What does a 3% October premium to July mean? Why is a wide contango bad? Dennis Gartman says: "there has been a great deal of interest in nat-gas on the part of speculators in the past several days and the chart of nearby nat-gas has turned far more positive than it has at any time in the past many months. However, we are asked often about the efficacy of owning the nat-gas ETF as a substitute for owning nat-gas futures, and our response is that weâd prefer not owning either for we the contango is so wide that one is almost doomed to lossesâ¦ egregious lossesâ¦ over almost any protracted period of ownership. With October nat-gas trading 3% premium to nearby July, this is a huge premium to overcome, and weâd prefer not trying to overcome it. Instead, weâll again say that âbettingâ on nat-gas is better done by owning the various nat-gas trusts, for at least there one is paid a monthly stream of income, and that stream is now better covered with nat-gas trading above $5/Mbtu.