Saturday, January 16, 2010

Natural Gas Prices Going Up?

Natural Gas Prices Going Up?

The combination of increasing interest rates and stocks trading at high P/E multiples is a disaster waiting to happen, and that's the environment we're about to enter into, making alternative investments a priority for those wanting to continue to make money with their investments. To that end and in that economic environment, commodities like precious metals and energy are great ways to invest to counter the high-risk associated with equities in those times.

So in times of rising inflation, there is no doubt where the best place to put your money will be, and that should be commodities going forward, and within that sector, natural gas should really do well.

What is very positive about natural gas is it can be bought cheaply at this time with a lot of upside to it.

Over the long term, some of the factors involved with the lower price of natural gas should change, including gradual movement away from coal-run power plants (at least in the sense that some will go to being run by natural gas), demand from China, and potential decline in supply of oil, which in many cases natural gas could make up for.

All of this is saying that demand for natural gas has an excellent, and almost for sure chance of increasing the energy source in price. Add to that that you can get natural gas relatively cheap, means you need to consider it as a part of your investment portfolio.

Natural Gas Prices Going Up?

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