Why This Scarce Resource is Also the #1 Investment Opportunity of the 21st Century
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Commodity prices have been going through the roof for years, thanks to a scarcity of supplies and ever-surging global demand.
But if you can set aside peak oil and the indisputable global food crisis for a moment, I want to talk about another threat facing the global economy. In fact, in my opinion, it’s the #1 threat to the global economy: the scarcity of fresh water.
This precious resource is also running in short supply. There’s no argument that water is much more necessary to life than oil. Without water, we die. Without oil…well, we learn to use bio-fuel… or bicycles.
Forget Peak Oil… What about Peak WATER!
Here in Florida, we’re already rationing our water, like many other areas around the world. Even as our “rainy season” begins, I’m restricted to watering my parched front lawn just two days per week. But that’s a very mild inconvenience compared to what’s going on in other parts of the world - and what’s likely to happen in the very near future here in the United States…
Due to global warming, glaciers in the Himalayas are melting fast. That’s bad news for emerging Asia, because a few hundred square miles off the Himalayas is the source for ALL the major rivers in Asia - home to nearly HALF the world’s population.
In places like Florida, where vast underground aquifers supply ALL our fresh water, rainfall isn’t enough to refill the sub-surface water tables.
It turns out water isn’t a “renewable” resource after all. Or at least Mother Nature is not renewing it fast enough to keep up with soaring demand.
“Demand for water continues to escalate at unsustainable rates” according to a recent Goldman Sachs report. “Globally, water consumption is doubling every 20 years. By 2025, it is estimated that about one third of the global population will not have access to adequate drinking water.”
Aging Infrastructure Leads to Short Supply
Water is running in short supply. It’s a global issue, and it’s approaching crisis dimensions. Consider that…
- Billions of people - don’t have access to reliable fresh water supplies
- The U.S. alone needs up to US$1 trillion in new water pipes and waste treatment plants by 2020.
- Half of the world’s population - will live under conditions of “severe water stress” within the next two decades.
- Water is also a vital industrial resource, used in the production of many other goods. For instance, it takes about 1800 gallons of water to produce a pair of jeans, 400 gallons to produce a cotton shirt, and 150 gallons for the Sunday paper.
The fact is, we’re consuming water faster than we can tap new fresh water resources. This growing crisis in the world’s fresh water supply means major profit opportunities are in store for companies working to find solutions.
Part of the solution involves building out new water infrastructure in developing nations where an estimated US$50 million a day will be invested on water supply projects over the next few decades. Meanwhile, aging water systems in modern countries are leaking like a sieve. They badly need infrastructure updates.
Global Water Crisis Will Trigger a Tidal-Wave of Spending
The World Water Council estimates that developing nations alone will need US$4.5 trillion in water infrastructure investment over the next 25 years alone. And this isn’t just a third-world problem…
In modern industrialized countries, municipal water systems put in place centuries ago are woefully inefficient and falling apart at the seams.
In Europe, most pipe systems date from before World War I and many haven’t been upgraded since then. These leaky pipes lose 40% to 60% of Europe’s drinking water before it can be used.
In U.S. municipal water systems 30% of the pipes are between 40 and 80 years old…another 10% of pipes are over 80 years old. As a result, about six billion gallons of treated water leak from American water systems every day.
The global water crisis may soon end up grabbing the headlines away from soaring food prices and sky-rocketing energy costs. This will result in an unprecedented spending boom of more than US$5 trillion over the next 20 years, according to estimates.
That’s about US$250 billion in water-related spending every year - a very big opportunity to profit if you know where to invest…
I’ll be watching this trend very closely over the next few months. Please stay tuned for updates.
MIKE BURNICK, Senior Editor & Global Markets Analyst
P.S. In my research, I’ve discovered one fund that invests in 50 different water treatment and infrastructure companies. In my opinion, it’s the absolute best way to profit from what’s quickly becoming a global issue. Look for full details on this dynamite play coming in the July issue of The Sovereign Individual. Don’t receive our members-only newsletter? Click here to sign up for the next 12 issues - for pennies a day.
Source: Why This Scarce Resource is Also the #1 Investment Opportunity of the 21st Century
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Tags: , Bio Fuel, Commodity Prices, food crisis, Global Water Crisis, Goldman Sachs, peak oil, peak water, resources, Supply Water, waterAbout the Author
Mike Burnick serves as a Senior Editor and Director of Research for The Sovereign Society and editor of Market Shock Trader and Global Market Investor. He also hosted his own investment radio program. Mike is the founder and president of Jupiter Capital Management, an investment advisory firm.
The Offshore A-Letter specializes is an elite global investment opportunities, asset protection strategies, tax management solutions, second citizenship and residency programs and offshore structures.