Energy investors shouldn't just focus on oil sands right now. As the chart below shows, its cousin natural gas is "supercheap" these days.
Longtime DailyWealth readers know we encourage folks to view the world through several different "lenses," one being the price of gold. By using gold as a "gauge" to value various assets like land, stocks, currencies, and other commodities, you can filter out the declining value of paper currencies. It's no magic pill for making great investments, but it can give you a great "real money" guide for buying cheap assets.
Count natural gas in the "cheap asset" category right now. The chart below displays the past 10 years of natural gas trading in terms of gold. As you can see, natural gas fluctuated around the same value versus gold from 2002-2008. But in 2008, lots of new natural gas supplies came online, while gold soared in value. This "natural gas down, gold up" situation has left the clean fuel near historic levels of cheapness.
This is no call for a big rally in natural gas... We're simply pointing out that natural gas has been clobbered in the past year. If you're a contrarian, you're interested in natural gas...
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