In this month’s issue of The Bill Bonner Letter, Bill outlines a few key reasons he believes coal might be worth a second look right now:
“When the truth is out, coal will be back in. Just as people can’t afford many of their shopping malls, health care systems and Teslas, they can’t afford so much gas and solar power either.
This will become evident when the cheap credit runs out, which it must, sooner or later. First, there won’t be the credit available to finance solar projects, fracking and deep-sea drilling. Second, higher financing costs will reduce the supply of competitive energy sources. Third, energy prices will rise, flattering coal, which will remain the lowest-cost competitor. Fourth, when credit is money, tight credit will make people feel poor. And then, when Christmas comes, they will not find the keys to a new Tesla in their stockings. Instead, they will find lumps of coal. […] Coal is reliable. It is there, right beneath the surface, right where nature left it 300 million years ago. It is easy to get. There are no surprises. When money is tight, coal will be dear.”
You can read the full argument, and about the Natural Resource Partners MLP, here.
And don’t forget, all Bonner & Partners Family Office members have a complimentary subscription to The Bill Bonner Letter. You can access the archives here or on http://bonnerandpartners.com/billbonnerletter (you can use the same login details you use to access the Bonner & Partners Family Office website).