Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on Natural Gas Land, for retreats. (See the Tangibles Investing section, near the end of this column.)
Precious Metals:
First off, there is this from John Rubino, at Seeking Alpha: Gold And Silver Futures Swing From Bearish To Bullish In Just 2 Weeks
Stock Markets:
On to this at Fortune magazine: Commentary: Four Reasons Investors Should Be Psyched for Next Year’s Market. JWR’s Comment: Just keep in mind that Fortune is famous for being in the Perpetual Cheering Section, for the Dow. So view that commentary with suspicion.
Commodities:
Next, over at MarketWatch: How palladium and lumber defied the 2017 commodity slump
Economy and Finance:
Fed’s Kashkari says voted against rate rise on inflation, yield curve worries
Forex:
Sterling snaps 2-week losing streak on dollar weakness
Tangibles Investing (Natural Gas Land):
Finally, here is a useful piece recently published by the Penn State Extension. But it has applicability far beyond Pennsylvania: Natural Gas Exploration: A Landowner’s Guide to Leasing in Pennsylvania. As I’ve mentioned several times in the past in SurvivalBlog, I consider a ranch on developed natural gas land to be just about the ultimate for a retreat in North America. Having a “home tap” supply of natural gas provides you with: Unlimited space heating, unlimited water heating, and unlimited fuel for a generator. Just imagine having a couple of large greenhouses and free fuel, for heating them in the winter months. Oh, and a heated swimming pool and hot tub, too.
Just be advised that most of the natural gas service companies no longer provide true home tap arrangements, for liability reasons. (Since natural gas under local wellhead pressure typically isn’t odorized for safety.) Therefore, when a property changes hands, the home tap arrangement is usually replaced by a “free unlimited refills from our propane truck” (or some such similar) arrangement. Only a few properties with truly grandfathered home tap contracts come up for sale each year. One way to avoid losing the gas grandfathering arrangement is to have the seller place the natural gas land in a trust, and then have the trust convey to you. (Rather than a typical deed conveyance.)
Provisos:
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News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often “get the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!
That was my hope when I bought my home in the “stix” many years ago, that I would find an old abandoned gas well with enough “blow” on it to run a gennie and heat my house. Alas, none was found.
BTW: If The S were to HTF, It’s not hard to rig up your own “farm tap”, if you know what your doing. I do (work in the oil patch for last 41 years.)
Lumber prices are high enough that we will be doing a timber sale at our retreat this summer.
Land with gas wells is one of the things I’ve been looking at, but one thing I can’t find much info on is how much of a premium is it worth to get the mineral rights with free refills of LPG, let alone a ‘tap’ vs getting the land with no mineral rights?
@suburbanprepper
Though states do vary legislatively, the idea of owning land sans it’s mineral rights verges on oxymoronic in my opinion.I am personally aware of a family who built a beautiful new home on their property, only to have a natural gas pump (?) and access road established behind them soon after. And while a company may work to accommodate you to some degree, at the end of the day you cannot deny them access to what is lawfully theirs. Also bear in mind that with new technologies and methods, seemingly once neglected mineral rights may increase in value and entice the drilling your property.
Also bear in mind there may be a difference between shallow gas rights and deep gas rights. Mineral rights in my area are going for about 10k per acre but we are in the middle of a boom now.