The metallurgical coal industry is set to face significant declines in price, according to analyst’s forecasts. Bloomberg conducted a survey of a nine-analyst panel whose median forecast placed the price of coking coal at $200 a tonne by April 2009. The individual forecasts ranged from $140 to $305 a tonne.
Coal is the best commodity to get into right now. The recent global economic downturn has led to a slump in coal demand and production cuts, however serious investors are not shying away from what they see as a most opportune time.
Despite the global financial crisis, several major coal producers reported increased profits this week, including Gloucester Coal, Console Energy, Alliance Resource Partners, Arch Coal, Walter Industries, and Alpha Natural Resources.
If you are lucky, Santa Claus may leave a huge lump of coal in your stocking this year. With near-month futures contracts trading in the $120-$130 per ton range, the formerly shunned fuel is more valuable than ever.
As with most investments there are risks and rewards associated with commodity investing, often in lock-step. Many investors hire experts to manage their money rather than doing the investigation required to increase the chances for success. But...
Wednesday, December 3, 2008