My main investment themes for the foreseeable future are:


1. Central banks and governments worldwide have and will continue to use fiat currency in every imaginable way to try and further their own agendas thereby debasing every currency at further escalating rates, thereby increasing the real value of real assets, the least of which is the ultimate real asset, gold

2. Growing populations and an upward movement in economies in Asia (in which I include Russia as it will be a major provider of energy and other raw materials to Asia) will grow demand for all forms of energy at a time when some forms of energy (oil especially) are in increasingly more difficult supply

3. The US, and related, stock markets began a secular bear market in 2000 at the same time as most commodities, and certainly gold, entered into a secular bull market.  Therefore I expect returns from general equities in the western world to dramatically underperform commodities and gold for at least 2-5 more years and quite possibly as long as another 14 years from now.

Given this overall theme, I was very happy to see natural gas dipping quite substantially over the last few days (nearing $6 as I write) as is quite common for it to do in the lower demand months of August and September, thereby making investments in this sector very attractive at this time.

As far as natural gas is concerned, reserves per gas well drilled continue to diminish and current reserves are being depleted at increasing rates.

I have read some commentary stating that natural gas prices should collapse, based on the fact that current storage volumes are above seasonal levels, but unlike other forms of commodities or energy, it is physically impossible to stockpile natural gas beyond 10-15% of annual consumption.

As well, all it takes is a slightly warmer summer or a slightly colder winter to change the supply/demand ratio significantly, not to mention a hurricane.

My current natural gas investments include AAV/T.AVN.UN, T.DAY.UN, T.FEL.UN, T.TET.UN and T.THY.UN.

As you probably noticed, they are all income trusts.  The average dividend yield on that group is nearly 15%, providing a great source of income and gains, even if my prognostication of much higher prices do not come to fruition.

I am looking to buy quite a bit more this week in response to the recent dip in gas prices and will likely be buying T.VNG.UN this morning.

If income trusts aren't your thing, another stock I may look at buying this week is a very interesting smaller company called Exxel Energy (TSXV: EXX) which is involved in the Columbia River Basin.