United States Natural Gas (NYSE: UNG), the exchange traded fund for natural gas, is up for the last week, month, quarter, six months, and year of market action (chart above). For 2014, United States Natural Gas is up more than 25 percent. That is very bullish for those selling oil and natural gas mineral rights, royalties, and leases.
As an exchange traded fund, the UNG offers a broad investing approach to the natural gas industy.
Based on its price performance, that is obviously very bullish based on what Wall Street is paying in increasing prices. As that is the classic "smart money," that is even more positive an indicator for those selling royalty interests and other energy assets. In the energy sector, commodity prices ripple across the board.
Both short term and long term forces should keep energy prices high.
Long term, economic growth around the world will lead to a greater demand for oil and natural gas. The more demand, the higher the prices will go. In the short term, the cold weather took natural gas prices much higher. Investor sentiment has kept the prices at a lofty level. The economic security and politicial stability of North America makes those energy assets even more valuable.
That makes it a great time to sell mineral rights and royalties.
Prices are high. So is the level of cash. The demand looks to be on a permanent high. Sellers cannot ask for anything more in the market when looking to cash in at a great price. This video provides the information on how to get top dollar when selling leases, royalty interests, and other energy assets.