How Do You Invest In Different Types Of Natural Resources?
Our earth’s natural resources are not unlimited, and much profit is to be had from their development, use and distribution. There are many different avenues available to investors seeking to profit from oil and gas, alternative sources of energy, timber, coal and other ores and metals. Decide what type of natural resource that you want to invest in. You can choose from oil and/or natural gas, coal, timber, other ores and metals, precious metals (although these are usually considered to be a separate asset class) and alternative sources of energy such as wind and tidal power, ethanol and hydrogen fuel cells. Invest directly in natural resources investment programs through limited or general partnerships. These vehicles pass through a prorated portion of the investment profits as partnership income (or losses). You will receive a K-1 form from the partnership at the end of the year detailing your income and expenses, which you must report on your tax return. There are partnerships availa
