Global Warming Or No, Coal Will Remain King

It has been a hot month so far for investors who’ve backed coal.

Soaring oil prices and global coal shortages have powered the most recent bituminous run-up. Investors saw an additional boost Tuesday when the chief economist for the International Energy Agency said coal will be the world’s biggest energy source for the next 25 years.

In addition to providing energy and heat, coal is a key ingredient in steel, polysilicon and cement. It’s far cheaper than oil or natural gas and has four times the reserves.

It also is powering Van Eck’s Market Vectors Coal. The exchange traded fund has soared 15% since May 2, when it climbed 5% over one day. The five-month-old fund, the first to follow the global coal industry, tracks the performance of the Stowe Coal Index.

Investor’s Business Daily