Coal! Buy it now. 2012 Coal = 2003 silver!

[LuckyStrike]

Mamboni, I think your points in the OP are valid.

I know a guy who works at a coal fire power plant, they are currently running (last I heard) on Nat Gas, because it is so cheap due to fracking but this IMO will not last. I can't imagine this is the only coal plant doing so.

As you said, I cannot envision a scenario where in the next 10 years oil will not be over 200 per barrel, I can't remember the exact figures off the top of my head but it's something like for every $10 increase in the price of oil, GDP drops by 1% (maybe it's .1) but either way this is significant, and I think if it gets to that point ecomentalists will take a back seat to prevent an uprising.

As for Nat Gas, I think production will be drastically less due to output declines, or lawsuits over the next few years which will make coal prices more favorable.

From what EoA says, if coal miners are scaling back this reminds me of what Nat Gas producers were doing when the price reached a low in the middle of this year and this eventually will put a floor under prices.


I share your sentiments too about some portfolio diversity, because like you I am probably 3/4 precious metals and miners. So I could stand some exposure to a different sector but for moral reasons I can't bring myself to invest in a lot of blue chip companies even if I think they present good dividends or upside potential.

I would also like to add that while I am wary of saying "it can't go any lower", I also think the time to buy companies is whenever they have sound business models and have suppressed prices due to nothing more than politics which creates a distortion.