If you are looking for a new investment opportunity but don’t know where to begin, try a commodity. These raw materials are a nearly sure-fire way to protect yourself against inflation. More specifically, investors should be looking into the power of investing in water.
Many experts are saying that the water industry is not getting the amount of attention it should be, most likely because it is often taken for granted. After drought conditions in the U.S., rising population, and rising demand for water, many are no longer oblivious to the opportunity.
Continue reading to learn why you should be investing in water and other commodities. If you like what you see, Alpen Partners can be a great asset to your investment journey. Like with all investments and financial situations, Alpen Partners is equipped to assist in your journey of investing in water. Though this may not bring in money right away, the theme of scarcity of water is a long-term investment that will prove to be a staple in your portfolio down the road.
Commodity investing involves putting your money into raw materials that are either consumed directly, like food, or used to create other products, like precious metals. Energy sources and natural resources like are considered commodities.
Interested investors can invest in commodities in many different ways, like in physical raw form or using future contracts of ETPs that track a commodity index. Mutual funds are also a viable way to invest in commodities. Buying shares of a company that profits from the value of a natural resource is a great way to invest in a commodity.
Commodities can be utilized for diversification, to hedge against inflation, gain returns, and more.
Water is probably the most important commodity in the world. Unlike oil, there is nothing out there that does what water can do, so there is no competition. You can’t manufacture a product to mimic it, making it one of the greatest investment opportunities in existence. Water scarcity is a theme found all over the world that involves both climate change and demographics.
If you are interested in how exactly it is you invest in water, continue reading to explore the world of opportunity that has risen from the water industry. It’s not as difficult as some may think. If the current rate continues, from factors such as human consumption and industrial and agricultural use, the global demand for water is going to outpace the current water supply.
Due to a growing population around the world and continued water use, and shrinking water supplies, investing in water should be on the radar of many global investors looking for a new investment opportunity.
Because water is, and will be, the most important commodity for the world in the future, companies are dedicating themselves to water purification, transportation, storing, and bottling. These sectors are becoming increasingly recognized all over the globe.
While most investors recognize this, none of the existing financial products currently available are offering a way to invest in sustainable water solutions. Most of the existing funds and ETFs are focusing on large multinational food conglomerates that mostly sell purified tap water, or on industrial companies that focus on desalination technologies that have proven to be the least economically viable way to clean water.
This is why water purification, desalination, and sustainability is an important and profitable business to tap into. All over the world, governments are allocating billions of dollars a year to environmental protection to clean up polluted waters. China, for example, allocated $110 billion dollars to that in its Five Year Plan. The next plan will require more to address the continuing water issues.
Companies that are focused on addressing the increased water issues are predicted to experience the best growth opportunities for investors.
You can’t actually invest in water itself as a traded commodity, not yet at least. Instead, you would invest in companies that gain their revenue from services involving water. Many companies are dedicated to pursuing opportunities like utilities, manufacturing, and technology surrounding clean water. Here are a few different kinds of investments you can make in the water sector.
These investment opportunities exist all over the world, and the number of exchange-traded funds that offer diversified exposure to water-related stocks is growing. The ETFs usually hold a range of overseas listings in countries where the scarcity of water makes this kind of investment a long-term opportunity. China, for example, is home to 20% of the world’s population, but less than 7% of renewable water resources.
Some experts are more fond of subsectors of water investment that involve testing and monitoring, and companies that make special equipment like filters and pumps. These investments have high barriers to entry and recurring revenues.
Alpen Partners has developed an extensive network of specialists focusing on the theme of water investing. Our goal is to find the best investment opportunity for you, whether it’s in water or otherwise.
We will offer our clients the opportunity to invest in listed and private companies that are showing unique technologies and IPs, and who will therefore reap the benefit of the need for clean water in the future. While sustainable and socially responsible, these investments will also prove to be very profitable in the long run. Water investment can even tie into the world of impact investing. Don’t hesitate. Sustainable, drinkable, and usable water may rely on you and your investment.
No matter the problem, Alpen Partners will handcraft a solution for you. We know that there is no one-size-fits-all when it comes to financial success. Our approach involves working with our clients to make a unique plan to meet their needs. Rest assured that we will work hard to guide you through the process of meeting your financial and personal goals.
Contact us to enhance your financial plan today.