bricki

Despite Dedicated ETFs, No Reliable Way to Play Natural Gas

I am a huge long-term bull on NG at these levels. I think it is a generational opportunity. NG is not only a key energy source, but it drives chemical and fertilizer production as well, plus it is suitable for a variety of other applications. Plus it is domestic, making it free of international security issues.

The problem with UNG and GAZ is they are impacted by regulatory overhead, and they leak badly because of contango. You might view them as a way of capturing losses but not so much gains.

Producers and other forms of commodity funds have to be the way to go.

On Sep 14 09:46 AM Henri DeToi wrote:

> That's my opinion as well. The industry is going to change to natural
> gas, electric power companies, cars, trucks, buses and people will
> swap their heating furnaces for natural gas; and as always this will
> jack back the price. It seems like a no brainer. A guess as always,
> but an educated guess.

Has Natural Gas Hit Bottom?

Maybe NG has hit bottom but I sure don't see any fundamental reasons for it to start going up in the immediate future. Lots of capacity and a poor economic picture don't usually make for a rally in a commodity like this.