Commodities and Resources
The development of China, India and other developing nations is putting pressure on the planet's limited resources. This leads to opportunities to invest in energy, metals, food and alternative technologies, the companies that extract, process and distribute them, and in the alternatives that new technologies promise.
The figures are striking. By 2025 China will have over 120 cities of
a million or more people: Europe has 35. These cities will have over 20,000 new skyscrapers to accommodate an increase in urban dwellers equivalent to the entire US population.These cities and buildings need iron, copper, glass, concrete, oil and gas for power and transport and food for an army of workers.
Even if the new urban dwellers were only to cycle or use solar-powered vehicles, the construction projects alone, the loss of agricultural land and the long-distance transport of food, goods and people will be a drain on the planet’s resources as never seen before.
And the planet, as we know, has finite resources, and the laws of supply and demand will prevail.
Sinclair James offers clients the opportunity to invest in funds from companies like Castlestone Management that invest either in the raw materials themselves: the oil, gas, gold, steel, corn, sugar or coffee, or with funds such as those from Ascenta International which hold stocks in carefully-chosen resource-related companies. There are advantages to both approaches, and our consultants will present these alternatives for you to assess.Many of these ideas are covered in more detail in Brave Old World, an article written for ANZCham in the Philippines.
To check on our most popular investments, including those relating to resources, see Where to Invest?