natural gas - it may be time
Natural Gas has been a commodity that many folks, far and wide, have been claiming was destined to go up in price for the entire time that I have been aware that its price was low (as in all of 2009).
Throughout that time it has basically dropped steadily in price, recently hitting some kind of record all time 20 year 10 year epic low at $2.50.
Cramer has been heralding it now for weeks, the stocks have, oddly, been rallying even as prices fall, or at elast haven't been getting beat up. Is the market looking forward to price increases?
I took my first new long position since going long RJET in May (right at the $7.10 top, lol, only to buy more and more and more and more and more, double lol). It was in UNG calls for jan 2011.
I am considering adding to that position in coming days and certainly on any weakness. I missed the bottom last week as I was tied up with a project.
I also have exposure to gas through CHK, and through CEP (i'm up on CHK and about even on CEP in real life). CEP is something I need to dig into more thoroughly, to be honest.
At some point in time gas prices have to rebound, and I am willing to buy it the whole way down if it keeps dropping.
What do you fools think of nat gas as an inflation hedge the way gold or oil or silver could be an inflation hedge?