ETFs for a Natural Gas Rebound

Article here. There certainly seems to be more traction than I would expect given the surplus.

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“After slumping for longer than anyone cares to remember, it seems like natural gas is fighting its way to higher prices, however volatile that path may be,” writes Jared Cummans at CommodityHQ.

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Permalink Reply by Henry on June 20, 2012 at 6:39am

Buying UNG is not for the inexperienced. 

Permalink Reply by David on June 20, 2012 at 12:22pm

I agree. I have purchased FCG over the last few years and they have done a better job, IMHO, in creating value than has UNG.

The point of the post was that there seems to be more underlying strength for natural gas than we have seen in some time.  Time will tell, but it is some positive news.

Permalink Reply by GoshDarn on June 20, 2012 at 1:19pm

Yeah, well -- NG might plateau, or the price might turn back down, or the Henry Hub might continue its slow climb up.  Of course, the recent "news flow" has many convinced that our electrical grid is converting -- fast and furious -- from dirty coal to cleaner (and much cheaper) NG.  Plus, the U.S. national economy's industrial demand has temporarily swung up per certain consumer buying (it seems).

Nevertheless, when it comes to "commodity futures" -- it's wise to remember that speculators actually kinda do (and will) "manipulate" the price, in that such markets are not always linked to physicalities.  Hedging and short covering and fake outs (per gaming the markets) can create false charts.  

Permalink Reply by Keith on June 20, 2012 at 5:30pm

I was thinking of buying a natural gas ETF as a hedge to my home natural gas expenditures, n a way similar to what airlines do with jet fuel futures. If the price stays low I'll pay lower utility bills and be happy, if the price goes up I'll make a profit on my ETF.

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