Diversifying Energy Investments 101

Posted by on Mar 24, 2019 in Mineral Rights | 0 comments

Lately, I’ve been wondering about different types of investments. I’m still young and paying off some student loans, so I haven’t had the chance to really dive into the world of stocks, mutual funds, and other investments but it’s definitely on my mind more and more as I get older. I want to retire someday, and smart investing is the key to making that happen. Some people end up inheriting investments that they find strange or are unfamiliar with. Real estate is a prime example. Maybe your grandpa was a real estate agent that was really plugged into the housing markets across the country. He used his knowledge to turn money into more money through property investments. You might not have a clue about the housing markets, and it would be difficult for you to know how to manage that property, when to sell it, and how you can adapt it as markets shift. That’s okay though, you can always sell the properties when you inherit them and use the capital you get to invest in something that you are comfortable or familiar with. I recently found out about another great example, mineral rights. I was reading all about it on The Mineral Auction website. The Mineral Auction is a company that helps people with mineral rights find people looking to buy so that buyers and sellers can be sure they have a good deal. This company performs evaluations on your land so that buyers cannot trick sellers into taking an unfair deal. They also have a large database of contacts. This increased competition drives prices up, giving you more money for mineral rights.

Maybe you’ve inherited mineral rights from a deceased relative that knew a lot about the oil & gas industry. They bought a large piece of land in West Texas because they believed it was a prime area for drilling natural resources. You may not have knowledge or expertise in the energy sector, but that’s okay. You have the option to sell these mineral rights for what they’re currently worth and invest in something you enjoy. The Mineral Auction actually helps sellers to liquify their assets and then convert them into non-depleting assets. A non-depleting asset is an asset that won’t run out at any time. Mineral rights on a plot of land are definitely a form of a depleting asset. Let’s say you have mineral rights in an area, and then you allow a company to drill on your land. As companies drill for oil and gas, they’ll be paying you but they’ll also be making your land less valuable as they remove more and more resources. Should you see a company strip your land of resources completely, you will now have mineral rights on a piece of land without any valuable minerals. Non-depleting assets are things like renewable energy. Companies that produce energy through solar power or wind turbines will never run out of a means to produce energy, so they are considered non-depleting. This is definitely something that every person invested in mineral rights should consider as the world continues to invest in green energy more and more every year.

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