the world. Of course, I never got around to creating the site and the domain name expired. Who knows, though. If I held on to it and a magazine or TV show appeared called Goal Frenzy, then that domain would now be worth cash.</p> <p>So, if you have a few domains sitting around doing nothing, go and check them out. Maybe you're sitting on something that could be worth thousands and thousands of dollars. Good luck to you.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/do-you-own-a-domain-name-that-s-worth-a-fortune">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-sneaky-ways-identity-thieves-can-access-your-data">3 Sneaky Ways Identity Thieves Can Access Your Data</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-alternatives-to-cable-tv-that-will-keep-you-entertained">8 Alternatives to Cable TV That Will Keep You Entertained</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/turn-old-clothes-into-money-with-these-4-tools-and-apps">Turn Old Clothes Into Money With These 4 Tools and Apps</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/craigslist-vs-ebay-where-to-sell-10-common-items">Craigslist vs. eBay: Where to Sell 10 Common Items</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/life-without-tv">Life Without Television</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Extra Income Technology domain name get rich Internet money making speculation website Mon, 30 Aug 2010 12:00:09 +0000 Paul Michael 221747 at http://www.wisebread.com