Dec
28
2013
Coal cars in Ashtabula, Ohio (taken Sept. 26, 2004) (Photo credit: Wikipedia)
Despite the numerous energy efficient laws and means of utility that are constantly being researched, future projections for KOL promise to still be profitable for traders who are interested in looking through a coal ETF.
Recently, a new bill was passed that, despite the constant technological advancements being made in the field of renewable energy, will make certain that the demand for coal will remain active. The Waxman-Markley Energy Bill that had just recently passed rewards the utility of cleaner energy resources, including cleaner coal. This makes now an even better time to invest in coal ETFs, as the bill has drawn attention to the commodity. This projected stability makes coal a sound investment for any diverse portfolio, as many experts believe that, like gold, coal will be able to stand the test of economic time.
While more and more countries slowly begin to become more environmentally conscious, alternative sources of energy and fuel will need to become available. Coal, of course, will be one of such sources. In countries such as China and India, the demand for coal is still high, and a coal ETF can be useful as a planned international investment to gain necessary foreign exposure. This can be particularly useful in a country where there is an emerging market for coal, or in any such location where coal is a chief export in the country's economic landscape. Coal can be an excellent way to look into developing regions while hedging any foreign risks that can develop in a nebulous and constantly changing market.